...ntroduction This report is aimed at critically analysing 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 to become the market leader within the UK food retail segment (Datamonitor...
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...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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... Dell Inc. Competitive forces The Competitive forces has five forces which are threat of new competition; threat of substitute products or services; bargaining power of customers or buyers; bargaining power of supplier; and intensity of competitive rivalry. I. Threat of new competition: In the other word, it is the threat of new entrants. For the threat of new entrants, based on the Porter's five forces, a model for industry analysis, " Barriers to entry are more than the normal equilibrium adjustments that markets typically make." (Porter's Five Forces). If a company wants to enter a new market, it should consider about the following factors in the industry which are Government policy, economies of scale, capital requirements, brand identity, absolute cost advantages and Industry profitability etc. II. Threat of substitute products or services: According to Wikipedia, " The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives. Note that this should not be confused with competitors' similar products but entirely different ones instead." (Porter five forces analysis, 2009). Many factors such as switching costs, buyer inclination to substitute, price performance, and trade- off of substitutes should be considered by a company. III. bargaining power of customers or buyers: based on Wikipedia"The bargaining power of customers is also described as the market of outputs: the ability...
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...True False 4. Technology provides countless business opportunities, but can also lead to pitfalls and traps for a business. True False 5. Top managers use social intelligence to define the future of the business, analyzing markets, industries and economies to determine the strategic direction the company must follow to remain unprofitable. True False 6. A variable is a business intelligence characteristic that stands for a value that cannot change over time. True False 7. Companies update business strategies continuously as internal and external environments change. True False 8. For an organization to succeed, every department or functional area must work independently to be most effective. True False 9. Porter's Five Forces Model outlines the process for a sales strategy. True False 10. With the Five Forces Model, companies should watch the forces in the market. If the forces are strong competition generally increases and if the forces are weak competition typically decreases. True False 11. Successful companies today operate cross-functionally, integrating the operations of all departments. True False 12. An overview of systems...
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...market analysis before proceeding to any movement. The analysis must be conducted in a fair manner and give to meaningful results that will take the right decision for the future. Many schools give a lot of methods of market analysis. In addition to the well-known SWAT and PEST analysis, there are many other approaches such as Value Chain Analysis, Porters Five forces, Core Competencies and Stakeholder Mapping that may be useful. This work will present two approaches of strategic analysis process such as Value Chain Management and Potters Five Forces. Those two methods seem to be the most authoritative and covering the largest range methods. The information and conclusions drawn from them give a clear view of the situation in which the company is located and whether the plans for the future have any chance of entry into force and to bring relevant results. The first section presents the method of analysis of the value chain, its advantages and disadvantages, and presented examples of its application in practice, as typified by several companies. In the next part in a similar manner presented the advantages and disadvantages of the Potters five forces, also supported by examples of application. Finally, a brief summary is presented. 2. Value Chain Analysis Value Chain Analysis is one of the methods of analysis of the strategic potential of the company, which is a "resource approach", which sources of success the company is looking for in the company. Value chain on the...
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...Advantage:Business Dilemma To survive and thrive, an organization must create a competitive advantage. A competitive advantage is a product or service that an organization's customers place a greater value on than similar offerings from a competitor. Unfortunately, competitive advantages are typically temporary because competitors often seek ways to duplicate the competitive advantage. In turn, organizations must develop a strategy based on a new competitive advantage. When an organization is the first to market with a competitive advantage, it gains a first-mover advantage. The first-mover advantage occurs when an organization can significantly impact its market share by being first to market with a competitive advantage. FedEx created a first-mover advantage by creating its customer self-service software, which allows people and organizations to request parcel pickups, print mailing slips, and track parcels online. Other parcel delivery companies quickly began creating their own online services. Today, customer self-service on the Internet is a standard for doing business in the parcel delivery business. Page 14 As organizations develop their competitive advantages, they must pay close attention to their competition through environmental scanning. Environmental scanning is the acquisition and analysis of events and trends in the environment external to an organization. Information technology has the opportunity to play an important role in environmental scanning. Frito-Lay, a premier...
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...creation of a unique and valuable position, involving a different set of activities. Strategic position emerges from three distinct sources which are serving few needs of many customers, serving broad needs of few customers and serving broad needs of many customers in a narrow market. After positioning itself, an organisation must ensure that its strategic efforts results in creating “fit” among a company’s activities. Fit has to do with the ways a company’s activities interact and reinforce one another. In his endeavour to build strategic intent within organisations, Michael Porter is well known for the following contributions in the field of corporate strategy: 1. Generic Strategies 2. Value Chain 3. Competitive Advantage 4. Porter’s Diamond 5. Five Forces Model 1. Porter’s Generic Strategies Porter’s generic strategies is a frameworks used to outline the three major strategic options open to organizations that wish to achieve a sustainable competitive advantage. Each of the three options need to be considered within the context of two aspects of the competitive...
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...PROJECT PLAN Competitive Advantage of the Coca Cola Company: Porter’s Competitive Force Model and the Business Value Chain Model This plan outlines the Competitive Advantage of Coca Cola Company regarding Porter’s Competitive Force Model and the Business Information Value chain. The purpose of the plan is to provide the general view of the firm, its competitors, and the environment it operates. The five competitive forces of Porters model shape the fate of the firm through; Customers and suppliers, substitute products and services, traditional competitors, and new market entrants. This project plan will take up to 4 week, using Porter’s Competitive Force Model to identify the firm’s competitive forces and highlight specific activities in the business where competitive strategies can best be applied and where information technology helps and the impact it brings to the company competitive position. PROJECT SCHEDULE Task: Management Information System Project Duration: Four (4) Weeks Due Date | Day | Time | Job Specification | Lecture’s Approval | Comment | O9/10/15 | Friday | 11 am | Introduction and Background of the company | …………..Date: | | 16/10/15 | Friday | 11 am | Industrial Analysis: * Porter’s Five Forces Model * Business Value Chain | …………….Date: | | 23/10/15 | Friday | 11 am | Firms Competitive ForcesExternal Environment * Strength WeaknessInternal Environment * Opportunity & Threats | …………..Date: | | 30/10/15 | Friday | 11 am...
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...Topic Gateway Series Strategic Analysis Tools Strategic Analysis Tools Topic Gateway Series No. 34 Prepared by Jim Downey and Technical Information Service 1 October 2007 Topic Gateway Series Strategic Analysis Tools About Topic Gateways Topic Gateways are intended as a refresher or introduction to topics of interest to CIMA members. They include a basic definition, a brief overview and a fuller explanation of practical application. Finally they signpost some further resources for detailed understanding and research. Topic Gateways are available electronically to CIMA Members only in the CPD Centre on the CIMA website, along with a number of electronic resources. About the Technical Information Service CIMA supports its members and students with its Technical Information Service (TIS) for their work and CPD needs. Our information specialists and accounting specialists work closely together to identify or create authoritative resources to help members resolve their work related information needs. Additionally, our accounting specialists can help CIMA members and students with the interpretation of guidance on financial reporting, financial management and performance management, as defined in the CIMA Official Terminology 2005 edition. CIMA members and students should sign into My CIMA to access these services and resources. The Chartered Institute of Management Accountants 26 Chapter Street London SW1P 4NP United Kingdom T. +44 (0)20 7663 5441 F. +44...
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...long-range perspective.’ Model of Strategic Analysis Tools Typology ‘…the process of conducting research on the business environment within which an organization operates and on the organization itself, in order to formulate strategy.’ BNET Business Dictionary ‘… a theoretical informed understanding of the environment in which an organization is operating, together with an understanding of the organization’s interaction with its environment in order to improve organizational efficiency and effectiveness by increasing the organization’s capacity to deploy and redeploy its resources intelligently.’ Professor Les Worrall, Wolverhampton Business School Definition of strategic analysis often differ, but the following attributes are commonly associated with it: 1. Identification and evaluation of data relevant to strategy formulation. 2. Definition of the external and internal environment to be analyzed. 3. A range of analytical methods (strategic analysis tools) that can be employed in the analysis. Example of analytical methods used in strategic analysis which will be discussed in this paper includes but not limited to the following: 1. SWOT analysis 2. PEST analysis 3. Porter’s five forces analysis 4. Four corner’s analysis 5. Value chain analysis 6. Early warning scans 7. War gaming An overview of these strategic analysis tools will be provided. Strategic Analysis Tools Definition Analytical methods and tools are...
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...Topic Gateway Series Strategic Analysis Tools Strategic Analysis Tools Topic Gateway Series No. 34 Prepared by Jim Downey and Technical Information Service 1 October 2007 Topic Gateway Series Strategic Analysis Tools About Topic Gateways Topic Gateways are intended as a refresher or introduction to topics of interest to CIMA members. They include a basic definition, a brief overview and a fuller explanation of practical application. Finally they signpost some further resources for detailed understanding and research. Topic Gateways are available electronically to CIMA Members only in the CPD Centre on the CIMA website, along with a number of electronic resources. About the Technical Information Service CIMA supports its members and students with its Technical Information Service (TIS) for their work and CPD needs. Our information specialists and accounting specialists work closely together to identify or create authoritative resources to help members resolve their work related information needs. Additionally, our accounting specialists can help CIMA members and students with the interpretation of guidance on financial reporting, financial management and performance management, as defined in the CIMA Official Terminology 2005 edition. CIMA members and students should sign into My CIMA to access these services and resources. The Chartered Institute of Management Accountants 26 Chapter Street London SW1P 4NP United Kingdom T. +44 (0)20 7663 5441 F. +44...
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...Chapter 8 Strategic Planning and Ten–Ten Planning To be strategic is to have plans of action that provide directions for operating in an uncertain world. In this section, our focus is on developing strategic plans to compete in a world characterized by monopolistic competition. Notice that the emphasis is on plans of action and not on a single plan. There is no single plan or single planning approach that can deal with the complexity of contemporary markets. What is needed is a continuous process for churning out new plans, for differentiated products and services, in order to compete in a dynamic environment. This chapter presents a brief overview of the various approaches to strategic planning and provides an overview of the planning literature. There is a lot of material to slog through, but each approach to planning has something to offer. This overview will set the stage for presenting the Ten–Ten planning process in the next chapter. The next chapter will integrate the various planning approaches and present a simplified, yet robust approach to planning called the Ten–Ten planning process. The key benefit of the Ten–Ten planning process is that it can be used for developing business plans in a very short time span. 8.1 Planning Concepts There are two generic planning strategies that a business can pursue.Michael Porter originally identified three generic strategies. He noted that a business can also focus on a market that is not very competitive. Most people consider...
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...Strategic Management Analysis Tools BUSI/600 – Business Research Methods October 14th, 2011 Abstract In this paper the author has decided to conduct an in-depth analysis on the strategic management analysis tools. In this paper the author will speak on several types of analysis tools and distinguish how each has a distinguishing role in the organizations planning process. In this literature review, the author will cover the SWOT Analysis, the PEST Analysis, the Value Chain Analysis, Porter’ Five Model, Four Corner’s Analysis, Boston Consulting Group Growth-Share Matrix, General Electric Matrix, and the Strategic Early Warning Systems. Hopefully, after the completion of this review the readers will have a clear understanding of how each of the analysis operate and can be applied to any organization or group. SWOT Analysis The SWOT Analysis is a technique that was developed by Albert Humphrey, who was in charge of a research project in the 1960’s and 1970’s at Stanford University using data from many organizations over the world. The ultimate goal of the study was to reveal why corporate planning was failing. After the results were formulated, Humphrey could identify many areas of concern and the tools Humphrey needed to investigate each of these areas were called a SOFT analysis (Ghazinoory, Zadeh & Memariani, 2007). Humphrey and the team used the categories “What is good in the present is Satisfactory, good in the future is...
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...positioning is the foundation that establishes organisations strategic potential, what it can do and strategic ambitions, what it actually seeks to do (Johnson et. al 2011). This requires good understanding of the externalinternal environment, organisational purpose and culture. The tools commonly used to develop understanding and perform a strategic analysis are presented in Appendix 1.0.This essay aims to lay the foundation for a comprehensive analysis of current strategic potential of Singapore Airlines (SIA). Firstly, the focus is on how to identify the sources of information about macro environment, unique features of airlines industry and in depth view of internal dynamics of SIA. Secondly, the focus is on comparison of four core tools in terms of relevance, advantages, disadvantages and creative adaptability for SIA. A preliminary application of these tools is made to illustrate the arguments for or against using a particular tool. The essay briefly touches on another crucial aspect of right expertise and competence for an effective analysis. The essay concludes with key observations and recommendations for a further comprehensive analysis of SIA.A simple structure is adopted in this essay as indicated in Fig 1.0 The airlines industry in general, with no exception of Singapore Airlines, has always been viewed as having certain unique features in terms its external environment. Johnson et al. (2011) describes the external environment in form of layers as shown in Figure 2.0. Environmental...
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...HOMEPAGE ------------------------------------------------- Top of Form Bottom of Form KNOWLEDGE FINDER BACK TO KNOWLEDGE HOMEPAGE PRINT VERSION SEND TO A FRIEND Management Tools Porter's Five Forces and Profitability M.E. Porter, "How Competitive Forces Shape Strategy", Harvard Business Review, 1980. This diagram has been recreated by LMC. LMC explains Porter's Five Forces and Profitability A business strategy tool designed to analyse a strategic business unit and its relationship with and competition within the industry. Using five key areas affecting profitability, the results give a company insight into its industry attractiveness. The five forces are identified as: bargaining power of suppliers, bargaining power of buyers, threat of new entrants, threats from substitute products and competitive rivalry. Each force is analysed in terms of whether it will produce higher or lower profitability if its effects are felt. 1. Bargaining power of suppliers This will be high or strong where there are relatively few individuals holding the power, where the costs of changing suppliers are high, or if the supplier has a strong brand. 2. Bargaining power of buyers This will be strong where market share is controlled by few buyers, for example large supermarket chains in the groceries market, or if the costs of switching supplier are low. 3. Threat of new entrants There can be various barriers to new entrants and if these are present then the threat from the entrant...
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