Environmental and SWOT Analysis of Tesco Company for Marketing Management

This report provides an analysis of the macro and micro environment of Tesco Company using the PESTLE framework and SWOT analysis. It also includes recommendations for the company to develop a competitive advantage in marketing management.

Marketing
management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................4
Environmental analysis of macro and micro environment in order to analyse the key factors
associated with business..............................................................................................................4
SWOT analysis which is summarising internal and external analysis(including secondary and
primary data)...............................................................................................................................4
Recommendations on the basis of SWOT analysis for the company to develop competitive
advantage....................................................................................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Marketing is one of the major and most important functions of a business which helps a
company to develop sales and profitability (Bagozzi, Rosa, and Coronel, 2018). In the recent
times, marketing management of a company includes major functions which are formulated on
effective basis in order to also gain effectiveness. Main task of a business is to increase focus on
marketing management in order to increase chances of stability. In this project example of Tesco
company is taken into consideration for better understanding key aspects of business. Tesco is a
British multinational retail company which was formed in the year 1919 and today operating in
11 countries. Tesco company is also performing very well in the marketplace by delivering
quality services and customer satisfaction. The project will include analysis of external and
internal environment in order to achieve goals and goals. This report will also cover main factors
and forces which are related with SWOT analysis to make business more competitive.

TASK
Environmental analysis of macro and micro environment in order to analyse the key factors
associated with business
The analysis of macro and micro environment is very much important for a business in
order to develop effective operations. Analysis of macro environment is performed below with
the help of PESTLE framework:
PESTLE analysis is a major framework which helps a company to briefly analyse the
external environment of company. It is most important factor which helps a business to move
ahead of competitors and analyse the external environment in a precise manner.
 Political factors- Political factors are most important factors that are should be evaluated
and assessed by a business entity. It is key role of a business to take help and support of
political factors in order to conduct ethical business (Chernev, 2019). They are related to
corporate laws and policies framed by government.
 Economic factors- Economic factors are related to recession, inflation and depression
rates which are prevailing in the economy (Ziemba, Jankowski, and Wątróbski, 2018).
The main approach related to a business also supports economic functioning of business
to develop market growth. Economic factors also helps a business to increase the Gross
Domestic Product and national income of country.
 Social factors- In order to meet the demand and supply of customers, it is necessary for a
business organisation to take support of economic factors. Main role of a business
organisation like Tesco is to evaluate key perspectives associated with social factors in
order to develop culture and traditions
 Technological factors- All main global and domestic companies should analyse the
importance of technological factors (Deepak, and Jeyakumar, 2019). These factors
support a business to perform quick and accurate functions and tasks. The technological
factors are considered as key factors that impact majorly on business development.
 Legal factors- In the corporate world, many business entities analyse legal factors to
develop and formulate key and major practices. This is key role of a business to support
development of legal factors in order to perform legal business functions.

Analysis of micro(internal environment)
 Product issues- Product issues are related to key issues related to existing and new
products and development. Most of the companies at the marketplace includes focus on
developing new products in order to survive the competition.
 Marketing issues- Marketing issues are faced by Tesco like management of operations,
promotion, sales obstacles, segmentation (Grant, 2019). In order to deal with marketing
operations it is key role of marketing to develop professionalism in main operations.
 Management issues- The management issues are related to management of various
operations in the company. Management of employees is one of the hardest tasks of a
business which impacts on its functioning.
SWOT analysis which is summarising internal and external analysis(including secondary and
primary data)
SWOT analysis:
The application of SWOT analysis makes a company more dynamic and well performing
at the marketplace. All the successful companies at the marketplace develops SWOT analysis to
in order to analyse key factors. The SWOT analysis of Tesco company is performed below:
 Strengths- The strengths are internal capabilities of a business firm which makes it
unique at the marketplace (Hua, 2019). In order to analyse strengths, Tesco company is
taking support of skill development in its employees to increase its strengths.
 Weaknesses- Key weaknesses of a company makes it less competitive at the marketplace
in order to increase chances of stability of growth. The main weaknesses which are faced
by a business includes, operational management and supply chain management.
 Opportunities- In the functioning of a business, opportunities are major golden chances
which helps in expansion and growth. Increasing scope of business in different countries
all across the globe is one of the major opportunities which is available to Tesco.
 Threats- Threats are key obstacles and hurdles which are faced by a business entity
which negatively impacts on company. In order to deal with the threats, Tesco is taking
assistance of Strategic management (Jolibert, Mühlbacher, and Dubois, 2017). Risk
management strategy is also developed by Tesco to increase chances of eliminating risk
associated with operations. Competitors are major threats for Tesco which are mainly
Walmart and Marks and Spencer.

Recommendations on the basis of SWOT analysis for the company to develop competitive
advantage
In order to lead the competition, it is necessary for companies to perform SWOT analysis
and formulate certain recommendations. The key recommendations on the basis of SWOT
analysis for Tesco company are mentioned below:
 Strategic management- The strategic management is the framework which is related to
planning and policies of a company (Parsons, and Lepkowska-White, 2018). It is main
role of a business to hire experts and professional employees in strategic management in
order to increase chances of business development. The planning and strategies are also
key ways of performing business functions in a synchronised manner.
 Information and technology- The information and technology are key pillars of
business development which helps in performing quick and accurate operations. The
information and technology is also involving use of advanced software and systems
which are helpful in business functions and tasks (Wang, 2019). The key role of a
business is to support information and technology based operations with effective
measures and techniques.
 Professionalism- In order to gain competency edge at the marketplace, it is necessary for
a company to develop professionalism (Pencarelli, and Forlani, 2018) The
professionalism is main function of a business in order to develop expert based practices.
In order to increase chances of business stability, the professionalism is main approach
and helps in development related functions.
 Risk management- Management of risk in marketing is one of the key functions of a
business which helps in increasing chances of business development (Rust, 2020). The
risk management also helps in eliminating uncertainty with main functions of a business.
In order to minimise the risk, it is key role of management to develop major strategies
and policies. The minimisation of risk will help company to ensure that it is leading
competition in a well defined manner. Management of risk is also necessary for a
company in order to perform systematic approach in development of major
responsibilities (Samoggia, Bertazzoli, and Ruggeri, 2019). The marketing management
of a business is also helpful in determining key concepts related to risk in order to
evaluate focused business practices and approaches. The management of risk is also

certain for an organisation to evaluate best purposes for dealing with business
development.
 Leadership- Leadership is one of the major aspects which needs to be covered by a
business in order to manage employees. The management of employees with appropriate
leadership style is also significant for business growth (Sharma, 2020). Leadership based
functions and tasks are also essential to be determined by the management in order to
increase chances of stability. Main companies in the competitive marketplace take
assistance of democratic leadership style to perform systematic operations (Sood, 2017).
In Tesco company, democratic leadership style is considered as key approach which also
helps in development of performance of employees.

CONCLUSION
This project concludes that professional marketing management and approaches are
helpful in increasing key chances of business development. The analysis concludes that in order
to increase business strengths it is key role of marketing to develop systematic and precise
approach by facilitating revenue and profitability. The main function of a business is to also
analyse the macro and micro environment in order to lead the competition. This is also one of the
key roles of a business entity to take support of recommendations in order to develop
competitive approach. The project also concludes that most of the international and national
companies are involved in developing key approach in managing business functions with
marketing strategies and plans.

REFERENCES
Books and Journals
Bagozzi, R.P., Rosa, J.A., and Coronel, F., 2018. Marketing-Management. Walter de Gruyter
GmbH & Co KG.
Chernev, A., 2019. Strategic marketing management: Theory and practice. Cerebellum Press.
Deepak, R.K.A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Grant, D.B., 2019. Outsourcing integration and third party logistics services: An appreciation of
two ‘classic’articles in industrial marketing management. Industrial Marketing Management, 79,
pp.21-26.
Hua, H., 2019. Mobile Marketing Management: Case Studies from Successful Practice.
Productivity Press.
Jolibert, A., Mühlbacher, H., and Dubois, P.L., 2017. Marketing management: A value-creation
process. Bloomsbury Publishing.
Parsons, A.L. and Lepkowska-White, E., 2018. Social media marketing management: A
conceptual framework. Journal of Internet Commerce, 17(2), pp.81-95.
Pencarelli, T. and Forlani, F., 2018. The experience logic as a new perspective for marketing
management. International Series in Advanced.
Rust, R.T., 2020. Outside-in marketing: Why, when and how?. Industrial Marketing
Management, 89, pp.102-104.
Samoggia, A., Bertazzoli, A. and Ruggeri, A., 2019. Food retailing marketing management:
social media communication for healthy food. International Journal of Retail & Distribution
Management.
Sharma, F.C., 2020. Marketing Management by Dr. FC Sharma: SBPD Publications (Vol. 1).
SBPD Publications.
Sood, T. ed., 2017. Strategic marketing management and tactics in the service industry. Igi
Global.
Wang, Y., 2019. Design of port e-business marketing management information system based on
cloud computing. Journal of Coastal Research, 98(SI), pp.75-79.
Ziemba, P., Jankowski, J. and Wątróbski, J., 2018. Dynamic decision support in the internet
marketing management. In Transactions on Computational Collective Intelligence XXIX (pp.
39-68). Springer, Cham.