Tesco Plc Essay Example | Topics and Well Written Essays - 2250 words - 1

Tesco Plc - Essay Example . Tesco plc is largest retailer in the UK and one of the largest retail firms in the world. The company operates four store formats :Tesco Express, Tesco Metro, Tesco Extra and Tesco Superstores.Tesco Express store are combinations of convenience and gasoline retailers. Tesco Metro locations are small urban stores designed to meet the needs of the local community. Tesco Extra stores are hypermarkets located in Asia. Tesco Superstores provide traditional grocery items as well as insurance, banking, telecommunications products, books, flowers, movie rentals and school uniforms. The firm has expanded all of its grocery stores to include non-food items, such as book, software, electronics and music. Tesco also operates on e-commerce site with over 500,000 registered users in the UK. This division makes nearly 300,000 CD, video and DVD titles. The firm also operates the Tesco Direct catalog and the Tesco Baby club. Tesco is involved in the financial services business, serving nearly 1.5 m illion customers. Services offered by the company include saving accounts, online banking, and travel, house and pet insurance policies. In early 2006, Tesco telecom began offering a cost effective, easy to use Internet phone. Also in 2006, Tesco introduced self-branded software. Its office suit retails for roughly $35, well below Microsoft’s. The firm owns a 35% stake in Safeway Grocery works, a grocery store chain in the U.S.Tesco plans to open convenience stores on the West Coast of the U.S. in early 2007.... in early 2007. Also in 2007, the company will begin running a dedicated green rail line between Scotland and the Midlands to improve its suppy chain Strategic review of Tesco Plc Environmental Analysis Organizations need to be in tune with their environment. In particular, they need to anticipate the sort of changes that will take place in their environment and make appropriate plans for these. Environmental auditing enables the organization to be proactive rather than reactive. The effective organization will put a lot of effort into the process of environmental auditing and scanning. The principal tools used to carry out the environmental analysis of Tesco Plc is: PEST Analysis Competitor Analysis/Audit (Porter's 5-force analysis) SWOT Analysis PEST Analysis PEST stands for political, economic, social and technological features of the business environment which might influence or even threaten the company. The acronym PEST suggests that these are all nuisance or hindrance factors to business development. New regulations to be compiled with, increased taxes or import tariffs, reductions in market size due to demographic changes or the threats of new technology rendering products obsolete - these are all stuff of the executive nightmares. Often, however, PEST factors can often be of considerable business value. This technique is, in truth, little more than four headings to stimulate thinking about broad aspects of the business environment that might otherwise go unnoticed. Political: Changes in law or regulations introduced by Governments or government agencies. Can also include political changes which may stabilize or