Impact of Macro and Internal Environment on Business Strategy: A Case Study of Tesco

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Using appropriate analysis identify that in which way macro environment makes an impact
on the business and on its strategies............................................................................................1
P2 Analysis of an internal environment and capabilities of a business......................................5
P3 Use Porter's five forces for making an evaluation on the competitive environment.............7
P4 Using different theories devise strategic planning for the company......................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy is the planning of actions which is taken by the business in order to
achieve business objectives. It is the decision which is taken by business for performing the
actions and to provide a competitive position to the company in market(Ellinger and et. al.,
2020). Taking proper decisions helps in giving the roadmap as in which directions company have
to take their next step. Increasing competition makes it very important to prepare a business
strategy because they have to operate their business at risk. Business have to operate their
activities in a dynamic environment which keeps on changing and if one method does not works
they have to use some other so that results can arrive perfectly. Adopting second method requires
proper planning of business strategy which helps the business in achieving their objectives.
Tesco is a grocery and merchandise company which is headquartered in Welwyn Garden,
England and started their business in 1919. This report will cover impact of macro environment,
internal environment, Porter's five forces model and understanding of strategic directions
available to organisation.
MAIN BODY
P1 Using appropriate analysis identify that in which way macro environment makes an impact on
the business and on its strategies
Strategic context-
Mission- The mission of Tesco is to be customer focused and to provide them all the products
which they will need. To develop the business so they can become successful retailer in the
International market.
Vision- The company aims to become highly valuable business and to provide good services to
customers. They want to be valuable in communities, with the shareholders and to make new
innovation for the people (St-Hilaire and Boisselier, 2019).

Objectives- Their main is to make new innovation in the products and services which they
provide to consumers in order to attain competitive advantage. To become leading supermarket
and to provide quality services at low cost.
Meaning of strategy- Strategy is the plans and actions which the management of a company
will be taking in order to gain competitive position in the market. They set the goals and outlines
with the objectives of a company will be established.
Role of strategy- Strategy helps the business in setting their future goals and provide the
direction as in which way they have to move forward. Strategy helps in reducing any
inconsistency as for all the dynamics business is prepared in advance.
PESTEL analysis-
 Political factors- There are some regulatory norms which needs to be followed by
companies as it is compulsory(Raharja and et. al., 2019). Tesco is related with consumer
based company in which they provide products which are needed by them so it becomes
very important to adhere to the food act and quality of product.
 Economic factors- Economy is dynamic and it keeps on changing which is related with
inflation, employment, recession and many others which the business have to make the
analysis. Different countries have different taxation policies in which Tesco always
makes the analysis on how they can take the benefits. Other than this, they also work for
providing employment opportunities to unemployed people.
 Social factors- Social factor is related with society which include latest trends and
preferences of consumers which needs to be taken care of by the company. Tesco always
provides the consumers with those products that will be used by them in their daily life
and that too at reasonable cost.
 Technological factors- Technological factors are the most important in which business
have to take care of the updated technology(Mancha, Gordon and Stoddard, 2019).
Tesco has provided consumers with the facility of online delivery of food which has
made it easier for the company as well as for consumers.
 Environmental factors- Environment factors have become the most important one in
which business have to focus on reducing carbon footprint which not in direct but in
indirect way is caused by them.