Business Strategy Presentation: Tesco's External Factors and Analysis

This presentation provides a comprehensive analysis of Tesco's business strategy. It begins with an overview of Tesco as a British multinational retailer, detailing its vision, mission, and objectives, including maximizing sales, reducing prices, introducing healthy products, developing online shopping, and providing local employment. The presentation outlines Tesco's five-year plan, covering employee training, expansion of home brands, a focus on UK shopping areas, reinvestment, and re-evaluation. It then explores the analytical model of decision-making, highlighting the rational economic model and the reasons for choosing Tesco, emphasizing its psychological appeal and alignment with its vision. Furthermore, the presentation delves into the external impacts on Tesco through a PESTLE analysis, examining political, economic, social, technological, environmental, and legal factors. The analysis considers factors such as tax policies, inflation, consumer behavior, technological advancements, environmental regulations, and legal issues, providing a holistic view of the challenges and opportunities faced by Tesco. The presentation concludes with a list of references.

Business Strategy
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Table of Contents
Power point presentation topics ..................................................................................................3
External impact on Tesco ............................................................................................................5
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Power point presentation topics
Name of the company- TESCO
Tesco is a British Multinational groceries as well as general Merchandise retailer . Its
Headquarter established in Welwyn Garden City ,England ,United Kingdom. It is considered as
the third largest Retailer within world through groceries within U.K. Company has diversified its
areas such as clothing,electronics,software ,telecoms ,toys ,petrol ,financial services as well as
internet services. It is considered as the high volume down market retailer. As they can attract a
social group through the low prices .Tesco is considered as the 28 largest company as it is listed
on the London Stock Exchange and also at the FTSE 100 index.
Second slide
Vision and Mission of Tesco -The vision mortgage more than one view point through way of
doing customers,communities,employees ,Business. It is also considered as easy to hold through
the public.
Tesco Mission is to that they make what matter better in form of Togetherness. Its values ,vision
as well as mission interrelated with each other to shape the identity of the firm.
Third slide
Objectives of the company
Aim of the Tesco is to become the largest retailing sector and provides god quality of products
and services at low prices. So they can compete in the market through the pricing strategy.
Objectives- first one is to maximize the sales to gain the profits. They tries to maximize the sales
through cutting of the price and also expanding current stores.
Second objectives – It aim is to decrease the prices for the average household products as they
can do by offering bargaining to the customers such as buy one get one free.
Third objectives- Tesco can introduce many more customers by introducing healthy products
into a broad range of the categories .Their aim is to create a broad range of healthy eating
products organic turkeys to the healthy ready meals.
Fourth – Aiming to develop the largest online shopping websites. They are successful in
attracting customers.
Fifth- Is to provide the jobs to the local communities of the country as to aim is to eliminate the
unemployment within the local areas.
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Fourth slides
Five year plan of Tesco
First year plan
Providing training to the employees and make them aware about the Tesco's
mission ,values ,objectives as well as core mission of the Tesco.
Second year
Highlighting on expanding Tesco a range of Home brand.
Refocus as well as remarket products of the Tesco so the customers are away that they are at
market of low cost.
Do not compete against the M&S and waitrose.
Year 3
Tesco Focuses on the shopping areas of the business as well as focuses on the United Kingdom.
Dobbies example is consider as the Sell non core business
49 millions in Red
Year 4
Re invest the funds
New Found profits as well as new potential sales into re- growth.
They are also in line with the centralized goal
Year 5
Re analysis the last four-year strategies as well as take steps to move forward into the
consideration of the economic conditions of the Tesco
Five and sixth slides
Analytical model of Decision making
A series of the analytical model given below
This model focuses on the Two aspects
Recognised the Problems
Implementation of the solution
Steps into the Analytical model
Rational Economic Model
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According to this model people can make the choices that able to maximizes the profits as well
as minimizes the cost. So here people select the greatest reward with the minimum cost.
Slide 7
The Reason behind to choose the Tesco company is that most people prefer for the shopping
purpose. The reason to choose the Tesco is Psychological . It is linking with its vision is that
Tesco wants to increase its profit by maximization of sales by lowering the cost of products so
this can be achieved by the lowering the cost of the products
Missson statement can be achieved when the customers are purchasing more products.
Various analytical framework used to attarat the customers by lowering their price of the
products.
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External impact on Tesco
Pestle analysis of Tesco
Political factor- The tax on large supermarkets known as “Tesco Tax” was proposed by the
local council but UK government refused this initiative mainly to avoid price hike. Similar
initiatives in the future can affect Tesco negatively. There are also various other factors like
policies and procedures that has been implemented by United Kingdom government. This has
affected their profitability aspects. Also Tesco needs to follow these laws so that they can build
up their goodwill. This will help them in gaining goodwill and will also increase their
profitability aspects. It will help them in gaining more consumers.
Economical factor- This type of factor includes inflation rate, labour rate, fiscal policies that can
affect the working aspects of organization. This can help firm in growing. Like for example if
labour rate increases then this hamper the profitability aspects. It can increase the operational
cost of business. It can also hamper or hinder the goodwill of organization. The upward trend in
economic condition of company will help Tesco in earning more amount of profit. It can make
them grow. If economy is going down and firm is facing recession then this will reduce profit
share of firm.
Social factor- People have tough schedules and want same day and fast delivery with a flexible
goods return policy. They prefer one-stop shopping. Tesco is relying on UK customers and must
understand and provide the services to meet these issues. Company must be engage in making up
those products and goods which do not hamper the belief, values and attitude of people. This will
help them in establishing goodwill. It will also help them in attracting consumers. They must
make sure no decision of their should hamper the thought process of people as if this happen
then this will lead to negative impression. It will affect the profitability aspects of company. It
can also make their image bad or negative. So company needs to fulfill social responsibility
towards society and their consumers. It will help them in growing and it will also help them in
achieving their goals and objectives. Due t the variety of change factors introduced in the U.K
move people move towards the online shopping. Therefore, Tesco can enhance the increased
forms of the non-food items can be offered in the sale. The various types of foods as well as
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services demanded through the consumers are most impacted by the through social conditioning.
As nowadays people are more aware to the health issues so that they can approach the food items
which are changing continuously. Tesco able to adapt these kinds of changes.
Technological factors : The advancement within the technology provides different new
opportunities for the Tesco. Two of the most important factors includes within Tesco is first one
is development of online shopping with the home facility and second one is to provide the
convenience to the customers which can reduced the labour costs. Furthermore, it able to invest
within a significant amount of energy efficiencies project to meet its objectives hat are long term
to minimize its carbon footprints.
Environmental factors: Today most of the customers are becoming eco friendly and getting
aware of their environment. Due to this government regulations for organizations with respect to
environment is increasing continuously. Due to these regulations pressure on Tesco is also
increasing. For this Tesco has taken an initiative of not using plastic bags and using only fuel
saving routers. They are even committed of using 100 percent renewable resources and reduce
their carbon foot print by 50 percent by 2020.
Legal factors: Tesco has faces various legal issues. One of the most famous legal issue what
when in 2017, 17 workers of Tesco took legal action against their employer for gender
discrimination. They have also face legal issues for fraud and misleading their investors as a
result they agreed to pay 12 million dollars to settle the legal action. Tesco also need to contain
their operations according to food retailing commission.
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REFERENCES
Books and journals
Pisano, G.P., 2015. You need an innovation strategy. Harvard Business Review. 93(6). pp.44-54.
Razak, N.A and et.al., 2016. Theories of knowledge sharing behavior in business
strategy. Procedia Economics and Finance. 37. pp.545-553.
Strategy, B., 2017. Business Strategy. MARKETING. 1(2). p.3.
Thompson, A., Strickland, A.J. and Gamble, J., 2015. Crafting and executing strategy: Concepts
and readings. McGraw-Hill Education.
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