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(solved) Tesco Business Strategy

Added on - 23 Nov 2020

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BUSINESSSTRATEGY
ContentsINTRODUCTION...........................................................................................................................1PART A...........................................................................................................................................1P1 Capabilities of Tesco and impact of various environments on company...............................1P2 Analysis of Internal environment and capabilities of Tesco..................................................4PART B...........................................................................................................................................5P3 Evaluation of Competitive forces for Tesco...........................................................................5P4 Strategic plan for Tesco..........................................................................................................7CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10
INTRODUCTIONBusiness strategies plays a very important role in building a business and effectivelymanaging it. The role of strategies in business cannot be undermined they played a veryimportant role in giving shape to business. The main responsibility of framing business strategyis on the top management of the company and the responsibility To implement those policies andprocedures lies with managers and subordinates of the company. Thus, it can be said that withouta proper strategy a company cannot stand in a competitive market (Ireland, Hoskisson and Hitt,2012). Tesco is a big retail company which is operating in UK and worldwide, the company ishaving various stores around okay in which almost all the brands and their product airport so thatconsumers can choose the brand of their choice. It is having diverse operations in variouscountries and is committed to grow beyond Europe by investing heavily in some of the emergingmarkets as well. For this purpose the company is making sure that right kind of businessstrategies is framed for the company.PART AP1 Capabilities of Tesco and impact of various environments on companyTesco is the big company in the retail sector and having diverse operation within thesector. It is having various suppliers of goods and they would want to have their products beingshowcased in the big store of Tesco. The company is having distinct capabilities in terms of itsoperations and management. There are various factors that affects business directly or indirectly.These factors can be internal or external. For the P purpose of analysing these factors Pestle andSwot analysis of Tesco will be done (Sia, Soh and Weill , 2016).PESTLE AnalysisIt is the analysis of various external factors that could affect the proper management ofbusiness as well as organisation. It is this quite important that Tesco being a large companyconduct a proper PESTLE analysis of its environment so that effective strategies can be framedfor taking business forward and increasing the efficiency level of the business going forward.PoliticalIt refers to the political environment that exist within our country and in which thecompany has to operate. The most important element of political factors of political parties andthe parliaments of the nation in which the businesses operating. They are the one who are1
responsible for framing laws as well as regulations which will impact overall functioning of thebusiness in general. Tesco is facing various political turmoil due to the fact that United Kingdomhas decided to exit from European Union. This has resulted in various issues for the companybecause the different free trade agreements that were sign the United Kingdom with EuropeanUnion has came to an end and has impacted the business of the company in some of the countriesof Europe. Being a established company of UK it has to make various changes in its policies andprocedures in order to grow its business and sustain its competitiveness. Because of various otherfree trade agreements that can take place, the company has decided to invest in various countriesof Europe like hungry, Germany and some of the parts of France (Champoux, Durgee andMcGlynn, 2012).EconomicIt refers to various economic factors that would have a direct impact on the industry andthe business of the company. The various economic factors could be inflation , deflation, interestrates, monetary policy, and some of the political decisions that would impact the overall healthof the economy. Economically speaking, the retail sector of UK has shown growth in the pastyears and have consistently outperformed various other sectors within the economy. Thus it canbe said that Tesco operates in the sector which is quite important from the point of view ofconsumers. The company and its management are framing necessary strategies for the purposeOf effective management of the business. They make sure that any changes within the economicenvironment of the country would not be adversely affect affecting the overall business structureof the company. Retail sector is the sector which is impacted heavily by the kind of inflation thatprevails within the economy. The level of inflation is high the consumption of customers will godown and therefore ultimately impact the business of Tesco adversely. The company is framingnecessary strategies to overcome these issues (Grant, 2016).SocialThere has been a shift in the generation of UK. The number of elderly people isincreasing in UK because of the fact that the birth rate is going down the life expectancy ofpeople is rising. The management of Tesco should incorporate this factor while making strategiesfor its consumers. The recently plan launched by Tesco for online portals where shopping can bemade easily Amit keeping in mind the mobility issues of elderly people. This has created apositive image of the company in the eyes of consumers and has given various benefits to the2
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