Wednesday, November 20, 2019

Retailing Management - Target Research Paper Example | Topics and Well Written Essays - 5000 words

Retailing Management - Target - Research Paper Example The company makes its international strategy effective by incorporating its UK strategy and fine tuning it to suit the cultural differences in order to meet the specific needs and preferences of customers in the different international markets it operates in. In order to achieve excellence in international operations, Tesco needs to maintain consistency in its quality and consumer experience by venturing into the business insights (Tesco, 2011). The main and critical component in the Tesco’s decision making process is its web-based business intelligence application product. This application is recognized for its speed, functionality and the flexibility necessary for the timely delivery of fashion products to the Tesco users worldwide. This is based on the technology developed by Tesco along with its Group retail MIS system. The Group retail MIS system helps the company in identifying the key areas of operations, finance, customers and people. This guides and facilitates the to p management in measuring the store based performance of the company. Tesco’s strategic objectives thus have been focused upon the Group MIS which encourages and improvises on the local reporting and gives strategic insight into the functioning (Coriolis, 2004). Tesco: Environmental and Strategic analysis Understanding the environment and the influences which results from the changes provides different dimensions and challenges to strategic decision making but making sense of this diversity requires greater efforts and involves identifying the political, economic, social and technological influences which affect the organization. The PESTLE Analysis of Tesco involves the political environment which analyzes the local and national impact of the government. It also looks into the government laws and policies that have an impact on international business operations. The activity and momentum in the economy, such as fluctuations in the stock market and increase in the tax rates w ill have a significant impact on the company. Sociological factors include the changes in the culture and way of living of the people in general. It includes the changes in consumer behavior and their pattern of purchasing. For example, the new trend of e-commerce and online shopping brings in new technologies that the company will have to adapt. Environmental factors also play an important role as Tesco has to fulfill its corporate social responsibilities. It has to work on reducing the usage of fossil fuels in its transportation process (Case study, 2006). Possible environmental issues which Tesco will face in the near future are: Political - Ban of sale of alcohol to public above the age of 21 by the government. Economic - Implementation of tax on food by the government. Sociological- Tesco’s entry into US and Russia will help in expanding its operations and increasing its sales and profit levels. It helps in expanding the company’s horizon beyond the UK and overcom e cultural barriers. Technological- A significant part of Tesco’s distribution costs consists of hydrogen powered lorries. Legal- The task of paying huge compensation claims has been disputed by Tesco. Environmental- The changes in the climatic conditions could have an impact on suppliers’ strategies and objectives. Porters Five forces Model affecting Tesco The

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.