BUSINESS MANAGEMENT

Business Management



Business Management

Introduction

In UK, the retail sector of food and drink represents the largest industry, and offer employment opportunities to about 3 million people in retailing, manufacturing and production. The industry reported a GDP (gross domestic product) of 9% in 2012. During recent time, supermarkets in UK have significantly scrutiny over their suppliers' treatment, especially of own labelled products, still the strategic supply networks development has been an essential part of supermarket strategies for the last decade.

The purpose of this assignment is to examine business environment of UK using appropriate theoretical models, and provide recommendations to offer the future direction of Tesco. The paper also scrutinises the possibility of allowing the British electorate a referendum on Britain's membership within EU, and analyses the pros and cons of continuing British membership. In addition, concepts of demand and supply and term price elasticity of demand is evaluate to examine how it helps Tesco in deciding on volume and type of products offered for sale.

Part 1 Business Environment & Future Recommendations

PESTLE analysis helps in reviewing the business environment in which Tesco operates, and assesses the opportunities and threats Tesco encountered. Tesco is the biggest of all supermarkets because of its domination of UK. Tesco sells everything, everywhere and to everyone. This nature of business necessitates Tesco to carry out external environment scan for its effective operation and to determine the future directions (De Toni and Tonchia, 2003, pp.947-976).

In the political context, the economic downturn resulted in high rate of unemployment. Since, Tesco is the fastest growing and largest retailer can offer more employment opportunities; thus, helps in reducing unemployment levels. Therefore, analysis of PESTLE is helpful in keeping the company up-to-date with the environmental changes. Simultaneously, competitive advantages at the current state are driving out the competition and are the great physical appearance from other retailers. In the current state of the economy, the small companies are losing the share of the market and it is difficult for small companies to penetrate in the market.

PESTLE assists in analysing the opportunity of expansion is a need on the basis of location. Since, present conditions of Tesco are quite good and are among some retailers who did not get affected by the economic depression. In terms of the social aspect, young professional immigrants are entering the UK labour market; thus, there is an immense demand for new products to be introduced in the industry based on their standards. For instance, recession forced the populace to work, which increased the demand of ready to cook food and microwaves (Flavian, Haberberg and Polo, 2002, pp.125-138).

Similarly, technological factors are equally important in the context of Tesco because of increased use of Internet. Thus, Tesco has pushed on online shopping use and offering a home delivery facility via their official website.

Hence, the PESTLE analysis is vital to the success of Tesco and highlighted the expansion growth of the company, as well as to the strategic management decision of all ...