Analyzing Business Strategy with PESTEL Analysis, SWOT Analysis, and Porter Five Force Model

Business Strategy

Table of Contents
INRODUCTION...................................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Use appropriate framework to analyse the impact of macro environment....................................3
TASK 2.................................................................................................................................................5
P2 Examine the internal capabilities and environment of given organisation....................................5
TASK 3.................................................................................................................................................7
P3 Apply Porter Five force model and analyse the competitive forces..............................................7
TASK 4.................................................................................................................................................9
P4 Provide strategic planning of organisation by using appropriate framework or concept...............9
CONCLUSION...................................................................................................................................11
REFERENCES....................................................................................................................................12
Books & Journal:.............................................................................................................................12

INRODUCTION
Market is wider and competition rising and corporate level and it is becoming difficult
for or else to survive in the competitive market. So, business strategies are a set of tactics and
strategies which guides the organisation and helps them to achieve competitive advantage in
the industrial sector. It is a broader and wider concept which is to be understood in proper
manner. Tesco, a multinational corporation headquartered in UK. It is the largest supermarket
and retail chain which provides varieties of product suggest groceries apparels cosmetics and
many more it also has many computers like ASDA group Sainsbury Wal-Mart etc. This
report includes pestle analysis porter five force model SWOT analysis different types of
theories concepts as well as models. Business strategy plays a vital role in in enhancing the
productivity of business at wider scale. To implement strategy proper market research and
high level of skills and knowledge is required so that decision making is done in effective
way. Many enterprises use the different methods of business strategies and accordingly they
use their capital as well as resources in most efficient manner so that in future no problems
occur. Also during this process new opportunities are also explored by the organisations.
Resources and capital in strategy to be used appropriately so that they provide benefit to the
corporation.
TASK 1
P1 Use appropriate framework to analyse the impact of macro environment
PESTEL analysis is a Framework which is used to assess external environmental factor
which influences direct impact on success as well as growth of the organization. Macro
environment are those which affect the business and its functions from outside enterprise. It is
important to focus on these external factors so that resources are used efficiently. These
macro environment factors slow down the growth of corporation and distract them from their
core activities (Cao, 2019). In context of Tesco they adopt PESTEL analysis to examine as
well as determine the external for micro environment. This helps them to be aware of risks
associated with market or other aspects. Furthermore, to go through this analysis deep
research and knowledge is required during the process so this Framework is explain below-
Political factor: Political factor involves government policy, tax rate, trade
restrictions etc. In context of Tesco, the government of UK focuses on controlling the obesity
which decreases sales as well as profit level of Tesco in future period of time. On the other
hand due to the political stability of UK the company does not want to change policy
frequently (Xie, 2019). Thus, it increases success as well as growth of the company in future
period of time. Therefore, Due to stability in political condition of UK the company operates

their activities and function of business in an effective manner which helps them in increasing
sales as well as profitability level in upcoming period of time.
Economic factor: It involves unemployment rate, inflation, deflation, exchange as
well as interest rate and many more which imposes direct impact on performance level of
company. In reference of Tesco, due to increase in level of unemployment the people spend
less amount of money in order to purchase superior quality product from business
organization. They shift their brand from that product which is at low price. Thus it decreases
sales of the company. On the other hand the Tesco focuses on providing superior quality
product and services to its customer as per their needs and wants in order to satisfy them. It
helps them in increasing their trust and loyalty during the period of time (Kong, 2020).
Social factor: It involves taste, preferences, market trends and many more which is
necessary to consider for increasing success as well as growth of Organization in future
period of time. In context of Tesco, they focus on providing those good and services in order
to satisfy the need of customer. They offer innovative and unique goods and services in order
to satisfy the changing need during the period of time. On the other hand due to frequently
change in the taste as well as preferences of customer it is difficult for the company to fulfil
their changing need (Kitsios, 2019).
Therefore it decreases the sales as well as well of profit of company in future period
of time. If company focus on such elements then and it becomes easier to carry out the
activities as well as functions appropriately. To understand the social factors a proper analysis
of customer's demand and needs are to be examine so that goals and objectives are achieved
effectively.
Technological factor: Technology plays an important role for the successful as well
as growth of organization. Therefore it is necessary for company to implement advanced
technology in order to offer innovative product to its customer in order to satisfy them. Due
to implementation of advanced technology that Tesco offer superior quality product to its
customer that help them in satisfying there need. It helps them in increasing brand image and
repetition of the company in front of customer at market place. On the other hand, the
implementation of advanced technology is very costly it adds cost for the company which
decreases sales as well as level of profit in future period of time.