...SWOT, PESTEL, Porter's Five Forces and Value Chain Analysis of Tesco Introduction This report is aimed at critically analyzing the macro, meso and micro business environment of Tesco, one of the largest food and grocery retailers in the world, operating around 4,331 stores. Strategic evaluation tools such as PESTEL, Porter’s Five Forces, SWOT and Value Chain analysis have been used by researchers in order to achieve this aim. Tesco – Company Overview Tesco is among the largest food retailers in the world with revenue in excess of £54 billion in 2009 and employing over 470,000 people. They operate approximately 4,331 stores in 14 countries around the world. The company operates primarily in the USA, Europe and Asia and their Head Office is based in Hertfordshire, UK. According to Datamonitor (2010), the commercial network portfolio of Tesco comprises : over 960 Express stores which sell approximately 7,000 products including fresh foods at suitable localities ; 170 Metro stores which sell a variety of food products in town and city centres; and 450 superstores which sell both food and non-food items including books and DVDs. Tesco also provides online retailing services through their website tesco.com and Tesco Direct . In addition, they provide broadband I nternet connections and financial services through Tesco Personal Finance (TPF). Tesco was founded in 1919 and launched its first store in Edgware, London, UK in 1929 (Tesco, 2010); however, over the decades it has evolved...
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...Porter’s Five Forces Analyses Threat of New Entrants - Low According to Porter (1985), potential competitors in any market are faced with challenges that new entrants often have including sales channels, costs of conversion and funding needs. (Dr. Antony Michail, 2011) Throughout the recession Tesco has continued to invest into expanding the company and developing efficiencies, making it as competitive as ever to defend against the threat of new entrants (Datamonitor, 2010).The threat of a new competitor entering this sector is relatively low, due to the huge capital investment required to be competitive and establish a brand identity that stands out. Tesco and other large supermarket are able to purchase large volumes of goods in lower price. In contrast, smaller new entry companies are more likely to buy smaller volumes at higher prices. New firms also have to be aware that Tesco already have loyalty customers. All of which helps to protect them from the threat of new competitors. Therefore, the successful entry of new threats is minimal. Threat of New Substitutes products or services - High According to Porter (1985), the threat of substitute products and services offered by an organization depends on propensity of the buyer to substitute, switching cost that the buyer will incur, perceived product or service differentiation level, the number of substitute products or services in the market ease of substitution and quality depreciation among other factors. (Dr. Antony...
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...external environment with the help of The PESTEL framework, Porter’s five forces, Value chain, Capability analyses and The SWOT analyses. INTRODUCTION The executive report provides an overview of the strategic position of McBride Plc which is a fast moving consumer goods company which operates in United Kindgom, China, Vietnam, Malaysia, Hong Kong and other European and Asian countries. It supplies to over 95% of Europe's top 20 retailers including Aldi, Auchan, Carrefour, Casino, Edeka, Leclerc, Metro, Rewe, J Sainsbury's, Tesco and Asda/ Wal *Mart The company deals in major household products and personal care products which are supplied to almost all major retail chains across Europe. The PESTEL framework discussed in this report helps the analysis of the macro environmental whereas the micro environment is evaluated with the help of Michael Porter’s five forces. Value chain and capability analysis also help to study the internal environment. SWOT analysis evaluates the overall position of the company. Conclusion evaluates the company’s working in terms of its strategy being feasible, sustainable and acceptable. MACRO ENVIRONMENT PESTEL Analysis: It provides the broad ‘data’ from which to identify key drivers to change. Political The government makes it essential for the companies to become more environmentally and socially responsible by following the various trade n tax policies which affects the supply chain flow, the government refund policy and regulations...
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... Contents Page Introduction 2 Waitrose Overview 2 Resources and Competences 3 Porter’s Five Forces Analysis 5 Level of Competition 5 Threats of Substitutes 6 Threat of Entrants 7 Bargaining Power of Buyers 8 Bargaining Power of Suppliers 8 SWOT Analysis 9 Waitrose Supply Chain 10 Waitrose Value Chain 11 Primary Value Chain Activities 12 Inbound logistics 12 Operations 13 Outbound Logistics 13 Marketing and Sales 13 Services 13 Support Value Chain Activities 14 Procurement 14 Technology Development 14 Human Resource Management 14 Firm Infrastructure 14 Conclusion 14 Bibliography 16 Appendix A 18 Appendix B 19 Appendix C 20 Appendix D 21 Appendix E 22 Introduction As a continuation of the analysis provided in Coursework 1 on the Stamford Waitrose Branch and the Waitrose Company, using PEST(EL) analysis, on the external influences that affect its business. The analysis in this paper focuses on how the branch and Waitrose as company employs Supply Chain Management, Porter’s Value Chain and Porter’s Five Forces business process models to contribute to their position within the highly competitive UK grocery business. To distinguish itself from...
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...supplies customer requirements. According to Quinn (1980) ‘Strategy is the pattern or plan that integrates an organization’s major goals, policies and action (s)...into a cohesive whole’ The business model used to assess the marketing strategies and …is Tesco, Which is one of the largest `retailers in the world. Strategic evaluation tools such as PESTEL, Porter’s Five Forces, and SWOT and value chain analysis have been used by researchers to achieve this aim. Company overview Tesco is among the largest food retailers in the world with revenue in excess of £54 billion in 2009 and employing over 530,000 people. They operate approximately 6,784 stores in 12 countries around the world. The company operates primarily in the USA, Europe and Asia and their Head Office is based in Hertfordshire, UK. According to Data monitor (2012), the commercial network portfolio of Tesco comprises: over 1,547 Express stores which sell approximately 7,000 products including fresh foods at suitable localities; 192 Metro stores which sell a variety of food products in town and city centres; and 481 superstores which sell both food and non-food items including DVDs and books. It also provides online retailing services through the website tesco.com and Tesco Direct . In addition, they provide broadband Internet connections and financial...
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...locations and 209 franchises (2011), transforming more and more into a strong international business presence that offers great value clothing, extremely high quality food and a variety of home products. M&S strategy is to become a global multi-channel retailer (Bolland, 2011) in order to reduce its dependency on the UK market conditions and economic climate and to create a powerful brand serving a worldwide customer base. With an extraordinary understanding of customers selective needs based on a complex combination of market analyses and research feedback to identify trends and factors influencing their choices and decisions, M&S provides quality, value and innovation, positioning customers at the heart of the entire business. This report presents an overview of M&S activity and perspectives using a) a comprehensive PESTEL analysis to point out the trends and the environmental influences affecting the business, b) Porter’s five forces framework to explore and evaluate M&S attractiveness, c) a detailed SWOT analysis to highlight the company’ main advantages and hot spots and to identify any opportunity it can capitalize on and challenges that may endanger its future evolution and d) a value chain analysis. PESTEL Analysis According to Fahey and Narayanan (1986), macro–environmental conditions set the fundamental context in which industries operate, so the PESTEL- Political, Economic, Social, Technological, Environmental Legal- framework helps us to identify and understand what changes...
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...Marketing Principles All organisations will use some sort of marketing. Marketing is there so an organisation can find out what their customers’ needs are, and how these can be met. In this manual I will be talking about John Lewis Marketing process. Having a good marketing department can help the John Lewis keep costs down. If the correct process is taken for marketing, it will eliminate the guessing and forecasting that are linked with trying to predict product trends and consumers demand for goods or services. when the organisation knows what they customers wants, they will all be able to provide the right type of product or service and will always have customers ready to purchase. All so having a good marketing department or team, will help a John Lewis build a loyal customer base and help with repeat custom. This is called brand loyalty; it is one of the main advantages of having a good marketing team. Marketing is usually defined as a process that identifies and predicts what the customer wants and then trying to satisfying the customers’ needs and making a profit by doing this. Every business or organisation will follow marketing plan or a marketing process. The marketing plan will serve as a wide range plan which will outline the organisations marketing efforts. Using the marketing process, John Lewis will have to find out what their customers want and what their needs are and what the business can do to meet their needs and demands. The...
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...Albrecht brothers took over their mother’s grocery store in Germany. According to (Ruddick, 2014) from the small provincial store, they built one of Germany’s biggest retailers, which is renowned for its low prices. Aldi arrived in the UK in 1990 and has opened over 500 stores and has over 9000 stores in 18 countries. Aldi’s product range specialises in their own brand, which are cheaper than well-known brand labels. This is because they can control their prices at its distribution level. Aldi does not only stock food products, they also stock items such as; underwear, toiletries and fishing equipment. Comparing Aldi to the four major supermarket chain retailers there is a stark difference to how they function to how Aldi functions. (Keynote, 2007) Illuminates that Aldi stocks around one thousand product lines whereas the major chain retailers stock over three hundred thousand product lines. This is beneficial to the less price sensitive consumer as there is more choice however, this also means products are more expensive....
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...Ola abiola 11634 Business strategy INTRODUCTION Marks and Special background M&S otherwise known as Marks and spencer was founded in 1884 by Michael Marks was born in 1859 in Slonim, Belarus. In 1882 ,he moved to England to escape anti-Semitic discriminate , but had few friends and little money. He came to Leeds, a growing industrial town with a population of over 160,000. He was attracted by its large Jewish community and job opportunities in the thriving clothing trade. At the time Marks couldn't speak English and had no money or particular skill but had a very sharp mind for business and understood what customers wanted and needed . Initially he travelled the towns and villages of West Yorkshire, selling wares from his bag. He later set up a permanent market stall in Leeds, the latter which developed into a successful retail business. Unusually, he always displayed all his goods with clearly priced labels. He started hiring sales assistants to run the stalls. , Selling simple stock such as haberdashery and hardware goods, he adopted the slogan 'Don't ask the price, it's a penny'. This fixed price system and the open display of goods made him very popular. In Leeds as Customers liked being able to inspect the goods and knowing exactly the cost, with no need for haggling. In 1890 Dewhirst a cloth manufacturer offered Marks a £5 loan with this Michael Marks was able to buy his first stock for...
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.....................................................6 External factors affecting the organization...................................................................5 Macro-environmental level: Pestle analysis is applied ...............................................12 Major Changes taking place in the external environment.................................... 12 1.3.2. Industry Level: Porter five forces.........................................................................................13 2. Review of Tesco Existing Plans ................................................................................. 16 2.1. Tools to analyze the effect of current business plan............................................... 16 2.2. Position of Tesco in its current market ....................................................................... 17 2.3. Competitive Strengths and weaknesses of current business strategy ............. 19 3. Consideration of Strategic Options.......................................................................... 20 3.1.1. 3.1. Market Penetration ....................................................................................................................21 Modeling tools to develop strategic options for Tesco .......................................... 20 3.1.2. 3.1.3. 3.1.4....
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...Approach ------------------------------------------ 4 (P5- Micro and Macro environment factors affecting business. -------------------------- 5 (P6- Targeting strategies----------------------------------------------------------------------- 8 (P7- Targeting strategies of TESCO. ------------------------------------------------------- 9 (P8- Buyer behaviour affecting marketing activity. --------------------------------------- 10 (P15- Difference in marketing product and service. --------------------------------------- 10 (P16- International marketing operation. ---------------------------------------------------- 11 (P [9-12]- Marketing mix (4ps) --------------------------------------------------------------- 12 (P13- Extended marketing mix. --------------------------------------------------------------- 13 (P14- Recommendation------------------------------------------------------------------------ 14 Reference----------------------------------------------------------------------------------------- 15 Task 1 (P1- Marketing definition According to Philip Kotler, Marketing is a social process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others. In this definition, the author tells that it is a social and commercial activity where goods and service are sold and bought. Different people have different needs. Now a days if we want to buy a product...
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...fast-fashion retailers. The company is a multinational Omni-channel fashion retailer. Topshop is well-known for its high-quality products in medium low prices. The company’s portfolio owns a wide range of products and services. According to the Situational Analysis, the UK’s macro environment has changed over the latest years. The UK’s fast-fashion industry is becoming more and more cluttered with competitors from both UK and overseas. The business frameworks PESTEL, Industry key drives, Industry’s life cycle indicated that the UK’s fashion market is influenced from several external factors. The industry’s key drivers are the Europe’s economic recession, the social-media and e-tail evolution and the environmental crisis. However, the UK’s fashion sector remains a dynamic and innovative sector worldwide. Moreover, the buying behavioral is shaped by the UK’s market trends. The UK’s consumers are driven by the economical and political unstable environment and the digital evolution. The internal analysis indicated that the company is preforming well compared with its competitors. The SWOT analysis presented that TOPSHOP has important strengths and opportunities which could overwhelm the threats and weaknesses. The Porter’s Five forces analysis indicated that the power of buyers and the competitive rivalry are high whereas the threat of new entrants and the power of suppliers are low. Additionally, the threat of substitutes is high for the TOPSHOP, as there are many fast-fashion retailers...
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...of references 18 Appendix A 20 Appendix B 25 Executive summary The UK supermarket sector the leading position are occupied Tesco, Asda, Sainsbury’s and Morrisons. The retail sector in UK recently went through a state of uncertainty, where lower profit margins and prices are making it a paradise for the consumers. Higher inflation rates, costs of inputs and increased expenditure to maintain higher environmental, health, and hygienic standards are driving small businesses and suppliers out of business. In the long run this trend is creating a potential monopoly for the ‘Big four’ retailers: Tesco, Asda, Sainsbury’s, and Morrisons. The aim of the assignment is to evaluate the trading outlook of the supermarket sector in the UK on the example of Sainsbury’s. Environmental analysis will be presented through PESTEL framework. Porter's 5 forces matrix will be used for the industry analysis. SWOT analysis will evaluate internal and external factor for the organization. J Sainsbury is a UK based food retailer with business interests in financial services. The...
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...Question 1 (i): Using the data from the case (and any other source available), carry out for the European brewing industry a PESTEL analysis. What do you conclude? Beer has been a part of the social fabric of cultures around the world for thousands of years. Even today beer ranks as the third most popular beverage in the world next to water and tea. Considered one of the oldest drinks, the origin of beer dates back to 6000 B.C. With low-cost strategies and lack of marketing and product innovations all created a very stable situation guaranteeing high returns on investments for most breweries in Europe. However, this situation has been changing dramatically and the industry has witnessed different brewing styles over the last decade. The market entry of large multinational breweries resulted in shrinking demand due to changing consumer preferences, the emergence of more aggressive competitive strategies and rapid changes in important distribution channels have created growing competitive pressures for European breweries. An industry that was used to stability must now find its way in an increasingly turbulent market environment. First of all, I need to evaluate the macro environment of the industry. The most suitable tool to analyze the broad macro-environment is the PESTEL analysis. In the PESTEL analysis environmental influences are categorized into political, economical, social, technological, environmental/ecological and legal aspects. It helps to identify how future trends...
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...LEVEL 5 EDSML | MARKETING PLANNING | | | Assignment title | | In this assessment you will have opportunities to provide evidence against the following criteria. Indicate the page numbers where the evidence can be found. | Criteria reference | To achieve the criteria the evidence must show that the student is able to: | | Task no. | | Evidence | 1 | review the changing perspectives in marketing planning. | | 1.1 | | | 1 | Evaluate an organizations Capability for Planning its Future Marketing Activity: | | 1.2 | | | 1 | Examine technique for Organizational Auditing & For Analyzing External Factors That Affect Marketing Planning | | 1.3 | | | 1 | carry out Organizational Audit & External Factors Analysis of external factors that affect marketing planning in a given situation | | 1.4 | | | 2 | Assess the main barriers to market planning. | | 2.1 | | | 2 | Examine how organizations may overcome barriers to marketing plan. | | 2.2 | | | 3 | Write a marketing plan for a product or service | | 3.1 | | | 3 | Explain why marketing plan is essential in the strategic planning process for an organisation | | 3.2 | | | 3 | examine techniques for new product development | | 3.3 | | | 3 | Justify recommendation for pricing policy, distribution and communication mix | | 3.4 | | | 3 | Explain how factors affecting the effective implementation of the marketing plan have been taken into account | | 3.5 | | | 4 |...
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