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Management Report 1 : Environmental Audit - Coursework Example

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Management Report 1 – Environmental Audit Executive Summary Tesco plc is one the leading brands in the grocery and supermarket sectors in UK as well as in the world. Tesco has prepared a 5 year long growth plan phase where the mission is to diversify the portfolio of the company…
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Management Report 1 : Environmental Audit
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"Management Report 1 : Environmental Audit"

Download file to see previous pages Due to the global financial meltdown the company is facing tough situation both in home country as well as in foreign markets. The research report identifies and discusses the effect of the external and internal business environment of Tesco. Based on the evaluation of the two types of effects the present strategic position of Tesco is analysed and discussed. Table of Contents Executive Summary 2 Introduction 4 Analysis of external business environment 4 Analysis of internal business environment 7 Critical evaluation of strategic position 8 Conclusion 9 Reference List 11 Introduction Tesco Plc is one of the largest UK supermarket retail chains. It is a multinational grocery as well as a general merchandise retailer. It is head quartered in Hertfordshire, UK. There are as many as 500 different products sold by the company. Some of the well known departments and stores are Cash and Carry, Warehouse Club, Convenience Store, Forecourt Store, Department Store, Discount Department Store, Discount Store, hypermarket and supermarket (Bajaj, 2001). The total revenue generated in the year 2013 is ?64.826 billion. The total operating income is ?3.074 billion. Tesco Plc has 3 different subsidiaries, which are Tesco Stores, TESCO Bank and Tesco Mobile. The Company has presence in 14 different countries, some of which are in China, Hungary, and Slovakia etc (Gina, 2013). The company has a supply and distribution channel which is diverse and complex. The raw materials are gathered from a multitude of farmers and producers. The farmers and producers supply the products to the distribution centres. The supply and distribution centres then send the products to the respective retail stores spread across different geographical locations. Analysis of external business environment The analysis of the organization’s external business environment is done by help of the PESTEL Framework. Political The political system of UK is stable. The stable political system has helped retail businesses like Tesco Plc and associated business like Tesco Bank and Tesco Mobile to flourish in the last 3 years. It must be noted that after the economic deluge hit the whole Europe, prime minister and other allied political parties forwarded economic help packages to certain industrial sectors. The economic package helped to boost the performance of Tesco Plc and other retail sectors. Although the real economic benefit derived from such economic help packages is still a matter of further questioning and discussion, but it helped the companies like Tesco Plc in one way or the other way. There are no transfer restrictions, or risks related to change of government. The relationship between the ruling political party and Tesco plc is a Laissez-faire type. Economic The economic condition of UK has started to improve after the financial crisis hit the whole European market. The market trends indicate that the share market and the commodity market have started responding to the fiscal stimulus of the government. The inflation rate has not come down yet to the level it was before, but it is holding steady for the past 5 to 6 months (Gina, 2013). The income levels have not increased sufficiently to counter the effect of inflation but the tax rate has been slashed slightly except for the higher income groups. The fiscal policy by the UK government has not been able to steer the economy out of pitfalls yet. It is hoped full that a couple of more fiscal policies will help to bring stability in the faltering ...Download file to see next pagesRead More
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