Business Strategy

Business Strategy

TABLE OF CONTENT
TABLE OF CONTENT.........................................................................................................................2
INTRODUCTION.................................................................................................................................3
LO1.......................................................................................................................................................3
P1 Macro environment framework....................................................................................................3
LO2.......................................................................................................................................................6
P2 Internal environment factors analysis...........................................................................................6
LO3.......................................................................................................................................................7
P3 Porter 5 force analysis..................................................................................................................7
LO4.....................................................................................................................................................10
P4 Theories and conecpts to analyse and inerpretation of staretgic directions.................................10
CONLCUSION...................................................................................................................................12
REFRENCES......................................................................................................................................13

INTRODUCTION
Business strategy refers to various plans and policies of company that promote growth
and expansion of business across various nations. Macro factors refers to external and
internal factors that impact on overall growth and expansion of business so company need to
frame effective strategies and plan so that best outcome can be gathered. Internal factors
such as organisational culture, structure and employees that are offering different services
and products to customers can helps firm in gaining competitive advantages and protect itself
from various threats. This report is about Tesco which is one of the leading firm in UK
having large market share, resource and capital to operate its business in retail industry. The
report discusses about macro environmental factors that impact on Tesco operation through
use of Pestle model so that effective strategy can be formulated. Swot Model is used to
analysis internal strength and capabilities of firm whereas Porter five force model is used to
evaluate level of competition within industry. At last the report has use porter generic
strategies and Bowman model to formulated effective strategies so that company can
maximise its profitability and sales volume.
LO1
P1 Macro environment framework
Business strategy is one of the high functional strength onto which global companies
are highly stressing for occupying strong position among other competitive industry to gain

strong customer base goodwill and high profitability marketing position. The global business
strategy has been highly adaptive with latest thresholds to gain high functional strength,
optimum use of resources and technical efficiency among delivery of various products. Tesco
is one of the biggest high quality production retail company producing large portfolios of
innovative products and services on global parameters. Tesco being one of the biggest retail
companies offering large portfolio of products and service to world customer segments and
has high goodwill, strong position among industry has high performance standards among its
product delivery. The macro environment is one of the most important factors which
companies have to analyse for strong business standards among other brands to enable large
customer base formulation. Pestle analysis is the most important framework through which
companies gain knowledge on various aspects of how macro environment affects for long
term vital usage and goodwill formulation (Akter, Wamba, and Childe, 2016).
 Political factors: Tesco faces huge impact from external parameters of political imbalance
within UK and its exports to European union countries where the raising tariff barriers and
the increased taxation has changed the price graphs variably. Political factors explain the
need to high strategic planning for formulation of end target growth among large customer
base, high expansion into new countries market segments. Political factors has been highly
important for gaining strong position among competitors within the external framework,
where countries demographical situation brought high impact on sustainability of business
and revenue generation.
 Economic factors: The changing economic situation with less disposable income factors
among consumers within UK scenario has been large changing factor for Tesco to expand its
international horizons into larger scale markets. The prices of products need to be highly
strategically developed with the high economic parameter for gaining strong position among
consumers market share. The UK economic position, changing international demographics
for various parameters of economic situation has highly impacted retail industry companies
(Appleyard and Chesbrough, 2017).
 Social factors: The changing social factors where customer preferences are highly changing
with the demand of strong innovation, creativity factor and high relative demand for various
new quality parameters are the strong social factors which are impacting Tesco (The high
competition among marketers new brands and retail companies coming up within UK,
global position among various high paradigms developed which impacts the relative synergy
of Tesco. Tesco needs to strategically plan its marketing position with social factors keeping