The Macro And Micro And Macro Factors Influence Marketing Decision Process Of Tesco

In this task I am going to show how each stakeholder has affected Tesco in a positive way and in a negative way. Tesco is a British national grocery which has many supermarkets all over the United Kingdom and other countries including china and Poland. Tesco has around 7 thousand stores around the world reaching over 560 thousand employees hired.

International competitiveness: Even when the TESCO is doing its business in its own country, other international competitors or international or doing the same business could affect its operation or marketing. For example the Wall-Mart, which is doing the similar business, could impact its sale. If the competition given by WALL Mart is tough then it would be difficult for TESCO to operate there

In the fast food industry are external aspects that can influences to the fast food industry, such as manager’s influence as creation of strategies to be a good competitor and to be successful in the industry of fast food. Competitive environment is a critical ingredient of a successful strategy (Grant, 2010). The following PESTLE Analysis is done with the objective to analyse the macro environmental in the fast food industry.

(3) Political and legal environment, factors related to policy and law that influence company’s operation.

Macro environment or macro forces consists of the larger societal factors that have the potential to affect an organization’s strategies. According to Phillip Kotler, these variables include demographic, economic, natural, technological, political, and cultural outside forces. (“Josbd”, n.d, para. 7)

Macro environment are the external and uncontrollable factors that influence an organization’s decision making and affects its performance and strategies.

Tesco PLC is a major food retailer that operates primarily in the United Kingdom. The company operates 2,291 supermarkets, superstores and convenience stores in the United Kingdom, the rest of Europe and Asia. The company also offers financial products, such as insurance and banking services, as well as electrical appliances and telecommunication products. For the year 2007 to date, Tesco PLC achieved revenues that totaled £ 46,611 million, an increase of 10.9% against the previous year revenues that were £42,016 million. Tesco is one of the largest food retailers in the world, operating around 2,318 stores and employing over 326,000 people.

Social factors have on affect on the business. These factors include things such as, demographic changes, change in customer’s behaviours and attitudes of the customer. Tesco’s main product line is based around food. Therefore Tesco have to monitor how their customers feel about the food product range. Tesco recognised that many people wanted different products other than food; therefore Tesco opened up a clothing range and offered quality clothing to their customers. Customers are becoming more aware of health issues, this affects the way eat. One way in which Tesco is adapting to its product mix is by increasing demand for organic products.

The business also allows you to donate the clubcard points to “Together for Trees” so they automatically go towards saving the rainforest.

Macro environment comprises external forces that organisation cannot directly control, instead organisation need to manage their macro environment in a way that benefits them ("The Macro Environment & Pest Analysis", 2016). The PESTLE analysis is the most widely recognized approach for considering the external business environment (Gupta, 2013). PESTLE analysis stands for Political, Economic, Social, and Technological, Legal and environmental analysis and describe a framework of macro environmental factors utilized as a part of the environmental scanning component of strategic management. Generally, all the PESTLE factors might not important for all types of industry its depends up industry nature or size. This PESTLE analysis is based on Accor Hotels in Australia which is a famous and globally recognise hospitality brand.

Reduce their carbon foot print by 50% by 2020. This will be a benefit to Tesco as they feel this will generate new job and business opportunities as it will reduce the costs organisations are currently paying on carbon emissions (The Carbon Year Book, James Richens, September 2010).

Social factors refer in the trend of customer which keeps changing their trend, and what the trend of their purchase. For example nowadays due to people’s work, they are really busy so they often decide to buy already cooked food.

Identifying influencing factors of a company’s macro-environment helps in the strategic development and management within a company. The macro-environment outlines an industry and the competitive environment as seen in figure 3.1, (Gamble, Peteraf, Thompson, 39). Within the macro-environment there are the political factors, economic conditions, sociocultural forces, technological factors, environment forces, and legal/regulatory factors. All of these factors blanket the habitat an industry and its competition thrive in. Inside the industry and competitive environment there are five factors that influence an individual company. The five factors are suppliers, rival firms, new entrants, buyers, and substitute products. The biggest impact on a company are these five factors. For example, Under Armour focuses on their industry and competitive environment to survive and grow. Their strategy to win over the market share from Nike and Adidas consists of expanding a stable and original brand within record time, taking an innovative approach to their product line-up and brand-name appeal where the market seemed to be barren, and lastly, the company enters in the foreign market early on to establish its brand and influence markets outside of the US.

Micro-Marketing and Macro-marketing have to completely different meanings. According Basic Marketing the 9th edition by William D. Perrault, Joseph Cannon, and Jerome McCarthy define micro-marketing concerns the marketing activities of an individual firm, whereas macro-marketing deals with how the whole marketing system works (Perrault, Cannon, McCarthy 2014, p 526). I will be discussing organizational domestic and international, micro and macro marketing impacts on business and society, and identifying environmental elements that affect their marketing strategies.

This report is aimed at the ethical dilemma faced in Tesco. Tesco is one of the biggest food and grocery retailers in the world. Recently Tesco had approximately 4,811 in the world and it employing over 470,200 people. Moreover, Tesco also provided approximately 7,000 products, it including food and non-food products (Tesco, 2012). This report is on all pertaining to Tesco ethical issues. The main dilemmas that are facing by Tesco are the product and service problem and these dilemmas are invented through environmental scanning analysis.