STEP analysis on giant supermarket tesco


Research Background: step is playing an important role in different factors of pest and it will help to understand the organisation advantages and disadvantages and gives solution to the problems occurring within the working process of organisation. The macro-environment of every organisation is surrounded with SOCIOCULTRAL, TECHNOLOGICAL, ECONOMICAL, and POLITICAL and these are the important factors for the success of the organisation.

SOCIO-CULTURAL: the sociocultural impact on organisation varies for country to country, this is one of the important factors which influences the business

TECHNOLOGIAL: In such a competitive market technology plays a vital role for the organisation because in this globalisation world every organisation has to upgrade them within technology.

ECONOMICAL: This is the factor for the organisation that deals with the economy of the country and plays and important role for the organisation success as there is always fluctuation in the economy by going up or down creates impact on the organisation success.

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POLITICAL: Political statements and government regulations have a major impact on the success or decline of the business because organisation has to bind with the rules and regulation of the government or political statements

The main importance of step analysis is to research the market with respect to the industry in which it is present and the most important factor among step is the economic factor because each and every organisation is depended on the countries economy.

What is my research factor from STEP and how will give importance to the organisation success and investigate that factor?

ECONOMICAL FACTOR: In organisation economic plays an important character for mainating a balance between the fluctuations of economy. In 2009 when whole world is under recession where every organisation is trying to survive at that time tesco is on the path of success and doing well and proved their leadership in the market against their competitor like Sainsbury's and asda.

Tesco is spreading all over the U.K on the high street and their investment cost is very low compare to their sales structure. They are following synergy strategy of business e.g. (2+2= 5). Its means some tesco store are suffering from recession but huge store are doing great business and balancing profit margin into retail industries.

This research is showing that how economical factor help the tesco to outperform within supermarkets and showing the importance of economy within the STEP.

In order to influence the demand, cost, prices, profit and sales of tesco they take economic factor into consideration as it plays a vital role for the success of the organisation.

Key Issues and Facts Analysed:

The research report also addresses the issues and facts that are critical to the success of tesco within retail industry in uk.

Overview of current market economy?

Profit discussion {their customer relation, sales, store formats, finance etc} of organisation?

Proving successful within various challenges and opportunities existing in the industry?

What is the scope of economical factor within retail industry in u.k?

How the economical factor helps for the growth of an organisation?

An economical factor proves to be a key factor within STEP?


During the literature review the following questions has revealed for the further research.

How economical factor of tesco is different from other supermarkets

How is the economical factor connected to the success?

How this factor can be evaluated by the customer

What will effect of economic on business in UK?

Importance of economical factor within an organisation?

SWOT analysis of tesco in relation to the pest analysis?


On the basis of STEP analysis some literatures have given their review which is related to (price, profit, sales, and customer relationship strategy) and the SWOT of the tesco.

Methodological issues of Topic:

UK's Supermarkets are technologically developing their market strategy which very good effect on their customer, sales, profit, like tesco strategy are saying 'Customers don't need to come to us, we reach to you' it's means they evaluate 'Online shopping' where customers can order their product or groceries by online and they get their deliveries on their home door step.

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(Porter, 2001; Amit and Zott, 2001; Turban and king, 2003)

This is the technological factor from PEST used by tesco towards its success.

'Price War' is the biggest war between retail industry or supermarkets which they are applying to attract their customer and to increase their sales and to lead the market in which they are playing. Hence if we think about who's known about actual and real prices of the product? Supermarkets are tagging price rates which we have to pay. Its means we are in the blind market where supermarkets say wrong or right we have to follow them. As this strategy is social factor for tesco as their slogan tells 'every little helps' in this way they are driving the customers.

(Norberg-Hodge et al, 2002, p3).

Supermarkets are using different strategy methodology that is effect, in Britain market day by day business going always from market like disappearance of traditional butcher shops, local bakery, daily need shop. It is also increasing unemployment in the country.

(Channel 4, 19,.02.07).

In my point of view I can really appreciate that changes of Technology which makes people easier life and it is giving flexibility in competitive life.

'This unique strategy changes gives to the people easy and convinces into their life' (Porter, 2001; Amit and Zott, 2001; Turban and king, 2003)

Explanation of Data sources:

I am going to collect though sources of data which really makes big changes in human life e.g. Technology changes, stability in price, encourage and gives opportunity to expand small business in the markets etc.

For data gather I have gain more experience from reading strategy of company which is from books, website, novel, newspaper, theories, conferences and mainly my surrounding market observation, where I can implement my ideas.

Though data is belong to real life of human being, which is really makes human life easy and comfortable and give me success in the market. I will give preference to though data questions.

I gather data from different sources might be 23 sources used for them and that is really used quantity of data gathering.

Yes, it is! Because of on behalf of this experience I can implement unique ideas in future and makes big changes in competitive market life.

Yes, I used to visit some conferences, business meeting, website, reference books, etc. in my past carrier life, which giving ideas to expand my views and opinions. These organisations mostly are belong to the literature work, study, sharing information by their sources and giving authority to use and upgrade, innovate new ideas. Which is makes human life better.

Data gathering techniques planned:

I am reading and understating data and analyse them. They are really effective on human life or not, then I start picking up great ideas of literature and try to implement on my experience of life, that is really make sense to invocate unique new ideas.

Because of this idea sources are building by realistic life experience. So definitely it makes great help to gives better life to the human.

Yes, I can see that my surrounding life changes of business environment and generation demand, which is forcing to the supermarkets, makes changes and full fill their demand.

Outline of main data analysis techniques:

I will research and analyse the data and trying to makes great big changes to gives right path to the mankind success. Collect all information from there and distinguishes between them, then I can think they are best, will use on my practical life and achieves success key.

I am planning to use economical factor from PEST, as this is the important factor to increase profit and sales in order to achieve that (Porter, 2001; Amit and Zott, 2001; Turban and king, 2003)

(Supply chain management: An International potential 2000)