Saturday, October 5, 2019

Undertake An Analysis Of The Strategic Position Of Tesco In The UK Assignment

Undertake An Analysis Of The Strategic Position Of Tesco In The UK Using Concept & Tools Of External And Internal Strategic Analysis - Assignment Example Undertake An Analysis Of The Strategic Position Of Tesco In The UK Using Concept & Tools Of External And Internal Strategic Analysis. Additionally, Tesco provides both online and offline financial services with a personal touch. The total revenue received by Tesco PLC as on February 2004 added up to ?33,557 million translating in a rise of approximately 18.7 % from the preceding year’s revenues that ranked ?28, 28 million (Humby et al, 2008). 1) Analyze its task environment Using PESTEL to categorize key issues which management need to respond to, focus on 6 CURRENT issues using evidence to substantiate them, for example: current Horse meat issue   Tesco operates in a globalised environment with stores worldwide, including six European countries. These include the Ireland Republic, Czech Republic, Hungary, Turkey, Slovakia and Poland. The Asian stores are located in South Korean Thailand, Malaysia, Japan, and Taiwan. However, Tesco’s performance relies heavily on the mother country’s political and legislative structure (Henry, 2008). Legislation requires the government to supply the populatio n with a wide range of job opportunities, including the extremely skilled, high paid and centrally located chances. The population demands students, senior citizens and working parents to be considered in terms of job availability for varied groups of individuals. Tesco comes in play as a challenge to local businesses, which include the cutting of costs and declaring the company’s products obsolete. This results in driving the companies out of the market completely (Nathan Rao Consumer Affairs, 2013). Tesco tries to work against the problems named by providing a labor market to diverse employees including students, disabled and the elderly in the society with relatively lower pay rates. Therefore, the employees depict a significant level of loyalty to organizations with the increased level of staff turnover currently in the community (Ringland, 2006). Economic factors Tesco takes matters relating to economic factors with a considerable level of seriousness as the factors dire ctly affect the demands, costs, prices, and the profit levels of the organization in place. The high unemployment levels in an economy results into decreased levels of effective demands for varied goods. The production level of goods lowers with a decreased profit levels, which, adversely reduces and affects the profit levels. In as much as the operating company cannot control the factors, they adversely affect the performance, and marketing mix of Tesco. Despite the growth levels that are evident in the international markets, Tesco substantially relies on the UK market for its survival. Therefore, decreased demand of UK’s foodstuffs can expose the company’s market to face risks of making losses (Nathan Rao Consumer Affairs, 2013). The social and cultural factors The British customers tend to adopt bulk shopping from their previous one stop shopping criteria. The situation prompts Tesco into additional production of food pre-cuts in the country. The increased rate of t he â€Å"ageing population† and participation by women in the employment sectors result, in an increased demand for Tesco products and services. Additionally, Tesco tends to gear most of its focus on its own label of business blend, supply chains and various operational improvements with the capabilities of driving costs out of business. Consumers purchase

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