Tesco Marketing StrategyIncompletePART ONE STRATEGIC ANALYSISManagers experience difficulty in trying to understand the initiative. Firstly ¡°the environment¡¯ encapsulates many different influences; the difficulty lies in making sense of this diversity in a way that can contribute to strategic decision making. The second difficulty is that of uncertainty, managers typically argue that the pace of technological change and the speed of global communications mean greater and more rapid change now than ever before.1. Analysis of the Environment1.1 Controlling for Environmental Influence------PEST Analysis As a starting point, it is useful to consider which environmental influences have been particularly important in the past and the extent to which changes have occurred that might make some these more or less significant in the future for the organization and its competitors. PEST analysis involves identifying the political, economic, social and technological influences on an organization. It is increasingly useful to relate such influences to increasing trends towards the globalization of possible futures, to consider the extent to which strategies may need to change. Labor law - Government stability2) Economic factors - Economic cycles - GNP trend - Interest rates - Money supply - Inflation - Unemployment - Disposable income - Availability and costs of energy3) Sociocultural factors - Population demography - Income distribution - Social mobility - Lifestyle changes - Attitudes to work and leisure - Consumerism - Educational levels4) Technological - Public spending on research - Government and industry concentration on technological effort - New discoveries/development - Speed ​​of technology transfer- Obsolescence rates1.2 The competitive environment ------ -Five forces model The next step in environmental analysis is to shift the focus towards an explicit consideration of the organisation's immediate environment, e.g. 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, especially in terms of:1) Barriers to entry.2) Buyer power.3) Supplier power.4) The threat of substitutes.5) Other reasons for the extent of competitive intensity. 1.3 Identification of the competitive position of the organization ---------Analysis of the strategic group ANALYSIS OF THE STRATEGIC GROUP The next important step in the environmental analysis is the analysis of the competitive position of the organization, i.e. how it relates to to other organizations competing for the same resources, or customers, as it. One problem in competitive analysis is that the idea of ​​"industry" is not always useful because its boundaries can be unclear and are not likely to provide a sufficiently precise delineation of competition. group analysis aims to identify organizations with similar strategic characteristics, following similar strategies or competing on a similar basis.