Create a 17 page essay paper that discusses Tesco.Tesco was established in 1919 as a company that is engaged in the business of grocery retail chains (Tesco, 2014). The company has grown today to beco

Create a 17 page essay paper that discusses Tesco.

Tesco was established in 1919 as a company that is engaged in the business of grocery retail chains (Tesco, 2014). The company has grown today to become the second largest retail business after Wal-Mart. Its global store count goes up to 6351 stores while its revenues measure up to £72,673 million in 2013 (Tesco, 2013). The company is also listed on the London Stock Exchange with an estimated market capitalisation of £24.4 billion (Tesco, 2013).

The report is aimed at an analysis of Tesco Plc from the strategic viewpoint. It is organised in a manner which provides answers to four critical questions. The first segment analyses the external market environment from the micro and the macro perspective for Tesco Plc through Porter’s five forces and PESTEL Analysis. The second segment deals with the analysis of Tesco’s Internal Environment through Value Chain Analysis and Resources based view. The third segment talks in detail about the crisis faced by Tesco and what impact it had on the company. The last part deals with an analysis of different types of strategies undertaken by a business including corporate strategy and business level strategy. With the help of such analysis, the report tries to suggest future strategies and implementation techniques for it.

Q1 – Analysis of the external environment

Macro Environment Analysis – PESTEL

Political – UK supermarket industry has been affected by different political factors like tax rates and legislative compliances. The political climate is relatively stable and the government provides encouragement and enough support to the supermarket establishments because of the high levels of employment potential within the industry.