Impact of External and Internal Factors on Tesco's Business Strategy

BUSINESS STRATEGY

INTRODUCTION
 Business strategy refers to actions and decision that are taken by the firm
to run operation in it successfully and attract customers.
 Tesco is well known name in UK retail industry and offers variety of
product.
 Company faces various kinds of challenges in running business from
macro environment such as political, economical etc. and also from
internal factors.
 Report highlights different factors that impact on strategic planning of
the firm and explain a plan associated with it.

P1. IMPACT ON ORGANISATION AND ITS
STRATEGIES FROM EXTERNAL
ENVIRONMENT
 Tesco is one of rising company in United Kingdom but its operation and strategies
highly impacted from macro environment factors such as political, economical,
social, technological etc.
 For example: elected new parliament member introduce new which company has to
implement. Sometimes it is good for the firm, but few decisions may create chaos in
business planning.

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 Political-
1. After BREXIT, there are three Prime minister in the United
Kingdom whose position taken by the next one and hence country
politically is unstable.
2. Each one of them introduces new policies and guidelines for
different types of organisation in Britain and because of it firms
has to changes in their working style.
3. Tesco retail stores and online business effected from new
legislation.
4. Company has decided to follow competitive price strategy to
attract large number of customers in country but because of UK’s
exist from European union, increase prices of raw material that
are imported from countries in Europe continent.

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 Economical
1. Britain is one of rising economical country in the world because of its
revolutionary ideas for industry.
2. BREXIT and COVID have highly effected on economical growth of the
country and during lockdown GDP of the country rapidly falls which
effected on stock market and various kind of business.
3. During lockdown retail company suffered a lot because people avoided
coming to Super market.

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 Social
1. United Kingdom’s people welcome new market and product which gives
opportunity to expand business.
2. However, it effected on growth of existing firm that are working in the
country from long time and hence decrease their profit share.
3. Tesco strategy for dealing in such situation is to provide range of product
which support one stop shopping habit and hence firm able to maintain
loyalty of old consumers and influence new one.
4. After COVID Pandemic people started more focusing on health life style
hence change their taste and trend towards organic product.