Strategy and Global Competitive Environment

Running head: STRATEGY AND THE GLOBAL COMPETITIVE ENVIRONMENT
Strategy and the Global Competitive Environment
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1STRATEGY AND THE GLOBAL COMPETITIVE ENVIRONMENT
Executive Summary
This paper will highlight the internal and the macro environmental factors of Tesco’s food
market. An indepth analysis of the macro environmental factors is carried out in this paper. The
core competencies of Tesco using VRIO analysis is also discussed in the paper. The
attractiveness and distinctiveness of the food industry in accordance with Tesco is discussed in
this paper.

2STRATEGY AND THE GLOBAL COMPETITIVE ENVIRONMENT
Contents
Introduction......................................................................................................................................3
Pestel Analysis.................................................................................................................................3
Political Environment..................................................................................................................3
Economic Environment...............................................................................................................3
Social factors...............................................................................................................................4
Technological factors...................................................................................................................4
Legal factors................................................................................................................................5
Environmental Factors.................................................................................................................5
Porter’s Five Forces.........................................................................................................................5
Threat from rival firms................................................................................................................5
Bargaining power of suppliers.....................................................................................................6
Bargaining power of buyers.........................................................................................................6
Threat to entrant...........................................................................................................................7
Threat from substitutes................................................................................................................7
Trends..............................................................................................................................................7
Key Drivers......................................................................................................................................8
Attractiveness and distinctiveness of the food industry and Tesco as a firm..................................8
Internal Analysis of Tesco...............................................................................................................9
Core Competencies using VRIO analysis....................................................................................9

3STRATEGY AND THE GLOBAL COMPETITIVE ENVIRONMENT
Benchmark.....................................................................................................................................10
Conclusion.................................................................................................................................10
References......................................................................................................................................12