TASK ENVIRONMENT ANALYSIS

Task Environment Analysis- Tesco

Task Environment Analysis- Tesco

Introduction

The analysis of Task environment involves the assessment of external environment of an organization which impacts its ability to attain business objectives and goals. Any consumer of business that has a direct involvement and exposure to the organization becomes a part of the task environment. There are some sectors within the task environment that involves customers, competitors, labor supply and suppliers. This paper analyzes the task environment of Tesco retail super- Market Company. The food and drink industry represent a large number of retail stores in the United Kingdom. It is considered to be one of the biggest sectors of the country which is accountable for providing employment to more than 3 million people across the country through the manufacturing, primary production and retailing methods. It provides a significant contribution to the gross domestic product of the country as well. However, the increased competition in the market has caused the companies to revise their strategies and work on their strengths while treating their suppliers particularly for the products that are sold under their own brand name label. Tesco is considered to be the largest and most popular retail network of grocery and food items in the United Kingdom. The services of Tesco are only provided through its subsidiaries. The company operates in other regions across the world as well; however, the largest market of Tesco is in the United Kingdom where it operates under different banners such as super- store, express, metro and extra. The task environment analysis of Tesco includes industry analysis based upon PESTEL framework and five forces of porter. A SWOT analysis of Tesco is also included in the paper along with the generic strategies used by the organization (Acur and Bititci , 2004).

Industry Analysis

PESTEL framework

Economical factors

The economic factors influence the costs, demand, profits and prices of Tesco because of the provision of high rates of employment provided by Tesco to the population in the United Kingdom. The economical factors are influential and they decrease the demand of a number of products as well which provides an adverse impact on to the demand for the production of such goods (Desjardins, 2005).

Social and Cultural Factors

The social and cultural trends in the United Kingdom have modified the way in which customer's carryout their grocery shopping. The most common emerging trend is the bulk and one- stop shopping which have recently emerged as a new social trend in the country. As a result, Tesco had to introduce a number of non- grocery items in its retail chains where customers could get verity of products under one roof. The changes in the demographics in united kingdom has also affected the strategies of Tesco such as the increasing female labors in the retail stores and aging population which has decreased the food preparation trend in the homes and people are shifting towards packaged food and ready to eat food. Tesco has also introduced such products in the retails stores and provided value added ...