Macro-environmental forces and customer satisfaction in Tesco

Running Head: MANAGEMENT
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Management Perspectives
7/29/2019

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Contents
Introduction............................................................................................................... 3
(A). External Marketing Audit Information........................................................................3
1. Macro-environmental analysis of Tesco (Pestle analysis)..............................................3
2. Micro-environmental forces:.................................................................................... 4
(B). Tesco’s current marketing position............................................................................6
Conclusion................................................................................................................ 7
Task 2: Customer satisfaction......................................................................................... 8
References.............................................................................................................. 10

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Introduction
The report brings about the discussion on the concept of marketing and analysis of the
marketing functions, objectives, and strategies influencing organisational performance. The
discussion will carry out the assessment of external and internal factors affecting
performance, i.e. macro environment and micro environment. ‘Tesco plc.’ has been selected
as the company for the assessment of marketing audit and gaining an understanding of factors
influencing performance.
(A). External Marketing Audit Information
The term marketing audit refers to the systematic analysis and evaluation, interpretation of
business environment i.e. both internal and external. It has been found through research that
external audit describes the environment and market, in which the company operates.1
1. Macro-environmental analysis of Tesco (Pestle analysis)
Factors/Forces in environment Influence on the organisation
POLITICAL The political environment of the country UK is the major
factor impacting long-term profitability of the company.
Tesco is affected by the political factors such as tax rates,
current legislation, and unemployment rate. For an example,
the import duty on the goods affects the operations of
Tesco, as it relies on inventory from other countries such as
China, and East Asia.
ECONOMIC The factors such as inflation rate, savings, foreign exchange
and interest rates mainly impact the operations of Tesco. In
the country, labour costs has been a vital factor affecting
the supermarkets. The company should focus on the
increasing borrowing costs in UK, to control over demand
and prices.
SOCIAL In context to retail business, consumer shopping experience
plays a vital role, as people prefer one-stop shopping.
1 Armstrong, Marketing: an introduction.

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Therefore, Tesco ensures providing services to the UK
customers as per their demands.2
TECHNOLOGICAL Tesco works with high efficiency and uses modern
technologies such as RFID was introduced to improve the
in-store experience. Online payment system is also used by
the company called as Pay Qwid.
LEGAL Employment, safety law, anti-trust law, and consumer
protection against any kind of discrimination are legal
factors that impact the working of Tesco. It can be stated
that Tesco must comply with the Food retailing commission
(FRC) strict code of practice, to increase effectiveness, and
attain high levels of customer satisfaction.
ENVIRONMENTAL For protecting and preserving environmental resources the
company encourages their customers to purchase from
Tesco.com, and Tesco van drivers collect wastes from
customers, along with the use of fuel. They make use of
renewable sources and generate electricity.
Thus, the above pestle analysis of Tesco has demonstrated well, that the company sustains a
great level of competitive advantage in the industry, with better performance.
2. Micro-environmental forces:
The main competitors of Tesco are ASDA, Sainsbury’s, Morrison’s are often called the big
four competitors as retailers in UK.
Customers
Discussing about the customers, it has been found that Tesco targets everyday people, and
provide them best products. For an example, Tesco provides the cod liver oil, to thousands of
2 Grosso, Sandro, Anjana, “How store attributes impact”, 117-124.