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Internal Business Environment of Tesco

University: Bloomsbury institute london

  • Unit No: 2
  • Level: Undergraduate/College
  • Pages: 8 / Words 2103
  • Paper Type: Essay
  • Course Code: LSBM103
  • Downloads: 197
Question :

Learning outcomes -

  • Make an analysis of the impact of macro and micro environment that impacts Tesco
  • Provide the reflection on theory regarding the influence of macro environment that shapes the performance of business
  • Do an evaluation of the strategic tools in the analysis of the internal business environment
  • Make communication of the central ideas in an effective way
  • Provide self-management and self-reflection

Task

This will be covered in two parts-

Part-A Reflective quizzes

  1. With the use of quiz, provide an understanding of the macro and micro environment impact that affects the Tesco today and this how this will help in reflecting on the theory of how forces in the macro environment shapes the performance of businesses
  2. Do complete 2 online quizzes
  3. Make assessment of each quiz that too one at a time and provide response in 90 minutes
  4. For the accessing the quiz, use business environment website
  5. Every quiz is comprised of multiple choice and open-ended questions

Details of the quiz are mentioned below-

Quiz

Title

Details

Available on canvas

1

Understanding Macro factors and Firm structure

7 questions from PESTEL Model, Firm’s legal structures & Circular flow of economy

Monday of Week 8

2

Reflection on and Micro Factors and Porter’s 5 Forces

10 questions for reflection on usage of Porter’s 5 Forces Model and Market Mechanisms

Monday of Week 10

 

 

Part-B Essay

produce a 2000-word essay title “a reflective analysis of an internal business environment”. As a part of this provide response to-

  • Provide a description of the Value Chain Model as proposed by Porter
  • Describe about Tesco
  • By using value chain model, conduct an examination of the internal environment of Tesco by emphasizing on the primary and supporting activities
  • Offer a reflection on the usefulness of the Value chain model that helps in understanding the internal business environment

Follow the below mentioned structure-

  1. cover page
  2. Introduction (100 words)
  3. Value chain model (400 words)
  4. About Tesco (300 words)
  5. Internal environment (600 words)
  6. A reflection on value chain model (500 words)
  7. Conclusion (100 words)
  8. References
Answer :

INTRODUCTION

Marketing is considered as the discipline that includes all the actions as a firm undertakes to draw and maintain relationship with consumers. It includes the activities that are undertaken by an organization to promote the selling or buying regarding a service or product. It involves selling, delivering products to the costumers or another businesses (Bammann, 2019). Present Report lay emphasis on the Value chain model of Tesco, that is British multinational groceries Headquarters within Hertfordshire ,England,United Kingdom to evaluating the internal environment of the Tesco businesses and also the reflection on the utilization on the value chain model which aids to explore the internal business's environment of the Tesco. Furthermore, it lay emphasis on the Reflection of the value chain analysis on Tesco.

Main Body

Value Chain Analysis

It is considered as a framework of activities that can be performed through a firm so that it create value for its consumers. To creates a higher profitability, value creation added values that leads to the advantage called competitive advantage. Most of the firms involves in hundreds of activities even thousands or more than that within the process transform inputs to the outputs ( Mudambi. and Puck, 2016). These kinds of activities can be distingush as either primary or support activities such as

Inbound logistics- It includes relationship with the suppliers as well as involves needed to receive, disseminate and store inputs.

Operations- It involves all the activities that are needed to modify inputs into the outputs.(services and products).

Outbound logistics- It involves all the activities that are needed to store, collect as well as distribute the consumers.

Marketing as well as sales-  Process that are related to the services and products within the markets involving generating and managing consumer relationship (Zamora, 2016).

Services- It involves the activities that are needed to keep the services or product working efficaciously for the buyers after the purchase as well as deliver of the product.

Secondary activities involves all the activities that able to maintain the value of services and products to the consumers as the relationship based on the Firms.

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Human resource management

It involves all the activities that are included within recruiting,developing,hiring,training in an organization. It involves the aid activities in which the development of the employees is known as the key element.

Organization infrastructure

 It aids the firms to hold the regular operations. financial management and Administrative handling, are considered as the examples of the activities as well as line management, that can creates values regarding firms (Savino, Manzini. and Mazza, 2015)

Technology development

These kinds of the activities are related regarding the development of the products as well as services of the firms both externally and internally. Such as Technological innovations,IT and development regarding new products that can rely on new technologies. These kinds of activities are able to create value by utilizing innovation as well as optimization (Samsatli, Samsatli. and Shah, 2015).

Procurement

These are the kinds of activities that support action that are related to the procurement to the services the consumers from the firm. Such as Action takes entrance into as well as managing relationship accompanied suppliers, purchasing products agreements ,negotiation to best prices as well as outsourcing agreements. To create services,valuable products as well as distinctiveness, Firms uses primary as well as aids activities .(Mvumi, Matsikira, and Mutambara, 2016).

Businesses operates within United Kingdom

Tesco is a well-known general merchandize and British MNC groceries . Through gross revenues within the world measured, known as the tertiary largest retailer. In a week Tesco serves millions of consumers within their stores as well as online. Hertfordshire,U.K has its headquarter. Within Europe, they operate in Hungry ,Slovakia,Poland,Czech Republic ,that offers great values to the consumers each and every day ( Mudambi. and Puck, 2016). There goals is to create a sustainable competitive benefit by delivering cost savings,empowering their colleagues, standardizing process for consumers. They have to set up a dedicated team known as the Tesco businesses services all over the markets. Tesco have large super markets as well as small range of the non-food goods. The Shops of the Tesco has always been branded as 'Tesco ' , But also a new shop within Liverpool was first considered to use format brand. They also operates within a number of the cafes but at the same time began the new restaurants from 2013.

Tesco express

They are the neighbourhood shops around 2,200 sq ft, mainly the food items regarding a consideration on the high margin products for example chocolates,sweets, biscuits as well as processed food with everyday required things (Bammann, 2019)

Tesco metro

These store are cherry-sized between Tesco express shops and Tesco supermarkets with the shops normal around 1,000 square metres. They are the shops that are beside railway stations within city centres, regarding the city centres as well as on the town's high street

Home shopping

Within the UK ,Firms operates Tesco.com websites I.e home shopping services . In the year 2006, Tesco is only food retail merchant firm to form the profitable shopping I.e is online shopping.

Tesco Petrol stations

In 1974, it is also started selling petrol ,they have recently diversified within biofuels,that can offers diesel and petrol -bioethanol blends ,rather than the pure diesel and petrol within their pure petrol stations (Mvumi, Matsikira, and Mutambara, 2016).

Tesco value chain model analysis

Primary activities of Tesco

These activities of Tesco are directly included within producing as well as selling the product to the consumers. It is the evaluation of primary supply chain analysis that improves the performances regarding Tesco as below mention.

Inbound Logistics

This is crucial to evolve strong relationship with their provider as Tesco can faces different challenges within the product development phases. It needed a firm top focuses on each and every aspect regarding transformation of the raw materials to the finished products. Such as storing inputs,retrieving raw materials as well as internally distribute the raw materials as well as components require to start the production (Zamora, 2016).

Operations

The significance of evaluating operational actions of Tesco ready to cognitive process the raw materials into the complete or finished products as well as launch. Such as operational actions are packing,testing,machining. Equipments repair and maintenance also came under this category. It includes both service and manufacturing operations. Evaluation of the operational actions is crucial regarding assuring competitive success, maximizing the efficiency,improving productivity of Tesco. The enhanced productivity assist Tesco accomplishing enhanced profitability, consistent economic growth set a almighty basis regarding competitory Benefit (Mudambi. and Puck, 2016).

Outbound logistic

It involves the actions that can provide the commodity to the consumers passing by various mediators. Actions such as warehousing material handling, delivering and transportation to the finish point. Tesco can optimize and evaluate to achieve growth of business objectives as well as explore competitive benefits sources. Tesco firm must pay particular importance regrading its outbound values chain activities that offered products as well as needed quick delivery regarding end consumer (Bammann, 2019)

Sales and marketing

At this point, Tesco will focus on the benefits as well as differentiation points that can be offered products to the consumer better than the competitors. With unique features and at affordable costs firms ,only manufacturing high prime commodity creates values until the Firm invests within the sales and marketing activities. The marketers and sales agents plays a crucial role here. Such as advertising, channel selection, pricing, promotional activities,building relations ,quoting with members of channels. Marketing funnel approach can use by the firm to structure its sales and marketing essential activities. The strategies of marketing depends on the Business objectives ,competitive dynamics brand image and current standing within market.

 The brand equity of Tesco Wisely and effectively Merged marketing action can evolve and aids it standout from the competition. Thus, regarding product features ,Tesco should avoid making false commitment regarding product features that can be unable to full fill through the manufacturing department. It focuses the requirement to assure between the various value chain actions and coordination ( Mudambi. and Puck, 2016)

Secondary activities

They can play a crucial role within coordinating and facilitating the activities regarding primary value chain.

infrastructure of Company

The Organization associated various activities such as planning, strategic management, financing,accounting and handling of legal matters, . It enables Tesco to optimise the values regarding whole value chain. To strengthening the competitive positioning within marketing, Tesco able to control the infrastructure activities that is known as commonly overhead costs (Flanagan, Lepisto. and Ofstein, 2018)

Management of Human resource

It evaluate human resource management by analysing various aspects of the Human resource such as training, selecting, recruiting, performance management and other personnel management activities. The effective human resource management enables Tesco to eliminate competitive pressure based on commitment, motivation, skills of its employees. The firm also accomplish its objectives through evaluating training costs as well as hiring costs with relative return (Mvumi, Matsikira, and Mutambara, 2016).

Technology development

In technological era, almost all the activities regarding supply chain based on the technology . The development of advance tools and techniques within various business functions and activities needed Tesco to realize the significance of the technological advancement. It can also be distinguished into product as well as technological advancement actions. consumer services, product design, technology supported research,data analytics of Tesco falls under this category (Zamora, 2016)

Reflection of the value chain analysis on TESCO

I came to know that supply chain analysis is considered as a regular process regarding assess regarding as well as communicating information regarding decision-making as it will assist to recognize all the value creating activities. Such as activities that are directly related to the sales,production ,delivery as well as services. I realised that With the supply chain analysis's actions have the potentiality regarding create the long term consumer worth that can improves the competitory benefit of the Tesco. To convert the origin into the final product, it helps Tesco for operations . It also enables Tesco to the cost factors regarding process .It enables cost improvement scheme or plan of action to be enforced at the same time while not decrease the value of consumer. It assist firm to recognizes areas accompanied by lower cost of distribution channel,raw materials and innovation technology process.

Also I realised that the help of the value chain analysis Tesco can compare its activities with its competitor its actions , Tesco managers focuses on the value of product, consumers' perceived and also analysing various differentiation strategies. Such as marketing channels,features of the product, pricing ,services support for increasing the consumer value. It is consider as flexible strategy tool ,it assist to understand the issues of the Tesco included within making commitments and promises of customer values as it highlights on the activities that can be required to deliver the values (Bammann, 2019)

CONCLUSION

From the above study it had been summarized that the Value chain analysis creates a higher profitability that leads to the advantage called competitive advantage. Inbound logistics includes relationship with the suppliers Outbound logistics- included actions require to store dispense the consumers. Tesco are directly included primary value chain analysis needed a firm top focuses transformation of the raw materials to the finished products. Furthermore, it focused on the Outbound logistic of Tesco for example order processing,and evaluate to achieve growth of business objectives Tesco will focus consumer better than the competitors. By only manufacturing high quality The effective human resource management based on commitment, through evaluating training costs Technology development activities regarding marketing,human resources technological development activities.

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