Supermarket Company Strategic Analysis Assignment

Supermarket Company Strategic Analysis - Assignment ExampleThe report below provides an insight into the supermarket company, Tesco, with emphasis on its external surround analysis and companys analysis of resources, competence and culture. Two future strategic options are suggested in regards to the resources based strategies.Tesco is one of the largest victuals retailers in the world, operating around 2,318 stores and employing all oer 326,000 people. It provides online services through its subsidiary, Tesco.com. The UK is the companys largest market, where it operates under four banners of Extra, Superstore, Metro and Express. The company sells almost 40,000 food products, including clothing and other non-food lines. The companys own-label products (50 percent of sales) are at three levels, value, dominion and finest. As well as convenience produce, many stores have gas stations, becoming one of Britains largest independent petrol retailers. Other retailing services offered ac commodate Tesco Personal Finance.Operating in a globalised environment with stores around the globe, Tescos performance is highly influenced by the political and legislative conditions of these countries, including the European Union (EU).For employment legislations, the regimen encourages retailers to provide a mix of job opportunities from flexible, lower-paid and locally-based jobs to highly-skilled, higher-paid and centrally-located jobs (Finch, 2005). Also to meet the demand from population segments such as students, working parents and senior citizens. Tesco understands that retailing has a swell impact on jobs and people factors (new store developments are practically seen as destroying other jobs in the retail sector as traditional stores go emerge of business or are forced to cut costs to compete), being an essentially local and labour-intensive sector. Tesco employs large numbers of student, disabled and elderly workers, often paying them lower rates. In an industry wi th a typically high staff turnover, these workers offer a higher level of loyalty and therefore wreak desirable candidates. Economical FactorsEconomic factors are of concern to Tesco, because they are likely to influence demand, costs, prices and profits. One of the most influential factors on the economy is high unemployment levels, which decreases the in force(p) demand for many goods, adversely affecting the demand required to produce such goods. These economic factors are largely outside the control of the company, but their effect on performance and the marketing mix can be profound. Although international business is still growing (Appendix A), and is expected to contribute greater amounts to Tescos profits over the next few years, the company is still highly dependent on the UK market. Hence, Tesco would be badly affected by any setback in the UK food market and are out in the open to market concentration risks.Social/Cultural FactorsCurrent trends indicate that British cu stomers have moved towards one-stop and bulk shopping, which is imputable to a variety of changes in social trends. Tesco have, therefore, increased the amount of non-food items available for sale.Demographic changes such as the aging population, an increase in female workers and a decline in home meal preparation mean that UK retailers are also focusing on