Business Environment Report: Strategic Planning at TESCO and ASDA

This report provides a detailed analysis of TESCO and ASDA, two prominent UK-based retail organizations, focusing on their business environments, organizational structures, and strategic planning approaches. It examines their purpose, ownership, size, scope, and sector within the retail industry, further exploring the external factors influencing their operations through a PESTLE analysis. The report compares their strategic planning and performance, highlighting the differences in their management levels and external environmental challenges. It concludes that while both companies play significant roles in the UK market, their distinct management strategies and environmental adaptations create complexities in their operations. Desklib offers more resources for students.

Individual Written Report

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY .................................................................................................................................3
Overview of organisation............................................................................................................3
External Environment.................................................................................................................4
1Organisational structure............................................................................................................6
2Strategic planning and performance..........................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The term business environment refers to sum or collection of all external and internal
factors which is related with workforce, customer needs, supply and demand, suppliers, etc. All
of this factors impact on function of organisation in an indirect or direct manner. Furthermore,
sum of all these factors influence on companies and also on the environment situation that helps
for identify business opportunities, tapping useful resources and improvement in overall
performance of organisation (Outsios and Kittler, 2018). The selected organisation for this report
is TESCO and ASDA and they both are well-known UK based retail organisation. This report
highlights on two different local organisation that include its purpose, ownership and strategic
planning information. In the last, strategic planning and performance along with comparison
between both organisation is included in the upcoming report.
MAIN BODY
Overview of organisation
Business perform an important role for the organisation and this define that the current
management techniques according to the related environment aid to increase in business
performance. The selected business for this report is TESCO and ASDA that perform their
operations among all over the country so with study of this factors important information related
with retail industry is engaged. This results towards the analysis of more data that improve work
knowledge to do task in a competitive-environment.
PURPOSE OF TESCO- The main purpose of Tesco is to perform organisational task with more
productivity in order to generate better and effective results. On the other side, it influence
workforce for manage task with high motivation.
OWNERSHIP- TESCO is a public limited company so its ownership is controlled and managed
by broad of directors.
SIZE & SCOPE- In context of Tesco size, organisation exists at a large level and this refers a
large number of stores exists approximately at 7,005 different geographical areas (Zhongming
and et. al., 2020). With understand the information scope of retail industry is too wide and it is
because management deals among those items that are important for daily essentials.
SECTOR- Tesco perform their work in the retail sector. In context of liabilities organisation is
considered as debt free because of its high yearly revenue.

ASDA- It is a British supermarket chain that was founded in the year 1949 and the headquarter
of this organisation exists in Leeds, England, UK.
PURPOSE OF ASDA- The purpose of ASDA is to perform their work within the large market
area and it to increase their business size management complete all task as per decided
information.
OWNERSHIP- In context of ASDA, organisational activities related with business and it's
ownership is controlled by the Walmart. This refers decision-making is managed and controlled
through identify more factors related with market share.
SIZE & SCOPE- Within ASDA operations and functions approximately 165,000 employees are
engaged in company and on the other side, roughly around more than 600 stores exists and they
provide the products to customers in different market area (Jones and et. al., 2019). This
determines that the size and management area of ASDA is too broad.
SECTOR- ASDA is also performing their work within the retail industry and the liabilities of
respective organisation are not high so the probability for retain in market is high.
External Environment
One of the most important factor related with organisation is to understand their
surroundings and this refers towards completion of work through engage of all important
information that is crucial to make the decision. PESTLE Analysis of retail industry within
context of UK is mention as below:
 Political Factor- The revenue of any retail store and organisation is impacted because of
change within government policies and rules. With understand of the current political
information it is identified that political of UK are stable so there is low probability that
consumer habits, trade laws, etc. are impacted. If any circumstances take place in rules of
retail industry than this is important for management to make right policies related with
business.
 Economic Factor- Strong economy allow the buyer or customer to purchase those
products which is required by them. Rather than fulfilment of need, better economic
factors also helps to attract more number of investor for enhance their profitability (Ojo,
2021). Due to Brexit and pandemic conditions the existing economy environment of UK
is not safe to invest. So this is challenging for organisation to perform work in an
organised manner that helps to gain actual return on investment. This impacts on society

because individuals are not expanding more because of complex economical
environment.
 Social Factor- Consumer or buyer preferences are the major social factors that impacts on
the functions and operations of retail industry. This is because buyer prefer products to
buy in bulk so this is essential that management of retail organisation store products at a
large level. With use of market research factors it is understand that shifts in consumer
behaviour perform an important role for make change in the society factors (Gyanwali,
2018). In context of retail organisation, authorities focus on retail factors because this aid
them to manage work according to current information.
 Technological Factor- Retail organisation utilise numerous variety of technology and this
relates with a particular sales system, processing of bills, entries related with cash. It also
engage different use of technology advances. In simple terms, it consists of adopt new
systems that make areas related with current system. Furthermore, retail industry offer
different benefits to the audience by making its presence on digital platforms. The
products shipped towards customers home which is placed online make the process easy.
It impacts on retail organisation as management equipped different factors that helps to
manage work in proper manner specifically, to gain competitive-edge.
 Environmental Factor- Retails shops offers a large variety of products including food,
raw-materials, clothes, drinks and many more. With the analyses of current environment
factors this is understand that quality of products is also impacted because of change in
environment. Example- Due to increase in the soda tax some retails shops reduce the
offering of fatty products. The environmental factor also impacts on business and this is
because contaminated food generate legal actions against organisation due to which
environmental safety is complex to manage.
 Legal Factor- A retail store fulfil all legal formalities and legislative conditions before
open the shop and several times this conditions are often standard. Furthermore, this is
abide by taxation laws, labour laws, workforce legislation and many more. Legal factors
become trickier once organisation expand business in overseas market (Wilson, Kacer
and Wright, 2019). In the context of retail industry, international laws are also outlined
by management and it refers towards that both organisation are performing their work in

global market. So this allow retailers to grow market by engage of legislative laws in
organisation.
With understand of the current market this is identified that management perform an important
role among the organisation to complete the work according to decided technique. It also engage
the environment for decide the selected business. TESCO is selected as an organisation for this
report and this relates with macro environment conditions as well as market area. It considered
that the political factor aid to manage work with understand of overall sections. This define that
market scenario, also engage economical factors and it is useful for engage the market sections in
order to increase their environmental areas (Bright, 2018). From perspective of social factors
TESCO use the marketing models and research factors in order to identify current trends of
business. Technology is the key of success in current market. Therefore, mobile applications and
training classes are engaged by management to train stakeholders for use online platforms. In the
last, environmental and legal factors are also engaged by TESCO through providing all
information related with ethical areas to manage company operations in a more organised
manner.
Organisational structure
TESCO organisational structure- Board of directors engage and comprises with 10 members and
within the recent financial years there are various significant changes are identified. As the
below picture this is understand that TESCO governance structure comprises of different
committees and it engage members to complete and manage task at a large level.
On the other side, store structure of TESCO is totally different and this includes those sections
which is important for manage numerous management layers. It also create unnecessary
bureaucracy because negative implications reduce the information due to which it is complex to
perform operations in a logical manner.
Rowlinson Knitwear

With understand of the current information this is identified organisation structure perform an
important role for engage and complete all task according to decided policies. With understand
of current market, this is identified that Vertical structure followed by management because
change in regulations generate problems but with the decided structure all strategies facilitates
towards the completion of organisational programme in a systematic manner (Vaidya, 2019).
Strategic planning and performance
Planning perform an important role for an organisation and this is directly associated with
individuals as well as workforce which is engaged in company process. Both organisation
perform an important role to increase their market area. Furthermore, for each department
different roles and responsibilities is offered to complete the day-to-day activities in an organised
manner.
Basis TESCO Rowlinson Knitwear
Function TESCO perform their business
in the retail industry. This
refers to complete work
through match with daily
activities of organisation. In
the present scenario, it helps to
fulfil daily needs of customers.
Organisation engage in the
manufacturing of products and
this define it is also important
for the organisation that they
utilise all methods which
reduce operational work cost.
Concerned With It only relates with directing
and controlling of
organisational functions and
operations to manage work in
proper manner.
With change in the company
functions this is identified that
strategy factors facilitates
more information to complete
work with decided approach.
Main area Various departments are
engaged in retail organisation
and this helps to perform work
as per decided areas.
On the other hand
differentiation techniques is
utilised to perform operations
as per demand of products.
With compare the performance of both organisation this is understand that each of them
complete task according to decided information. But, there are various variations exists in

company and because of this it is complex to complete work with more information. The current
task provide the data according to given project based data. This results in completion of all
strategic plans according to those areas that leads to the induce the strategy according to their
functions and operations (Hiam, Steele and McKee, 2018). Moreover, information also
demonstrate that it aid towards environmental areas that usually aid towards the completion of
task according to production and manufacturing sections both.
CONCLUSION
From the basis of above report this is concluded that management perform an important
role for engage different task according to decided economic factors. Current department levels
define about all common factors specifically, those which facilitates the management areas. The
current management areas define all factors and their relation with external environment of
company. TESCO and Rowlinson Knitwear perform an important role but they are complex to
understand with each other. This is because the current management levels of both organisation
is totally different and due to these it create complexity for engage the management strategy as
per economic and environment factors because they are most important to engage in the market
of UK.
TESCO is performing their work among different geographical areas but this create problems
because of change in external environment. The current market conditions of UK define about all
those areas that is related with effectiveness of organisation. Coordination with external
environment helps in analyse of different factors that relates the market environment of TESCO
to complete work according to the decided knowledge. In the last, social factors is also important
for understand as the quality perform an important role to engage informative structure for
improvement of individual life-style.

REFERENCES
Books and Journals
Bright, C., 2018. The Civil Liability of the Parent Company for the Acts or Omissions of Its
Subsidiary: The Example of the Shell Cases in the UK and the Netherlands. In Business and
Human Rights in Europe (pp. 212-222). Routledge.
Gyanwali, M., 2018. 10 Educating the enterprise. Enterprising Education in UK Higher
Education: Challenges for Theory and Practice, p.60.
Hiam, L., Steele, S. and McKee, M., 2018. Creating a ‘hostile environment for migrants’: the
British government’s use of health service data to restrict immigration is a very bad
idea. Health Economics, Policy and Law, 13(2), pp.107-117.
Jones, P and et. al., 2019. Providing effective entrepreneurship education: a UK perspective.
In The Role and Impact of Entrepreneurship Education. Edward Elgar Publishing.
Ojo, S., 2021. Black African perceptions of entrepreneurial outcomes in the UK. Society and
Business Review.
Outsios, G. and Kittler, M., 2018. The mindset of UK environmental entrepreneurs: A habitus
perspective. International Small Business Journal, 36(3), pp.285-306.
Vaidya, K.G., 2019. Energy Strategies for the UK.
Wilson, N., Kacer, M. and Wright, M., 2019. Understanding regional variations in equity and
growth finance: an analysis of the demand and supply of equity finance in the UK
regions. Available at SSRN 3252346.
Zhongming, Z., Linong, L., Wangqiang, Z. and Wei, L., 2020. Government to protect UK
research jobs with major support package.