TESCO Business Development Strategies

This assignment provides a comprehensive analysis of TESCO's business development strategies, including its main aim to satisfy customers and enhance public image for brand enhancement. It also explores the impact of external factors on marketing strategies such as competitive advantage, segmentation, target, and positioning. The report highlights the importance of adopting clear code practices with customers and suppliers to achieve good customer response and high sales volume.

Marketing in Global
Economy

Table of Contents
INTRODUCTION...........................................................................................................................1
A. ABOUT COMPANY AND IDENTIFY THE MOST RELEVANT CONCERN OF TESCO. 1
B. CRITICALLY EVALUATING THE IMPACT OF RELEVANT CONCERNS ON
CURRENT AND FUTURE STRATEGIES FOR SUSTAINABLE COMPETITIVE
ADVANTAGE IN SEGMENTATION AND BRANDING ..........................................................2
C. Potential pessimistic economic future external factors which influence customer behaviour. ..5
D. Identify and critically assess two possible opportunities for growth within the organisations
MACRO environment. ....................................................................................................................7
F. Demonstrate skills of focus and conclusion................................................................................7
E. REFERENCES ...........................................................................................................................9

INTRODUCTION
Business development growth is very much important for the organisation sustainability.
For the same, company needs to acquire high performance services to attract number of potential
customers. Present report is based on the facts which are required for company to maintain
stability in market. For the present assignment, TESCO has been taken into consideration. It is a
multinational retailer in the UK. Report will discuss about the company relevant concern facing
by the company. Adding to that, it will critically evaluate the impact of relevant concern which is
important for TESCO to maintain its current and future stability. Likewise, it will summarize
macro and micro environment factors to evaluate effective working.
A. ABOUT COMPANY AND IDENTIFY THE MOST RELEVANT
CONCERN OF TESCO.
TESCO is a British multinational grocery retailer company in the UK. It is the third
largest grocery merchant in the world after Wal-Mart and Carrefour as well as ninth largest
distributor in terms of revenue. TESCO has their own stores in 12 countries across the Asia and
Europe (Anitha, (2014)). It operates its business through online as well. TESCO has provides
various product and services under one roof such as vegetables, daily homes essentials, books,
clothing, toys, petrol, software. They reposition itself from low down market into high gain
market. TESCO also listed on the London stock exchange. Furthermore, TESCO expansion was
start from between 1950s to 1960s and owned more than 800 stores. TESCO has purchased 70
Williamson's stores in 1957, owned 200 Harrow stores outlets in 1959. 212 Irwin stores in 1960.
Furthermore, apart from that, TESCO has facing several concerns like they are facing
Britain's largest ever equal pay challenge through which they facing high issue concern. Legal
firm Leigh day has launched action against TESCO on the behalf of workers. Shop assistants
claim that TESCO paid £3 less than male workers. According to the law TESCO must adopt
fairly and equally paid wages to the employees and staff members on the basis of their skills and
capabilities (Bouckenooghe, Zafar & Raja, (2015)). Furthermore, another big concern facing by
the company was that suppliers of TESCO say that retailer worst in adopting grocery code of
conduct.
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B. CRITICALLY EVALUATING THE IMPACT OF RELEVANT
CONCERNS ON CURRENT AND FUTURE STRATEGIES FOR
SUSTAINABLE COMPETITIVE ADVANTAGE IN SEGMENTATION
AND BRANDING
On the basis of above concern of TESCO, it has been given negative impact on the
company future and current strategies. External marketing environment may impact negatively
on the performance of company (Certo, (2015)). Likewise, due to some external issues, company
could not adopt competitive marketing advantage rather than make its market growth. Due to
which they reduce their branding and public image in the market. Due to which they get less
profit and market revenue. There are various macro and micro factors which affect company’s
environment. Micro factors are internal factors which is small forces within the company and
macro factors includes PESTLE (Political, Environmental, Social, Technological, Legal and
Economical) these are the gig forces which impact directly on the organisation functions.
Through this PESTLE technique, company can easily measure external market environment and
take corrective actions accordingly. Furthermore, to find out internal micro factors company uses
SWOT analysis to mitigate the future risk factors. This market environment gives positive and
negative impact on the business growth. Along with that, TESCO is the largest retailer in the
British market but due to some issues and relevant concern they could not achieve their overall
target and objectives. These potential impact of external environment forces give negative
features on company marketing strategies. Along with that, employees are the major factors of
company’s performance. TESCO has to provide equal pay to every employee on the basis of
their potential and skills. If organisation fails to gain trust of employees, they could not achieve
their desirable objective and profit revenue. Overall, business environment plays a crucial role in
company’s development (Clarke & Hensen, (2015)). It may give negative negative impact on the
business activities. There are many market forces which influence the business operations and
functional as political, legal, social, technological, environmental. Overall, due to changes in
interest or government policies, company needs to change their own policies accordingly.
Furthermore, company needs to acquire fair ethical activities to impress their stakeholders such
as customers, suppliers, investors and employees. TESCO needs to adopt fair trade practices in
order to ensure healthy and safe working environment for company’s growth. As above mention
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the fact that TESCO has been facing some concern issues which is related to the equal pay
challenge and adopt improper code of practise these market forces would impact on the company
branding, segmentation, targeting and positioning. Company needs to take measure steps and
strategies to come over from the measure issues which impact negatively on the business
functions (Katzenbach & Smith, (2015)). If company fails to remove supplier’s or employees
issues, they cannot make the customers satisfied and due to the same, they will face low market
share of company. Apart from this company also needs to measure the external environment to
measure the strong forces and adopt the latest technologies and skills to beat them. In order to
sustain its market stability company needs to adopt some steps to sustain in the market.
Competitive advantage: Competitive advantage will help company to identify
competitor’s position and their potential competitive ability. This helps to make new competitive
environment and produce new products and services for better market positioning. It helps
TESCO to make products and services at lower price in more desirable form. This increases
company’s growth and market expansion policies. It makes new market position and attracts
customer attraction. It provides opportunities to company to make productive entity and generate
more sales revenue comparatively high to its market rivals (Li, & et.al, (2016)). This helps
TESCO to adopt competitive best strategies and mitigate their own concern issues, TESCO may
adopt effective equal pay wages to the staff to attract employee’s faith and trust towards the
company performance. Overall, company should adopt strategies and healthy environment for
the employee betterment to enhance company working performance. It makes new market
position for the firm. Organization has the responsibility to adopt fair practices and correct code
of conduct in order to maintain company’s position and growth in competitive marketplace.
Furthermore, it will make new environment and growth for the company betterment. Buyers are
rational they always consider this product and services which is at low price, in order to make
favourable decision company adopt competitive advantage in order to mitigate future risk and
uncertain events. Like TESCO has many rival firms such as Mark & Spencer, Wal-Mart etc.
competitive derived from economies sale which helps company to make competitive strategies
and business plan. These strategies also help TESCO to build repositioning in the market a
and generate profit revenue (Petrou, Demerouti & Schaufeli, (2015)). Competitors are the
biggest stakeholders for that company. For that, it is essential to measure the competitor’s
position before making any strategy and business plan. To make a positive image in the market,
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TESCO needs to adopt fair trade practices and grab the attention of employees. It provides better
environment and provides competitive growth. Moreover, it provides great expansion
opportunity for TESCO to get attraction of customers as well. There are two types of competitive
advantage first comparative advantage and second one is differential advantage. Differential
advantage means when company offering totally different products from its competitors and
comparative advantage defines that its up-to the firm to produce product and services at a lower
than its competitors (Sparrow & Makram, (2015)). This theory apply when two competitors are
present for the same product.
Segmentation, targeting and positioning: This is another function which influenced by
the external factors that is company segmentation, targeting and positioning. Due to some issues
and bad public image company get affected from the external environment. This impact
influenced the company positioning, targeting plans and segmentation. This may give negative
output to the company. External forces are the highly influential factors in order to implement
new strategies for company development (Wang, Kung & Byrd, (2018)). Impact of relevant
concern of TESCO would give negative impact on future strategies for sustainable development.
It makes low company market and positions. Besides, to overcome from this major issues
TESCO needs to reinvent new market services and strategies to beat the market forces. On the
other side, organisation should never adopt unfair trade practises with employees and customers
as well. These are the major market factors which affects company directly. TESCO needs to
full-fill the needs of employees and provide them good facilities to grab their attraction towards
the company performance. It also helps company to motivate their employees for better
performance and growth. To sustain its market stability in long time company has provided
creative and innovative product and services to the customers in order to sustain market image
again and get good public reviews. Company also needs to make good relation with the suppliers
in order to get good products from them. This helps to build repositioning and also helps to target
market customers. TESCO relevant concern gives negative image to the company. And should
provide effective goods and services to the customers (Wong & Zhou, (2015)).
Branding: Branding is the major element for the company development. Due to negative
image of the company in the market. Organisation brand image will get low. It impacts on the
long term on the company image. Organisation should adopt fair practises with suppliers,
customers and employees in order to identify fair practises and better management. Over it
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makes new changes and growth for the company development (Anitha, (2014)). After the major
scandal facing by the company TESCO needs to take some steps and action plans in order to
make changes and uplift the brand image in the market. Overall it makes new changes and
environmental growth in order to ensure high brand value of the company. External or relevant
concern issue also impact on the company brand image and on future sustainable as well.
Besides. Company can also take this tool for making new market value and brand image in front
of their customers. Overall, they resolve their issues with suppliers and employees by providing
them better services and healthy relationship. TESCO needs to make new business plan for the
customers and adopt new training sessions for their employees in order to take new market
expansion. Along with that it also makes try to get over from the issues by providing attractive
product or services to the customers (Petrou, Demerouti & Schaufeli, (2015)).
C. Potential pessimistic economic future external factors which influence
customer behaviour.
Potential external factors plays very essential role for the company this gives low
customer attraction and low sales revenue to the company. Consumer is rational they keep on
changing as per the trend, environment and culture. Buyers always demand for the new product
and services in order to get higher satisfaction level. Besides, external forces may arise changes
in the market (Li, & et.al, (2016)). Some external factors are political, legal, environmental,
technological and social these are the external market forces which affects consumer behaviour.
These macro factors influence customers and change his mind set up towards the company
product and services. For example, due to negative public image of the TESCO may decrease the
interest of customers to purchase products from the TESCO. Overall negative image or bad
public image change the consumer behaviour in the future. There are some external factors
which affects the consumer behaviour.
 Culture: it is the most potential external force which affects consumer behaviour.
Culture influence beliefs, traditions, art, moral values, consumer habits. This factor
influence consumer background or culture (Petrou, Demerouti & Schaufeli, (2015)).
Overall it makes overall changes in the behaviour of customers towards the company
products, for that company needs to adopt product design on the basis of customer needs
and wants. Along with that TESCO needs to provide product and services according to
the current trend and wants of the customers. It is very essential for TESCO to satisfied
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the needs of customers to get the best response. Besides, this culture factor may impact
on the company negatively and give low future response. On the other side due to having
low public image company also get low sales in the future. Cultural factor influenced
from environment and culture of the people (Sparrow & Makram, (2015)).
 Group Membership: every consumer influence by many other groups which they share
their thoughts and shopping experience if company product and services are good and
attractive they will get good public image other wise people and consumers will not
suggest to anyone about the company. Overall company needs to acquire current trend
and technology to make attractive customer behaviour. Opinion of the leaders plays a
effective role. Overall it makes positive impact on the company image and future
growth. Overall, TESCO needs to adopt attractive promotional strategies must be fruitful
and attractive as per the customer choice and market expansionism. Furthermore, if
company fails to meet the needs of customers they cannot get the positive response of the
customers (Wang, Kung & Byrd, (2018)). So that, through this factor consumer
behaviours may change.
 Purchase Situations: Consumer purchase decision may affect their behaviour. If country
facing the situation of crises in that case they will less interested to invest more money on
the shopping. If they having good saving skills and with good economic conditions they
will buy more product and services accordingly this factor influence consumer behaviour
as well. Along with that it is important for the company to understand consumer needs
and provide services according to their comfort level. Overall, it helps to make good
relationship between consumers and company. This uncontrollable situations lead to
unexpected purchases. Overall it makes new consumer relationship and company brand
value as well.
 Other influences: consumer may affect the other factors such as political, legal, social,
economical and technological. If government increase the tax rates in that situation
company also will make their prices high due to which consumer get affected and
purchase less number of product and services (Petrou, Demerouti & Schaufeli, (2015)).
On the other side if TESCO adopt the latest technologies and advanced services in that
case consumer behaviour will attract towards the company products and get higher
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satisfaction. So that, this technological external factors is highly influenced consumer
behaviour in positive manner. It is highly influenced factor. Furthermore, due to
economic changes in the country may also change the consumer behaviour positively or
negatively as well.
D. Identify and critically assess two possible opportunities for growth within
the organisations MACRO environment.
Organisation development is the main purpose for the company. TESCO must take some
opportunities and growth for the development (Sparrow & Makram, (2015)). Company should
take opportunities from the external environment, While taking decision making approach
company needs to analyse the external environment in order to make new development
environment and growth. Such as technological factor this factor is the external macro
environment. Technological factor may convert into opportunity for the company if they follow
them carefully and in effective manner. Like TESCO needs to adopt new advanced techniques
and strategy to attract customer attraction and market expansion. TESCO may take its businesses
online and give online services to their global customers. This opportunity of technological
factor can arise profit revenue of the company. Overall it makes new changes and business
growth. Advanced technologies provide ease in working and more flexible in nature. Along with
that another external factor which helps to make opportunity for the company is social factor.
Social factor relates company with the society company needs to adopt fair practises with society
and must contribute their part for the society development. Through which they get future
expansion opportunity fort the company growth. Overall it makes new changes and society
development as well. Overall it makes new changes and good for the TESCO company
(Katzenbach & Smith, (2015)).
F. Demonstrate skills of focus and conclusion
With the helps of competitive environment, branding and segmentation company can
easily get their objective and goals. Along with that. TESCO main aim is to get customer
satisfied and happy by providing quality of goods and services. Besides, company also needs to
make good public image in order to get brand enhancement and company annual sales. TESCO
also needs to enhance technological skills in order to cope up with the current environment.
Conclusion
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From the above discussion, it can be summarized that, business development is very
important for the future expansion and for the company development along with that it makes
new opportunity and growth. Present report summarized the TESCO relevant concern they
facing and their possible outcomes. Furthermore, it explained the consumer behaviour influenced
by external factors. Report summarized the company summary and its function on the market.
Likewise, it also described the impact of external environment on the marketing strategies such
as competitive advantage, segmentation, target and positioning. Overall it can be concluded that
TESCO needs to adopt clear and fair code of practises with customers and suppliers as well in
order to take good customer response and high sales volume.
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E. REFERENCES
Books and Journals
Anitha, J. (2014). Determinants of employee engagement and their impact on employee
performance. International journal of productivity and performance management. 63(3). 308.
Bouckenooghe, D., Zafar, A., & Raja, U. (2015). How ethical leadership shapes
employees’ job performance: The mediating roles of goal congruence and psychological
capital. Journal of Business Ethics. 129(2). 251-264.
Certo, S. (2015). Supervision: Concepts and skill-building. McGraw-Hill Higher
Education.
Clarke, J. A., & Hensen, J. L. M. (2015). Integrated building performance simulation:
Progress, prospects and requirements. Building and Environment. 91. 294-306.
Katzenbach, J. R., & Smith, D. K. (2015). The wisdom of teams: Creating the high-
performance organization. Harvard Business Review Press.
Li, B., & et.al, (2016). High performance electrochemical capacitor materials focusing on
nickel based materials. Inorganic Chemistry Frontiers. 3(2). 175-202.
Petrou, P., Demerouti, E., & Schaufeli, W. B. (2015). Job crafting in changing
organizations: Antecedents and implications for exhaustion and performance. Journal of
occupational health psychology. 20(4). 470.
Sparrow, P. R., & Makram, H. (2015). What is the value of talent management? Building
value-driven processes within a talent management architecture. Human resource management
review. 25(3). 249-263.
Wang, Y., Kung, L., & Byrd, T. A. (2018). Big data analytics: Understanding its
capabilities and potential benefits for healthcare organizations. Technological Forecasting and
Social Change. 126. 3-13.
Wong, J. K. W., & Zhou, J. (2015). Enhancing environmental sustainability over building
life cycles through green BIM: A review. Automation in Construction. 57. 156-165.
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