Thursday, November 21, 2019
Evaluation of the Company's Strategy Coursework - 1
Evaluation of the Company's Strategy - Coursework Example The company operates in two segments that include retail and financial services. Its financial services include personal banking mainly mortgages, credit cards, personal loans, and savings (Tesco Plc, 2013). Analysis and critical evaluation of TescoÃ¢â¬â¢s strategic position In the first assignment, the SWOT analysis, PorterÃ¢â¬â¢s five forces model and PESTEL framework have been used to analyze the external environment surrounding Tesco Plc. Its opportunities include opening up of its stores within the country and outside it, the building up of its clients around the world, and its strategy to expand to the Indian market. In 2009 the company opened up 620 stores out of which 435 were international thereby creating a network of commercial stores which would help Tesco benefit economically and reduce systemic threats. Its 1 million clients in 2010 provided an excellent opportunity for it to attract customers. Also its expansion in the Indian market would enable Tesco to maintain a nd grow. This will result in the strengthening of TescoÃ¢â¬â¢s position in the global market. However threats continue to surround Tesco as the economical conditions are changing continuously economic recession and the financial crisis has to lead to unemployment and a decrease in sales. Moreover, as new giant departmental stores are emerging in the retail business Tesco is facing stiff competition as a result. Due to the financial crisis in the UK and the subsequent contraction of the economy, Tesco has faced problems in consolidating its position in the UK market. A decrease in sales has resulted due to low income and unemployment that people face and are therefore changing their buyer habits. As a result consumers are changing their behavior so as to allow them to spend on products and... As Tesco continues to explore its opportunities to expand in countries where there exist high returns, it also aims to be competitive by realizing its customer demands and needs so that they are able to provide them with a great experience. For that it needs to conduct frequent market reviews to analyze customer satisfaction. Also due to inflation the price setting should be done such that it attracts customers thereby creating a greater competitive environment. The focus is also on improve the performance of its current markets to maintain and grow its market share. The implementation of strategies that focus on customer reviews to tackle competition and grow could lead to better performance as most of the threats and weaknesses Tesco is as a result of rivals and the economic conditions. Sustainable growth is one of TescoÃ¢â¬â¢s strategies. This means that profits are not the only governing factor in expanding but growing with responsibility thereby creating a sustainable operatin g environment. Knowledge Hub was started by Tesco for its suppliers to encourage the sharing of environmentally friendly ideas. Tesco wants to create a sustainable supply chain and by 2020 it aims to cut down emissions by twenty to thirty percents.