Tesco Business Strategy Analysis
Added on 2020-02-05
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BUSINESS STRATEGY
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1PART 1............................................................................................................................................1TASK 1............................................................................................................................................11 and 2 External Environment Analysis.................................................................................1TASK 2............................................................................................................................................63 and 4 Internal Environmental Analysis...............................................................................6TASK 3............................................................................................................................................85 and 6 Competitive advantage..............................................................................................8TASK 4............................................................................................................................................97 and 8 Strategic Recommendation........................................................................................9PART 2..........................................................................................................................................11Executive Summary..............................................................................................................11CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
INTRODUCTIONBusiness strategy is a long term planning of business. It is basically referred to as statingthe business objectives and goals of an organization. It is further subjected to achieve thedesirable targets of increasing profits and revenues of a business. This report is to study thebusiness strategy of TESCO PLC, UK. TESCO PLC is a global leading company of Britishwhich is effectively dealing in the retail sector of groceries and general activities of merchandise.Such worldwide companies prefer to enjoy long term success and thus focused towards workingstrategically (Bones and Hammersley, 2015). A profound business strategy of TESCO can beeasily judged by investigating the varied visions and missions of a company. TESCO has an aimto grow its business all over the world and become the most valuable service provider for itsclients. It also focuses on utilizing some effective measures of modern and innovative techniquesto satisfy the present needs and demand of its customers. Along with that, TESCO gives a hugerespect to all its stakeholders and thence it is highly aimed at gaining an equal level of trust fromits customers, employees and shareholders, etc. However, it will be a challenging task forTESCO to fulfil its above stated mission of performing its CSR activities at a global level withnumerous challenges. Therefore, the below presentation will effectually state the necessarymeasures that TESCO need to apply for competently beating those challenges.PART 1TASK 11 and 2 External Environment AnalysisTESCO PLC is currently handling total 6,814 stores all over the world and at everycorner it is largely involved in managing its corporate social responsibilities. The CSR activityleads to make a sound business by automatically generating an increasing profits and revenues inthe business. Due to this fact and in terms of its profits and revenues, TESCO PLC has achieveda third highest position of retailer in the world (Slack, 2015). But operating a business at aninternational level is full of challenges and uncertainties and needs a prompt study regarding theaffecting factors. For which, below is an investigation of varied macro and micro environmentalfactors, especially affecting the CSR activities of TESCO. It will help the TESCO to furtherdevelop its business policies strategically.1
PESTEL AnalysisPESTEL Analysis is a vital tool to study both internal and external factors affecting thestrategic management of TESCO to formulate the necessary measures for implementing new andvaried ideas towards the overall success of its business. It effectively determines various factors,that conclude-Political- The political factors mainly defines country's stability in which the TESCO isoperating its business. It reflects the major key factors of tax rates and constitutionalactivities, etc. It greatly affects the business performance of TESCO especially where it ispurely into the retail sector. Due to a continuous financial instability in the country,there's an ongoing pressure on the retailers to generate employment opportunities fortheir domestic population (Castelli and Sianesi, 2015). However, it will also diversify theworkforce of TESCO by rising demand for its products and services.Economical- It is a key factor for any organization which clearly defines its financialposition. Thus, it is important for TESCO to be aware of any changing policies oftaxation which states the purchasing costs by determining its demand and profits, etc. Italso states the policy of minimum wage requirement to its employees. Internationalexpansion and diversification is always a reason behind the success of the TESCO.Likewise, due to diminishing levels of income, TESCO has started focusing more uponadvertising its brand value products rather than its luxurious items.Social- It defines indulging into the changing trends and latest demands of consumers inrecent operating market. These factors are then affected by the cultural values andthoughts of their residents or localities. Therefore, considering the required changes andworking accordingly also comes under the CSR activity of TESCO. More approachtowards building organic food is useful to satisfy and address the health concern oftoday's audience.Technological- Technical advancement is a common term for today's consumers and allare well aware of it. It has equally bought numerous opportunities for the TESCO. It hasapproached two distinct methods of development by facilitating online supply of itsgoods and services to the consumers and secondly by reducing its labour costs byintroducing self check-out points for its customers (Cuthbertson, Furseth and Ezell,2
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