Business Strategy: Internal and External Analysis and Strategic Options for Tesco

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Unit Number and Title Unit 32 – Business Strategy
Title Strategic Management Plan
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Table of Content
Introduction 03
Part A: An internal and external analysis that provides a platform for
strategic decision making: 03
1. PESTLE and SWOT of the organisation and an evaluation of the organisation’s resources
and capabilities 03
2. Competitive environment analysis using Porter’s Five Forces model 06
3. Identification and justification of the organisation’s existing and/or potential competitive
advantage
4. Valid strategies and tactical objectives to achieve overall strategic objectives p
Part B: On the basis of this analysis critically evaluate and justify strategic
options for the organisation: p-p
1. Critical evaluation of the different types of strategic directions available to the organisation p
2. Justification and recommendation of the most appropriate growth platform/s and strategies
p
3. Evaluate ways and means by which the chosen strategy/ies can be monitored in order to
ensure success p
5.0 Conclusions p
References p
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Introduction
Business strategy is defined as to set out the transparency on the plans, goals and such actions. It
helps to highlight the outlines of the business to compete with their rivals and gain a competitive
advantage in the particular market place with the number of products and services. The London
based organization which will mention in this study is Tesco. It is basically known for the best
retailer in the country. It has its stores in more than five countries which is across Europe. The
main purpose of this report is to analyse such impacts of the macro environmental factors on the
Tesco. Further, analyse of the internal environment and capabilities as well. By applying the
porter's five forces model evaluate the competitive forces of a given market sector. Moreover,
applying a range of theories, concept and models with the given organization. With the porter's
generic strategy and bowman's strategy clock with the devise strategic management plan.
Part A: An internal and external analysis that provides a platform for
strategic decision making:
1. PESTLE and SWOT of the organisation and an evaluation of the organisation’s resources
and capabilities
The PESTLE analysis is a tool to analyse such external environmental situation which Tesco plc
operating by discussion such factors who are creating the impact on the Tesco's performance.
Political factor- the factor helps to determine the stages in which the government are
influencing the certain economy and organization as well (Awan and et.al., 2022). It may create
a negative impact on the Tesco because the company is basically operating with the many
countries and the government sometime refuses to avoidance of the prices and that may affect in
the future.
Economic factor- this factor examines the economy performances which directly impact
on the company and give the reason for the long term effects. It may create a positive impact on
the Tesco because increasing the wages rate and GBP is regularly increasing in the UK which
creating the benefit for the company.
Social factor- this factor basically highlights the social environment of the country which
are changing day by day with the new trends. It may have a positive impact on the Tesco,
because changing in such trends like customers preferring the fast delivery and get to more
flexible with the return policy as well.
Technological factors- this factor is with such innovations in the technology which
affects the organizational operations of the organization (Felipe and et.al., 2020). Few years ago
Tesco were facing the technological issue with the decreasing customer experience as well. Now
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with the innovative ideas the company is expanding their business as well as increasing in the
customer experience as well. It may have a positive impact from the technological factor to the
organization.
Legal factor- this factor involves basically both internal and external ways with the
changing in the certain laws which affect the whole business environment. It may create negative
impact on the Tesco because changing in certain laws or regularly changing the company needs
to make an extra effort to reduces such risks. Such kind of breaches can easily put the
organization in the legal trouble which is very problematic for them.
Environmental factor- this factor basically determine by the surrounding environment
which are all crucial in the particular industries (Hong and et.al., 2019). This may create a
negative impact on the Tesco because changing such environmental laws affect the company
with using the renewable energies and changing plastic bags with the paper bag.
There are many internal factors as well which have an impact on the organization positively and
negatively as well. The factors will analyse with the help of the SWOT.
Strengths
The biggest grocery store over the Brian- Tesco is liable to capture the proper growth in
the market in the term of revenue.
Effective network of suppliers- it simply increases its business effectiveness, with
reducing the costs by the waste management.
Weakness
It has a failure in the Japanese and US market- the company expanded its business to
these countries but fail to survive, the major reason is it could not export their operations.
Financial Errors- Tesco's profitability affected because of their high debt on the credit
card.
Opportunities
New emerging markets- Tesco is expanding their business in many countries as some
emerging market like Indonesia and Turkey.
Online shopping store- Tesco is already having the mobile app for the online shoppers it
can upgrade that for more feature.
Threats
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