global biz strategy

Topics: Strategic management, SWOT analysis, Management Pages: 12 (2218 words) Published: May 2, 2014
Unit 7.2
Global Business Strategy

Prepared by: Shukurat Surakat
Reg Number: 102860

Table of Contents

Activity 1
Activity 2
Activity 3

Activity 1
Your line manager has asked you to analyse the international business environment for your chosen organisation and produce a report for him which includes. A review of the techniques to analyse the environment and an assessment of their suitability. Business Environment Analysis:

All business or institutions operates under its specific environment. As a result, the business needs to comprehend these factors in order to achieve the overall goal of the organization. This is one of the key steps in strategic management or the first move from any business perspective before they made a decision. This is used to be up to date on business trends and its competiveness ahead of its rivals. There are two main factors in Business Environment Analysis: 1- Internal Factor (Internal Environment)

2- External Factor (External Environment)

Tesco is one of the largest supermarket who not only operation in UK but operation in 12 other countries including Asia. The business environment for the organisation matters a lot and has a significant influence on the Tesco’s business strategies. Tesco is a global grocery and general merchandise retailer headquartered in Chesnunt, United Kingdom. It is the third-largest retailer in the world measured by revenues (after Wal-Mart and Carrefour) and the second-largest measured by profits Tesco House, head office in Cheshunt, Hertfordshire. (after Wal-Mart). It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), Malaysia, the Republic of Ireland and Thailand. Being an international organisation Tesco considers the various techniques to analyse its business environment which helps the company understand its value and business operations outside the UK. Tesco uses macro and micro business environment analysis techniques which helps the business to assess its suitability outside the UK in order to run its operations. As the business environment consist of two main factors internal and external which influences the operations of Tesco. This includes the following: Internal factors:

Credit policy changes
Change in incentives schemes
Inventory issues
New product line
Cost of raw material
Shareholders, owners etc
External factors:
Tesco is operating its operation in various countries which means the company has to deal with various types of business environment depending on the location. Above internal and external faction influences the business environment in the company.

Tesco being an international organisation considers various business environment techniques including SWOT analysis, PESTLE analysis, industry analysis, competitor analysis and strategic analysis. The above techniques use to explore all possible options, ideas, market trend , market penetration , exit strategy ,competitor threat and strategy to hit back , real internal capability , particular industrial trend , threat of legal and regulation , current government policy and future trend, new investment , expansion strategy, labor relation ,best practices, local adoption strategy, geographical and logistics and any other specific information. In any cooperation the micro and macro analysis are key tools to analyse the business position in the industry, which we will be discussing in next part. However, it is vital to say that for any organisation who operates nationally or internationally such as Tesco there is a significant importance of business environment.

a) An analysis of the micro and macro environments of the business using techniques reviewed in the...

References: R. S. Kaplan (2001), The strategy-focused organization: How balanced scorecard companies thrive in the new business environment
Strategy and environment: A conceptual integration, LJ Bourgeois III - Academy of Management Review, 1980 – JSTOR
DP Baron - 2006, Business and its Environment, accessed on 19/11/2013, accessed on 19/11/2013, accessed on 24/11/2013, accessed on 25/11/2013, accessed on 28/11/2013, accessed on 30/11/2013
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