Table of Contents
2.0 Importance of environmental scanning amid the current global Covid-19 crisis.
2.1 Concept of the marketing environment
2.2 Importance of environmental scanning amid the current Global Covid crisis.
3.0 Macro environmental analysis of Tesco, UK.
3.1 Overview of Tesco.
3.2 Macro environmental factors and their impact on Tesco business.
4.1 Segmentation, Targeting, and Positioning (STP)
4.2 Marketing mix (4Ps)
4.3 Porter’s Generic Strategies.
4.4 Ansoff’s growth strategies for Tesco.
The marketing efficiency depends on the effective management of macro and microenvironment factors (David and Crawford, 2019). This report focuses on the necessity of environmental scanning in the global Covid-19 crisis. In this section, the marketing environment concept is defined with the scanning of global Covid-19. Then, this report also focuses on the macro-environment issues that affect the business operations of Tesco. The next section mentions some recommendations for Tesco by which this firm can create market opportunities and recover threats in the market. This part focuses on the sustainable long-term global marketing strategy for Tesco to accomplish the company’s goals. This section includes the market targeting, segmentation, marketing mix, porter’s strategies, and Ansoff’s growth strategies of Tesco.
2.0 Importance of environmental scanning amid the current global Covid-19 crisis
2.1 Concept of the marketing environment
Bhardawaj, A. (2019) stated that the marketing environment can be defined as the internal and external scenario of the market. In the case of the marketing environment, the main components include both internal and external factors. The main internal elements of the marketing environment include employees, owners, customers, shareholders and suppliers (Fill and Turnbull, 2019). On the contrary, the external components of the marketing environment include the political, economical, social, technological, and legal and environmental issues (Jobber and Ellis-Chadwick, 2019). The marketing environment analysis helps to understand the overall market condition by which business firms can take accurate marketing decisions and achieve the main targets of the business. Every business organization needs to consider the marketing environment to judge the marketing condition and take the effective plan and implement the plan for the business success.
2.2 Importance of environmental scanning amid the current Global Covid crisis
The present world is facing a global crisis due to the break of the Covid-19. The Covid-19 is occurred due to the Coronavirus started in china. The Covid-19 is spreading all over the world within a very short period of time. At present, most countries all over the world are facing this virus and a huge amount of people die and most of the people are affected by this virus. Due to Covid-19, the world has faced a global crisis in all sectors including financial, business, transportation, and education system. Most of the countries are falling under lockdown due to the spread of Covid-19. David and Crawford (2020) stated that the business functions are totally off at the time of lockdown. Most importantly, Covid-19 has created a crisis in the marketing and business environment. Therefore, the business organization has to scan the environmental factors to identify the potential opportunities at the time of business crisis.
The necessity of an environmental crisis has a significant impact on the business performance at the time of this global crisis (David and Crawford, 2020). The environment is not good for the business at this time. Most business firms have faced challenges to maintain business solvency. Most of the business firms have faced financial distress due to lockdown (Gilmore and Durkan, 2017). For this reason, it is a unique strategy for businesses to do the scanning of environmental factors for generating effective strategies for the business. Lancaster and Massingham (2018) stated that business firms can scan the macro-environmental factors for identifying the condition of political, economic, social, technological, and legal and environment. Additionally, the environmental scanning also helps the business firm to generate a good marketing mix strategy, effective market segmentation, targeting and positioning by which business firm can mitigate the losses from the current Global Covid crisis.
3.0 Macro environmental analysis of Tesco, UK
3.1 Overview of Tesco
Tesco plc is operating its trade activities as Tesco that considered as one of the largest British multinational groceries in the United Kingdom. This company has headquartered situated in Hertfordshire, UK. In the world business history, this company has established its brand at the 3rd position especially in the retailer industry (Tesco, 2020). This company has operated the retailer’s shops in the 7 countries both in Asia and Europe. It has a 28.4% market share in the UK retail market. It has already opened 6800 shops around Asia and Europe. The revenue of this retailer was £63.911 billion, operating income was £2.206 billion and net income was £1.320 billion in 2019 (Tesco Annual Report, 2019). This retailer has also 450,000 skilled employees for serving worldwide customers (Tesco, 2020). But due to Covid-19, UK is turned into a hotspot of the Corona Virus. Most of the countries of Europe are under lockdown. Therefore, this company has suffered from financial losses and threats.
3.2 Macro environmental factors and their impact on Tesco business
Murray and Driscoll (2018) stated that Macro environmental factors are those that force a business from its external environment. One of the widely recognized models of macro-environmental factors analysis is PESTLE. PESTLE means political, economic, social, technological, legal, and environmental.
Political factors consist of governmental strategies and policies in the business sectors (Murray and Driscoll, 2018). Political factors stability brings good outcomes for the business performance of Tesco. On the contrary, the unstable position of political factors increases the risk and uncertainty of the business performance of Tesco…………………….