Strategy of a Chosen Organisation
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Evaluate how future changes in economic, political, legal and social factors may impact on the strategy of a chosen organisation Changes in a number of different factors can affect the way in which the business is run in the future and this could mean that the business has to look into different ways of tackling problems, which would mean they have to forecast what they believe the future is going to be like. Tesco as an organisation is constantly expanding because of the amount of people who need to use the supermarket and need to have easy access, in order to keep this going the business has to forecast changes that will happen in the future so this way they can look at what sort of implication the future could have on the business and they will be prepared for the implications of the future and whether it will need to be changed or not. Economic changes
There are a number of economic changes that could occur in the economy which would mean that the business has to look at the implications that they would have in the future. The business would have to consider looking into what could happen, for example there could be another economic crisis which would mean the economy would go into recession, if the economy goes into recession then inflation would increase and for the business it would mean that they would have to put their prices up and by increasing prices it would mean they would lose custom because the customers won’t be able to afford the prices of the products because of the increased prices due to the higher inflation rate. A recession could also mean the business won’t be making as much profit and if the business isn’t making as much profit then the business needs to look into possible strategies where they could increase the amount of money they are making, but also if they are losing money that means the business isn’t able to grow and will start to saturate and decline because more and more stores will close down, if this happens then the business will slowly lose custom and won’t be able to keep up the reputation of the business, as the business slowly falls it could eventually fall into liquidation which will mean that the business has to sell off all their assets until their debts have been paid. Political & Legal Changes
There are a number of political & legal changes that could occur in the business and some of these could potentially mean the increase or decrease in the custom that the business receives, and it also shows that the business that the two changes are linked and how to tackle the potential changes that are made. A political change would be the change in the government who are running the country, for Tesco this doesn’t have a big impact however the changes in the government could later have an impact because it would mean the business would have to look at the new government legislations and make sure the company applies to each one.
Due to political change it would/could lead to legal changes as well, for example a recent change is the ‘challenge25’ law that has been put in place by the current government and this would relate to tesco as they have to look at the current ‘Under 21?’ law and then look into how they could implicate the changes in the business as they might not have anticipated this change which would mean they have to think of how to implicate and change it in all of their stores and this would then mean the business having to look at the potential for the business to think of a strategy which would communicate this to all of the employees and all of the stores. A future change legal change that could be made is a change in the Health and safety legislations, they could make a significant change which would mean the business needs to look into what they would need to do to comply with the health and safety changes with the changes in health and safety they would then have to make the changes in each of the stores if the changes in each store are made appropriately then the business won’t have to be scrutinised for not making the necessary changes. Technological changes
The technological changes in the business will depend up on the development of the strategy in the business and the way technology develops in the coming years. One technological development that could e made is that all shopping could be turned into online shopping even grocery shopping, even though online shopping has already come apparent in this economy it could spread wider meaning more shops close down because of the replacement of online shopping and the stock will only be kept in the correct conditions in the warehouse this will change the way that people shops and the initiative will become shopping in ‘one click’ even though this will increase the amount of sales for Tesco and the stakeholders would take more of an interest as the number of shares in the business would increase. However the downside of this is more people who work in the stores would lose their jobs as a result of online shopping and this implication can have an effect on economy because rates of unemployment would increase due to the number of people who have lost their jobs. Conclusion
To conclude tesco would have to look at all of these factors in order to anticipate the future of their business the main reason the business has to forecast the future is so they are prepared for anything that could happen and this could mean that the business is more prepared than their competitors and could give them a healthier lead on there competitors.