UNIT 32 Business Strategy Assignment - Tesco

BUSINESSES STRATEGY UNIT
32

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Apply appropriate framework to analyse Macro environment to given organisation...........1
M1 Critically analyse the macro environment to determine and inform strategic management
decisions......................................................................................................................................4
D1 Critique and interpret information, applying environmental and competitive analysis to
produce a set of valid strategic directions objectives..................................................................4
TASK 2............................................................................................................................................5
P2 Analyses of internal environment and capabilities of an organisation..................................5
M2 Analyses of internal environment to assess strength and weakness of an organisation's
internal capabilities structure and skills set.................................................................................8
TASK 3............................................................................................................................................8
P3 Porter's five model to evaluate competitive forces of a market sector for a organisation.....8
M3 Devise appropriate strategies to improve competitive edge and market position based on
the outcomes..............................................................................................................................10
TASK 4..........................................................................................................................................10
P4 Understanding and interpreting strategic direction..............................................................10
M4 Strategic management plan that had tangible and tactile strategic priorities and objectives
...................................................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy defines plans and policies which help to achieve goals and objectives.
Strategy is long term business planning which provides objectives and procedure to expand
market share. Strategies should be built to fulfil many objectives such as while expansion of
company to purchase new assets, expansion of product or market, develop new product and
services in organisation. So strategy play crucial role in organisation to provide tasks and
distribute responsibilities to staff members to gain objectives successfully. This report is based
on Tesco which is British multinational brand name deals in groceries and general merchandise
in worldwide (Ackermann and Audretsch, 2013). Its headquarter is in England, United Kingdom.
This is third largest retailer in world in consideration of its revenue. This report is based on find
out strategic direction means appropriate strategies with help of different models, theories and
concepts. On other hand it elaborates about framework which helps to analyse macro
environment and its impact on particular organisation while operating in competitive world.
With role and importance of macro environment in determine and inform strategic management
decisions. It also explains internal environment with capabilities of organisation with strengths
and weaknesses. There are many things which give whole description about right strategic
decision for that it gives knowledge of competitive forces to market. Moreover, it explains
Bowman's theory to understand how to gain strategic fit in organisation.
TASK 1
P1 Apply appropriate framework to analyse Macro environment to given organisation
Macro environment is that on which performance of whole organisation is depend on. It
also directly affects consumers and their ability to spend money while purchase goods and
services in business environment. To gain competitive advantage and grab large market share
need to keenly observe and monitor health of economy that both directly and indirectly affect
business and its existence. Macro factors are uncontrollable and organisation feels powerless and
unable to control over it (Halal, 2015). In macro environment consist of political, economic,
social, technological, environmental and legal environment that directly and indirectly affects
business proceedings and impacts both positively and negatively on organisation. Tesco is an
multinational brand in retailing which operates in 12 countries approximately world wide. It is
second largest retailer in world after Walmart in consideration of revenues earn by company. It is

well known name in food and non food items and now it aimed to expand its market in finance,
mobiles, insurance services with hardware and software and many other services (Annabi and
McGann, 2013). Before form the strategy need to understand the goals, missions and objectives
of organisation that helps to build a strong and practical strategy that helps in gain strength of
organisation. So to adopt a best strategy there is need to understand PESTEL analysis of Tesco.
Mission of Tesco:
Tesco core mission is to '' we make what matters better, together''. It values, missions and
vision core relate to each other and operate as a whole identity of business. Their core mission is
to focus on success that is long term in nature, with make strategies which is according to
changing world and its needs.
Vision of Tesco:
In vision of company is to spread in whole world and attain grwoth and prosperous
business that also provide opportunities to others. With provide goods and services which is
modern, innovative and satisfy future needs of consumers. To gain trust and loyalty of
consumers and their staff also so that they can give their best to their organisation.
Objectives of Tesco:
In objective of Tesco consist of that they want to increase their market share in
forthcoming years. Its aim to provide good quality services and products with low cost so that
they provide goods cheaper in comparison to their competitors. Their aim is to satisfy wants of
consumers by giving their best products in their best manner (López-Cabarcos, Göttling-
Oliveira-Monteiro and Vázquez-Rodríguez, 2015). Tesco aims to stay leading organisation and
provide best quality goods and services to their customers. The first aim to provide large no. of
online sites to their customers, provide job to local communities and introduce more healthy
products to grab large market share of consumers.
Here is PESTEL analysis of Tesco should be elaborate to make a viable strategy for organisation.
Political factor:
Tesco presently operating in 12 countries in Asia and Europe while operating in different
countries so it has to coordinate according to different laws and regulations. So it creates chaos
in coordination such as different tax rates, current legislation of countries, political instability,
rate of unemployment and economic condition of different countries. Import duties affect its
business proceedings while operate in different countries. It has to operate in different tax