This report is based on Tesco the UK Based retail giant and they go about their marketing activities. Tesco as an organisation is renowned for their constant market monitoring, in other to identify new trends on timely basis. They also ensure that they keep up with the increasing expectation of their customer and changing taste. The environment in which Tesco exist is a very competitive one; many factors including customers, Supplier and the government put the company on its toes at all times. Task one
The organisation marketing environment
The environment plays a major role in the decision making of firms, and they at the risk of failure if they fail to remain aware of what is happening around them. In a constant changing world the company Tesco a retailer must understand its own capabilities and the environment in which it operates to generate more revenue and expansion. In the wider environment, the company is faced by a complex set of uncontrollable variables that collectively shape its market, its resources and the competitive climate, and that pose challenges and opportunities that may determine the success and failure of the company as a whole. Dennis Adcock et al, 2001. PEST for Tesco
Political factors: (includes legal and regulatory): elections, employment law, consumer protection, environmental regulations, industry-specific regulations, competitive regulations, inter-country relationships/attitudes, war, terrorism, political trends, governmental leadership, taxes, and government structures. Tesco is aware of the political factors that influence their business as a retailer they include the controls and checks put in place by government, central and local, government agencies and quasi-official bodies, relevant international laws and agreement since Tesco is a globalised retailer with expansion across continent. The awareness of all factors will enable them incorporate it into their marketing activities. Government legislation: regulation in respect to monopoly and completion standards which curtails the power of acquisition and competition, consumer protection laws which protect users of certain products such as cigarette, alcohol, food, drugs and medicine. Employment legislations: recently the government increased the minimum wage and also the pay for under 18s to match adult pay in the UK and created 21,000 new jobs across the Group despite the recent recession and credit crunch. Politically, the credit crunch may lead to higher numbers of unemployment. As one of the largest and fastest growing retailers more jobs will be available with TESCO therefore helping to reduce the levels of unemployment this therefore useful in keeping TESCO up to date with their environmental surroundings, for example. Whilst one of TESCO’s competitive advantages at present relates to their overwhelming physical presence, there are issues about TESCO driving out the competition from other retailers. There are policies as well as laws and regulations governing monopolies and competition. This is potentially one of the main issues that TESCO’s are faced with. Protecting consumers and ensuring that entrepreneurs have the opportunity to compete in the market economy are important within consumer law. Due to the current state of the economy, many small businesses are failing and many unable to enter the market. Under EU law, there is presumption that an organisation with a large market share is dominant. The concerns with this are that quality of products and services will slip and there is a risk of paying higher prices. In addition, planning permission is an issue that TESCO seriously need to be aware of due to their continued expansion. Planning permission is heavily regulated in the UK. Identification of the relevant laws on planning permission and whether any resistance to planning was on lawful grounds or merely local people’s dissent is the key. Economic factors: economic...
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