Analyzing the Impact of Macro Environment on TESCO's Strategies

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Applying appropriate framework in analysing the impact and influence of macro
environment on TESCO for its strategies....................................................................................1
TASK 2............................................................................................................................................2
P2. Analysing the internal environment and capability using framework for an organisation...2
TASK 3............................................................................................................................................4
P3. Applying the Porter's Five forces model in evaluating the competitive forces of market
sector for an organisation.............................................................................................................4
TASK 4............................................................................................................................................5
P4. Applying theories, concepts and models in interpreting its strategic planing for businesses5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business strategy is described as the competitive set of actions used to attract consumers
for their satisfaction level which results in achievement of organisation goals and objectives for
its stability (Awino and Mutua, 2014). In this project, TESCO is selected to identify its
competitive strategies in competing with its rivalries which results in its sustainability and
growth. The mission, vision, objective, strategies and tactics applied by TESCO for its
positioning in competitive market. The organisation business strategy is described on the basis of
Porter's five forces, SWOT analysis, Porter's generic strategies, VRIO model to identify its
competitive advantage as compared to its competitors.
TASK 1
P1. Applying appropriate framework in analysing the impact and influence of macro
environment on TESCO for its strategies
Business strategy is defined as the process to compete with its rivalries through
competitive strategies which leads to achieve organisational goal.
Mission:- The organisation aims to “make what matters better together” by helping
youngsters with their employment.
Vision:- This targets to be “the most highly valuable business” through with competitive
advantage of consumer loyalty.
Objectives:- The main objective of organisation is to provide online shopping for
groceries, electronics, clothings which helps to capture large number of consumers in global
market (Bashouri and Duncan, 2014).
Strategy helps TESCO to achieve its goal and objectives through fully utilisation of
scarce resources from their competitive advantage which results in competing from their rivals.
The strategic planing technique implied on Stakeholder analysis is further described as:-
Stakeholder analysis:- It is the process to identify and determine people according to
their work and their level of interest while performing in the business. Managers of TESCO
implement this analysis for conducting several strategic decision regarding the achievement of
goal. This analysis is described as under:-
 High power, highly interested people:- In this decision, people with high power to
accomplish the project are highly interested for the business to achieve success. TESCO
1

managers are fully engaged, eager, keen and motivated for making great efforts to
achieve goals with consumer satisfaction (Bolisani and Bratianu, 2017) These people are
Board of Directors, Chief Executive officers, top and middle level managers, etc.
 High power, less interested people:- This decision focus on keeping satisfied
stakeholder with high power as it don't bored them while performing with low interest.
TESCO faces them in government, legal authorities, political parties, etc.
 Low power, highly interested people:- In this decision people are adequately informed,
ensured about major arising issues with low power and are very helpful in their
supporting roles for TESCO. These are consumers, society, etc.
 Low power, less interested people:- In this decision people are monitored for their low
power and less interest as they feels bored in performing their task in TESCO. These
people are employees, housekeeping staff, etc.
TASK 2
P2. Analysing the internal environment and capability using framework for an organisation
Internal environment is the sub-category of business surroundings, which defines the
intrinsic atmosphere of business. It includes climate, culture, members, etc. To analyse internal
environment TESCO implement SWOT analysis and VRIO model which are as follows:-
SWOT Analysis:- This is strategic planning technique to determine strength over
weakness and opportunities over threats. Managers of TESCO implement this analysis to
evaluate their competitive advantage for its stability in market. This is described as under:-
Strength (S) Weakness (W)
 Large number of stores available in the
market to remove the hindrance of
place for TESCO to achieve success.
 Diversified markets and varieties of
product range are produced to meet the
diversified needs of consumers for their
satisfaction.
 Decrease in operating profits through
decrease in market sharing prices which
reflects its worst performance.
 Fraud trial and accounting scandal
results in charging the fine or penalty
by TESCO for its misrepresentation of
profits.
Opportunities (O) Threats (T)
2