Analyzing Macro and Internal Environment of Tesco

Business
Strategy

Table of Contents
Introduction:.....................................................................................................................................1
LO 1:................................................................................................................................................1
P1: Apply appropriate frameworks to analyse the macro environment for an organisation:. 1
M1: Critically analyse the macro environment to determine and inform strategic management
decision...................................................................................................................................3
LO 2:................................................................................................................................................4
P2: Using appropriate frameworks analyse the internal environment and capabilities of a
given organisation..................................................................................................................4
M2: Critically analyse the internal environment of the organisation:....................................6
LO3:.................................................................................................................................................7
P3: Apply porter’s five forces models to the given organisation:..........................................7
M3: Devise strategies to improve the competitive edge in the market places:......................8
LO4:.................................................................................................................................................8
P4. Application a range of theories, concepts and models.....................................................8
M4. Develop strategic management plan that include different aspects..............................10
CONCLUSION:.............................................................................................................................12
REFERENCES..............................................................................................................................13

Introduction:
The business strategy can be refers as the course of action and set of decision which helps
the organisation in achieving the goals and objectives in the most effect manners. In the
another’s plan words, it can be stated that it is a master plan which management of the
organisation implements in the operations levels to secure the competitive position in the market
places and carry on with the operations activities so that they can achieve the desire levels of
outcomes within the set time period. For the long period, it can be considers as sketch for the
desire levels of image of the organisation which needs to be accomplished in the market . it is
schemes of the corporate intents and action, which are planned and are flexibly designed to
achieve the objectives in most effective ways and utilises the opportunities. Under this report, the
TESCO organisation is chosen to examine how the make use of business strategies in their
management so that they can successful capture the business market. Further their will be
discussion on macro-micro environment and different theories which organisation applies in
their management. (Akter and Childe 2016)
LO 1:
P1: Apply appropriate frameworks to analyse the macro environment for an organisation:
Introduction and overview of the Tesco :
TESCO Plc , is a multinational groceries and general retailer having the headquarters in the
England ,UK. It is 3rd largest retailers in the worlds according to the gross revenues. This
organisation has the shops in the seven countries name as Asia, Europe, Ireland, Hungary and
Thailand. and market leaders in the UK market in the groceries items.( Tesco, P.L.C., 2016_)The
organisation focus on expanding the operational activities of the organisation at the international
market place with the help of making effective strategies management plan for the company.
The TESCO was founded in the 1919 by the name called as Jack Cohen and offering the
various product and services such as supermarkets, hypermarket, superstores and convenience
shop and gives such product at international levels which helps them to increase their market
share in the target markets shares. (Amran, and Hashim, 2016)
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Mission and vision: the TESCO company has a mission to capture the market at the
global levels by satisfying the needs and wants of the organisation. The organisation main focus
is to provide the good quality of goods and commodities to its target audience so that they are
able to achieve the desire results in their management. The vision of the organisation is to
capture the larger market share in the target market by giving them their goods on demands and
in the most effective manners so that costumer can satisfies its needs and wants from time to
time. (Wood, Wrigle. and Coe, 2017)
Objectives: the organisation has a main to expand and grow their business at the
international levels and build the brand image in the target market by offering the good quality of
product and services to the targets audiences. (Bharadwaj . and Venkatraman, 2013)
Macro environment: these are the external factors which affects the business operations of the
organisation in the long runs as these includes factors such as political, social, technology ,
economic and various another factors. These factors are present in the external environment in
which organisation operates its activities and get influences by such factors in getting the desire
outcomes. TESCO is a second largest retailer after the Walmart in the markets in providing
food product and various another services such as finance, mobile, insurance and many more.
The TESCO organisation also gets affected by such factors which are discussed as follows’:
Political factors: under this factors, it includes various things such as tax rates, current
legal legislation, political instabilities, and unemployment rates and another factors which
affects the business operations at the international levels. The TESCO operates its activities in 12
different countries which means it gets affected by the political conditions of such environment .
for example, the import duty on the product and services affects the Tesco as it imports most of
its product forms different countries like Asia and China. Due to ongoing instability in the
financial condition in the world, government encourages retailers to create the jobs for the
domestic population so that TESCO can create more opportunities for its people. (Chen,
Eshleman and Soileau, 2017. )
Economic factors: here all the factors are includes which affects the economic condition
of the organisation such as inflation rates, interest rates, and different polices which can affect
the business operations. as the TESCO company has business at the international levels but still
company is dependent on the UK market as it has a market share of around 30%.. TESCO has
used the internationalization and diversification as two main keys to strategies to get success in
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