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BTEC Business Level 3 Unit 1: Exploring businesses M3
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Unit 1: Exploring businesses / Assess the effects of the business environment on a given business / ACHIEVED
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M3. Assess the effects of the business environment on a given business.In this assignment I am going to assess the effects of the business environment and the
combination of internal and external factors that influence on Tesco PLC.
TESCO
Tesco is one of the leading retailers within the UK industry, and is also one of the largest
food retailers in the world. Tesco store was founded in 1919 when Jack Cohen started selling
additional groceries from a stall within the East End market of Brixton which is in London.
The general merchandise retailer with headquarters in Welwyn Garden City, Hertfordshire,
England, and United Kingdom. In the UK Tesco now has over 2,200 stores ranging from the
large Extra hypermarket style stores to small Tesco Express high street outlets.
BUSINESS ENVIRONMENT
Clients and supplier
Tesco puts the time in to address customer problems and questions this means they’ll
make the effort to show appreciation. Turning around a negative into a positive is the
biggest advantage social media can bring. Tesco connect the entire business to social media
this means that the knowledge their staff holds across different departments can be shared
socially, and quickly. Customers are reaching out on social networks with specific, detailed
queries so Tesco puts real service agents with complete knowledge on company products,
deals and services so that company replies can offer real value straight away to customers.
The Tesco team combines real, effective support with friendly conversation, encouraging a
community to reach out and engage. Tesco has committed to fair trade by signing up the
Government’s Supplier Code of Practices. It was revised and strengthened in 2008 to
protect the suppliers from exploitation. Tesco also deals with supplier dilemmas by
introducing supplier viewpoint independent annual survey. Besides that, the suppliers are
required to answer this anonymous survey, which allows suppliers to voice out how they
feel about working with Tesco. Hence, this allows Tesco to understand the problem the
supplier is facing whereby enables Tesco to understand and rectify the problems with their
supplier.
Competition and owners
Tesco is a large U.K grocery firm and retailer whose main competitors are Sainsbury’s,
ASDA, and Morrison’s, which are often called the Big Four in the United Kingdom. Waitrose
is another large chain that trails the Big Four in footprint. In recent years, German grocers
Aldi and Lidl have also become strong competitors in the U.K. grocery market. As of Dec.
2020, Tesco is the U.K. grocery market leader with 27% market share, followed by
Sainsbury's and ASDA, which respectively have 15.7% and 14.1% of market share. Although
Aldi and Lidl have both continued to gain market share over the past 12 months. Tesco’s
approach seems to be paying dividends. One feature of its response is the decision to
implement a ‘brand match’ policy and it has also taken on the discounters by rebranding its
own-label offering. Also, Tesco’s owners concluded that shoppers were not deserting the
brand completely, but occasionally doing smaller shops at other retail outlets. As a result,
Tesco has placed greater emphasis on the in-store experience of its customers so that they
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