Strategic Management: Tesco PESTLE Analysis and Competitive Advantage

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
Q1 Brief Introduction of the selected organization................................................................3
Q2 Explain the Analysis of the market environment.............................................................3
Q3 Explain the Company industry and the Competitive Advantage of the company............4
Q4 Explain the Critical Success Factor, Opportunities And Threat Of The Market..............5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic management is the process of setting the strategy and guiding the organization
to go on the same direction. Tesco, is a British company well-known for the groceries and
general merchandise retailer store chain. This report highlights the PESTLE report of
organization. Further this report highlight the Analysis of Industry and sector and in the end it
highlights the critical success factor by the help of porters five model.
Q1 Brief Introduction of the selected organization
Tesco Plc. trading as Tesco, is a British company headquartered in Welwyn garden city,
Hertfordshire, England, UK. Tesco is well-known for the groceries and general merchandise
retailer store chain all across the globe. Tesco has their shop in seven countries including Asia,
Europe and ranked first in the UK with the market share of 28.4% (Tesco Market Share, 2019).
Tesco now looking to grow globally by investing highly in the developing country at initial stage
itself which has proven beneficial for the organization in past also as Ireland, hungry and
Thailand are the country where company enter at the initial stage itself and now they are the
market leader over their, but it has always been difficult for the company to adopt the culture of
the new country which follow the different culture than UK countries like Us and India and try it
difficult to grow the business as a region they have to shut down their business from the US in
the past.
Q2 Explain the Analysis of the market environment
PESTLE
Political factor: As the Tesco operates in the global market business is very much
affected with the political factor as they have to dealt with the flexibility of the Political rules
depending upon the country. Tax rates, acts of legislation and of course, the stability of the
country it operates in are the few factors which impact the organization as a region they have to
reduce the profit margin as increasing the price will eventually hurt the company in competitive
market (Ansoff And et.al., 2018). One of the biggest example of same is Brexit as the UK
decision to come out of the Union has eventually created many obstacles like tax rate, free flow
of good to Brexit countries etc.
Economic factor: Economic factor are the factor which relates to the economic
performance of the country. Factor include inflation rate, demand and supply, labour rate etc.