Question :
Business strategy is an important part of decision making which is made for achieving growth and success of an organization. The main purpose of preparing this report is to assist students in acquiring knowledge about the importance of different types of strategy that can be profitable in an operation, tactical or strategic role of an enterprise.
- Evaluate the impact of the macro-environment on an organization and its business strategies.
- Evaluate internal capabilities and environment of Tesco Plc.
- Analyze the results received after analyzing the market sector by using Porter’s five forces model.
- Apply theories, models, and concepts to assist with the understanding of strategic directions for an organization.
Answer :
INTRODUCTION
Setting up an effective business strategy is very important for meeting the needs and requirements of the organization. It is an important measure that will help in the appropriate growth and development of a business entity. A business strategy is deeply dependent on certain environmental factors and other elements that lead to alterations within the firm. For the report, Tesco plc is chosen as an organization of context (Sia, Soh, and Weill, 2016). It is a UK-based retail entity that is working in the public sector. The report will lay emphasis on various frameworks and will analyze the impact of macro environment on a given organization and its strategies. The internal environment and capabilities of the cited firm. Porter’s 5 forces model is implemented as well as that will help in the assessment of competitive forces that are operational within the organization. Further, various ranges of theories, concepts, and models are interpreted in devising of strategic planning of the selected firms.
MAIN BODY
P1. Apply appropriate frameworks to analyse the impact and influence of macro environment factors.
In order to have a clear and significant idea about the range of operations that are taken in consideration to improve performance of an organisation like Tesco plc. It helps in improving the performance and thus, will facilitate meeting of targeted goals and actions that will affect performance of cited retail entity (Hammond And et.al., 2015.). In order to analyse the impact and influence of macro environment that influence its performance is analysed by PESTLE analysis. The macro environmental analysis of Tesco plc is as follows:
Political factors:
As the organisation is operating in multiple countries, it is susceptible to get influenced by ongoing political conditions that are functional within country. The political support will impact the organisation and help in increasing operational capacity of cited retail firm within Tesco plc. Other than this, the political authority on local, national and international level will keep a check on working of cited business entity. The organisation has to convince governing bodies within country about their positive impacts like contribution in economy, increasing number of jobs, etc.
Economic factors:
This is the most important factor that has to be looked after by management of cited business entity. The economic conditions in native as well as host country that will influence performance of cited retail entity. The factors that influence finance and other monetary resources within a business entity will have impact on performance of an organisation like Tesco plc. Other than this, it will help in setting up of suitable strategies and business plan in order to improve the performance and quality of services by cited business entity (Peng, 2017).
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Social factors:
It includes people or population of a particular area. As it varies from one place to another, it is required to be regularly and efficiently monitored. Other than this, it also forms customer's perception towards purchasing of goods and services for improving the performance of organisation. Tesco plc has to develop a strategy looking at social condition and meeting of buyer’s requirements in an effective and significant manner. Other than this, the social factors also help in deciding and developing new as well as innovative products and services as per the socio cultural condition within a country.
Technological factors:
As the technologies are getting advanced with each passing day, they will affect setting of business strategies of an organisation to a great extent. Usage of the latest technical tools and techniques will help organisation to increase performance of a business organisation and increase productivity of cited business entity. Utilisation of social media marketing and getting online feedbacks from customers will help the firm to get proper assessment of their needs and requirements in a better way. Besides this, it will lead company to draft an appropriate strategy to develop an innovative goods or services and come up with a new product line and services.
Legal factors:
As Tesco plc is a major retail firm in public sector, it will be directly or indirectly been under the range of judiciary and customer welfare laws in biding a business entity. The different laws or policies that are been developed by trade unions and government will have to be followed by Tesco plc. Other than this, it will help in setting up of appropriate and strategic price tag over the products and carry out their operations in an ethical manner (Sia, Soh and Weill, 2016).
Environmental factors:
With the growing environmental concerns, cited firm has to look after effective management of business operations and activities that will help organisation to carry out environmental friendly strategy and supports them in meeting their customers’ needs and demands. It will help Tesco plc to reduce pollution and carbon footprints by developing high quality and environment safe products and services. If you are seeking thesis help in Canada please connect to this website.
On the basis of this assessment, it can be said that effective planning of strategies to meet macro environmental needs will be beneficial and crucial for a business entity. This will help in increasing the quality of services and assessing specific strategies. As these external environmental factors impact performance of a business entity, it will lead to a significant rise in quality of services and handling of retail operations to a great extent. Besides this, it will be a beneficial approach to improve the performance of an organisation, leading to increase its market share and sustainability in an effective way.
M1 Critically analyse the macro environment to determine and inform strategic management decisions.
The macro environmental factors will help in effective handling of a retail entity business operations that will help in effective growth and rise in capability of the business operation and thus will help in increasing the quality of product and services. This will also help in taking appropriate decisions to develop effective business strategies.
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