STRATEGIC MANAGEMENT

Tesco strategic management

Tesco strategic management

Introduction

Strategic Management is a procedure, which is progressing towards maintaining and achieving a competitive advantage, which allows the firm to survive within the market. Moreover, this advantage needs to be accomplished by an organization that is a complex set of cultures, processes, resources, people, etc. that is continually varying as the surrounding environment, therefore, the management of the company must first be aware of the goals that they have to aim at and then manage and coordinate each effort for achieving those goals.

This procedure must be carried out at regular intervals and should be modified whenever a considerable change takes place in any of the numerous problems, which affect the organization. It is even necesssary that it engages the entire team for making it a project that is accepted by each member of the team exclusive of any uncertainty, should be stimulating and must serve as a guideline to the numerous avatars within which the organization is engrossed offering a reference to the disparity of a variety of options. In this paper there are internal and external environments are discussed along with the culture of Tesco organization.

Discussion

The Macro Business Environment of Tesco Group

The Tesco group's macro business environment comprises of factors, which might impact it externally. Macro business environment's are normally not within the direction of corporations. Examples of factors that may influence a business are changes in interest rates, changes in cultural trends and tastes, more competitors in surrounding areas as well as greater regulations or changes to government laws. A renowned technique utilized for analyzing the macro business environment is by a PESTLE strategic management analysis, which includes the ethical, legal, technological, sociological, environmental, and political issues (Rowley, 2005).

External Tool

PESTEL ANALYSIS

Political Factors

The political environment comprises of all actions of the government, which impact the company in the retail trade. Such an effect might come up due to formal legislation like the laws on the goods' sale, as well as via planning systems and competition policies. For instance, the contemporary developments concerning sale of genetically modified foods and food safety even restricts and influences the activity within the retail sectors. Tesco operates in varied countries of Europe like Turkey, Poland, Slovakia, Czech Republic, Hungary, and Ireland, and in the Asian sector, incorporates Taiwan, Japan, Malaysia, Thailand, and South Korea. The performance of Tesco is extremely prejudiced through political situation of the countries.

The impact would be different for different types of retail businesses, and detailing each and every probable political factor is outside the scope of this study. Nonetheless, it is significant to comprehend that a number of legal settings are initiated for protecting consumers and are a long stage of introductory debates. By paying attention to the political situations, one could avert undesirable effects and engage in apposite actions that prevent them from such adverse impacts (Walters, 1994).

Economical Factors

Economic issues impact the activities of trade in a couple of ways. Firstly, in a straight line they impact the demeanour of the retail businesses as ...