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Strategic analysis assignment : Tesco

   

Added on  2021-02-19

16 Pages5292 Words23 Views
STRATEGIC ANALYSIS

Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................3Question 1 Presenting key features of the external environment and their impact of Tesco[1000].....................................................................................................................................3Question 2 Presenting internal responses by organization Tesco..........................................7SWOT Analysis....................................................................................................................10Question 3 Explaining the appraisal of the strategic solutions which could be used by Tesco12Question 4 Presenting critical evaluation of the strategy of Tesco.....................................13CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15

INTRODUCTIONStrategic analysis can be defines as that process which involves researching the businessenvironment of a business within which it operates. For a company strategic analysis is of keyimportance as this aids the management in formulation of strategic planning for the decisionmaking process and smooth working of the organisation. For the present report a strategicanalysis of Tesco a retail supermarket chain is done. This is British multinational groceries andgeneral merchandise supermarket chain. The company operated in supermarket andhypermarkets with other diversification of business as well. At present Tesco is internationalityoperating in 11 countries and its main competitors includes, Aldi, Asda, Sainsbury, Lidl,Morrison's and others.To conduct the strategic analysis of Tesco different tools and theories are applied whichincludes, Pestle, Swot, value chains, VRIN, industry life cycle, porter five force and othermodels to determine the internal as well as ancestral factors that effect the operations andactivities Tesco to great extent. Also, in the report there is description over the strategic solutionwhich can be used by Tesco to maintain the competitiveness in the market under a cut throatcompetition. With this critical evaluation of the corporate strategies of Tesco is done and theapproaches of integration are presented. MAIN BODYQuestion 1 Presenting key features of the external environment and their impact of TescoCurrent market and competitor analysis:Tesco is one of the leading supermarket chain in UK which offers groceries and differentmerchandise to consumers under one roof. At present, it has total of 6800 outlets in UK as wellas in global markets and it currently operates in 11 different nations of world. The keycompetitors of Tesco are, ASDA, Sainsbury, Morrison, Aldi and Lidl. Among these the formerthree along with Tesco are called big four in UK while the latter tow are German grocers whohave paved their path in UK market recent times.PESTLE ANALYSIS:ElementDescriptionPolitical factorsA variety of political factors impacts Tescowhich includes factors like changes in politicalparties. This factor majorly impacts Tesco3

because it operates in many countries. So thereare many changes within the political structureof the countries and with these changescompany is impacted (Zahari and Romli,2018).Economic factorsThese are factors relating to the economicconditions of the country like changes ininterest rates, exchange rates and many otherpolicies. Like if Tesco is taking loan at 2 %interest and government lowers the interest rateto 1.5 % then company can take more moneyas loan.Social factorsThese are the factors relating to the societalchanges which can impact the working of thecompany. This mainly includes changes in thetaste and preference and expectations of theconsumers relating to the products andservices. It is very important to pay attention tothe taste and preferences of the consumers.This is because of the reason that consumersare treated the king of the market. If consumersare not happy then they will not buy theproducts of the company and it will suffer loss.So it is very essential to take into considerationthe needs of consumers.Technological factorsThis is also another important factor to betaken care. Technology is a very fast changingconcept. Every minute there is advancement intechnology which if not followed will bedangerous for the company. Tesco is good atupdating to the latest technologies because4

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