Strategic Management Master Essay Example | Topics and Well Written Essays - 2000 words

Strategic Management Master - Essay Example The political environment of Tesco includes factors relating laws, government agencies and any other pressure groups that can influence Tesco. Fair trading is becoming increasingly important in UK's business environment. For instance, 15000 African slaves working in African cocoa fields is a big concern of chocolate consumers in UK; likewise there are fair-trade factors that influence Tesco as well. Hence it comes under the scrutiny and keen observation of the Office of Fair Trading for applying monophony in agricultural markets. Community organizations in the UK have put in efforts to boycott supermarkets and large confectionary manufactures and supports small scale retailers in order to avoid their use of dominant power by dictating favourable terms and regulations on suppliers. Increased availability of credit is an important economic factor in the UK business environment of Tesco because the availability of credit itself provides financial confidence to the consumer and as a result it leads to the growth of premium foods and less demand on economy products. Large grocery retailers in UK moved in to non food retailing so as to improve margins in the highly competitive market. The UK market is largely affected by negative inflation which is driven by 'Wal-Mart effect'; that is every day law price strategy. Social People like shopping well if they get everything under a single roof. So, the convenient shopping especially 'everything under one roof strategy' is very important in Tesco's business environment. As large scale retailers cut labours by providing self service facilities it consequently local communities are haemorrhaging quantities of meaningful skilled jobs. Confectionary market is largely being affected by 'small treat' trend which in fact leads consumers to select small chocolates and small food products instead of large meals (JESS HALLIDAY -2008). Consumers always seem to be 'time poor' and hence they tend towards choosing small treat and small food items that they can have on the go. These factors as well largely affect Tesco's market. Technological The growing use of electronic data interchange, barcode readers, credit or debit card reader equipments, laser and self scanning and other points of sale tools has become a feature of recent innovation by retailers. The sophisticated technology used in store card system also becomes significant in the UK market. Online shopping and other new trends in retailing like home delivery services, after sales services and home shopping play vital role in consumer satisfaction and hence it is a significant factor that influences Tesco' market. Environmental The environmental issues like pollution and green house gas emission have gained attention from public part. Public always concerns environmental pollution and emissions of green house gas that causes ozone depletion and finally global warming. All the retailers have taken this factor to be a major concern and have taken actions so as to avoid any further consequences. There are other factors like packaging food, cleanliness,