Tesco

Tesco

Introduction

The environment of market in today's world is characterized by greatly competent and skill firms and industries which are struggling to compete for generating loyal clients and profit for their organization. These organizations confront with many challenges in retaining their business and economic competency in order to remain alive in the market and maintain their growth and success. Approaches and methods of marketing are cautiously initiated and planned so as to gain the eventual objective so as to attain firm and business growth (Anonymous, 2011). However, external aspects and elements are not merely the elements which affect the business growth. In today's world, several enterprises discover that it is not feasible to set up any type of sustainable business and economic competencies which are completely based on their products.

Every successful organization creates an accurate understanding of the way the organization can set up a customer centered business and economic competencies. With ever changing environment of marketing, it has become very complicated to handle and manage external market of the organization (Anonymous, 2011). In order, firm and business management had moved their focus merely on their gain or profit in order to remain successful in attaining their business goals. This shifting observes that firms and organizations are required to thoroughly shift their regular or ordinary business purposes and aims form being process focused to client centered. Hence, to enable the organization to introduce remarkable services and products in firm and business operations, the management of the organization must use fine tuned business restructuring. Furthermore, using positive customer commitment includes the consideration on organizational and cultural infrastructure (Anonymous, 2011).

Firms and industries that take advantage form active participation of consumers in business functions and activities are able to gain business and economic competencies with the help of enhanced operating efficiencies, greater sales volume, enhanced consumer retention and positive word-of-mouth publicity. The basic objective of this paper is to analyze the macro environmental factors, micro environmental factors, PEST and SWOT of Tesco (Anonymous, 2011).

Tesco's US Grocery Market Entry Tesco is currently the UK's most successful supermarket with a UK market share in excess of 30% and annual profits of some £2bn. It is the world's fourth largest retailer. The company has developed internationally over the past 10 years particularly in Central and Eastern Europe and the Far East. International expansion is a key element of Tesco's strategic development particularly as opportunities for further expansion in the UK become increasingly limited. In February 2006 Tesco announced that it was planning to enter the US retail grocery market. Tesco planned to invest around $400m (£220m) per annum, over a five year period, in its US venture. This was estimated to be sufficient to pay for between 100 and 150 stores in the first year of operation. Tesco is attaining its business and economic competencies successfully in order to achieve its goal and target.

Discussion

Importance of Environmental Analysis

Environmental analysis plays a crucial and effective role in successful business as it is strategic management of the ...