...strengths and weaknesses of the organisation. In this paper two techniques that are often used for environmental scanning are applied on Tesco PLC. These techniques consist of the PESTEL analysis and the SWOT analysis. Environmental Scanning in the Strategic Planning Process Hunger and Wheelen (2002) divide the strategic planning process into four key stages, which comprise the following: scanning of the external and internal environment, development of strategies, implementation of strategies, and evaluation of actual results in line to the strategic targets set. The scanning of the external and internal environment is important in order to identify key factors that help in the development of sound strategies (Hunger and Wheelen, 2002, p. 12). For example, an examination of the business environment can help in the identification of opportunities and threats that affect the organisation. PESTEL Analysis Political The UK government has recently adopted a tax measure that affected Tesco. In 2011 the UK government increased the VAT rate from 17.5% to 20% with the aim to increase government revenue by £13 billion per year (BBC, 2011, n. p.). Crossley et al. (2009, p. 3) contend that an increase in the VAT rate leads to lower customer spending. Therefore, an increase in the VAT rate negatively affected the sales revenue generated by Tesco. Sales revenue is the key source of income of the organisation and thus it holds a substantial effect on profits (Atrill, 2009, p. 33). ...
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...Strategic marketing in Tesco Plc Executive summary Tesco is one of the biggest names in retail and deals in a wide variety of products and services. By its effective marketing strategies it has been a great success and has been able to maintain its leadership position. The report aims at examining the strategic marketing of Tesco and seeks to find the ways in which it has been able to maintain its leadership position. In order to get suitable and reliable information of the operations of the company, secondary data from the company’s website, scholarly articles, reports, etc have been utilized. The report also uses various strategic analysis tools like PESTLE analysis and SWOT analysis to access the competitive position of the company and its internal as well as external environment. It has a strong leadership position in retail and its low cost strategy has been a great success to attract more number of customers. It has also operations in other countries where it has emerged successful by adapting to localization techniques. It is recommended for the organization to increase its international presence in order to derive more growth and profitability. This report highlights the strategic marketing of Tesco and the ways in which it has created a leadership position in the extremely competitive market and industry in which it operates. The market position of Tesco has also been accessed by the use of different strategic tools like SWOT analysis and PESTLE analysis. Table...
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...just what people think but why they think it. It’s about getting people to talk about their opinions so you can understand their motivations and feelings 4 PESTLE Analysis 4 Swot Analysis 5 Referencing 6 What Is Market Research Primary Research The process of gathering, analysing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business's target market, the industry as a whole, and the particular competitors you face. An example of market research is that Tesco may use one to one surveys to ask their customers what their opinion of Tesco is, they will also use one to one surveys to make their research more solid and reliable as they are talking to the person directly and will be able to tell if the person is lying or not. Online questionnaires are also a very good way of researching information, this is because many people nowadays tend to do online shopping, so the researchers will receive a lot of feedback as the people who use the Tesco website must complete a questionnaire in order to view their products.. Secondary Research This type of research is already compiled and organized for...
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... | | | |Word Count 2189 (Total 2525) | |Harry Singh | |02/11/2015 | Contents What Is The Marketing Process 2 Benefits and Draw Backs of of having a Marketing Orientation 2 Benefits and Draw Backs of of having a Marketing Orientation (Cont) 3 What is Macroeconomics 4 Pestle Analysis 4 Pestle Analysis (Cont) 5 What is Microeconomics 6 Porter's Five Forces Theory 6 Porter's Five Forces Theory (Cont) 7 References 8 References (Cont) 9 What Is The Marketing Process There are a number of different definitions from organisations or individuals to describe it, The UK Chartered Institute of Marketing’s used the Author ‘Blyth’s’ definition; ‘Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably’ [1] Quite simply marketing is an activity carried out by various people in a business or in an organisation which is designed to understand and satisfy their customer’s needs, which also allows the business or...
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...http://123articlesworld.blogspot.co.uk/2012/04/pestle-analysis-of-tesco.html Friday, 13 April 2012 PESTLE analysis of Tesco Political factors - Now Tesco is operating business in 14 courtiers all over the world, so its performance may be influenced by the local legislative and political conditions. Employment laws specified by local government must be followed in order to avoid legal hurdles. Most of the governments encourage the organizations to provide employment for local candidates so that local people can be benefited more. All kinds of jobs like low-paid, highly flexible, more skilled, highly-paid and local based jobs are available in stores like Tesco. Tesco employed different categories of people like students, elderly workers and disabled people for low labor rates. Tesco followed the employment legislation and other laws properly in every country where it has stores. Economical Factors - Demand for a product in market, price of the product and profits of an organization depends on the economic factors like interest, inflation rates and local unemployment levels. Organizations cannot have control on these economic factors, but it can show adverse effect on organization performance. Tesco is still completely depending on UK market even though it has stores in different countries, which mean if UK market collapsed or affected by any economic factors, Tesco will be in greater amount of risks. Social Factors- Demographic changes and change in customer behaviors...
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...TESCO PLC is a British multinational grocery and general merchandise retailer. It is a third largest retailer in the world. It has stores in 12 countries across Asia and Europe and is the grocery market leader in the UK, Ireland, Hungary, Malaysia, and Thailand. Mission Tesco’s business was built with a simple mission – to be the champion for customers, helping them to enjoy a better quality of life and an easier way of living. This hasn’t changed. Customers want great products at great value which they can buy easily and it’s Tesco job to deliver this in the right way for them. That’s why we’ve chosen ‘Serving Britain’s shoppers a little better every day’ as the new core purpose. As a business, serving customers is at the heart of everything we do – from colleagues in its stores to those of its in supporting roles. In the UK, Tesco serve some 66 shoppers every second, so it’s Tesco goal to ensure every one of those customers experiences just a little better service on each visit. PESTLE Using PESTLE analysis to analyse to business environment of Tesco. Political Many governments encourage retailers to create more career opportunities for the domestic population. So Tesco plays its role in providing employment opportunities, it also increases the demand for its products and diversifies its workforce. Economic Tesco is concerning any changing in policies, such as taxation. Although Tesco is growing internationally, it is still concern the UK market where it has...
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...Introduction Tesco is one of the food and drink outlet industries in United Kingdom. It is a source of employment for over four million people, especially at primary production, assembling and selling to consumers (Alzola 2008). In UK supermarkets such as Tesco, they are under strict control by the government due to suppliers’ treatment concern. However, strategic supply improvements remain the main concern for most supermarkets for the past years (Auboin 2007). Analysis of Challenges in Tesco Company SWOT analysis of Tesco challenges provides the intended knowledge on: • Strengths of the company • Weaknesses of the company • Opportunities available for expansion in other nations • Threats and challenges likely to be encountered as a result of current and future market competition at global and regional levels. There are a number of strengths that Tesco can base its stamina in the growing market. However, Tesco’s market strength can largely be improved through increasing the market shares. This policy is an excellent strength that determines its stability in the competitive market (Stephen 2011). There are several weaknesses that challenge the development of Tesco as outlined in SWOT analysis. For example, reliance upon the UK market affects the market share due to unexpected changes in economy (Cateora 2011). Tesco’s greatest opportunity lay in the fact that UK’s beauty and health continues to grow. Hence, Tesco continues to invest...
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...supplies customer requirements. According to Quinn (1980) ‘Strategy is the pattern or plan that integrates an organization’s major goals, policies and action (s)...into a cohesive whole’ The business model used to assess the marketing strategies and …is Tesco, Which is one of the largest `retailers in the world. Strategic evaluation tools such as PESTEL, Porter’s Five Forces, and SWOT and value chain analysis have been used by researchers to achieve this aim. Company overview Tesco is among the largest food retailers in the world with revenue in excess of £54 billion in 2009 and employing over 530,000 people. They operate approximately 6,784 stores in 12 countries around the world. The company operates primarily in the USA, Europe and Asia and their Head Office is based in Hertfordshire, UK. According to Data monitor (2012), the commercial network portfolio of Tesco comprises: over 1,547 Express stores which sell approximately 7,000 products including fresh foods at suitable localities; 192 Metro stores which sell a variety of food products in town and city centres; and 481 superstores which sell both food and non-food items including DVDs and books. It also provides online retailing services through the website tesco.com and Tesco Direct . In addition, they provide broadband Internet connections and financial...
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...Concept 3 1.2 Brief Background of Tesco PLC 3 Main Products and service range offered 4 Markets Served 5 Tesco’s Main Competition 5 1.3 Key Issues faced by industry players and Tesco PLC 5 2.0 Marketing Mix 6 2.1 Product Mix 6 2.2 Place Strategy 8 2.2.1 Current strategies used in distribution 8 2.3 Price Strategies 8 2.4 Promotion Mix 9 3.0 Technological Impact 10 3.1.1 Tesco and CRM (Customer Relationship Management) 10 4.0 Conclusion 12 Executive Summary The main objective of this report is to critically analyze the Tesco PLC’s overall operational scope based on a retailing perspective, since they are indeed the UK’s largest multiple retailer and across in Central Europe, it is the author’s main objective to study the marketing mix strategies and the components of the business as well. The technological factors as well the customer relationship management that Tesco has incorporated into their business in order to gain reputation and an established brand reputation is also what fascinated the author to conduct this research because Tesco has proven themselves in terms of the diversification of their services and the further expansion of their stores across the globe with an effective marketing strategy associated with it. Furthermore the highly advanced Information Technology and IT systems that has given Tesco a competitive advantage over the competitors on an international platform and has helped Tesco in maximizing the overall supply chain...
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...reporting on (Company, challenge, PESTLE, SWOT, 5 Forces, CVF – MUST have an explanation of what it is) The Organisation The industry – supermarkets, news, journals * Market Share – who controls the market * Current news? * PESTLE – table and a SUMMARY! * Competitors – 5 forces table + competitor table Organisation - Tesco * Background * Statistics * etc * SWOT Challenge * Define it * In relation to company Recommendations * CVF – where should Tesco be Conclusions TESCO AND GLOBALISATION This Essay would contain information on Tesco as an industry and organisation. It would also analyse Tesco using the four models; PESTLE, SWOT, Porter’s 5 forces and the competitive value framework (CVF). An in-depth look into the term globalisation, its advantage and importance as well a the global challenge Tesco is currently facing, its competitor and how they have reacted to globalisation and recommendations on how to handle their global challenge this paper would contain. Jack Cohen first formed Tesco. This happened in the year 1919 when he first opened up a stall in the East end of London. Tesco started out as a very small business and it did so on the platform of sole proprietorship however today, Tesco is one of the world's largest retailers with a clear, proven growth strategy. It has over 492,000 employees and about 5,300 stores across 14 markets Tesco has its headquarters in Chestnut...
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...Time management: 6 P3 6 Planning techniques used by organizations: 6 BCG matrix: 6 Profit impact of market strategy (PIMS) 7 P4 7 Organizational audit for Tesco: 7 SWOT analysis 7 Value chain analysis: 8 PESTLE analysis: 8 Significance of Stakeholder analysis: 9 P7 10 Alternate strategies relation with substantive growth, limited growth, retrenchment: 10 Substantive Growth: 10 Limited Growth: 10 Retrenchment: 10 P8 11 Appropriate Future strategy for Orange Mobile operation: 11 P9 11 Roles and responsibilities of strategic Implementation: 11 P10 12 Requirement of Resource for Implementing a New Strategy: 12 P11 12 Targets and Timescales to monitor and achieve a Given Strategy: 12 Conclusion: 13 Bibliography 14 INTRODUCTION: For organization success strategic planning is one important tool. And for successfully implementing strategy various techniques are required to be acquired. Management in a proper way and planning in timely manner is important to implement strategy. From various solutions best one has to be picked. And every step has to be predefined achieve all the organizations goal. P1 Strategic context: every organization has its own context. They build up strategy based on their context. For building up strategies for organization context analysis has to be done first. It is the process of analyzing the environment. According to the scenario Northern Rock has its own strategy based on its context. To achieve its...
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...Assessing the performance of tesco TESCO plc is a United Kingdom based group specialised in food retailing, it operates as a grocery and general merchandising chain in the United Kingdom and across the world. So far, it is the largest British retailer in term of sales and market share with, according to Thomson one banker, a total net income of £ 2,161.00 for the year 2009. It is also the third largest global retailer group in term of revenue after the American group Wal-Mart and the French group Carrefour. With a main activity of food global retailer, it has diversified his activity into clothing, home, financial services, car insurance, health, telecoms and internet services and software. However in this report we are focusing on its clothing unit which operates online. So to better know this Tesco clothes retailing, this report will bring an overview of the company and will analyse its current strategic position, the same as its fitness with the other business units. This report will also analyse the Tesco clothes retailing’s macro environment, the competitive environment, the strategic capability and also the future strategic options. Tesco clothes retailing’s brief overview: The Tesco clothes retailing company is among the biggest clothing retailer by volume in the United Kingdom as it was ranked at the third place in 2008 and had to juggle this place with Asda Direct online retailer behind Mark & Spencer and Primark (Hall, J.). Tesco clothes retailing is committed...
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...consumer telecoms. The Current Position In 1995 Tesco overtook Sainsbury's as the UK's largest supermarket. In 2001 Tesco occupied 15.6% of the UK grocery retail market and was the market leader by 6%. Tesco's enormous share still grew and by September 2004, it had increased to a massive 28%, around 12% more than its nearest market rival, Asda. In the year ended 26 February 2005 Tesco made a pre-tax profit of £1.962 billon on turnover of £33.974 billion. Some would argue that if we were to include Tesco's share of the convenience store market (bizarrely considered a separate sector by UK competition authorities) in this figure, Tesco could be said to control 34% of the grocery market. Considering how concentrated and cut-throat the 'supermarket' market is, this is quite an achievement. Tesco is equally impressive when considering its share of the total retail market. In its interim statement of results (August 2003), Tesco claimed 'our share of the total retail market is just 12.3% and there is a lot left to go for.' Already, 'just 12.3%' means that almost one pound in every eight spent in the UK is spent in Tesco. Tesco profits have increased every year but one since 1987. In April 2004, Tesco announced profits of £1.6bn for the financial year ending on 28 February; £4.4m profit a day, 17.6% higher than the previous year. As a comparison, in 2003 Tesco made as much profit as M&S, Sainsbury, Next and WH Smith combined. Tesco is Europe's second largest supermarket after the...
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...2014 LIBEI 1406221 Question 1 Answer: There are four steps for developing a new strategy as following: Step 1: Strategic Analysis. City Flowers should analysis external and internal environment and first. By collecting and reviewing of information about firm’s internal processes and resources and external marketplace factors, firm can understand the situation and position well. By using PESTLE to analysis external environment and SWOT to analysis internal environment are efficient. City Flowers currently meet the 40% customer needs as the standing order from commercial clients for company reception and executive offices. 30% from individual purchasing, another 30% are orders to be delivered. Resources of City Flowers are telephone order to suppliers and visiting sales representatives to replenish supplies of soft toys and relevant gift products. Study the macro-environmental by PESTLE analysis. Such as Political factors i.e. the tax for small middleman like City Flowers will be influenced; Economic factor i.e. the GDP of country; Society factors i.e. education background and norms etc.; Technology factors i.e. the technology of keeping flowers fresh etc.; Legal and ethical factors i.e. laws for transporting flowers; Environmental factors i.e. regulations of environmental protection. Study the micro-environmental by using SWOT to analysis the flower shop’s strengths, weakness, opportunities and threatens. By learning the above-mentioned information, the flowers shop...
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...PESTEE Analysis Korea Political Analysis Political factors refer to political situation of the country and the extent to which it may affect and interfere with the project. Political system of South Korea has undergone a huge transformation to become a democratic country in 1987. South Korea became a stable democracy with strong political and economic support from the US The political landscape of the country include centralization of power which the implementation of economic reforms became faster and effective so that the country was fully focused on economic development and friendly to foreign investments, especially strengthening foreign relationships with emphasis on EU. According to economic forecast, South Korea is to become the seventh largest economy in the world within next ten years. Though the fact the relationship with North Korea remain tense and uneasy, the government aims to solve this situation in better way. Since crisis in 1997, the government opened the South Korean market to foreign investors by identifying Foreign direct investment (FDI) and abolished the harmful regulations on foreigner shareholdings in domestic companies. The taxation system and particularly corporate tax in South Korea was simplified encouraged foreign investments. |Current strengths: |Current challenge |Future prospects | |Centralized power of attorney |Military violence still...
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