Strategic Report on Tesco: External Business Environment and CSR Initiatives

Strategic
Report
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
External business environment and competitiveness.............................................................3
TASK 2............................................................................................................................................8
Corporate social responsibility initiatives..............................................................................8
TASK 3..........................................................................................................................................10
Corporate social responsibility strategies to encourage organisational successes...............10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................12
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INTRODUCTION
In order to make business successful it is necessary for the company to formulate and
execute various strategies and approaches in order to obtain growth and longer sustainability
within market place. Strategic management is associated with the development and execution of
the objectives of goals along with initiatives to accomplish various objectives of the company.
Business strategy can be defined as the competitive moves or actions that a business in order to
attract and retain customers, compete effectively, strengthening performance and achieving
organizational goals in adequate manner. Making business strategies is crucial for the company
as this as mean outline the method and ways we should we should be utilize to reach the desire
ends (Mundy, 2019). This is formulated by the top management with an integrated framework in
order to discover analyses and exploit beneficial opportunities while making optimum utilization
of resources and strengths and balancing weaknesses. It is the combination of the proactive
actions in order to enhancing the market position of company along with overall performance
and responses to the unexpected developments and market conditions. This report is based on
Tesco which is a British based multinational grocery and merchandise retailing company with
headquarter in Welwyn garden city, England. This is a third largest retailing as per the gross
revenue measurement. The below report is consist of evaluation of business external
environment along with dynamic capabilities while comparing two companies. Moreover it also
includes analysis of corporate social responsibility of company and CSR strategies use for
enhancing organizational success.
MAIN BODY
TASK 1
External business environment and competitiveness
External business environment is refers to the all the outside factors or influences which
has the direct impact over the operations of the company. In this company e must react taking
usage of various strategies and approaches to keep up the flow of operations organisation so that
desirable outcomes can be obtained (Change and. et. al., 2020). In order to analyses external
environment pestle analysis has been use which is a framework that is utilized by organisations
through which various factors are determine that are prevailing in the market and has direct
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impact on the working and performance of the company. Pastel analysis of Tesco is done below
in comparison to Asda:
Political factor:
This is defined as how and what degree a government step-in the economy. It is also
refers to to the decisions and rules made by the government in which it includes government
policies, political stability, foreign trade policy, tax policy, labor law, trade restrictions etc. In
UK, there is a government stability which is benefit for both the company Tesco and Asda as
with this decision making of the companies will not going to be get impacted. But there is
problem with Brexit proposed legislation which might impact the revenue for both the
companies.
Economic factor:
This is the practice which has a significant impact on how organisation does operations
and how profitable they are. It is associated with economic growth interest rate exchange rates
inflation disposable income of consumer etc. Tesco is the multinational company which has been
contributing in economy while providing employment opportunity in a large number (Waterton,
2021). In which it is necessary for the company to aware about policies for taxation so that they
can take in consideration for own benefits. Moreover, Asda need consider economic factor such
as labour supply and demand, energt prices etc. as these all has the direct impact over the
company's pricing strategy. But due to lock-down bin 2020, many people has lost thei8r job due
to which disposable income of consumers and shopping activities get reduced that has direct
impact over revenue of both the company.
Social factor:
This is also known as socio-cultural factor which is refers to the area that in walls
standard belief and attitude of the population. This is associated with the family, friends, social
group that has impact on individual's opinion attitude and standard of living. UK is the consist of
he multicultural population in which trends has been indicates that customers have moved over
the bulk shopping and one-stop shopping. Along with this customers become more aware of
health issues for this Tesco has accommodating the demand for organic product and also
increased the number of non-food items for sale (Tsetsura, 2020). On the other side, Asda is
enjoying the social changes with development of economy in which people have disposable
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