Reflective Analysis of the Internal Business Environment of TESCO Plc

This report provides a reflective analysis of TESCO Plc's internal business environment. It begins with an introduction to the importance of business environment analysis for organizations like TESCO. The report then delves into the Value Chain Model, breaking down both primary activities (inbound logistics, operations, outbound logistics, marketing and sales, and service) and supporting activities (procurement, technology development, human resource management, and infrastructure). A detailed overview of TESCO Plc, its history, and market position is also provided. The report analyzes TESCO's internal environment, focusing on how the Value Chain model can be applied to the company. The reflective section critically assesses the Value Chain Analysis and its benefits. The report concludes by emphasizing the significance of continuous internal strategy modifications for achieving business goals. The analysis highlights the importance of both primary and secondary activities in gaining a competitive advantage within the market.

Reflective Analysis of
the Internal Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
VALUE CHAIN MODEL..........................................................................................................1
TASK 2............................................................................................................................................2
TESCO PLC................................................................................................................................2
TASK 3............................................................................................................................................3
INTERNAL ENVIRONMENT..................................................................................................3
REFLECTION.................................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business environment is one of the most important topic for any of business organisation
as it tells that how any of the company is required to adjust themselves in different working
environment. It has the necessary role for firm because it simply gives the idea to prepare plans
and policies so that business goals can be accomplished (Barros and Ferreira, 2017). In
references to the file, the chosen organisation is TESCO Plc which is a British multinational
company. It is one of the organisation which has been performing in the market since 1919. This
company has been performing its business activity in different part of the world. In context of the
file, various topics will be explained as value chain analysis. Also, internal and external factors
will discussed which can affected the working policies of TESCO Plc in future period of time.
TASK 1
VALUE CHAIN MODEL
It is one of the business model which help to find out the different business activity
through which company can get the opportunity to earn the money and take additional advantage
in the existing market. It is said that there are number of activities in value chain model which
can help the business organisation to understand different aspects through which goals can be
accomplished. This model is categorised into two different parts and they are primary and
secondary activity. Talking about the primary activity, it consists of different aspects which is
related Inbound logistics where raw material is required to be stored in primary stage and then it
is needed to be distributed into the production department so that required product can be
manufactured (Briones Peñalver, Bernal Conesa and de Nieves Nieto, 2018).
Another aspects in this respective stage is outbound logistics in which is final product in
needed to be distributed to the final customers once the work of conversion of raw material into
final product is completed. Talking about marketing and sales department, it is necessary to
understand that they must give their focus upon promotion, advertisement etc. so that necessary
products can be supplied to the customers through which goals can also be accomplished. In
addition, the final activity which is needed to be performed in primary stage is that company
must perform related to providing services and all to the customers. Here, work related to
maintenance as well as repairing must be provided (Xayavong, Kingwell and Islam, 2016).
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In case of supporting activity, it can be said that it add on the activities like procurement
which has a connection with the raw material where it try to check the production finished
goods. It is crucial to understand the use of technology can be very crucial because it gives the
idea that how any of the new products can be designed through which sales can be increased. In
addition, the another aspects is related to HRM where it is needed to find the candidate for the
company and also retain them for longer period of time (Walger, Roglio and Abib, 2016). The
final factor in this respective activity is related with infrastructure of the company which is
connected with the structure of an organisation and management. It is the model which is being
used by the number of business which is helping them to accomplish their goals in specific time
period.
TASK 2
TESCO PLC
A famous multinational general merchandise retailer, which was found in the year of
1919 and basically headquartered at Tesco House, Shire Park, Kestrel Way, Welwyn Garden
City, Hertfordshire, AL7 1GA, England. This organisation was found by Jack Cohen and at
present company is holding around 6,800 shops in all over the world. If it is talked based on
gross revenue term, than TESCO is said to be one of largest retailers of world. This is a business
which expanded very quickly and there were approx 100 stores of Tesco in the year 1939. this is
listed on the London stock exchange (Villena Manzanares, 2019). They have all types of stores
ranging from small convenience stores to large hyper markets. This is likewise one of first stores
from which individuals used to purchase stuff. There are numerous adversaries of Tesco who are
helping in in making it as one of the biggest retailer of United Kingdom. This is having biggest
retailer and they are having benefits development of around 28%. Since 2008, this brand has
been growing themselves and they are having a high offer in business sectors of Asia (Khan,
Dewan and Chowdhury, 2016). They have effectively propelled various kinds of stores, for
example, Tesco Home, Tesco Extra, additionally, Tesco super stores, Tecso Metro and numerous
other creative sort which are helping them in having an enormous offer in the market. They are
utilizing a predominant innovation and have a most ideal way with the goal that they can
improve the shopping experience of their clients. They are many examples that can be given
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where, they have embraced advances, for example, RFID and different M and E-commerce
offices. This is a retailer chain which is likewise having an extremely rearranged plan of action
as they have been need to decrease their general expense and embraced proficiency in their waste
administration strategies. They have likewise presented another store which is named as Jacks
which is offering markdown and this is huge open door for this brand which can help them in
developing and extension with minimal effort speculation. They have likewise made
arrangements for development of different vital coalitions with different brands by framing vital
organizations with effectively settled organizations so they can shape an imposing business
model in the market and evacuate the undesirable challenge (Kisselburgh and et. al., 2016).
TASK 3
INTERNAL ENVIRONMENT
This is related with Value chains analysis which was discover by Porter. This is divided
in two major parts which are primary activities & supporting activities. Primary activities, where
it can be said that these are inbound logistics which are connected with operation's of a
organisation which involves supplying of large products to various physical outlets of Tesco. In
this value has to be created in the organisation with help of usage of minimum resources for
maximum outputs. Operation's is divided in three segment which are having a relation with core
business of Tesco PLC. Manufacturing is also there which is related with grocery chains which
this brand is selling throughout all their stores and another is bank in which there is a bank of this
company. Outbound logistics is another part of this value chain in which it is having relation
with who effectiveness in terms of cost can be achieved. This is a chain of supermarkets and they
have presence both online and offline. Marketing & sales are also used as a major marketing
took which can be used as a communicating tool. Marketing strategy used by Tesco is associated
with competitive prices, which are used in wide variety of produ8cts and also for offering best
quality in there products. For enhancing their brand image Tesco is making use that they are able
to increase the satisfaction level of their external stakeholders. Services which is having relation
with loyalty of their present as well as future customers. This will help in aching all the business
objectives (Low, Ong and Tan, 2017).
Secondary activities are also a very entail part which is helping in facilitating of all the
activities in the value chain model of Porter. Different factors such as infrastructure of a firm is
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related with finance, maintenance of quality and planning of strategies in a organisation.
Management of infrastructure is also needed in Tesco so that value chain can be optimized.
Human resource management is related with various factors of Tesco which can help in reducing
of the pressure of competitive advantage which is related with recruiting if employees in a
organisation (Teoh, Lee and Muthuveloo, 2017).
Technology development is also a part of value chain and this is helping in integrating all
the activities related to various functional department of the organisation such as marketing
human resource or finance. Procurement is also one of most important activity of the value
chain model which is used for denting of a process in which there is purchasing of various inputs
such as raw materials, skills of labour, infrastructure required, capital and all other such type of
resources. This all helps in achievement of maximum efficiency in the operation of organisation.
Every organisation is willing to achieve maximum output. This will helps in maximization of
cost effectiveness and also will be very helpful in achievement of differentiation with compared
to other competitive organisations present in the external environment. Value chain is very
helpful for organisation such as Tesco as it helps them in developing a understanding of various
functions which play a very crucial role in smooth functioning of a organisation (Vermeulen and
Witjes, 2016).
REFLECTION
If it is critically analysed than it can effectively be said that Value Chain Analysis is
pretty much helpful in attaining different number of competitive advantages at both national and
international market. On the other hand, it has also been analysed that there are ample number of
business organisations that are effectively considering value chain analysis model in order to
deliver the best value to potential consumers. This is very important for creation of efficiency by
analysis of various activities which are part of primary activities of value chain. On the other
hand, it is also said that there is a major advantage of this analysis there are five activities which
have been mentioned in this report which is helping in developing a overall understanding of
what a value chain is all about in a organisation and how it is helping companies such as
TESCO.
Including this, it is also pretty much clear that TESCO has utilised this type of in their
manufacturing process. Value chain analysis has two division the primary activities which has
been discussed with reference to Tesco help in overall understanding of various activities which
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are very important for starting of the manufacturing process. Another significant part of this
Value Chain Analysis is the supporting exercises which are helping the essential activities to take
place in a powerful way. This incorporates the foundation of TESCO PLC which is generally
vital for leading of the considerable number of capabilities that the company is holding. Another
segment that came in front i.e. human resource or representatives that effectively perform the
analysis among different or various sections within Tesco plc, who are exclusively liable for
playing out every one of the capacities. It is very well may be said that essential activities is
exceptionally useful for TESCO also of incentive to the perform number of tasks. Different
number of activities, that are effectively taking place could be understood with a good example
where, 'data framework' in relation to managing department of TESCO PLC may contain a
number of successful sources which can prompt success in TESCO's way.
CONCLUSION
Considering the above mentioned report, the model i.e. Value chain analysis has helped
in performing an effective internal analysis in relation to the particular organisation in a proper
detailed and in efficient manner. Here, it can be said that it is much important for a company to
keep on bringing modifications within their internal strategies so that desired goals and
objectives could effectively be attained in specified time frame. Here, it can be said that primary
and secondary activities that are taking place would also require proper analysis so that
competitive advancements could easily be gained in a short span.
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REFERENCES
Books and Journals
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model in a Portuguese production environment. Qualitative Research in Accounting &
Management, 14(1), pp.2-20.
Briones Peñalver, A.J., Bernal Conesa, J.A. and de Nieves Nieto, C., 2018. Analysis of corporate
social responsibility in Spanish agribusiness and its influence on innovation and
performance. Corporate Social Responsibility and Environmental Management, 25(2),
pp.182-193.
Khan, E.A., Dewan, M.N.A. and Chowdhury, M.M.H., 2016. Reflective or formative
measurement model of sustainability factor? A three industry comparison. Corporate
Ownership and Control, 13(2), pp.83-92.
Kisselburgh, L. and et. al., 2016. Assessing a scaffolded, interactive, and reflective analysis
framework for developing ethical reasoning in engineering students. In 123rd ASEE
Annual Conference & Exposition, New Orleans, LA, USA, June 26(Vol. 29).
Low, M.P., Ong, S.F. and Tan, P.M., 2017. Would internal corporate social responsibility make a
difference in professional service industry employees' turnover intention? A two-stage
approach using PLS-SEM. Global Business and Management Research, 9(1), p.24.
Teoh, A.P., Lee, K.Y. and Muthuveloo, R., 2017. The impact of enterprise risk management,
strategic agility, and quality of internal audit function on firm
performance. International Review of Management and Marketing, 7(1), pp.222-229.
Vermeulen, W.J. and Witjes, S., 2016. On addressing the dual and embedded nature of business
and the route towards corporate sustainability. Journal of cleaner production, 112,
pp.2822-2832.
Villena Manzanares, F., 2019. Export performance of SMEs: an empirical analysis of the
mediating role of corporate image. Journal of Small Business Management, 57(2),
pp.386-399.
Walger, C., Roglio, K.D.D. and Abib, G., 2016. HR managers’ decision-making processes: a
“reflective practice” analysis. Management Research Review, 39(6), pp.655-671.
Xayavong, V., Kingwell, R. and Islam, N., 2016. How training and innovation link to farm
performance: a structural equation analysis. Australian Journal of Agricultural and
Resource Economics, 60(2), pp.227-242.
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