Global Business Strategy

Global Business Strategy

TABLE OF CONTENT
INTRODUCTION.................................................................................................................................3
PESTLE Analysis..............................................................................................................................3
SWOT Analysis.................................................................................................................................5
Ansoff Matrix....................................................................................................................................7
Global Business strategy....................................................................................................................8
Porter Generic Strategy......................................................................................................................9
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................12
Books and Journals..........................................................................................................................12

INTRODUCTION
The global business strategy is used by entity in order to expand their organisation
around the world. They make effective plan of action and tactics for performing the different
tasks and activities in better way for achieving goal as well as objective of business
organisation. This assignment is undertaken for the company which is named as TESCO. It is
international chain of supermarket which is located in UK. This company was founded by
Jack Cohen in the year of 1919. They offer superior quality products and services to its
customer at affordable cost. In addition to this, they make effective plan of action as well as
approaches for implementing the business strategy. The SWOT and PESTLE framework is
used for analyzing micro and macro environment of business organisation. Beside form this
porter five force models is adopted for achieving competitive benefits over rival firm at
marketplace. And also Ansoff matrix as well as STP approach is also discussed in this
assignment (Ahmad and Krishnan, 2017).
Main Body
It is necessary for business firm to assess internal and external environment for
implementing business strategy at international level. Therefore, the manager of TESCO
adopts SWOT and PESTLE analyses which are going to be mentioned below:
PESTLE Analysis
Political factor: The political factor involves rules, laws, regulations as well as
legislation which enforce direct influence on success and growth of business organisation at
global level (András and Havran, 2016).Due to stable political condition, the company does
not change their strategy imposes positive influences on productivity of organisation. On the
other hand, the government of UK focuses on controlling the obesity as well as bound the
medical issue linked with it. Thus, it affects the sales of several goods of TESCO in negative
manner.
Economic factor: It includes unemployment rate, exchange rate, interest rate,
inflation as well as deflation rate that enforce both favourable and adverse influence on
performance level of business organisation. The economic condition of UK is stable thus it
increases sales of company in future period of time. It also enhances profitability level of

business organisation across the globe. Whereas, due to economic downturn; the
unemployment rate is increases thus the customer will reduce their spending in order to
purchase products and services of company. Thus, it adversely affects the performance level
of business organisation (Baumgartner and Tippmann, 2019).
Social Factor: The social factor includes age, population, lifestyle as well as
marketing trend and many more. The manager of TESCO focuses on providing innovative
products and services to its customer at affordable price. It helps them in retaining them for a
longer period of time. In addition to this, it helps in maintaining positive image in mind-set of
customer at marketplace. And also, it is useful in operating their business activities and
function at global level. On the other hand, due to change in taste and preferences of
customer, it is difficult for company to cope up changes in order to satisfying them.
Therefore, it imposes negative impact on performance of business firm (Bele, Panigrahi and
Srivastava, 2017).
Technological Factor: Herein, it is necessary for the TESCO to implement latest
technology for managing supply chain in an effective manner. It helps them in gaining
competitive advantage over rival firm at marketplace across the globe. Apart from this the
manager adopt advanced technology for improving their distribution services that helps
customer in choosing their desired products through mobile such as wine is selection through
the use of mobile phone. On the other hand, the cost of implementation of advanced
technology is very high thus it add cost to the product which is provided to its customer
enforce adverse impact on profitability of business organisation.
Legal Factor: The legal factor involves employment law, consumer protection law
as well as legislation which impose both positive and negative impact on productivity as well
as profitability of business organisation at marketplace. Therefore, the company focuses on
comply the law and legislation in order to operate its business activities and functions at
global level can be considered as a positive impact on company. Sometime, the government
laws changes frequently so that it is impossible for company to change their policy
accordingly. Therefore, it imposes negative impact on performance level of TESCO. And, it
also decreases profit as well as sales of company at marketplace.
Environmental factor: Herein the environmental factor includes climatic and
weather condition which enforces both favourable and adverse influence on performance
level of business organisation in the market. The manager of TESCO offers superior quality