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Business Strategy Assignment Solution - TESCO

   

Added on  2020-10-04

12 Pages4147 Words376 Views
BUSINESS STRATEGY

ContentsINTRODUCTION...........................................................................................................................3P1. Analysis of impact and influence of macro environment on organisation and its strategies.......................................................................................................................................................3P2. Internal environment and capabilities of a firm.....................................................................6P3. Evaluation of competitive forces of retail industry...............................................................8P4. Devising a strategic plan for company..................................................................................9CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12

INTRODUCTIONBusiness Strategy is said to be as the course of actions and decisions which are to be taken by afirm to earn the profit of competitive advantage in the marketplace. The main purpose ofadopting this strategy is to attain the goals and objective of the organisation in effectivetimeframe and in an effective manner. This strategy also has the aim of gaining the attention oflarge number of customer so that the organisation can able to enhance the growth of theirbusiness. The present report is based on TESCO, which is a British multinational retailercompany and deals in clothing, merchandise, electronics and grocery products. This was foundedin the year 1919 by Jack Cohen in England, UK (Bell, Bryman and Harley, 2018). This reportwill emphasize on the impact of macro environment of the company and its strategies. Alongwith this, the internal environment of the firm and its capabilities are also been discussed in thecurrent report. In addition with this, various theories or model has been discussed and porter’sfive forces have also been outlined. At last, the report is end up by devising a strategic plan forthe organisation.P1. Analysis of impact and influence of macro environment on organisation and its strategies.Tesco manager has conducted the pestle analysis to gain the knowledge about theexternal business environment factors which influence and had impact on the firm and itsstrategies of business.POLITICAL FACTOR – These types of political factors are taken into consideration to remainand sustain for long period in the market. The political factors are related to the government andaffect the business operations of the company (Brewster, 2017). Some of these factors arepolicies and taxes, fiscal regulations and trade tariffs, etc. The positive and negative impact ofthis factor has been outlined below –POSITIVE IMPACTNEGATIVE IMPACTThe positive impact of this factor is that thegovernment of UK is remaining stable andreflecting that the rules and regulationsmade by the political system of UK remainconsistent every year. This leads TESCO togain knowledge about the legal formalitiesand remain and leads in that market.TESCO is trying to expand their businessin global market where the political systemis not legal and which can affect on thesustainability of the company, thereforethey are devising a strategy and seeking forsuch market where the government is stableand the political system is legally

permitted.ECONOMIC FACTORS – The factors which are related to the economy are said to be aseconomic factors such as interest rate, inflation, economic growth, etc (Cavusgil and et. al,2014). These factors are to be considered by TESCO so that they can maintain their leadingposition in the market. POSITIVE IMPACTNEGATIVE IMPACTThe positive impact of this factor is that thecompany is considering the policies whichare made by the UK government and whichare affecting the demand, price, expenses,and revenue of the firm so that they can runand operate their business operations in aneffective way.TESCO is dealing with 30% of marketshare in UK, and if any change occur ineconomic policies then the sale and profitsof TESCO will be affected. Therefore toovercome by this issue, they have to keepcontinue their research on revenue.SOCIAL FACTORS – The factors which are related to the population and which affects thebusiness operations of a firm. The social factors are related to the cultural trends, population andlatest customer lifestyles, etc. POSITIVE IMPACTNEGATIVE IMPACTThe positive impact of this factor is that theUK customers are having their interest onone stop shopping. Also the company hasincreased their productivity y offeringmore organic and healthy products to theircustomers.TESCO is having the innovative productswhich are not available anywhere.Therefore they have to continuously makesuch products which are innovativeotherwise the customers will go to theircompetitors. TECHNOLOGICAL FACTORS – In this, the factors are related to the constant change in timeand environment which has the major effect on the business operations and strategies of thecompany (Chang, 2016).POSITIVE IMPACTNEGATIVE IMPACTThe positive impact arises in this factor isthat Tesco is undertaking various initiativesto stay forward from its competitors in UK.The huge number of companies within UKwho deals in the same sector of TESCO,they mainly focus to produce innovative

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