Business Essentials Portfolio Assignment Report - QAB020B022A

This report is a comprehensive business essentials portfolio assignment, focusing on a new business idea within the retailing market, specifically leveraging the existing strategies of Tesco. The report begins with an introduction outlining the business idea and its objectives, followed by an overview of Tesco's operations, objectives, and the rationale for selecting sole proprietorship as the business ownership structure. A significant portion of the report is dedicated to a PESTLE analysis, examining political, economic, social, technological, environmental, and legal factors influencing the business. The assignment also includes a section on marketing objectives, employing the SMART framework, and details targeted markets and marketing strategies. Furthermore, the report covers operational business decisions, including outbound coordination, technology development, and global operations, along with strategic decisions such as developing a vision statement and setting strategies. The report concludes with a summary of the key findings and recommendations, supported by a list of references.

Foundation Business Essentials
Submission Coversheet (All Programmes)
Student ID Number
(Do not include student
name as anonymous
marking is implemented)
RUS19473044
Programme Title Business Management Extended Degree
Module Title Business Essential Introduction
Module Code (listed on
Moodle and in LTAFP) QAB020B022A
Module Convenor John Price
Coursework Title Business Essentials Portfolio Assignment
Academic Declaration:
Students are reminded that the electronic copy of their essay may be checked, at any
point during their degree, with Turnitin or other plagiarism detection software for
plagiarised material.
Word Count Date
Submitted 16/12/2019
Please save your file as:
student id_module code_module_title_assessment name
for example, COR15416549_QAB020N592S_Managing Organisations)_Essay 1 Teamwork
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Foundation Business Essentials
Contents
Introduction...........................................................................................................................................3
Task 1 Part A.........................................................................................................................................4
Overview of the business...................................................................................................................4
Part B.....................................................................................................................................................6
Objectives for the new business.............................................................................................................6
Best suitable form of ownership........................................................................................................6
Sole Proprietorship........................................................................................................................7
Part 2 PESTLE analysis.........................................................................................................................7
Task 4 Marketing objectives SMART.................................................................................................10
Targeted Markets.................................................................................................................................11
Marketing strategies for each target market.........................................................................................12
Marketing Mix.....................................................................................................................................13
Task 5..................................................................................................................................................14
Operations business decision...........................................................................................................14
Outbound co-ordinations.............................................................................................................14
One tactical business decision.........................................................................................................15
Technology development.............................................................................................................15
Global operations.........................................................................................................................15
Online activity.............................................................................................................................15
3. One strategic business decision...................................................................................................15
Develop a vision statement:-........................................................................................................15
Construct an assertion of a plan: -................................................................................................16
Set strategies: -............................................................................................................................16
Conclusion...........................................................................................................................................16
References...........................................................................................................................................17
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Foundation Business Essentials
Introduction
The objective of this report is to clarify the new business idea, and essential it needs to follow
to beat the competitor is prevailing in the same industry. Business ideas selected for this
assignment is to invest in the retailing market with the innovation in effective online
availability of pre-existing successful organisation and its new expansion. Findings of this
report will discuss the type of business and its strategies to examine the external environment
to lead the business successful. Tesco plc is traded as Tesco is a worldwide UK retailer of
nourishment and general items with the focal station in Tesco Garden City, Hertfordshire,
England, United Kingdom. It is trading as the multinational retailer in the groceries and
generally used medicines since 1919 and is a public limited company positioned on the third
position decided on the base of its gross revenue among the largest retailers in the world and
placing upon the 19th position between the largest revenue retailers in the world. It is the
leading retailer with 450,000 colleagues serving millions of the customers in the stores and
online as well. (Arshed, 2016)
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Foundation Business Essentials
source_ (Tesco; 2020)
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Foundation Business Essentials
Task 1 Part A
Overview of the business
What is the business idea? Clearly state with justification the business, the sector, location,
how the business is going to operate
The business thought of TESCO, and introduction of the innovation to its pre-existing
strategies to lead the market. They worked with a fundamental methodology to be the client's
legend and a less complex lifestyle. The important aim invested behind this business idea is
to manage the leading position of the Tesco in the retailing industry by giving competition to
the prevailing strong competitors (Alam, 2019).
The journey of the TESCO history support the development of its objectives as
 Its first stall was opened in 1919by Jack Coh (Alam and Raut-Roy, 2019)en
 In 1934 it established its first warehouse
 Within the 20 years in 1939, it reached to 100 branches operating in groceries
retailing
 1994 it entered in the central European market
Aim of the entire organisation revolves around keeping the customers connected.
Management of the Tesco understands the high level of competition with well-established
retailing market hence it worth its customers as the most vulnerable to make profit. Its
objective since establishment is
 Stay on the leading position in the retailing market
 Provide high-quality products and services at low cost
 Manage effective cost leadership position in the market.
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Foundation Business Essentials
Operations of the business
The company started to enlarge and diversify of the variety of goods it sold during the 1960s
to include domestic groceries and tailored under the Delamare brand, and in 1974 released its
first petrol station. Tesco is the best UK retailer and is in like way the third-most noteworthy
retailer of critical sustenance's on the planet with purposely contributing focuses starting now
and into the foreseeable future, and this new business idea also leads the foundation of the
Tesco’s objectives. It majorly to manage the suitable external market analysis, marketing mix
strategies and use if the cost leadership strategy to attract the customers in the business (Alam
and Raut-Roy, 2019).
Part B
Objectives for the new business
Tesco Plc. is one such company with a substantial expansion in the global market. The
superstore chain has accomplished to develop its tasks across Europe, Asia and North
America with enormous achievement. This global development has affected all the aspects of
the company like business organization, corporate culture, organisational structure, and
financial status. This expansion of the business has several objectives, those are planned to
attain the successful expansion hence the major objective of this new business idea are
designed as
1. To increase the demand for the products and service in the market to increase the
sales
2. Apply effective cost leadership strategy to reduce and manage effective cost
3. Introduce the hygienic and healthy quality food that is suitable for the human
development
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Foundation Business Essentials
4. Development of the large integrated shopping site at the online website
5. To hire the young and best talent from the youth and experienced people at the
expansion destination (Betancourt, 2015)
Best suitable form of ownership
Business expansion in the new business is a phase of a company's life that is oppressed with
both openings and threats. On the one hand, commercial development frequently conveys
with it an equivalent rise in economic fortunes for proprietors and employees alike. What
method of the new business a person assumes will touch a horde of factors, numerous of
which will a company's upcoming position and impact of these in the previous business.
Supporting goals to implement and expand the new business association type is an important
stage. The best form suitable for the Tesco is Sole Proprietorship (Evans, 2018).
Sole Proprietorship
This is the easiest and most useful form of business possession, in it, a business owned and
controlled by a single owner for his or her advantage. The business' existence is completely
reliant on the proprietor's judgments. This form supports the expansion as Tesco will lead the
strategies and planning at its own risk and other advantages of using the sole proprietorship
for the new business expansion is, as the owner will have to face the failure alone hence, it
makes the people responsible to perform well in the new business (Fernie, 2018).
Part 2 PESTLE analysis
As part of portfolio task 1, one has clearly defined what the business is, its objectives and the
form of ownership it will have. The next step is to complete a PESTLE analysis, that will
include the important aspects related to the external environment of an organisation and
affecting the internal management as well (Jarvis, 2015).
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Foundation Business Essentials
Political factors
Political factors in the business expansion are considered as the most important thing to
consider as it includes the political factors relevant to the domestic and international political
scenarios as well. following factors are associated with the political environment and Tesco
need to consider these at the time of operating the operations at the global level. Increase and
decrease in the taxation system in both countries, political decisions taken by the authorities
of the country, changes and implementation in the trading rules of for the organisation,
stability of the political environment in a country is very profitable. These are related to the
framing rules and regulation regarding the overseas trade relation and political stability and
development of the country (Jimisiah, 2015).
Economic factors
Economic aspects are considered as the key point of apprehension for Tesco, as they are
maximum prospective to influence costs, demand, profits, and values. Thus, the company
must be alert of any alterations in rules, such as changes in taxation, monetary inflexion,
inflation rates changes, changes in the cost of material from the government and changes in
the labour cost as these are connected to the finical stability and affect the operation as well.
Although the business is developing globally, but in deep or the economic achievement of the
company is still reasonably reliant on the UK market because it has around 30% of the
market share in it. As observed with the economic policies globalisation and divergence have
been two important policies followed by the company as an important reason for its success
(Zokaei, 2017).
Social factors
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Foundation Business Essentials
Social factors of the business organisation are related to the status, employment taste,
sentiments and aspects making the customer to buy any product. Tesco have effective control
over the identification of the needs to purchase any products and they effectively deal to
provide the better quality of the foods. Many factors affecting the buying decisions are the
social status and family needs. A lower-income family prioritise the food and nutrition on
prime status and Tesco deals to provide high-quality food in lower price to manage a leading
position in the customer’s groups and society. Supporting to the community development is
one of the major aims of the company hence the new business will also focus to manage these
effectively (Harrison, 2016).
Technological factors
Advances in development have prompted a few new open entryways for Tesco. Initially, the
expansion and institution of online shopping with services for home delivery then, self-
service counter sockets have providing expediency and comfort for clients, which in
opportunity have condensed labour costs. Development of the online website available for the
customers affecting the Youngers and many people have not enough time to purchase the
groceries. Many competitive organisations are introducing the development in the technology
of production, supply and distribution network hence it has the liability to make the effective
introduction of new technologies (Wood, Coe and Wrigley, 2016).
Environmental factors
Tesco is indisputably devoted to decreasing its carbon impression considerably by 2020 to
make the targets attainable Tesco has additionally added to countless fundamental
responsibilities to accomplish its long haul objective and lessen its carbon impression.
Essentially, Tesco is restricting the waste made in their stores extending interpersonal
organizations, significantly progressively, a little client voice. Besides, it focuses to minimise
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Foundation Business Essentials
the waste and use the recycling techniques to protect the harm from the environment. It
provides safety at the workplace to protect the health and to save them from the radiation of
scanning machines at the counters (Tesco; 2020).
Legal factors
Government understandings and proclamations likewise legitimately impact Tesco's
presentation. For instance, the Commission for Sales of Retail Foods (FRC) in 2004 proposed
to exhibit a set of principles that would blacklist various current practices, for example,
changing expenses without earlier notice or mentioning charges from providers. To emphasis
these understandings, Tesco offers its clients a decline in the estimation of the fuel they
purchase, in light of the sum spent in their grocery stores.
Task 4 Marketing objectives SMART
Specific
Here the objective of the new business idea is to determine the leading position management
in the retailing industry, and the aim is to use the innovation as positive impacting factors for
the employees and other stakeholders as well.
Measurable
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Foundation Business Essentials
In the case of managing the leading positions, these objectives are seen measurable because
these are affecting the effective pricing in the new business and require the recording of the
cost and expenses. Another decision of safety at the workplace will provide the healthy staff
giving the important return to its organisation.
Achievable
It denotes the agreed or targets that are achievable. This aims to attract the effective team
contribution of the Tesco to attain the specific objective of the organisation. It ensures the
availability of the employees when required and effective involvement of human resources.
Relevant
R belongs to the relevant or realistic, Tesco understands that the aim of new business
expansion is a reality because increased demand of the low-cost products of the Tesco is
increasing and expansion is the profitable decision to attain the objective (Evans, 2018).
Time-bound
The goal must have a course of occasions that shows when both of them start and end. Use
this methodology to check all of the goals to ensure they merit looking for after. To expand
the new business idea the estimated time to cover the cost and start earning the profit is 3
financial years, this bound will lead the effective implementation of most useful strategies
(Betancourt, 2015).
Marketing objectives
Objective of the new business Tesco aimed to attract the customers from different
backgrounds and class, it aims to provide the lowest cost for the high-quality products. This
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cost leadership strategy will help to decide the marketing objectives of the business as
discussed in the targeted market and market segmentation (Biech, 2019).
Targeted Markets
Segmentation- segmentation requires the essential understanding of the given aspect
Geographic- it focuses the rural and urban both types of the population, serving in the UK
and 13 other countries
Demographic- all ages groups customers, males, and females, earning any income or living in
any society or family status. It welcomes and target to advertise the business at all factors of
demographics (Jarvis, 2015).
Psychographic – it focus to the new contented conformers to target.
Target-Tesco; Extra Cherish utilizes system cantered Mass Marketing. The very showcasing
framework is the strategy to disregard publicizing differences and spotlight on the general
market with an offer that spotlights on the essential needs of the purchaser and not on extra
time.
Positioning: Locating a product includes allocating with separate fundamentals of
advertising mix in order to invite marked customer segment in the most effectual method.
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