Business Capstone Assignment Example | Topics and Well Written Essays - 2000 words

Business Capstone - Assignment Example Tesco is therefore large grocery retail, with thousands of stores distributed in more than 13 countries Role of Tesco’s Vision, Mission and Stakeholders A firm’s vision and mission statements play an important role in developing consumer royalty (Besanko et al, 2009). Tesco’s vision statement reads â€Å"Our vision is for Tesco to be most highly valued by the customers we serve, the communities in which we operate, our loyal and committed staff and our shareholders; to be a growth company; a modern and innovative company and winning locally, applying our skills globally† while the vision statement reads â€Å"creating value for customers, to earn their lifetime loyalty.† Clearly, the vision and mission statements of Tesco focus more on the target market and not the products. They focus on the benefits that the customers are going to derive from the company and its products. Besanko et al (2009) argues that such statements highly touch on the emotion s of the consumers. Consequently, they contribute to building of loyalty among the consumers of the firm’s products. ... This helped the company to expand internationally. Also, the firm changed its strategies to focus on technology under Leahys leadership, which has marked a lot of success. The employees of this company have also contributed to the development of consumer loyalty by being hard working and always being positive to customers. Macro Environment The environmental or external factors that affect the decisions taken by Tesco are grouped into six categories as discussed below: Political factors The current political issue affecting Tesco are the changes in corporate tax rate. The government of UK announced in the 2012 budget that it would reduce corporate tax by 1% for two consecutive years (2012 and 2013) from 24% to 22% (Tesco, 2012a). This will save this company a lot of funds and make it more financially stable. Economic factors The major economic issues affecting Tesco currently are high unemployment causing a reduction in aggregate consumption. This has further restricted the growth of this company in UK (Tesco, 2012a). Social factors The main social issue affecting Tesco currently is the change in consumers’ lifestyle, leading to a change in tastes and preferences. Tesco has responded to this by developing a new product range called â€Å"Clubcard† in order to suit different customer groups with different preferences (Tesco, 2012a). Technological Technology has a huge impact on the way business enterprises in all industries operate in the recent years. It has been playing as big role in shaping consumer spending habits. The internet, in particular, has opened a channel through which enterprises in the food retail industry distribute their products to customers (Tesco, 2012a). The new technology has also led to the introduction of self-service checkouts in the food