Analyzing the Macro Environment in Tesco

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Analysing the macro environment with application of appropriate framework in Tesco. 1
M1 Critically analyse the macro environment and its impact on decision making of a business
................................................................................................................................................3
P2 Discuss the internal environment and capabilities using appropriate framework within an
organisation context................................................................................................................3
M2 Critically evaluate the internal environment to assess the strength and weakness..........6
P3 Apply five forces model of a given market sector within organisational context.............6
M3 Evaluate the strategies to achieve competitive advantage within the market..................8
P4 Concepts theories and model range to device the strategic planning of Tesco. ...............8
M4 Strategic management plan with gaols and strategic priorities......................................10
D1 Critique and interpretation of data .................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
The certain plan of actions and tasks which are devised by the management of the
organisation are formed by analysing various relent factors. These factors can be external or
internal but they have negative and positive impacts on the business as well as on its procedures.
Thus with a view to moderate the effects of such elements into the favourable outcomes for
company (Al Falasi and et. al., 2019). The superior managers within the organisations plans and
design the overall system to achieve efficiency and effectiveness in its workings. These plans
are combined with respective strategy to each and every operation and thus this whole process is
considered as the business strategy.
This report paper here is prepared on the overall aspects of Tesco Plc. It is the well
renowned multinational retail company that serves mostly in the confines of United Kingdom
and in other states. The company majorly deals in the retail segment of home appliances, daily
essentials, food, furniture, toys and other equipments. With such a wide range of products and
services the corporation has a distinctive brand image in the higher class retail markets of United
Kingdom. The below discussed report encompasses of the various macro-environmental factors
segregating them internally and externally with being respective of their impacts on the
organisation.
P1 Analysing the macro environment with application of appropriate framework in Tesco.
The effective process of operations within the respective organisation is necessary and
that can be achieved by analysing the external environment of business on a regular basis. The
reason behind performing the PESTLE analyses is the significant approaches of all the six factors
are quite impact full on the functioning of the organisation (Amran, A. and et. al., 2016). In
relation to the Tesco Plc. the analyses of PESTLE is practised as follows:
Political Factors: This factor consists of all the political elements within the nation, such as
stability of ruling party, degree of corruption, international trade standards, governmental
culture, trade barriers, labour and taxation laws. The political system since 1920, is stable by the
two major parties in United Kingdom i.e. Labour Party and Conservative Party. This provides
certain benefits to the retail companies like Tesco to gain the essential informations and carry out
its workings on the basis of consistent political powers within the country. .
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Economic Factors: These factors are combined with all the major aspects of economics
and finances, inflation rate, interest rates, exchange rates, return on investments etc. The study
and of these economical elements is crucial to Tesco for the effective operations and market
expansions of the company. Determination of costs and price certainly gets effected form the
external environments of enterprise. The economical environment of UK is flourished with
extensive flow of inflation in interest rates and decreased rate of labour and transportation costs
these can effect the Tesco to employ the new operations and rising its capital by attracting the
foreign direct investors. Thus how the retail company can expand its business and gain the
profitability by incurring less costs.
Social Factors: Those factors which includes the elements of society are called as the
social. environments of external environment. Some of these factors are the age, population,
literacy rate , lifestyle of consumer and the attitude of the market segment etc. The current
working generation of United Kingdom is shifted towards the quality and standards, which
means that most of the potential consumers of the Tesco demands for the quality and has a
product behaviour. This can efficiently act as the opportunity to Tesco, in terms of increasing the
sales and capturing an effective share of market. By offering the quality goods to the market and
enhancing the cost and price accordingly.
Technological Factors: The trends which emerges in the technical background of a
nation is all considered as the technological factor. The United Kingdom being most developed
country constitutes of major innovations and technological advancements which helps the
organisations as well as the markets to grow and increase their potential by reducing the time
excess time consumption. Tesco can face a certain amount of threats as the company still
operates on the outdated and traditions systems of operations, that occurs to extensive time and
resource wastages. The organisation should adapt new technologies and styles of working to
increase the efficiency of the whole processes inside and outside the firm. This change will bring
a different level of success to the organisation.
Environmental Factors: The environmental elements of the operational boundaries of
the organisation which consists of the climate change, whether conditions and other natural
policies are recognised as the environmental factors of the organisation. The environment of
United Kingdom is currently unstable and has serious issues which are going on with the
whether and surrounding conditions. This kind of environment is not beneficial to any
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