This website uses cookies to ensure you have the best experience. Learn more

Tesco Macro Environmental Factors Essay

2176 words - 9 pages

Macro Environmental effects on TESCO Marketing Decision Making
As macro environmental factors always effect the development and planning of every business, same as Tesco also has or will have some influences of macro environmental factors towards its marketing decision-making.
Socio Culture Environmental Factors
Demographic Changes
Demographics are the study of the measurable aspects of population structure and profiles, including factors such as age, size, race, occupation and location. As the birth rate fluctuates, and as life expectancy increase, the breakdown of the population changes, creating challenges and opportunities for marketers. Tesco use the demographic changes as ...view middle of the document...

The locations of these stores are inside the city centers or they locate on the high street of less populated town like Uxbridge etc. Usually size is 1,100 m² (12,000 sq ft). The first Tesco Metro was started working in Covent Garden, London in 1992.
TESCO EXPRESS stores are vicinity ease shops. Tesco express sale the food item generally with the focus on a high margin products range. These store located in the busy city centers, small shopping boundaries in residential areas and on the petrol stations. Usually the size of Tesco Express is about 190 m² (2,100 sq ft).
Covers the Customer from all Walk of Life
Tesco covers the customers from all walk of life as discussed above in the demographic changes Tesco runs different kind of store, other than this there is also a facility of online shopping, Tesco direct. This available option caters the society as whole from families to a person in a rush for snack purchase.
Covering Status Preference Through Pricing
Store like Tesco seems to be considered as less premier in the status preference if we compare it with other competitors like Marks and Spencer`s (Chaney, 2004). Tesco started to cover this preference status by gaining customer base through keeping an eye on mass market pricing.
Free Eye Tests
Tesco has started giving facility for free eye tests to those people who have not cover NHS.
This is a very good example of corporate social responsibility set by Tesco and it gives Tesco a spectacular reputation in the community (Anker, 2010). Tesco also promoting fair-trade products although this is not an differentiating attribute as other competitors has also launched this kind of practice but even that it is giving superiority to Tesco.
Contributing towards reducing unemployment
Due to the current economic down turn situation around the globe, unemployment rate is very high. As fast growing largest retailer in UK and creating more jobs, Tesco playing a vital role to reduce the unemployment.
Technological Environmental
In an increasing dynamic world, where the creation, launch and maintenance of new product are more expensive and difficult than ever, no organization can afford to ignore technological environment and its trends. Even if your organization does not have the inclination or resources to adopt or adapt new technology, understanding it is important because competitors will exploit it sooner or later, with implications for your product and its marketing. Technological factors also effect to Tesco as well. These factors are helpful for Tesco business as,
Successful Online Retailer
Tesco declared the most booming online shopping retailer. Tesco had achieved the bar of £1 billion online sale in 2006. And online sale has been increasing with the 12% average per year after that up to 2009 (Tesco PLC, 2009; Andy, 2006). Tesco aggressively capturing the market for non food items range through taking advantages of his portal. Dedicated outlets are also in operation for collections for...

Other Papers Like Tesco Macro Environmental Factors

Tesco Essay

2668 words - 11 pages market share and sales volume. As a study carried out by the group CACI 12 for the Sunday Times showed that the Tesco group has almost total control of foods market in 108 of Britain’s postal areas (Sir Leahy, T., 2004). Analysis of the macro environment: As an organization there are lots of externals factors that affect the decision making of many managers. This includes government policy, new rules, tax change, and demographic change and so

Describe How Political, Legal and Social Factors Are Impacting Upon the Business Activities of the Selected Organisations and Their Stakeholders

1857 words - 8 pages consumer groups for their target market. Legal factors relate to the laws, regulations and legislations which affect the way a business functions. For example, common law for business balance prohibits paying a little and getting a lot. I will describe how political, social factors impact upon Tesco and Bank of China. Political factors of Tesco Tesco have political factors that affect their business activities. For example, political stability for

Task 4: Influence of Stakeholders

1763 words - 8 pages misinterpreted meaning they might be doing activities that the board does not want or is not looking for. Tesco has a balance score system to manage and measure the business performance. Five segments are Community, Operations, People, Finance and Customers. Tesco Business Environment The government have come up with an environmental policy and must be respected and encourage by big private sector companies. They plan on reducing the UK’s


4119 words - 17 pages -checkout machine, wireless devices, and Radio Frequency Identification. Environmental Factors; since 2003, pressure has increased in company to be responsible in matters concerning environment and food retailers are expected to adhere to the responsibility standards put in place to protect the environment. Tesco has been one of the key players in ensuring that they engage in sustainable production activities by use of technology. Legal Factors

P5 Boom and Recession

2260 words - 10 pages . Unemployment rate is one of the factors that affect the company’s profitability. Unemployment decreases the demand for its products and services and in the end, its profitability. Unemployment is a major concern to the company because it is beyond its control. It affects its marketing opportunities and its overall performance in local and international markets. Even though Tesco is expanding its operations globally, it doesn’t make the profits it

Global Forces and the Western European Brewing Industry

1261 words - 6 pages Introduction The purpose of this briefing paper is to analyse the data given from the case study to determine the impact and consequences global forces have, by using the PESTEL framework. This framework is used to help form a strategic analysis of the macro-environment; the outside factors beyond the control of a company. It categorises the environmental influences into six groups: political, economical, socio-cultural, technological

Tows Development

4485 words - 18 pages their strong environmental image to remain competitive. This can be done via campaigns and promotions that will raise awareness and help to convince customers why innocent are helping the environment more than their competitors. For example own brand products from supermarkets such as Tesco will not be considering the environment when they are packaging their smoothies whereas innocent have put a considerable amount of thought into the packaging

Strategic Development In Global Food Retail

3737 words - 15 pages attractiveness, which is affected by following determinants: * Market growth rate * Market size * Demand variability * Industry profitability * Industry rivalry * Global opportunities * Macro-environmental factors Industry attractiveness is calculated with the following formula: Industry attractiveness = factor value 1 x factor weighting 1+ ……..+ factor value N x factor weighting N The horizontal axis determines


4029 words - 17 pages . Then it started expanding its business and opening new outlets and stores. Promotion: it has different promotion activities, like scheme naming “computers for schools”. It uses TV commercials, social media and other tools for promoting itself (Lovelock, & Wright, 2002). Macro-Environmental Factors i. Political Factors Tesco has many political factors linked with it. There is a constant decline in local authority support for charity

Macro & Micro Environment

2943 words - 12 pages identify the elements of the macro and specific environment that may have an impact to the organisations. Examples of how an organisation responding to the environment has been put together to distinguished from the two environmental factors. Literature review have been made through text book, online portal and journals as well account of company’s experience in responding to such environments. 2.0 Specific Environment Specific Environment

Micro Marko

619 words - 3 pages , Managers Legal factors Suppliers Environmental factors Social/ Cultural forces Competitors Technological forces Macro Environment • • • • • • • • • Media Population – ever changing environment Climate Foreign Competition Interest Rates Culture Government Technology Exchange Rates Micro Environment • • • • • • • • Media Banks Financers Suppliers Customers Competitors Distributors

Related Essays

Micro And Macro Environmental Factors Of Stacrbucks

5882 words - 24 pages UNIVERSITY OF KARACHI KARACHI (EXAMINATIONS DEPARTMENT) Candidates bearing the following seat numbers are hereby declared to have Passed B.A. Part- II & Both Parts (External) Annual Examination 2009. Positions in order of merit as per rules. Seat Nos. 115285 Name Father’s Name MUJEEB -UR-REHMAN S/O SYED ABDUL KLARIM SHAH ZEESHAN KHAN S/O FREZAM KHAN MUHAMMAD IKHLAQ S/O NOOR AHMAD Marks Obtained 775/1000 Position Stands First 115785

Marketing Essay

3850 words - 16 pages . Company generally follows 4 P’s of marketing which are product, price, place and promotion. This report is made by taking TESCO as an example which is among the world’s biggest retail chains (Iverson, 2012). Assignment 1 LO 2.1 show macro and micro environmental factors which influence marketing decisions Company’s marketing environment is made up of three parts-internal environments, which includes the conditions within the company like employees

Marketing Principle Essay

3932 words - 16 pages follows 4 P’s of marketing which are product, price, place and promotion. This report is made by taking TESCO as an example which is among the world’s biggest retail chains (Iverson, 2012). Assignment 1 LO 2.1 show macro and micro environmental factors which influence marketing decisions Company’s marketing environment is made up of three parts-internal environments, which includes the conditions within the company like employees, policies products

Tesco In Depth Analysis

4098 words - 17 pages mid-size store called Tesco Metro, to a Tesco Supermarket, to a Tesco hypermarket called Tesco Extra and to online grocery delivery services, Tesco brings adds dimensions of value to the market and helps mitigate the potential risks of external factors (“Markets served and business model”, 2009). In addition, The company has been very successful in following customers into expanding markets within the UK, such as financial services, non-food