Premium Essay

Show Macro and Micro Environmental Factors Which Influence Marketing Decisions at Tesco

In: Business and Management

Submitted By kopeldak
Words 1474
Pages 6
Macroenvironmental Influences on Marketing Decision Making
The retail sector is very huge sector in the UK Market. Retail covers the whole lot from the small village shop where the shop proprietor recognizes every shopper by name, to the London Oxford Streets giant department stores. The Retail industry range includes the shop where you walk into to purchase, to the shops where you can explore with a keyboard and mouse.
As per Department of T rade and Industry’s commissioned report in 2003, £221bn topped in the UK after retail sales, and also provides jobs to around three million people and contributed 12% in the whole UK economy . We society is consumer-driven society , where shopping represents a lot more a hobby than an actual requirement to purchase products.
ABOUT TESCO
T esco, among the globe’s leading multinational retailers and a top retail store chain in the UK. In 1919 T esco was founded by Jack Cohen, at that time Cohen started to sell extra grocery items from a stall in the East End of
London. Against his first day’s £4 sale he gained £1 profit.
The T esco brand first time appeared in 1924. The brand `TESCO`, came about after Jack Cohen purchased shipment of tea from the supplier T .E. Stockwell. He made new labels by using the first three letters of the supplier's name (TES) and (CO) from his sir name forming the name "TESCO”.
The first brand which was sold by the T esco was “T esco T ea” in 1924. The first T esco store was started in 1929 at
Burnt Oak, Edgware London. In 1932 T esco became a private limited company . T esco was registered in the
London Stock Exchange as T esco Stores Limited in 1947 and the price of the share of T esco Store Limited was
25p. In 1956 in Maldon, a cinema was converted into the first T esco self services superstore. In year 2000 T esco open it web site www .tesco.com
T esco initially specializing in…...

Similar Documents

Premium Essay

Factors That Influence Consumer Purchasing Decisions

...Week 2 – DQ 2 What are some factors that influence consumer purchasing decisions? Which do you believe are most important? What are some ways markets can be segmented? How do firms decide which market segments to target? Factors that influence consumer purchasing decisions are price, income, credit facilities, reference groups, and need satisfaction, (uPublish.info, 2005-2012). I believe a factor that is most important is the ‘needs satisfaction.’ According to uPublish.info, 2005-2012, Maslow’s theory of motivation suggests that human beings seek to satisfy lower needs and then the higher needs: 1. Physiological needs- this includes the basic needs such as food and shelter 2. Safety- this include shelter and the needs to protect one from danger 3. Affection- these are the needs for one to belong to certain groups or family 4. Self esteem- these are the needs for recognition and dignity 5. Self actualization- these are the needs to realize our full potential As we saw fuel prices rise, there was less traveling involved, thus this affected airline companies and vacation destinations. For the most part, people need to feel secure with basic needs, such as food, shelter, gas, etc. before making big purchasing decisions. A bad example of this would be the housing market. Many banks were lending money to people who could not afford to make the monthly payments. I do not know whether the people knew this or the bankers convinced them they could make the payments.......

Words: 379 - Pages: 2

Premium Essay

Macro Factors

...MACRO FACTORS AFFECTING BUSINESS ENVIRONMENT SUBMITTED BY: AAYUSH VERMA INTRODUCTION A business firm is an open system. It gets resources from the environment and supplies its goods and services to the environment. There are different levels of environmental forces. Some are close and internal forces whereas others are external forces. External forces may be related to national level, regional level or international level. These environmental forces provide opportunities or threats to the business community. Every business organization tries to grasp the available opportunities and face the threats that emerge from the business environment. The term business ‘typically’ refers to the development and processing of economic values in society. Normally, the term is applied to portion of economic activities whose primary purpose is to provide goods and services for society in an effective manner. It is also applied to economics and commercial activities of institutions which having other purposes. Business may be defined as “the organised effort by individuals to produce goods and services to sell these goods and services in a market place and to reap some reward for this effort.” Functionally, we may define business as “those human activities which involves production or purchase of goods with the object of selling them at a profit margin”. Business organizations cannot change the external environment but they just react. They change their internal business......

Words: 8288 - Pages: 34

Free Essay

Micro&Macro Environment

...Landscape Ecol (2009) 24:375–390 DOI 10.1007/s10980-008-9312-x RESEARCH ARTICLE Effects of macro and micro-environmental factors on the species richness of terrestrial tardigrade assemblages in an Iberian mountain environment ´ ´ Noemı Guil Æ Joaquın Hortal Æ ´ nchez-Moreno Æ Annie Machordom Sara Sa Received: 1 November 2007 / Accepted: 20 November 2008 / Published online: 4 December 2008 Ó Springer Science+Business Media B.V. 2008 Abstract Tardigrade communities are affected by micro and macro-environmental conditions but only micro-environmental variables, and altitudinal gradients have been studied. We review previous reports of altitudinal effects and evaluate the influence by interacting macro- (climate, soils, biome, and others) and micro-environmental (vegetation, moss and leaf litter) factors on tardigrade assemblages at the Sierra de Guadarrama mountain range (Iberian Central System Mountains, Spain). Terrestrial tardigrade assemblages were sampled using standard cores to N. Guil (&) Zoological Museum, Natural History Museum, University of Copenhagen, Universitetsparken 15, Copenhagen DK-2100, OE, Denmark e-mail: nguillopez@gmail.com J. Hortal NERC Centre for Population Biology, Division of Biology, Imperial College London, Silwood Park Campus, Ascot, Berkshire SL5 7PY, UK J. Hortal Á A. Machordom ´ Departmento de Biodiversidad y Biologıa Evolutiva, Museo Nacional de Ciencias Naturales (CSIC), Madrid, Spain ´ S. Sanchez-Moreno ´ Departamento de......

Words: 9404 - Pages: 38

Premium Essay

Micro & Macro Factors Affecting the Auto Industry, India

...consumer confidence and other factors influenced by macroeconomic policies. Production in particular often has long lead times, so consistent and predictable economic progress is important. Therefore, national macroeconomic and monetary policies which produce stability and consistency in GDP per capita growth are generally very significant factors affecting the level of automotive sales and production. The following are the macroeconomic factors found to encourage automotive production and sales: (a) Stable national economic performance. Producers need confidence to invest, and consumers and businesses need confidence in their future to purchase vehicle(s). They therefore all want to minimize uncertainty. Thus, wild fluctuations in economic activity should be avoided. (b) Consistent national economic and regulatory policies. Likewise consistent national policies are critical to investment and consumer behaviour. Inconsistent policies may inhibit investment and sales as well as generate potentially large fluctuations in economic performance. (c) Transparent economic and regulatory policies. Policies must be not only fair, but must be seen to be fair if external investment is to be encouraged. Thus great emphasis should be given to ways of maximising transparency. Simplicity of policies and regulations should be encouraged. (d) Commitment by the government to the auto sector. Automotive investment requires large amounts of capital, which must be committed for a......

Words: 2121 - Pages: 9

Premium Essay

Tesco Macro Environmental Factors

...Macro Environmental effects on TESCO Marketing Decision Making As macro environmental factors always effect the development and planning of every business, same as Tesco also has or will have some influences of macro environmental factors towards its marketing decision-making. Socio Culture Environmental Factors Demographic Changes Demographics are the study of the measurable aspects of population structure and profiles, including factors such as age, size, race, occupation and location. As the birth rate fluctuates, and as life expectancy increase, the breakdown of the population changes, creating challenges and opportunities for marketers. Tesco use the demographic changes as opportunity and set its marketing strategy by the running the different kinds of store depending on the population size, location etc. Tesco use ethnic groups as a tool for good opportunities. Tesco divided its stores across the UK into five formats, these stores differentiating with the size of store and product being sold in these stores, TESCO EXTRA is largest store, generally located out the town a wide area. All Tesco products range available here. Free Car Parking also provided here. In 1997 first Tesco Extra was opened. TESCO SUPERSTORES are considered as supermarkets with standard large size. These stores have the stock of grocery and a lot of small non food small items. These store called the superstore for connivance but this word does not use in the shops. Generally these stores open......

Words: 2153 - Pages: 9

Premium Essay

Discuss Some the Factors Which Influence Our Thinking, Judgement and Decision-Making

...Discuss some the factors which influence our thinking, judgement and decision-making Our everyday lives are filled with many choices and decisions which will impact on our lives both in the short and long-term. Our perception of the impact of these decisions on our own lives and those around us will affect how much time and effort is given to arriving at these decisions. There are several factors which impact on thinking, judgement and decision-making and it is important to note that often these occur simultaneously rather than as individual areas but in order fully understand the entire process we must analyse the factors in each individual area. While it is neither practicable or possible to consider all the factors in every decision, knowledge of the factors, process and how they interact can be of critical importance. By understanding the factors, we can ascertain how we make decisions and by gaining knowledge on the entire process, we can ultimately arrive at better decisions by being conscious of our thought and application process. How we think and apply our thought process to the decisions often determine the paths we choose to take. There are two systems, or modes, which determine how we think (Kahneman, 2011). The first system is fast, automatic, emotional and frequent and the second system is slow, logical, infrequent and conscious. The title of the Kahneman’s book, Thinking, Fast and Slow, gives us an indication of the two systems. The first system,......

Words: 3951 - Pages: 16

Premium Essay

The Macro Environment Factors

...The Macro Environment factors are: 1) Demographic Environment 2) Economic Structural Environment 3) Technological Environment 4) Political Environment MACRO-ENVIRONMENTAL FACTORS A business and its forces in its micro environment operate in larger macro environment of forces that shape opportunities and pose threats to the business. It refers the major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies. These factors include the economic factors; demographics; legal, political, and social conditions; technological changes; and natural forces. The important environmental factors are; (1) Economic Environment (2) Political and Governmental Environment (3) Socio-cultural Environment (4) Natural Environment (5) Demographic Environment (6) Technological Environment (7) International Environment. 1. Economic Environment: - Economic environment of business has reference to the board characteristics of the economic system in which the business operates. The business sector has economic relation with the government, capital market; household sector and global sector. These sectors together influence the trends and structure of the economy. The form and functioning of the economy vary widely. The importance external factors that affect the economic environment of a business are; (i) Economic Conditions: - The general Economic conditions prevailing in the country viz. national income, per......

Words: 1028 - Pages: 5

Premium Essay

Apply Qantas as an Australian Company Increasingly Operating in a Global World Investigating How the Various Macro-Environmental (Uncontrollable) Factors Impact the Marketing Mix (Controllable) Factors.

...Apply Qantas as an Australian company increasingly operating in a global world investigating how the various macro-environmental (uncontrollable) factors impact the marketing mix (controllable) factors. Qantas was founded in 1920 and initially known as the Queensland and Northern Territory Aerial Services Limited (Qantas). It is regarded as one of Australia’s strongest brands and worlds’ leading long distance airline nationally and internationally. Qantas’ business is mainly constructed by the transportation of customers using both their airline brands Qantas and Jetstar as well as operating in other subsidiaries such as Q catering, frequent flyer, freight enterprises as well as other airlines (Qantas, 2013). It employs 33,000 people with 93 per cent of these employees being based in Australia (Qantas, 2013). Recently, Qantas has undergone changes that have threatened and seen Australians question if Qantas will remain an Australian brand. Reports have demonstrated 1000 jobs being cut due to restructuring of international arms as well as the decision to move Australian jobs offshore. Qantas has implemented plans to strengthen international ties particularly in Asia by funding start up airlines internationally. The global market is continuously evolving and as Bernard et al. stated ‘firms that are engaged in international trade are larger and more productive than the ones that serve only domestic markets’ (2007). However, the Federal transport Minister Anthony Albanese has......

Words: 2005 - Pages: 9

Premium Essay

Tesco Marketing

...Marketing strategies Chapter 7 q KEY TERMS | marketing aims: the broad, general goals of the marketing function within an organisation. marketing objectives: the specific, focused targets of the marketing function within an organisation. marketing strategies: long-term or mediumterm plans, devised at senior management level, and designed to achieve the firm’s marketing objectives. marketing tactics: short-term marketing measures adopted to meet the needs of a short-term threat or opportunity. Understanding marketing objectives This chapter notes how the marketing objectives of a business are derived from the broader corporate objectives. Examples of typical marketing objectives are provided and the internal and external factors that influence them are examined. In showing the process that converts objectives to strategy and tactics, the chapter provides the background to subsequent chapters on marketing strategies and marketing plans. A firm’s marketing aims and objectives are the goals or targets of the marketing function. These must be consistent with the organisation’s corporate aims and objectives: that is, with the goals of the organisation as a whole. In order to achieve their marketing objectives, firms use marketing strategies and tactics. It is therefore possible to place a company’s corporate objectives, marketing objectives, marketing strategies and marketing tactics into a hierarchy, as shown in Figure 7.1. Figure 7.1 A marketing......

Words: 3736 - Pages: 15

Premium Essay

Macro and Micro Environment

...There are two kinds of external marketing environments; micro and macro. These environments’ factors are beyond the control of marketers but they still influence the decisions made when creating a strategic marketing strategy. micro and macro environments Micro Environment Factors The suppliers: Suppliers can control the success of the business when they hold the power. The supplier holds the power when they are the only or the largest supplier of their goods; the buyer is not vital to the supplier’s business; the supplier’s product is a core part of the buyer’s finished product and/or business. The resellers: If the product the organisation produces is taken to market by 3rd party resellers or market intermediaries such as retailers, wholesalers, etc. then the marketing success is impacted by those 3rd party resellers. For example, if a retail seller is a reputable name then this reputation can be leveraged in the marketing of the product. The customers: Who the customers are (B2B or B2C, local or international, etc.) and their reasons for buying the product will play a large role in how you approach the marketing of your products and services to them. The competition: Those who sell same or similar products and services as your organisation are your market competition, and they way they sell needs to be taken into account. How does their price and product differentiation impact you? How can you leverage this to reap better results and get ahead of...

Words: 656 - Pages: 3

Premium Essay

Macro & Micro Environment

...Macro and Specific Environment Macro and Specific Environment 2011 Mohd Haizam Bin Idris (ZP00942) Masters of Business Administration 5/1/2011 2011 Mohd Haizam Bin Idris (ZP00942) Masters of Business Administration 5/1/2011 1.0 Introduction In today’s organisation, responding accurately to the factors that may affect the organisational performance. In this case, analysis on macro and specific environment has been analysed to identify the elements of the macro and specific environment that may have an impact to the organisations. Examples of how an organisation responding to the environment has been put together to distinguished from the two environmental factors. Literature review have been made through text book, online portal and journals as well account of company’s experience in responding to such environments. 2.0 Specific Environment Specific Environment refers to forces or institutions outside the organisation in which that the organisation interfaces in the course of conducting its business. In other words, specific environment refers to elements outside the organisation that have direct impact to an organisation. Such forces or institutions are directly relevant to the organisational goals because they have direct and immediate impact to the decision and actions of the managers. The specific environment in each organisation is unique and changes with conditions. The common elements are customers, suppliers, competitors and pressure groups. ...

Words: 2928 - Pages: 12

Premium Essay

An Analysis of the Most Significant Factors Which Influence Online Purchasing Decision

...analysis of the most significant factors which influence online purchasing decision Introduction With the development of digital technology, online shopping tends to be wildly accepted as a new convenient and efficient method to purchase. This trend may contribute to a dramatically growth in online sales. For example, online grocery has created £15 billion in the UK in 2015 and this figure is probably predicted to almost double by 2020 (Anon., 2015). Hence, analysis of consumer behaviour is quite useful for online vendors to expand their online business. In the previous researches, price is often considered as the most important intention of shopping online. For instance, (Reibstein, 2002) claims that price plays the most essential role in shoppers’ choosing a site; Lu (2009) states that customers often get the same product with a lower price online than in store. Although the importance of price has been accepted by most people, it is also probable to argue that other core factors, such as convenience, quality of product and service, website assortment and satisfaction of shopping experience may reduce the potential impact of price, as well as play the most initial role in online purchasing decision. In order to analyse the most important factors, this argument will take the following steps: (1) Firstly mention the motivations of online shopping; (2) Then provide a normal model of online purchasing decision progress and analyse core factors of each stage; (3) Lastly,......

Words: 2140 - Pages: 9

Premium Essay

Link Between Micro and Macro

...To begin, the micro environment cost of those elements which are controllable by management. Normally, the micro environment does not affect all the Companies in an industry in the same way. This is largely because of the size, capacity, capabilities and strategies which each Company use differently. For example, the raw material suppliers are given more concession to large size Companies. However, they may not give the same to small size Companies. Like the same, Companies will not mind if its closest rival is relatively small. But if the rival is large he will tend to be more conscious. Sometimes, the micro environment of various in an industry is almost the same. In such case, response to these firms to their micro environment may differ as each firm will seek to achieve a different success level. The most important factors of micro environment of business consist of competitors, suppliers, customers, public, marketing intermediaries and employees. On the other hand, macro environment is defined as the as major external factors that can influence an organization’s decision and affect its performance and strategies, (Business dictionary). These factors include political, economic, legal, technological, social, cultural and demographic. Managerial decisions are influenced by events that occur in the larger economic environment in which a Company operates. Changes in the overall level of economic activity, interest rate, unemployment rate,......

Words: 969 - Pages: 4

Premium Essay

Tesco Strategic Analysis

...Tesco Company Review Tesco is an international distribution based primarily in the UK, in Ireland and Asia. Its capitalization is 34.84 billion at 11 July 2008 and its turnover is 80 billion Euros in 2008. Tesco is British distribution group and 3rd World Group. Its activity revolves around three areas: distribution in the UK, international distribution and financial services. (Pagano, Margareta, 16 May 1987). The Macro Business Environment of Tesco Group The Macro-Environment consists of factors that may influence an organization externally. This is usually outside of the control of corporations. Examples of factors that may influence a business are changes in interest rates, changes in cultural trends and tastes, more competitors in surrounding areas as well as greater regulations or changes to government laws. (Pagano, Margareta, 16 May 1987). A popular method used to analyze the macro-environment is through a PESTLE analysis which stands for political, environmental, sociological, technological, legal, and ethical issues. Factors That Will Have Significant Impact on Tesco Political Factors The political environment includes all government actions that affect the business in the retail trade. This effect may be through formal legislation, such as the law on the sale of goods, as well as through competition policies and planning systems. For example, the recent developments relating to food safety and sale of genetically modified foods also influence and...

Words: 2878 - Pages: 12

Premium Essay

Micro Environmental Factors

...irMICRO ENVIRONMENTAL FACTORS AFFECTING BUSINESS Micro environment factors, are factors close to a business that have a direct impact on its business operations and success. Before deciding corporate strategy businesses should carry out a full analysis of their micro environment. The following are the micro factors affecting business- Customers As all businesses need customers, they should be Centred (Orientated) around customers. The firm's marketing plan should aim to attract and retain customers through products that meets their "wants and needs" and excellent customer service. Employees Employing staff with relevant skills and experience is essential. This process begins at recruitment stage and continues throughout an employee's employment via ongoing training and promotion opportunities. Training and development play a critical role in achieving a competitive edge; especially in Service Sector Marketing. If a business employs staff without motivation, skills or experience it will affect customer service and ultimately sales. Suppliers Suppliers provide businesses with the materials they need to carry out their business activities. A supplier's behavior will directly impact the business it supplies. For example if a supplier provides a poor service this could increase timescales or product quality. An increase in raw material prices will affect an organization’s Marketing Mix strategy and may even force price increases. Close supplier relationships are an......

Words: 559 - Pages: 3