Pest Analysis
Strategic Management of TESCO supermarket: PESTEL analysis, Porter 's 5 Forces analysis, Critical success factors, SWOT Analysis, VALUE CHAIN analysis, TESCO 'S strategic options, Core Competences & Cultural Web.
IINTRODUCTION
The food and drink retail sector represents the largest industry in the UK, providing employment for over three million people in primary production, manufacturing and retailing. In 2003 retail accounted for 9% of gross domestic product (Datamonitor, 2003). In recent years UK supermarkets have come under increased scrutiny over their treatment of suppliers, particularly of own-label products, yet the development of strategic supply networks has been an integral part of most supermarket strategies for the past decade.
The report below provides an insight into the supermarket company, Tesco, with emphasis on its external environment analysis and company 's analysis of resources, competence and culture. Two future strategic options are suggested in regards to the resources based strategies.
Tesco is one of the largest food retailers in the world, operating around 2,318 stores and employing over 326,000 people. It provides online services through its subsidiary, Tesco.com. The UK is the company 's largest market, where it operates under four banners of Extra, Superstore, Metro and Express. The company sells almost 40,000 food products, including clothing and other non-food lines. The company 's own-label products (50 percent of sales) are at three levels, value, normal and finest. As well as convenience produce, many stores have gas stations, becoming one of Britain 's largest independent petrol retailers. Other retailing services offered include Tesco Personal Finance.
2.0 INDUSTRY ANALYSIS: PESTEL FRAMEWORK
2.1PoliticalFactors
Operating in a globalized environment with stores around the globe (Tesco now operates in six countries in Europe in addition to the UK; the Republic of Ireland, Hungary, Czech Republic, Slovakia, Turkey and
IINTRODUCTION
The food and drink retail sector represents the largest industry in the UK, providing employment for over three million people in primary production, manufacturing and retailing. In 2003 retail accounted for 9% of gross domestic product (Datamonitor, 2003). In recent years UK supermarkets have come under increased scrutiny over their treatment of suppliers, particularly of own-label products, yet the development of strategic supply networks has been an integral part of most supermarket strategies for the past decade.
The report below provides an insight into the supermarket company, Tesco, with emphasis on its external environment analysis and company 's analysis of resources, competence and culture. Two future strategic options are suggested in regards to the resources based strategies.
Tesco is one of the largest food retailers in the world, operating around 2,318 stores and employing over 326,000 people. It provides online services through its subsidiary, Tesco.com. The UK is the company 's largest market, where it operates under four banners of Extra, Superstore, Metro and Express. The company sells almost 40,000 food products, including clothing and other non-food lines. The company 's own-label products (50 percent of sales) are at three levels, value, normal and finest. As well as convenience produce, many stores have gas stations, becoming one of Britain 's largest independent petrol retailers. Other retailing services offered include Tesco Personal Finance.
2.0 INDUSTRY ANALYSIS: PESTEL FRAMEWORK
2.1PoliticalFactors
Operating in a globalized environment with stores around the globe (Tesco now operates in six countries in Europe in addition to the UK; the Republic of Ireland, Hungary, Czech Republic, Slovakia, Turkey and