Business Strategy Analysis: Tesco's Macro & Internal Environment

This report provides a comprehensive analysis of Tesco's business strategy, examining its macro and internal environments. It utilizes frameworks such as PESTLE and stakeholder analysis to assess the impact of external factors and VRIO analysis to evaluate internal resources and capabilities. The report also applies Porter's five forces model to analyze the competitive landscape and explores strategies for achieving a competitive edge. Additionally, it incorporates strategic planning theories to develop a strategic management plan for Tesco, offering a critical interpretation of the data and concluding with recommendations for future strategic directions. The report emphasizes the importance of understanding both the external and internal factors influencing Tesco's performance and provides insights into how the company can leverage its strengths to achieve its business goals. This report is a valuable resource for students studying business strategy and strategic management.

Business
Strategy

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
Application of appropriate frameworks to analyze the influence of macro environment.......................3
Critical analysis of macro environment...................................................................................................6
TASK 2..........................................................................................................................................................6
Analysis of the internal environment of the organization.......................................................................6
Critical analysis of an organization’s internal environment.....................................................................8
TASK 3..........................................................................................................................................................8
Application of Porter’s five forces model................................................................................................8
Strategies for improving competitive edge............................................................................................10
TASK 4........................................................................................................................................................10
Application of a range of theories and preparation of strategic plan....................................................10
Producing a strategic management plan...............................................................................................14
Critique and interpretation of data.......................................................................................................14
CONCLUSION.............................................................................................................................................14
REFERENCES..............................................................................................................................................15

INTRODUCTION
Business strategy refers to various types of competitive moves and actions which a
business can use in order to attain a distinct competitive edge and become successful in the
market (Adámek and et.al., 2017). It helps the businesses a lot in attracting customers, competing
successfully, strengthening performance and achieving the organizational goals. It leads to an
increase in efficiency, effectiveness and productivity of the business which helps in achievement
of short-term and long-term goals, targets and objectives. This report is based on Tesco which is
British retailer dealing in groceries and other general merchandise. It will evaluate the manner in
which Tesco can implement business strategies for achieving its various goals and objectives.
Also it will evaluate the techniques it can use to acquire competitive edge. In this assessment,
specific focus will be made on the impact of macro environment on business strategies, an
organization’s internal environment and its capabilities, evaluation and application of Porter’s
five forces model. Additionally, application of models, theories and concepts to assist with
understanding and implementation of strategic directions will also be discussed as a part of this
report.
TASK 1
Application of appropriate frameworks to analyze the influence of macro
environment
Macro environment refers to the external environment factors which affect the working
pattern in an organization (Albertoni and et.al., 2017). Tesco is also affected by the influence of
these factors. For analyzing the macro environment Tesco uses PESTLE analysis and
Stakeholder analysis.
PESTLE analysis-
PESTLE analysis can be done in order to find out the impact of various types of forces on
the firm (Elena, 2016). Its application in the context of Tesco is as follows-
Political factors- These are government policy, political stability, tax policy etc. These
factors impact Tesco as its strategies are impacted by a change in these factors (Akter, and et.al.,
2016).
Positive impact- If there is a leniency shown by the government in its tax policy then it
can positively affect Tesco’s operations as it will increase its overall income. For
example- The reduction in taxes will increase Tesco’s profits.
Negative impact- If the political stability of the country is low then it will negatively
impact Tesco’s operations as it will create a conductive environment for carrying out
business. For example- Political instability can decrease Tesco’s profits.

Economic factors- These are economic growth, interest rates, disposable income of the
customers etc. These factors can impact Tesco as its strategies may be impacted by a
change in these factors (Leonidou, L. C. and et.al., 2017).
Positive impact- If the economic growth of the country is increasing at a steady rate then
this will positively influence Tesco’s operations as it will lead to increase in its profits.
For example- Booming growth will influence Tesco’s profits as they will increase.
Negative impact- If the disposable income of the customers decreases then this will
adversely impact the operations of Tesco as it will lead to a decrease in its revenue and
profits. For example- Decrease in disposable income of Tesco’s customers will lead to a
decrease in the company’s profits.
Social factors- These are population, lifestyle attitudes of the customers, cultural barriers
etc. They impact the business operations of Tesco as its strategies are impacted by these
factors (Soltanizadeh, S. and et.al., 2016).
Positive impact- Changing lifestyle attitudes of the customers offer a chance to Tesco to
maximize its profits. For example- Tesco can develop new products according to lifestyle
changes which will increase its profits.
Negative impact- Cultural barriers can impact the operations of Tesco as it may not be
able to target the rural customers. For example-Cultural barriers can affect Tesco as some
of its products may not be acceptable to certain customers.
Technological factors- These are technology incentives, technological change etc. They
can impact the operations of Tesco as its management may have to take certain decisions
based on these factors (Yuliansyah, Gurd and Mohamed, 2017).
Positive impact- If Tesco is able to adapt to technological changes quickly then these
factors will positive impact it as it will get ahead of the competition level. For example-
Tesco can lower its costs and maximize profits.
Negative impact- If Tesco is not able to adapt to technological changes quickly then
these factors will negatively impact it as it will fall behind its competitors. For example-
If Tesco does not adopts quickly its profits will reduce.
Legal factors- These are discrimination laws, anti-trust laws, employment laws etc. They
create an impact on business of Tesco as it has to adhere to the rules and regulations
framed by the government (Linder and Williander, 2017).
Positive impact- If the government makes the rules and regulations lenient then it will
positively impact Tesco as it will increase its chances of maximization of profits. For
example- Tesco can benefit from government’s leniency as it will lead to an increase in
its profits.
Negative impact- If the government makes the rules and regulations stricter then it will
negatively impact Tesco as it will result in reduction of overall profits. For example- If
laws are made stricter then Tesco’s profits will reduce.
Environmental factors- These are weather, climate, environmental policies etc. These
factors can impact Tesco as its strategies may be impacted by the influence of these
factors (Sanden, 2016).

Positive impact- Change in weather can increase the demand of certain goods of Tesco
positively impacting its revenue. For example- Tesco can benefit from it and can raise its
revenues.
Negative impact- A change in environmental policies may force Tesco to discontinue its
certain goods thereby negatively impacting the revenue. For example- Change in
environmental policies can lower Tesco’s profits.
Stakeholder analysis-
Stakeholder analysis can be performed by firms in order to find out the factors affecting
their stakeholders (Bhattacharya, 2018). Tesco’s stakeholder analysis is as follows-
Customers- Customers are very important for Tesco and it must aim for their satisfaction
for increasing its chances of maximizing profits. For example- It can provide innovative
products for meeting their demands.
Employees- Employees are very important for Tesco and it should aim for retaining them
and rewarding them for their good performance. For example- Tesco can aim for
providing incentives for good performance.
Suppliers- Suppliers are very important for Tesco and it must aim for purchasing inputs a
t a lower cost from them to reduce its overall costs. For example- Tesco can identify
suppliers who are offering inputs at a significantly lower price.
Government- Government is a very important stakeholder for any business. Tesco
should aim to satisfy the rules and regulations framed by the government. For example-
Tesco needs to make sure that its products and services are provided according to the
rules and regulations of the government.
Critical analysis of macro environment
The macro environment can be analyzed by using PESTLE analysis and Stakeholder
analysis. Tesco’s management can use both these techniques so that it can maximize its
efficiency, effectiveness and productivity. The use of these techniques can help the managers of
the organization to develop a distinct competitive edge over the competitors which will
ultimately help in maximization of the profits. Thus sustainable growth can be achieved easily by
the firm by using these strategies.
TASK 2
Analysis of the internal environment of the organization
The internal environment refers to internal factors which have a bearing on the operations
of an organization (Chatterjee, 2017). It can be analyzed by the use of VRIO analysis and
Resource Based View Analysis.
Resource-based view-

Resource-based view is a tool which can be used by the organizations for achieving
distinct competitive edge over its competitors (Hernaus, Vuksic and Štemberger, 2016). The idea
which this theory gives is that the organization should use the resources and potential it already
has. Tesco can use this tool in order to analyze its resources and assess their importance which
will help it in getting a distinct competitive edge over its competitors.
According to it, there are two types of resources which are available with the
organization-
Tangible assets- These are physical assets of the organization such as property, land,
products and capital (Laari, Töyli and Ojala, 2018). These resources are the one which can be
bought easily and no effort is required to make them. For Tesco, they hold importance as their
use is required within the firm. They are required by the company to acquire a distinct
competitive edge over the competitors. Also these assets are required for achievement of various
goals and objectives of the organization which will lead to efficiency and effectiveness and
maximization of profits of the firm. For example- Land, Building, Cash etc.
Intangible assets- These are assets which have no physical form but are extremely
important for an organization. Goodwill is an example of Intangible assets. For Tesco, they hold
importance because they can help it in succeeding in the market. Thus they have to be used
effectively and efficiently so that proper benefit can be derived from them. Thus it is important
in the context of Tesco that it uses them in the right manner. For example- Goodwill, Brand
Image etc.
Assumptions of RBV-
The key assumptions which RBV makes are as follows-
Heterogeneous- This assumption states that the resources and capabilities must be
heterogeneous in nature which means that a firm’s resources and capabilities must vary with the
other firm. Thus Tesco’s management should make a note of it because it is necessary to attain
sustainable success.
Immobile- This assumption means that resources are immobile in nature and thus are
unable to move from one organization to another at least in the short-term (Shaukat, Qiu and
Trojanowski, 2016). Thus Tesco’s management should identify these immobile assets.
VRIO- Although possession of heterogeneous and immobile assets are good for an
organization this is not enough if it wishes to achieve sustainable competitive advantage.
Therefore, an organization should also possess VRIO resources to attain competitive advantage.
Strategic capabilities- Strategic capabilities refer to the ability of a business to use its
skills of its employees and its competencies in order to gain competitive advantage. For
example- Efficiency of employees, Productivity of workers, Assets of business, Effective

Leadership etc. are all it’s strategic capabilities. In Tesco also managers need to identify them so
that the organization can use them to their advantage.
VRIO analysis-
VRIO is an analytical technique which is used for the evaluation of a company’s
resources and thus the competitive advantage arising from them (VRIO Analysis, 2019). Tesco’s
managers can use it for the purpose of analyzing the value of their resources. The analysis in the
context of Tesco is as follows-
The VRIO resources from the point of view of Tesco are as follows-
Valuable- Brand Image, Customer Support, Innovation and Supply Chain Management
are all valuable resources for Tesco. It is so because it is due to all these resources that the firm
has earned goodwill in the market. For example- Tesco’s goodwill has made sure that its market
share is higher than other firms.
Rare- Brand image is rare because goodwill is needed to create it, customer support is
not rare as it is provided by all companies, innovation is rare because it requires a strong
financial position and supply chain management is not rare because many other organizations are
using it (Marx, 2016). For example- Tesco’s innovation has made sure that it is ahead in the race
of providing creative products.
Inimitable- Brand image is inimitable because it is not easy to copy it, customer support
is not inimitable because it can be developed by other firms as well, innovation is inimitable
because it requires a creative idea and supply chain management is not inimitable because it can
be maintained by other companies as well. For example- Tesco’s brand image is inimitable
because it takes a lot of efforts to develop it.
Organized- Brand image, customer support and innovation are organized because
organizing these resources properly is important for a firm if it has to attain long-term success.
Supply chain management is not organized because sometimes some problems are created in it.
For example- Tesco has organized processes in the organization which makes sure that it attains
success.
SWOT analysis-
Strengths-
Broad customer base- Broad customer base is strength of Tesco as it has a large number
of customers for its wide variety of products. For example- Tesco serves in multiple markets
around the world and thus has a strong presence.

Strong market presence- Tesco has a strong market presence among all other
competitors in U.K. Thus this helps it in maximizing its profits. For example- Tesco can benefit
from it by raising its profits.
Weaknesses-
Lack of strong marketing- Tesco’s marketing leaves a lot to be desired as it is lacking
in comparison to the other competitors. For example- Tesco’s marketing strategies lag behind
competitors as it has not adopted modern methods.
Lack of presence in some countries- Tesco has very few stores and thus must aim for
improving its presence in countries in which it is operating in. For example- Tesco’s presence is
quite limited in some of the countries.
Opportunities-
Expansion- Tesco can expand to other countries which will significantly boost up its
profits. For example- Tesco can increase its revenues in this way.
Innovation- Tesco can innovate new products which will help in maximization of
profits. For example- Tesco can bring in new products to get ahead of the competitors.
Threats-
Competition- Ever-increasing competition level is creating a threat for the operations of
Tesco. For example- Tesco’s competitors force it to lower its price and thus it affects the
revenues.
Change in tax policy- A change in tax policy of the government can significantly impact
Tesco as it can increase its expenses and thereby lead to a reduction in its level of profits and
thus its functioning can be affected. For example- Increase in taxes by the government will lower
the profits of Tesco.
Critical analysis of an organization’s internal environment
Internal environment is quite important for an organization. The tools like VRIO and
RBV are highly effective if an organization has to assess its internal environment. Tesco has
resources which are heterogeneous as well as immobile and some of its resources also come in
the category of VRIO which help it in attaining a distinct competitive edge over its competitors.
This will help it in the long-run as it can maximize its profits easily with the help of these
resources. However for that it has to use its resources optimally.

TASK 3
Application of Porter’s five forces model
Porter’s five forces model is used by the organizations in order to analyze the power of
different types of forces present in the market (Parmentier and Gandia, 2017). It is important for
the managers of Tesco to analyze these forces so that their competitive power can be analyzed.
These forces are explained as follows-
Competition in the industry- This refers to the competition which is prevailing in the market
(Sousa-Zomer and Miguel, 2018). It affects Tesco as it can affect its strategies. It has a high-
power and thus can impact an organization significantly. For example- Tesco has many
competitors like Sainsbury’s, Asda, Aldi etc.
Potential of new entrants- This refers to the potential new entrants have in the industry in
which the firm is operating in (Idemudia, 2017). Tesco operates in an industry where the
potential of new entrants is quite low and thus this force has a low power. For example- Tesco’s
industry has potential of new entrants entering by keeping lower price.

Power of suppliers- This refers to the power the suppliers have in the industry. They are
important for Tesco because they can easily influence the prices of inputs which can affect its
cost. However this force has a low power for the company because the suppliers are not able to
influence the prices of inputs by a very large margin. For example- The suppliers of Tesco
cannot change the prices by a huge margin and thus this force has a low power.
Power of customers- This refers to the power customers have in the market. Customers are
important for any organization and are similarly very important for Tesco. This force has a high
power because customers are the king in the market and can influence the prices very easily. For
example- Customers are the king in the market and thus they hold a high power and their choices
can influence decision-making.
Threat of substitute products- This refers to the threat substitute products pose towards the
business of the firm (Parry, V. K. A. and Lind, M. L., 2016). This force has a low power because
the quality products of Tesco are hard to be matched by the substitute products offered by other
firms at a lower price. For example- Tesco’s industry faces this threat as many substitute
products are available at a cheaper price.
Justification- From the above discussion, it can be concluded that three of the five forces have a
low power and two have a very low power. Thus only three forces can impact the business
operations of Tesco and the other two cannot impact it significantly.
Competitiveness of supermarket sector- The supermarket sector in U.K. is a fast-
growing sector. It has witnessed rapid growth in the past. In this sector many leading companies
are present such as Tesco, Sainsbury’s, Asda, Aldi etc. Therefore this sector is likely to witness
higher growth in the future. Thus in terms of competitiveness this sector can be very attractive
for the companies.
Strategic direction- It means the directions which are given by the leaders of a particular
organization to the managers to develop tactics for achieving competitive edge in the market.
Competitive edge- It means the advantage which a firm has over its competitors due to
various reasons such as more resources, skillful employees etc.
Ansoff Matrix-
Ansoff Matrix is a framework which is used by the organizations in order to find out the
right strategy to use for achieving growth in the future (Syaniardi and Shihab, 2016). Tesco’s
managers can use it for finding out the right strategy that can be used by the firm for growth.
Its elements are explained as follows-

Market penetration- It is a strategy in which firm introduces new products within its existing
market. It is the most common strategy which many firms and can also be used by Tesco. For
example- Tesco can expand its products in its existing markets.
Market development- It is a strategy in which a firm enters into new markets to maximize its
level of profits. Tesco can use this strategy to grow quickly in the future. For example- Tesco can
expand to markets where it is not present.
Product and development- It is a strategy in which a firm develops new products and services
and hopes to attain a distinctive competitive edge over its competitors. This strategy can be used
by Tesco to channelize innovation in operations and to maximize its profits. For example- Tesco
can develop new goods and services and can make sure that it attains a strategic edge over the
competitors.
Diversification- It is a strategy which can be used by firms to enter into new markets with new
products and services. This can be used in two forms which are related and unrelated
diversification. Tesco can use related diversification to introduce products matching with its
business and unrelated diversification to introduce products which do not match with its
business. For example- Tesco can diversify into new markets where it is not present.
Justification- Tesco should choose market development strategy in which firms enter
new markets with new products and services. This will help it a lot as it will get ahead of
its competitors and secure a distinct competitive edge. This will also certainly help it in
maximizing its level of profits earned. This strategy can prove to be highly effective in
increasing the profits and thus the managers of Tesco should work on implementing this
strategy after analyzing and interpreting it and checking whether they have the resources
for available for it or not.
Strategies- Strategies refer to a plan of action which is created in order to achieve a
specific aim or objective. Using strategies, Tesco can easily achieve strategic and
competitive edge and can get ahead of its various competitors. Macro-environment can
influence the strategies created by the managers of Tesco because it can lead towards a
change in the strategy if required.
Tactical actions- Tactical actions refer to the techniques which are used in order to achieve the
goals and objectives. In the context of Tesco, it is important that it uses these actions so that it
can achieve sustainable advantage. Macro-environment can influence the tactics of Tesco
because it could be required to change them according to a change in the macro-environment.
Strategies for improving competitive edge
Different strategies can be used by the management of Tesco for improving the
competitive edge. They can raise their standards of production, provide training to the staff and
increase the level of efficiency, effectiveness and productivity in the organization. This will

certainly help the enterprise in securing a long-term competitive edge over its different
competitors and maximizing its level of profits. Therefore by adopting strategies the organization
can grow substantially in the future. Thus choosing the right strategy becomes very important for
the organization.
TASK 4
Application of a range of theories and preparation of strategic plan
Different types of theories can be used by the organizations for devising the strategic
planning in the long-run (Aldea and et.al., 2016). Tesco’s management can use Porter’s generic
strategies for long-term strategic planning.
Porter’s generic strategies-
Porter’s generic strategies refer to a framework used effectively by the managers in order
to gain distinct competitive advantage. Its explanation is as follows-
Cost leadership- In this strategy, firms try to become competitive by reducing their costs
which in turn leads to maximization of profits. Tesco can use this strategy by finding out its
unnecessary costs and reducing them so as to attain cost leadership.
Differentiation- In this strategy, firms can differentiate their products from the
competitors. This can help them in acquiring the required competitive edge (Williams Jr and
et.al., 2018). Tesco can use this strategy by making its goods different from the competitors.
Cost focus- In this strategy, companies aim to just reduce the costs in order to raise their
level of profits. Tesco can use this strategy by reducing costs and gaining sustainable competitive
advantage. Focus can be made on a particular market where the costs can be reduced.
Differentiation focus- In this strategy, the focus of companies solely lies on
differentiation of the products (Mohapatra, Agrawal and Satpathy, 2016). It can be used by
Tesco by making its goods different from that of the competitors. Focus can be made on a
particular market where the products can be differentiated.
Justification- The management of Tesco should choose cost leadership strategy as it will
lead it towards reducing its costs and maximizing its profits. The costs can be reduced by
removing unnecessary expenses and thereby profits can be maximized. By doing so the company
can get larger market share and thereby will leave all its competitors behind it and will gain
sustainable competitive advantage in the market. Also by doing so the firm can become the
market leader. It will be an ideal growth strategy for the company. Thus the management should
focus on this particular strategy and must devise ways of implementing it within the context of
the organization. This will help the company in the long-run in future.

Bowman’s strategic clock-
Bowman’s strategic clock is a model which is used in management in order to devise an
effective strategy by an enterprise. This model allows the enterprises to choose a strategy helping
them in achievement of competitive edge and maximization of profits in the future. Tesco’s
managers can use it so that they are able to attain a strategic edge over the competitors and
maximize their profits.
Low Price and Low Value Added (Position 1) - This position is not very competitive
from the point of view of a business. This position requires keeping low price for a product
which has a low value. Tesco should not use this strategy as it is not suitable for it.
Low Price (Position 2) - This position is good for a business because it requires it to
keep low prices for products so that competitive edge can be acquired. Tesco can make use of
this strategy and it will be good for it.
Hybrid (Position 3) - In this strategy, the focus of companies is to continuously achieve
differentiation while keeping a low price. This strategy can be used by Tesco’s managers which
will allow them to get a strategic edge in the market and also achieve maximum profitability
level.
Differentiation (Position 4) - In this strategy, companies focus on differentiating their
products so that they can acquire a strategic edge within the market. This strategy can be used by
Tesco to gain competitive edge.
Focused Differentiation (Position 5) - In this strategy, companies keep their focus on
positioning product at higher prices so that the customers buy it due to its perceived value. This
strategy can be used by Tesco as it will be able to maximize its profits.
Risky High Margins (Position 6) - In this strategy, companies can focus on keeping
their prices very high and earning a lot of profits without offering anything extra to the customer.
This strategy is not suitable for the customers.
Monopoly pricing (Position 7) - In this strategy, companies can make their focus on
attaining a monopoly in the market and taking benefit of it. Tesco can use this strategy in
markets where it has no competitors.
Loss of market share (Position 8) - In this strategy, companies can set mid-range price
for a product with low value. This is not good for a company. Tesco should not adopt this
strategy.
Justification- Tesco should choose hybrid strategy because this will allow it to
differentiate its products while setting a right price for them. This will help in attaining
competitive edge as well as increasing its profits in the long-run.

Strategic plan-
A strategic plan refers to a document which prepares a roadmap for an organization to
follow for achieving sustainable success (Chrisman and et.al., 2016). It is essential for short-term
and long-term strategic planning. Tesco’s strategic plan is as follows-
Vision- Tesco’s vision is to become a highly-valued business for the customers they
serve and inspiring, earning trust and loyalty from the customers, colleagues and communities.
Mission- Tesco’s mission is to make what matters to the customers (Core Purpose and
Values, 2020). Thus it aims to provide such products to the customers which hold value for them.
Goal- The goal of Tesco is to achieve higher market share in U.K.’s supermarket sector
in the future. The management of the company wishes to leave Sainsbury’s and other
competitors behind it so as to achieve this particular goal.
Strategy- Tesco’s management has decided to use competitive pricing strategy to attract
more customers towards their stores. The managers think that by analyzing what price is charged
by the competitors they can easily set their price so as to achieve goals and objectives.
Tactics- Tactics is used in order to achieve the objectives. In order to achieve its
objectives Tesco will use aggressive tactics. It will strategize its marketing plans, price its
products aggressively and will develop effective measures so as to get ahead of competitors.
Objectives- Tesco sets objective using SMART technique i.e. specific, measurable,
achievable, realistic and time-based. The objectives of Tesco are as follows-
6 Months- To raise the market share by 5% and profit share by 10%.
1 Year- To raise the market share by 15% and profit share by 10%
5 Year- To raise the market share by 20% and profit share by 15%
Core values- The core values of Tesco are trying hard for the customers, treating people
the way they want to be treated and believing that every little help can make a big difference.
Long-term goals- Long-term goals of Tesco include diversification in other countries
and significantly raising the level of profits.
Action plan- The plan which Tesco will undertake to achieve its objectives will be to
raise productivity of staff and making its products better than the competitors.
Producing a strategic management plan
A strategic management plan has to be made if Tesco has to achieve its short-term and
long-term objectives. This plan will allow it to significantly raise its bar of efficiency and
effectiveness. Also the productivity can be raised significantly. This will allow the company to

get ahead of the competition and also to maximize its level of profits. Thus the management of
Tesco should pay specific attention towards framing of this plan which will help them in
achievement of goals and objectives in the future time period.
Critique and interpretation of data
Tesco’s managers have to frame an effective strategy if the company has to achieve
growth in the future. By using different models and theories of management the managers can
facilitate significant improvements in the processes and operations of the company. This will
lead the company towards achievement of sustainable development. Through sustainable
development, the firm can raise its bar of efficiency and effectiveness in its operations. This will
enable it to get ahead of its competitors and thus maximize its profits. In this manner, it can
achieve all its short-term and long-term goals and objectives in the future.
CONCLUSION
From the above report, it can be concluded that business strategy can be framed by the
managers of a company in order to help it in achieving sustainable growth in the future. It has to
be framed for sustaining in a dynamic environment which keeps changing on continuously and
therefore the companies have to adjust according to its various requirements. PESTLE analysis
and Stakeholder analysis help in analysis of macro environment. VRIO and RBV are the
frameworks for analysis of internal environment. Porter’s five forces can be used to analyze the
forces in the environment. Ansoff Matrix helps in determining the strategy to be used by a
company. Porter’s generic strategies determine the strategy that can be adopted by the
management. Strategic plan can be framed by the management of the organization to prepare a
roadmap for attaining success in the future.

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