Business Strategy: Analysis of Macro Environment and Tesco SWOT Analysis

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY..........................................................................................................................................3
Analysis of macro environment to inform and determine strategic management decisions and the
impacts of macro environment on the strategies employed by the Tesco organization........................3
Tesco SWOT analysis.............................................................................................................................5
Porters five force analysis of tesco..........................................................................................................6
Strategic management plan......................................................................................................................8
REFERENCES..............................................................................................................................................10

INTRODUCTION
Business strategy is an essential procedure in any organization. It assists to strengthen the company’s
performance, achieve goals and objectives, attracts the huge customer base and also encourages
competing effectively. Business strategy is made by the company to give a high competition in the
national and international market. It is created for several objectives such as mobilizing resources,
improving effectiveness, developing a better results from challenges and threats, create a high position in
the entire market, grab and utilize best opportunities, directing efficient efforts and behavior of employees
etc. it helps to identifying the needed activities and efforts for business to reach up to high level success.
It is a combination of best actions and procedure to enhance the organization’s performances and
operations. Business strategy shows a desired path, directions and destination to company for
gaining great success. Tesco is a British multinational groceries company and also a general
merchandise retailer. It is one of the best retail companies in United Kingdom. Tesco is also a
third biggest retailer in the whole world according to their gross revenues. Its headquarters in
England, United Kingdom, Hertfordshire, Welwyn Garden city. This report highlights the critical
analysis of the macro environment to inform and determine strategic management decisions and
the effective framework to define how macro environment affects the strategies employed by the
Tesco. This report also includes the analysis and evaluation of the internal environment that will
identify the internal structure, skills and capabilities of Tesco organization such as SWOT
analysis. This report also states about the appropriate strategies to increase competitive
advantages and also concepts, theories and models for developing strategic management plan for
Tesco.
MAIN BODY
Analysis of macro environment to inform and determine strategic management decisions
and the impacts of macro environment on the strategies employed by the Tesco
organization.
Macro environment plays a crucial role in the strategic management decisions of the
Tesco. Macro environment creates huge impacts on the company. For the great analysis and
identifying the impacts of macro Environment Company will use PESTEL analysis. It helps to
recognize the impacts of external environment on the strategies of company. PESTEL analysis
includes Political, economic, social, technological, and environmental and legal factors (Johnson.
2016). Any changes and differences in the macro environment can highly influences the whole
activities and operations of Tesco organization. Macro environment create a huge impact on the
company’s performances by influencing the whole strategic management decisions. PESTEL is a
best strategic management practices that defines the effects of the factors of external
environment on the company and its strategies. The PESTEL analysis highlights the various
extrinsic scenarios which create a high impact on the business and its brand. This analysis is a
tool which is imperative for organizations such as Tesco, as it assist to effectively understand
market dynamics and increase its whole business operations continuously.

Political Factor
The political factor includes the various government impacts on the Tesco Company and
operates multiple business company as one of the largest retailer in the world. The company
must follow various regulations that ensure safety and compliance of its product. Global political
factor better influence the performance of Tesco. As Tesco plays it’s creating employment
opportunity and increase the demand for it diversifies its workforce and products (Thompson,
Strickland and Gamble). By the government incentives Tesco organization will gain the
opportunity to efficiency their financial performance in the whole market. More the influential
the political government the best is opportunity to carry out trade.
Economic Factor
Tesco have a vast range of products and economic factor plays a crucial role in the
consumption of wide area of products. There are several economic factors that create huge
impact on the Tesco Company such as issue of economic stability. Tesco are playing major
attention to an economic factor and their impact on buying behavior of their customer and also
downgrade the UK Economy. The Tesco Company needs to have for any economy changes
occurred in the company and it operates many factors that will affect its sales and its distribution.
It should be aware of the various taxation policies in order to own benefit and in order to
leverage (Akter and et.al., 2016). These market around the globe is spreading its major share of
revenue is generated from the United Kingdom. Tesco also needs to keep in mind that product
raising with influence the sale. Economy factor plays a major role in the consumption of
products.
Social Factor
Social factor includes the variable of customer trends and employee. The analyze of
social factor helps the Tesco company to create various development program by identifying
multiple social trends in the specific target market. Social factor plays an important role in the
business of Tesco. Tesco has plan out its tore to facilities to meets customer needs and the
company has change from major food product to a food cum non food model (Higgins, Omer
and Phillips. 2015). The choice of product may also depend on the various cultural factors. The
society influence the future generation which needs to be assessed by Tesco and the customer
needs to provide efficient product to choose from. Tesco has managed to acquire its business for
marketing organic products to satisfy its customer. This company believes in advantaging the
society by local hiring and generating employment in whole country.