P4: Discuss the internal, external and competitive environment Internal Conclusion from SWOT Analysis: The Swot analysis showed that Tesco have a number of Strength and Opportunities but also have got a number of Weaknesses and Threats. The threats that I found during the SWOT analysis were quite damaging for Tesco’s Brand image for example Horse meat Scandal. This damaged done can be somewhat ire repairable. This is their biggest threat and weakness and can be capitalized by their competition. This situation has caused trust issues between Tesco customer and Tesco (itself). However Tesco can use its Technology to help the business grow and prosper. Technology has become more and more used everyday activities for example more and more customer are using online shopping rather than going in store. This is not only an opportunities but is also a strength as many customer already know about Tesco’s online features. They can also use the online feature to help some of that Trust back by ensure that customers who order online get there shopping on time rather 5 minutes late. Overall, I believe that Tesco Strength’s and opportunities outweigh Weakness and Threats. Because if Tesco widen their service and goods for example improve the Tesco mobile service then they will gain more profit. However Tesco must address all their Threats and Weaknesses to become even more successful.
Corporate Culture Corporate Culture is things that a business do for example the values a business has and the way a member of staff treats a customer. Corporate culture essentially means ‘the way things are done in this business’. One example of cooperate culture is the Uniform, in Tesco all staff are required to wear Uniform. All staff is required to wear their uniform to a high standard and on their uniform there they are also required to have a badge with their name on it. All Tesco staff must wear their uniform to a high enough standard. Another example of corporate culture is Shift times, in Tesco all staff are given shift times and there is a lack of changes of shift. If an employee is given a shift time then they must start at that time. There are times where employees can finish early for example if an employee is sick or unable to work. The benefit of cooperate culture is enormous for Tesco. One benefit of corporate culture is that it makes employees feel as though they belong to the business and if employees feel as though they belong to the business they will become more loyal to the business and less employees will therefore leave. Another advantage is that the corporate culture helps motivate the employees and this can be seen by customers in store and this will encourage the customer to use Tesco more often. This will help increase profit made by Tesco. An example showing these benefits is Studio Pixar. Studio Pixar have a great Corporate Culture as they allow employees share and voice their ideas about what they think should be in the next movie. Corporate Social Responsibility Corporate Social Responsibility is a duty that every business has. This includes ensuring the social wellbeing of staff and caring about the environment. The businesses are not legally obliged to do this but it will help improve the business’s brand image. One corporate Social responsibility is taking care of the environment one example of Tesco doing this was when they invested and brought a large amount of recycling bins so customers can place any rubbish instead of littering. This helps the environment as it stops rubbish ending up in the sea or trashing the local community.
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Another example of corporate social responsibility is when Tesco sent a number of employees to go and help out Macmillan. They raised a lot of money and then sent staff to do some volunteer work with Macmillan to help raise more money. There are large amount of benefits that come from a business doing these acts. One benefit is that this helps improve positive business reputation. Another benefit of this is that it helps increase sales and builds customer loyalty. And the final benefit of doing these acts is that it will help bring in more staff and help retain talent. Competitive Competition for Tesco can be international as well as National. The main reason for this is because in the United Kingdom Tesco have a number of competitors such as Sainsbury, Asda and Morrison’s. On the other hand Tesco also operate in other countries around Europe such as Poland, Czech Republic. Competitors are doing a number of things to beat Tesco and to get make more profit than Tesco. One thing that competitors are doing is offering customer lowers price, what this does is make customer want to get there stores as they know they are going to get more value for money. This is especially ideal for large families who will be looking for the best value for money. Another thing that competitors are doing is introducing their loyalty with even more exclusive deals and offers than the Club card for example Nectar card is offering customer 50% on all products during the Christmas period to all customer with sufficient Nectar points. On the other hand, Tesco have decided to widen the features and improve what they offering on their online website. For example Tesco have recently lowered their prices on deliveries and have also promised customer that they will make sure that all deliveries are on time and if they are any complications then customer will receive a text explaining why the delivery will be late. Another improvement Tesco have made was they would be more ethical and help employment with social situation outside the workplace. They have offered employees the opportunity to see someone who can help them deal with any mental issues and much more. Tesco and Tesco’s competitors are doing this to maintain a competitive advantage and to gain more customer and more profit than their competitors. Business may need to do this more and more depending on how many competitors they have. P5 – Variety of techniques to undertake a situational analysis Pestle Technology – Tesco have used Technology to help improve the businesses communication with customer as well as this they have also used technology to help provide customers about the least deals and offer and have also used Technology to provide their customer with more service. One way they have used technology is to communicate with customer. Tesco has done through providing customer with automated services on their website where customer will be allocated to a member of the customer service team. And customers are able to voice their concerns and opinions. This feature saves time for employees using the phone and stops customer having to wait a long time to get through to one of the customer service team. Another way that Tesco have used technology is through marketing. Many people are using Social media sites rather than watching Television or listening to radio. Tesco have recently created a free Facebook page and Twitter page for customer to look at. This helps Tesco as it means more and more people will see any deals and special offers they may have. As well as this another way that Tesco have used Technology is to help improve communication between staff on the shop floor. Tesco have begun using small phone rather than using a speaker. This means that communication between staff have become efficient and easier. Environmental/ethical –
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Tesco have done a number of things to help improve the environment in their local area. This ethical and Tesco are not obligated to do this but it helps improve their brand image and makes customer more likely to use Tesco to buy groceries. One way have Tesco have improved the environment is through investing in low emission vehicles. Tesco have now made all vehicles low emissions, this reduces the amount of CO2 (carbon dioxide) in the atmosphere. This helps the environment and will make customers more likely to go Tesco. Another way that Tesco have tried to improve the environment is through investing in recycling bin. Outside most Tesco branches there are a number of recycling for customer to throw any rubbish they have. Tesco then recycle the rubbish instead of throwing the rubbish in a landfill it will be used for better things. These bins can also be used to reduce the amount of littering going on in the local area. Legal – There a number of legislation and regulation that every employer must follow and obligated to follow. A HSE officer often inspects business and workplace to see if they comply with these legislation and regulation. If the owner of the business or workplace are found not with complying then they are taken to court and actions are taken against the owner. One of the regulation is the PPE (personal protection equipment). This is a regulation and what this regulation requires is that the employer/ owner of the business must provide all employees with the necessary safety equipment for example if the employee is handling sharp objective then they must be provide with gloves. Another requirement of this regulation is that it is the duty of the employer to ensure that the protective equipment is fit for us and isn’t torn, damaged or insufficient. Another regulation is the Regulatory Reform (Fire Safety) Order 2005. This regulation requires the employer to provider certain training and information to the employees. The employees must be informed about where the fire alarms and how to set them off, they should also be informed on where all the fire exits are and where they should meet up after they have left the building this is called the assembly point. If the employees aren’t told this information then the owner or employer of the business is held accountable for this .
Social: This section mainly talks about and focuses on social factors that affect the business. These social
Strengths :
Weakness:
There are many strengths that Tesco have over there competitors. These Strengths are important as this is the difference and some reasons that customers will go to Tesco’s rather competitors such as Asda, Morrison and Sainsbury.
If Tesco’s have weakness it can be very costly as this could make potential customer’s go to their competitors rather than to them. This will not only limit the amount of profit but these weakness can also damage their brand image.
One of the strengths of Tesco is there established loyalty scheme. The Club card
One of the weaknesses that Tesco’s have is there prices. Some of prices that Tesco’s have on their products can easily be matched by
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