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Tesco & VIrgin Atlantic Business Environment

   

Added on  2021-04-17

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TESCO & VIRGIN ATLANTICBusiness EnvironmentTesco & The business environment
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Task 2: Understand the national environment in which Tesco operatesCompany IntroductionTesco PLC is one of the largest grocery and general merchandise retailer of the UK with its headquarters in Welwyn Garden City, England. Tesco PLC is the third largest retailer in the world when measured by profits; it has stores spread across 12 countries spread across Asia, Europe and is market leader in the UK, where it has an estimated market share of 29%.Economic systems to allocate resources effectivelyUntil 2015, the economy of UK was the second largest in the entire Europe, falling behind only Germany, and it stood tall at number 5 in the world with a figure of 2.848 Trillion USD .Some highlights of the UK economy are:Banking and the Insurance sector, is the strongest sector of the UK.The UK is the world’s eleventh biggest manufacturing nation.South of England and Great London area are the drivers of the UK economy.Service sector is the major contributor to the GDP (79% of the GDP)The UK economy was hit by Global financial crisis in the last decade and after the pro-Brexit vote back in June 2016, the impact on the UK is still hard to ascertain, the economy is although growing, but not as per the earlier projections.Price mechanism is a key factor which helps in determining what has to be produced and for whom it has to be produced, it is a key indicator of the goods for which the consumers are willing to pay a higher price and for the goods consumers want to pay a lower price, thus reaching the price equilibrium in the country. The resources are thus automatically diverted to the goods for which the consumers are willing to pay a higher price, because they are more profitable for the company, suppliers and even the government. In case of Tesco, the government understood the need of Fresh farm produce and their importance to the consumers, the consumers are willing to pay a high price for fresh products, thus comes Tesco to the rescue. Tesco has been providing its customers with fresh farm produce, fulfilling their needs and also making money for the company in the process. The economic resource allocation in UK is according to the three fundamentals in follows:Resource allocation to increase the customer satisfaction
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