Business Context and Management: A Case Study of Tesco

BUSINESS CONTEXT AND ITS MANAGEMENT

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Introduction

This report will be based on topic of business context and its management. For completing this report, TESCO company is selected. The business environment plays an important role for every business, as it naturally changes and it affects business operations. This report will discuss about TESCO and its influence on management decision. This report focuses on developing effective strategies and applying various analytical tool for analysing business environment. Along with this, report focuses on understanding impact of management practice on structure of TESCO businesses.

LO 1: The different types of strategic concepts.

With help of different strategies, the management of TESCO can identify how they can influence their managerial decision. Such strategies they can adopt are as competitive, business corporate strategy as well as operational strategies in an effective manner.

• Competitive strategy: It helps the management of TESCO to identify how competition influence their managerial decision.

• Business strategy: It helps in identifying how business impact on decision making.

• Functional and operational strategies: It helps TESCO in recognising how functions of business influence managerial decision making (Fatricia, 2017).

LO 2: Analytical tools for analysing the business environment of Tesco

SWOT Analysis

Strength	Weakens
Main strength is it that it is biggest grocery retailer in UK. Increasing numbers of stores. TESCO has diversified market with various product range (Adamyk, 2019).	The main weakness is TESCO business is failed in US and Japan market, as they have to shut down their stores which leads to huge loss to company. The accounting fraud and finical errors and TESCO business is affected due to high debts.
Opportunity	Threat
The best opportunity is expanding their business in different countries. Strategic alliance and joint ventures with big companies. Growth of online grocery sales leads to great opportunity.	Main threats for TESCO is changing market demand and interest. Brexit referendum, as With Britain no longer in the European Union, then trade deals and cost matter a lot to TESCO as it is biggest threat.

PESTEL Analysis

• Political: Tax rates, current legislation, etc affect company decisions and Tesco is operating in 12 countries so is affected more.

• Economical: It discusses about economic growth, changes in interest rates, exchange rates, inflation and wage rates that can affect TESCO.

• Social: This discusses about Cultural norms and expectations of society which affects business of TESCO

• Technological: It discusses about changes in technologies which are emerging and affecting the operations of TESCO (Rosnizam, et al., 2020)

• Legal: It discuses about legal factors which are affecting business of TESCO such as changes to legislation impacting employment, changes in imports or exports.

• Environmental: It focuses on global warming and other environmental factors which affect business of TESCO.

LO 3: Impact of management practice.

The impact of management practice which are affecting the business operations of TESCO in effective and efficient manner. Such practices are:

• Empowering staff

• Training staff

• Introducing schemes for improving quality

• Adopting new technology in business structure of TESCO (Weatherston, 2020).

Theories of operational management

Total quality management theory states that not only product quality of TESCO but also level of motivation affects the growth of the company.

LO 4: Alternative strategic approach.

• Reflection on both the management practices and functions.

• Suggesting strategic approach such as creative, emergent and behavioural approaches.

Conclusion

In this report, environmental analysis of TESCO is conducted. In addition to this some strategies and theories were also applied which can help management of TESCO in their business operations in an effective manner.

References

Adamyk, K., 2019. PESTLE Analysis on Tesco PLC. http://dspace.wunu.edu.ua/bitstream/316497/35536/1/10.pdf

Fatricia, R.S., 2017. STRATEGIC ANALYSIS OF TESCO SUPERMARKET. Jurnal Manajemen Terapan dan Keuangan, 6(2), pp.69-86. https://online-journal.unja.ac.id/mankeu/article/download/4046/5977

Rosnizam, M.R.A.B., Kee, D.M.H., Akhir, M.E.H.B.M., Shahqira, M., Yusoff, M.A.H.B.M., Budiman, R.S. and Alajmi, A.M., 2020. Market Opportunities and Challenges: A Case Study of Tesco. Journal of the Community Development in Asia, 3(2), pp.18-27. http://ejournal.aibpm.org/index.php/JCDA/article/viewFile/807/772

Weatherston, J., 2020. BM-727 The International Business Environment Challenges and Changes. http://elibrary.gci.edu.np/bitstream/123456789/1185/1/BM-727%20The%20International%20Business%20Environment%20Challenges%20and%20Changes%20by%20Jamie%20Weatherston.pdf