STRATEGIC MANAGEMENT

Strategic Management

Strategic Management

I. INTRODUCTION

The drink and food trade division symbolizes the major business in the United Kingdom, rendering services to more than 3 million people in the prime manufacture, mechanized and transaction. In the year 2003, the sale accounted for 9 percent of the gross house-hold merchandise. In current years United Kingdom superstores have come in amplified inspection over their handling of dealers, chiefly of personal labeled commodities, however the expansion of the networks in the networks for strategic supplies has been an essential element for most of the superstore strategies in the past (Beckford, 1998, Pp: 89).

This report provides insightful information on UK's famous supermarket Tesco, with the emphasis on company's resources, competence, culture and environment. Furthermore, two strategies are suggested in regarding to the resources (Boyett, 2007, Pp: 92). Having over 326,000 employees operating around in 2,318 stores, Tesco has been one of the biggest retailers of food in the world. It is offering online services through ancillary, for example: Tesco.com. The largest target market of Tesco is in UK where it functions through 4 brands of Metro, Express, Extra and Superstore. The company deals in clothing, other non-food lines and including almost 40,000 food products. The Company's own-label products are at three levels, worth, usual and premium. In addition to expediency manufacture, numerous stores also have gas stations, and are becoming one of the biggest sovereign petrol sellers in UK. The company comprises of other retailing services, namely, Tesco Personal Finance (Roethlisberger, 1939, Pp: 148-152).

2.0 INDUSTRY ANALYSIS: PESTEL FRAMEWORK

2.1 Political Factors

Tesco is functioning well and providing services with its stores all around the world. For the legislations of employment, the government promotes retailers to supply a blend of job openings from low paying stretchy and locally-based jobs to centrally-located, skilled and high paying jobs in order to meet the needs of the students, working parents and senior citizens. Being an innately local and labor concentrated sector, Tesco realizes that selling has a huge impact on people and the jobs factors. It often hires students, aged and disabled people at lower wages, and in an industry with characteristically soaring staff revenue, these employees proffer a higher level of allegiance and consequently symbolize sought-after workforce (Baker, 2004, Pp: 56).

2.2 Economical Factors

Fiscal aspects are of apprehension to Tesco, as they are probable to pressure costs, prices, profits and demands. One of the most significant features on the economy is high redundancy points, which reduces the efficiency, requirement for several goods, negatively distressing the production demand (Bartlett, 1989, Pp: 67).

Although company could not control these economic effects, but there could be profound consequences on performance and marketing of the company. UK market is still the main source of the company's income even though the international business is still growing and contributing to the Tesco's profit. (Appendix A) Thus, Tesco would be poorly influenced by any slowdown in the United Kingdom food bazaar and are open to threat in the concentration of the market (Beckford, 1998, Pp: ...