Tesco's External Enviorment

Topics: Supermarket, Online shopping, Retailing Pages: 4 (1110 words) Published: January 31, 2011
Question 1.

My organisation for this assignment is “Tesco”.It is one of the largest food and grocery retailers in the world, , operating around 4,331 stores. My report is aimed at analysing the micro business environment of company. I have used Strategic evaluation tools such as PESTEL, SWOT and others. Tesco is among the biggest food retailers in the world with returns in surplus of £54 billion in 2009 and over 470,000 workers. It has 4,331 stores in 14 countries.  The company’s Head Office is based in Hertfordshire, UK and operates mainly in the USA, Europe and Asia.[1] PESTEL Analysis[2], analyses the vibrant and erratic environment in which company operates by identifying the forces that have the most impact on it’s performance, Influences Company has, to achieve strategically success. However this forces becomes interrelated some times. Political

China’s accession to the WTO has promoted a free flow of foreign trades by removing all barriers encouraging Western companies, including Tesco, to make way into the world’s most profitable market encompassing over 1.3 billion[3].  In 2009 an agreement was signed by Tesco to set up a premeditated series of joint ventures for the development of shopping malls in China.  This joint venture included three malls: Anshan, Fushan and Qinhuangdao.  Furthermore, 18 new hypermarkets are expected to open in China by 2010[4].  The growth of Tesco’s international business segment is on the rise and it is predicted to account for one quarter of the company’s profit. Immersion of 10 further countries into the European Union took place in 2004 promoting trade between Western and Eastern European countries[5].  This has provided Tesco with a platform to expand its retail network across the EU.   Economic

Economic factors are a matter of concern for Tesco since they impact directly on the buying behaviour of customers.  Although the UK economy was declared officially under recession in 2008, the government’s...
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