Alex Lote-Greenfield
Unit 29 Assignment 2
P4 - identify the competitive factors in the retail environment a
selected organisation faces
In this assignment I will focusing on how the competitive environment have
an impact on the organisation Tesco. The competitive environment is split
into 5 sections, I will be outlining them and they are the government policy,
social changes, competitive factors, economic environment and the
technological changes. For example with technological changes, if customers
started to do most of their shopping online, then that would have a massive
impact on Tesco’s. It would mean that they would not need the large stores
they have, so they would probably reduce the size or even lose a few. The
industry Tesco work in is the supermarket, but now they have expanded and
work in the local store and the home plus industry.
Government policy
Firstly I will talking about the government policy and how it effects the
business Tesco, the government policy is outlined in three sections which
includes the competition commission, planning guidance and trading hours.
Competition commission- Competition commission is an act that’s job is to
prevent unfair trading, it makes sure there’s competition in the market. The
act stops one single company dominating the market in an area, so there is
no competition in that particular area. The competition commission would
affect Tesco in more ways than one. For example the commission may stop
Tesco opening more stores in a particular area, like if there is already a Tesco
there then they would not allow for anther one because it would stop the
competition in the area because Tesco would be dominating that area. This
would mean Tesco will probably not be able to follow their growth plan which
would result in them losing profit because of not opening more stores to gain
profit. The competition commission would also top merges between different
companies, for example Tesco and asda could not merger because they are
both big retailers and if they merged there would be no completion because
they would be domination it. But because of Tesco not be able to open other
stores, this would benefit their competitors like Sainsbury’s, Morrison’s and
asda because they would be getting the customers that are closer to them.
Planning guidance- the planning guidance is a town and country planning act
that must consider new develop in the order-
Town centre
An established edge of town
A local centre
Out of town but accessible from public transport
Unit 29 Assignment 2
P4 - identify the competitive factors in the retail environment a
selected organisation faces
In this assignment I will focusing on how the competitive environment have
an impact on the organisation Tesco. The competitive environment is split
into 5 sections, I will be outlining them and they are the government policy,
social changes, competitive factors, economic environment and the
technological changes. For example with technological changes, if customers
started to do most of their shopping online, then that would have a massive
impact on Tesco’s. It would mean that they would not need the large stores
they have, so they would probably reduce the size or even lose a few. The
industry Tesco work in is the supermarket, but now they have expanded and
work in the local store and the home plus industry.
Government policy
Firstly I will talking about the government policy and how it effects the
business Tesco, the government policy is outlined in three sections which
includes the competition commission, planning guidance and trading hours.
Competition commission- Competition commission is an act that’s job is to
prevent unfair trading, it makes sure there’s competition in the market. The
act stops one single company dominating the market in an area, so there is
no competition in that particular area. The competition commission would
affect Tesco in more ways than one. For example the commission may stop
Tesco opening more stores in a particular area, like if there is already a Tesco
there then they would not allow for anther one because it would stop the
competition in the area because Tesco would be dominating that area. This
would mean Tesco will probably not be able to follow their growth plan which
would result in them losing profit because of not opening more stores to gain
profit. The competition commission would also top merges between different
companies, for example Tesco and asda could not merger because they are
both big retailers and if they merged there would be no completion because
they would be domination it. But because of Tesco not be able to open other
stores, this would benefit their competitors like Sainsbury’s, Morrison’s and
asda because they would be getting the customers that are closer to them.
Planning guidance- the planning guidance is a town and country planning act
that must consider new develop in the order-
Town centre
An established edge of town
A local centre
Out of town but accessible from public transport
