This report provides a detailed analysis of Tesco's business strategy, focusing on its macro and internal environments. The report begins with an introduction to business strategy and then delves into the impact of macro-environmental factors on Tesco using a PESTLE analysis, examining political, economic, social, technological, environmental, and legal factors. The report then analyzes Tesco's internal environment and capabilities using SWOT and VRIO frameworks to identify strengths, weaknesses, opportunities, and threats, as well as valuable, rare, inimitable, and organizationally exploitable resources. Further, the report explores the competitive environment of Tesco, and discusses relevant strategic planning models and concepts. The report includes an analysis of Porter's Five Forces. Finally, the report concludes with a summary of the key findings and recommendations for Tesco's strategic planning.