Global Business School

Global Business School

BA (Hons) Global Business and Entrepreneurship

(Foundation year)

Module Name: BUSINESS ENVIRONMENT

Academic Year 2023-2024

Date of Submission : Word Count :

Formative Activity 3

Discussion on Tescos Challenges in the USA (250 words):

Engage in a detailed dialogue about the challenges that hindered Tescos expansion efforts in the United States. Focus on the specific factors that led to its inability to sustain operations in this market. Consider aspects such as market competition, cultural differences, strategic missteps, and other relevant factors.

Strategic Recommendations for Re-Entry into the American Market (250 words):

Based on your research and analysis, provide strategic recommendations for Tescos entrepreneurial endeavour to re-establish its presence in the American market. Suggest actionable steps that Tesco can take to overcome past challenges and successfully penetrate the market this time.

Note: This formative activity is mandatory for all students and is part of your summative assignment. It will help you develop critical thinking and strategic planning skills essential for understanding international business operations.

Do not forget to submit this file on Moodle in Formative 3 Submission

Formative Activity 2

Pestel & Porters Five Forces

Student Name:

Student ID:

Answer the following questions, select and BOLD the right answer in the multiple questions and submit the file on Moodle

PESTEL

Question: Describe PESTEL

563245025336500Write down the PESTEL factors and list out at least 3 determinants for each factor.

Please include your answer here

Quiz: PESTEL (keep the correct answer only)

1: Used to describe a framework for the analysis of Macroenvironmental factors-

PESTEL analysis

Swot analysis

Situational Case analysis

2: PESTEL analysis identifies factors that occur within the organisation.

True

False

3: PESTEL stands for

Political, Economic, Social, Technological,Environmental, and Legal

Political, Strength, Economic, Technological,Environmental, and Legal

Political, Strength, Economic, Threat,Environmental, and Legal

4: Which of the following are considered Political elements of PESTEL?

Visa requirements and trading tariffs.

Weather and climate.

Currency inflation and interests rates.

5: The following are examples of Economic factors except:

Economic growth

Interest rates

Trade restrictions and tariffs

6: Which of the following is considered as a Social Factor?

Career attitudes

R&D activity

Environmental regulations

7: These factors include demographic and cultural aspects of the external macroenvironment and affect customer needs and the size of potential markets-

Economic Factors

Political Factors

Social Factors

8: Why is PESTEL analysis called Environmental scanning?

Because it looks at Climate change

Because it scans the environmental for potential and negative factors

Because it compares organisations against each other

9: Identified factors may fit into more than one category in a PESTEL Analysis?

True

False

10: Organisations would carry out a PESTEL Analysis

Annually as part of the strategic plan i.e., to enter international country for example (OR)

As and when something changes for the Business.

Porters FIVE FORCES

Question: Describe Porters five forces:

Describe the meaning of Porters Five Forces and list out its five forces with at least two examples of business and their industry.

Please include your answer here

Quiz: Porters Five Forces

1: Which of the following frameworks is used to analyse Industry competitiveness?

Porters Five Forces Model

PESTEL framework

2: What is the main purpose of Porters Five Forces analysis?

Decide which products to launch.

Analyse competition in a market

Inform investment appraisal decisions.

Manage product portfolio.

3: In Porters Five Forces, the Threat of New Entrants relates to

Barriers to entry

Substitutes

Switching costs

Buyer power

4: When buyers are able to join together to put pressure on a supplier, this is which of Porter's Five Forces?

Competitive rivalry

Threat of new entrants

Bargaining power of Customers

Threat of Substitutes

5: Buyer power is high if

Differentiation is low.

Switching costs are low.

They have no information.

The buyer requires a high-quality product for their own production.

6: A substitute product or service is

A competitors product or service

An alternative way of meeting the same customers need and demand.

A new entrant into the industry

A less attractive way of meeting the same need

7: Competitive rivalry will be high if

The industry is fragmented.

There are a few strong players in the industry.

There is a high degree of differentiation.

The industry is unattractive.

8: Can you identify which of the following forces does not form part of Porters Competitive Position analysis?

Buyer power.

Risk of loses.

Threat of new entry.

Competitive rivalry

9: What is likely to happen if many new businesses enter a market?

Competitive rivalry will intensify.

Industry profits will increase.

Barriers entry will rise.

Saturation of industry.

10: Which of these situations is likely to cause high bargaining power of suppliers?

Many customers with low brand loyalty.

Resource inputs are not essential to product quality.

A few large suppliers dominate the market supply.

Many alternative sources of supply.

NB: Do not forget to submit this file on Moodle

Formative Activity 1

Refer to the teaching material for Week 1-

Access the Tesco in the USA case study by navigating to Moodle:

Go to Assessment -> Open Tesco in the USA case study 2020.

Download and review the Assessment cover page available under the same Assessment section.

Using the Tesco case study and additional research, write a 100-word summary covering:

Tescos history

The industry Tesco operates in

Its business operations

Note: Submission of this formative activity is mandatory for all students. This exercise will help you understand Tesco's business landscape and prepare you for future assessments.