Strategic Management Essay Example | Topics and Well Written Essays - 2000 words - 25

Strategic Management - Essay Example There are various strategic decisions which Tesco has to make relating to factors such as the direction of Tesco in the long run, the scope of its activities, stakeholders’ values and expectations, responding to the ever changing business environment, building on its capability as a business entity, and acquiring a higher market share relative to its competitors. These decisions tend to be complex as they have to be made in an uncertain situation. There are also various levels of strategy for Tesco such as business level strategy, operational strategy, and corporate level strategy. Business level strategy refers to the way a business organization conducts itself in a particular market to be successful. Operational level strategy is about various levels of Tesco and their contribution with regard to accomplishment of the strategy. Corporate level strategy deals with the overall scope and purpose of Tesco and how to add value to various business units. The analysis of those factors that are not within the control of a company can be termed as an analysis of macro environmental factors. Macro environment analysis is often done by Tesco to develop a sound knowledge of the issues that are present in the current business scenario. PESTEL framework is considered to be an important tool to conduct macro environment analysis by the Tesco. There are several factors that are considered in PESTEL analysis such as political, social, economic, legal, environmental, and technological aspects of a business environment. The sole purpose of PESTEL analysis is to assist Tesco management in the creation of strategies that will leverage the external factors that are not within the control of the organization to its favour. Political factors of the PESTEL analysis deal with factors such as government stability, trade tariffs, policies of social welfare that are imposed upon companies, tax policies, international business regulation laws, etc.