STRATEGIC ANALYSIS

Strategic Analysis



Strategic Analysis

Profile of the Organisation

The organization selected for the Tesco Corporation. The retailer business is expanding rapidly throughout the world and many retailer companies are expanding their business by entering into the new international markets. The selected retailer company for this assignment is Tesco. Tesco is the third largest retailer in the world and leading retailer in British. Tesco serves the large number of customers by providing a variety of services such as Tesco Metro, Tesco express and different stores situated at the convenience stores. The current domestic market of Tesco is UK. The major aim of the company is to satisfy the demand of customers whether they shop from the hypermarkets, small stores or online. Therefore, all the issues and aspects related to the strategic analysis of the Tesco Corporation will be discussed in detail.

Current Market Position of Tesco Corporation

Tesco's US Grocery Market Entry Tesco is presently the UK's best general store with a UK piece of the overall industry in abundance of 30% and yearly benefits of some £2bn. It is the world's fourth biggest retailer. The organization has created globally in the course of recent years especially in Central and Eastern Europe and the Far East. Global development is a key component of Tesco's key advancement especially as chances for further extension in the UK get to be progressively constrained. In February 2006 Tesco reported that it was wanting to enter the US retail staple need business. Tesco wanted to contribute around $400m (£220m) for every annum, over a five year period, in its US wander. This was assessed to be sufficient to pay for between 100 and 150 stores in the first year of operation. Tesco is accomplishing its business and financial abilities effectively keeping in mind the end goal to accomplish its objective and target (Andersen & Skjoett-Larsen, 2009, 86).

Strategic Analysis of Tesco Corporation

Strategic management practitioners or managers must perform an environmental analysis annually, quarterly or semi-annually in order to improve the performance of the organization by reducing the risks that an organization can face in conducting its business. The identification of analysis of conditions or events in the external or internal environments of the business assists businesses in attaining a competitive advantage and also helps in reducing its risk of facing its upcoming or future threats in their business performance or profit. The environmental analysis's purpose is to assist in developing strategy by keeping organization's decision makers familiar with business's external and internal environment. An environmental analysis also helps in allowing businesses to gain an outline of their external and internal environment in order to find threats or opportunities (Chan, 2011, 1022).

There is a great influence of environmental factors and environmental analysis on decision making related to improving productivity and performance of the organization. The environment of the business is classified into task variables and societal variables. In task environment, groups and elements directly affect the business operations, and, in turn affect the entire ...