International MBA Assignment Sample
Part 1:
STEEPLE analysis on Tesco
STEEPLE stands for social, technological, economic, environmental, political, legal, and ethical. It is a tool which helps in scanning of external environment. It helps the companies to make present and future decisions (Christodoulou and Cullinane, 2019). Tesco has been using for applying STEEPLE analysis in order to evaluate how organization shaped or developed in respect to facts.
| Social Factor | There is constant changing trend in consumer taste and preferences due to which firm struggle to retain the loyalty of consumers. Likewise, Tesco face tough time to create belief among UK consumers and understand them due to presences of high competition in supermarket. |
| With the constant change in consumer behavior, it becomes important for firm to adapt the advanced technology. The changing in technology put pressure on Tesco to keep update with it and retain customer trust. Tesco has faced issue related to long Ques in firm due to improper adaptation of Tesco. | Technological |
| Economic Factor | The labor cost is an important part of economic factor that affect UK supermarket. Likewise, Tesco has been facing problem to retain or hire skilled workforces due to present of tight labor market in current scenario. |
| The increasing issue related to environment has made government policies to address environmental issue. These policies demands to incorporate new business model which takes large time and cost. Tesco has faced issue in respect to adapt the green supply chain due to wide range of product portfolio but it has introduced Tesco Van drivers to collect unwanted plastic bags from customer and recycle them. | Environmental |
| Political Factor | There is high impact of political factors over the business operations as there is fluctuation in the tax rate, government policies or laws & regulations. These factors influence the firm operations. likewise, since Tesco is working in 12 countries including Asia and Europe then it is exposed with so many factors such as political interferences and unemployment rate which somewhere affect the firm ability to run operation smoothly |
| The legal environment is uncertain as law changes with the shift in above factors so it could affect both local and global business. Tesco also facing legal issue when it perform in Asian countries where completely different accounting system is following or it also criticized for accounting fraud or mislead investors kind of legal issues. | Legal Factor |
| Ethical Factor | It is important to adapt ethics for retaining consumer loyalty. Tesco has been facing ethical issue since after consumer found problem in quality. The fraud cases like misleading customers or not pay taxes on time etc. these areas also affect the consumer trust over Tesco. |
Part 2:
Using the findings from your STEEPLE analysis, identify 3 key factors that would have the most impact (either good or bad) on your organization, and critically analyze how organizations are shaped and developed in response to these factors, to support the internal and external business environment.
On the basis of above analysis, economic, social or ethical are taken which have most impact over Tesco. Likewise, Tesco is the UK based multinational groceries and general merchandise retailer. Since it deals in more than 12 countries then it get directly influenced by economic, social and ethical factors. In context to economic condition, it is found that UK consist of stable economy along with the tight labor market due to which Tesco has tried to retain the skilled workforces through timely conduct of training session for them. The reward or recognition strategy also helps them to gain the people loyalty (Sanalieva et al., 2018). Since UK consist of stable economy where people thrive for standard of living then Tesco explored with many technologies or new product ranges as British people are always ready to adapt it. Likewise, Self-checkout system is one of the technologies that have helped the customer to solve the problem of long Ques at payment counter. This is only possible to bear the expenses of self-checkout system due to high visit of people at store. This allows to getting more return over investment. Moreover, since the inflation rate in UK and other parts of country has been raising then people spending capacity get reducing. The inflation factor is deal by Tesco through its cost leadership strategy where it adapted low pricing of product. This practice helps the brand to receive large customer base.
In context to social factors, it is found that UK consist of multicultural country where different cultural values people exist so it give huge opportunity to Tesco to grab their interest in the form of offering different kind of product under single roof. There is also an existence of Hindus community people so it becomes easy for them to get the vegetarian food products at Tesco supermarket. This way Tesco deals with the diverse cultural people (Foabeh and Achaleke, 2020). The management of diverse cultural customer at store firm installs AI/VI in order to help the customers within their language. At the same time, after pandemic hit the people lives on adverse manner as they have fear to visit store for basic necessity then Tesco deal with such problem through active on online portal through offer them “no contact home delivery” where delivery person leave package over the door step without asking for cash or contact. This kind of practice helps the firm to even receive the larger customer order at pandemic time and able to continue their service to people. Thus, Tesco online strategies help them to get the positive review of consumers.
Tesco is the one that facing lot of criticism for its ethics as they have alleged for the unethical leadership and irresponsible marketing along with the decreasing product quality etc. In respect to these ethical issues, Tesco has deal with it through redesign its human resources policies and incorporate the transformational leadership style where goals or directions are set up for the people to perform the task on proper manner. However, Tesco has redesigned the TQM method for analyzing the faults in the services (Martini and Spataro, 2018). It also evaluate the monitoring system for bring improvement in the quality of product delivery. The marketing team of Tesco conducts proper survey and then with help of marketing agency designs the ads and ensures that no culture sentiments get affected with it. The different monitoring team is also appointed to ensure the ethics in marketing strategies.
References
Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges from the implementation of a port energy management system: A SWOT/PESTLE analysis. Sustainability, 11(21), p.6046.
Foabeh, P.A. and Achaleke, H.F., 2020. ATTITUDES AND PERCEPTIONS OF SHOPPERS’GROCERY SUPERMARKET CHOICES: A COMPARATIVE ANALYSIS BETWEEN BIG C AND TESCO LOTUS. International Journal of Research-GRANTHAALAYAH, 8(7), pp.67-79.
Martini, A. and Spataro, L., 2018. The principle of subsidiarity and the ethical factor in Giuseppe Toniolo’s thought. Journal of Business Ethics, 153(1), pp.105-119.
Sanalieva, L.K., Kengzhegalieva, G.B., Idelbayeva, A.S. and Niyazbekova, S.U., 2018. Investigation of modern economic mechanisms for construction of the intellectual potential of the country as a moving factor of innovative economic development. development, (5).
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