Unit-32 Business Strategy

Unit-32 Business Strategy

Table of Contents
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
P1 Apply appropriate framework of macroenvironment of an organisation...............................1
P2 Determine the internal environment and capabilities of an organisation...............................3
P3 Evaluate Porter’s model to a market sector............................................................................6
P4 Discuss strategic management plan with the help of various theories and models................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy is defined as the direction of action that assist the firm to take an
appropriate decision through proper planning and coordination for accomplishment of goal in a
respective time period (Ansoff and et.al., 2018). It is a set of actions and plans that help firm to
gain competitive position across the globe. This report is based on Tesco which is renowned
brand in UK that deal with range of products or services such as clothing, food, toys and many
other household essentials. This report comprises of PESTEL analysis and SWOT analysis to
determine both positive and negative aspect of business by combatting the threats and grab
opportunities. This report also covers Porter’s model to achieve a significant and competitive
position. It also includes strategic management plan to determine both vision, mission and
objectives of a business enterprise.
P1 Apply appropriate framework of macroenvironment of an organisation
Macroenvironment is a broader term in an economy that comprises of several factors
such as level of employment, GDP, innovation, aggregate demand and supply, national income
and may more (Anwar and Hasnu, 2016). This aspect aid determines the level of resources and
consist of external aspects that have impact on business and also provide future growth
opportunities to a business. PESTEL analysis is a major determinant of macroenvironment that
help to scan both internal and external factors of a business and help firm to take an appropriate
decision to deal with such factors. Tesco is one of the renowned brands in UK that deal with
wide range of good or services such as groceries, clothing, electronics, and various home
accessories. The focus of firm is to expand its operation in different parts of country by
providing quality products at a reasonable cost. The strategic management plan of Tesco is given
below:
Vision: The vision of Tesco is to be the most valued business in the world by serving
their clients and customers in an efficient manner. Also, it has best and committed employees
who work hard to achieve a desired level of output. The employees are highly trained and
competent in nature that would help in accomplishment of task within a limited period of time
and also help to gain competitive advantage at a global level.
Mission: The mission is to provide excellent quality of merchandise and create product
differentiation to gain maximum customer satisfaction. The respective firm aims to provide
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greater value to customers by ensuring quality specification and thus achieve a competitive
position across the globe.
Objectives: The goal of respective firm is to deliver and efficient services to their clients
to gain maximum customer satisfaction at a global level.
Macro environments play an important role in an economy as help to assess the
availability of resources and funds to achieve sustainability and significant position and also
provide future opportunities for business to grow. With reference to Tesco, the six elements of
PESTEL analysis are presented below:
Political Factor: This aspect constituent of several factors such as taxation policies,
labour law, trade restrictions, government policies and so on. UK is considered as the powerful
political stability in the world and it has multi-party system that comprises of two parties namely,
labour, and conservative party (Çitilci and Akbalık, 2020). The exit of Britain from European
Union, namely Brexit has affected the political conditions of the country in a negative manner.
This result an increase in VAT from 17.5% to 20%. Doe to this, the manager of Tesco has
increased the prices of goods and services and thus decline the overall profit margin of a firm.
Also, the manager follows the same policies and procedures that simplify the working procedure
of a company due to the reason that UK has constant ruling party since a long time. The political
aspect would influence the company like Tesco as there is great political stability and less
interference of government which assist the company to facilitate smooth operation and does not
make changes quickly in its policies and procedure within the confines of retailing industry. As
there is less restriction that assist the firm in facilitating business at international level and ensure
greater productivity.
Economical factor: This aspect related to market demand and supply, employment,
GDP, per capita income and so on. UK is considered as the fifth largest economy in the world in
terms of GDP and Foreign Direct Investment (FDI) is a major source of attraction towards
investment from different countries and thus provide enormous growth opportunities in future
(Hill, 2017). The vote for Brexit has created lot of uncertainties and unimaginable chaos in an
adverse manner that affect the economic conditions of the country. The manager of Tesco has
risen the prices of merchandise or services which in turn affects the purchasing power of
consumers and minimise the profit margin. In addition to this, it hampers the growth
opportunities and minimise the productivity and efficiency of a company. Due to Covid, this
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