Review of Tesco Strategy – Essay Example

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However, in order to analyse the strategic review, both external and internal evaluation is essential. In order to do so, PESTEL, Porter’s five forces, resource based view and value chain analysis is performed. Along with this, evaluation of PR crisis as well as business level, corporate level strategies are performed. Other than this, in order to improve its position, varied types of strategies or remedies are also suggested along with models and techniques for future era. Tesco Plc at a glance Type Public limited company Traded as TESCO Industry Retailing Founded 1920 Founded by Jack Cohen Headquarter Cheshnut, United Kingdom Locations 5380 Products Consumer products, groceries, telecom Revenue £60.93 billion Net income £2.67 billion Operating income £3.87 billion Employees 472000 Analysis of the external environment of Tesco Plc Macro environment Analysis by PESTEL The macro analysis of Tesco Plc is performed with the help of PESTEL. Political: Tesco Plc comprises of stores in numerous locations such as Hungary, UK, and Czech Republic, Turkey, Slovakia and many others.

Due to which, the political and legislative rules and regulations offered significant impact over the operations and functions of Tesco Plc. However, it did not hinder its growth but encouraged its expansion in order to reduce the problem of unemployment. This is because; it offered varied types of job opportunities to the citizens that enhanced their life style and living standard. Moreover, due to the presentation of such type of job opportunities to the students and educated citizens, the level of poverty also reduced to a considerable extent. Economic: due to economic crisis, the per capita income of the citizens reduced.

Along with this, the prices of the products increased that reduced the demand of the products in the market. However, due to loss of the per capita income, the purchasing behaviour of the citizens reduced that hindered the profitability of the organization of Tesco Plc in the market of United Kingdom among others.

Not only this, due to loss of profitability and total sale, the brand image and sustainability of the organization of Tesco Plc reduced significantly. This hindered its market share and loyalty in the market as well among other existing rival players such as ASDA and Sainsbury. Social: now a day’s the trend of shopping is changing rapidly. In order to cope up with professional deals, most of the citizens desire for bulk shopping or one-stop solution.

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Appendices

Resource based view

In the market of UK

In international markets

No of stores:2000

No of stores: 440

Staffs: 270000

Staffs: 140000

Turnover: £2.95 billion

Turnover: £7.5 billion

Schemes: clubcard

Clubcards

Loyalty cards

Loyalty cards

Improved labelling

Improved labelling

Value chain

(Source: Sims, 2002, pp. 213-123).

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