Marketing Strategy of TescoIncompletePART 1 STRATEGIC ANALYSISManagers find it difficult to understand the environment. First, ¡°environment¡¯ encompasses many different influences; the challenge is to make sense of this diversity in a way that can contribute to strategic decision-making. The second difficulty is that of uncertainty. Managers commonly assert that the pace of technological change and the speed of global communications are driving more and faster changes than ever before. 1. Environmental analysis 1.1 Environmental influence audit ------ PEST Analysis As a starting point, it is useful to consider which environmental influences have been particularly important in the past and to what extent changes are occurring which may make one of them more or less important in the future for the organization and its competitors. PEST analysis involves identifying political, economic, social and technological influences on an organization. It is increasingly useful to relate these influences to the growing trends towards globalization of possible futures, to consider the extent to which strategies may need to change. 1) Political/legal - Monopoly legislation - Protection laws environment - Fiscal policy - Foreign trade regulations - Labor law - Government stability2) Economic factors - Economic cycles - GNP trends - Interest rates - Money supply - Inflation - Unemployment - Disposable income - Availability and cost of energy3) Sociocultural factors - Population demographics - Income distribution - Social mobility - Lifestyle changes - Work and leisure attitudes - Consumerism - Education levels4) Technological - Public research spending - Government and industry focus on technological effort- New discoveries/developments- Speed ​​of technology transfer- Obsolescence rate1.2 The competitive environment------ -Five forces model The next step in environmental analysis is to focus on explicit consideration of the organization's immediate environment, for example the competitive arena in which the organization operates. Five forces analysis provides a means of identifying the forces that determine the nature of the competitive environment, particularly in terms of: 1) barriers to entry. 2) buyer power. 3) supplier power. 4) the threat of substitutes. 5) other reasons explaining the magnitude of competitive intensity. 1.3 Identify the competitive position of the organization --------- Strategic group analysis STRATEGIC GROUP ANALYSIS The next major step in environmental analysis is the analysis of the competitive position of the organization, this that is, its position in relation to other competing organizations. the same resources, or clients, as her. One of the problems with competitive analysis is that the idea of ​​"industry" is not always useful because its boundaries can be fuzzy and are not likely to provide a sufficiently precise delineation of competition. Strategic group analysis aims to identify organizations with similar strategic characteristics, following similar strategies or competing on similar grounds.