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Business Appraisal - Assignment Example

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Tesco can benefit from its internal environment by knowing its strengths of profitability and exceptional long-term competitive strategy to help itself as well in correcting its weaknesses of generally lower liquidity and solvency as against competitors. It can benefit also from…
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Business Appraisal

The strategy can be accomplished by
maintaining its low prices as continual respond to the changing needs of its markets. It diversification efforts to more products would continue to protect also itself from industry threats. Investing in research and development cost could be another way protects the company further from industry threats.
Tesco PLC (or “Tesco”), based in the United Kingdom, operates under the retail industry. It has expanded operations outside the UK and it now considered as international retailer. Its being the UK leader in the grocery retailing, and its success internationally could explain its being considered world’s third largest retailer in terms of gross sales (Tesco, 2010a, 2010b). From being originally a UK-focused retailer specializing in food and drink, the company’s expansion should include its eventual diversification both by products and geographically. Its present business on clothing, financial services, health, car and dental insurance, electronics, telecoms, retailing and renting DVDs, and software speak for the magnitude of its diversification. Geographical diversification produced as retailing and associated activities outside the United Kingdom including that of Japan, Malaysia, Poland Hungary, the Republic of Ireland, Slovakia, China, The Czech Republic, India South Korea, Thailand, Turkey, and the United States (MSN, 2010a).
This paper demonstrates an organization’s need to be knowledgeable of the influence of both its internal and external environment in order to have effective and appropriate decisions for the organization and for promoting good management.
A wise decision maker should know itself firms in terms of its strengths and weaknesses and its industry opportunities and threats. The industry opportunities are what make the industry attractive or give more chances of gaining profits while industry ... Read More
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