P.E.S.T Analysis on Tesco - 3963 Words

TITLE: INFORMATION SYSTEMS REPORT EXECUTIVE SUMMARY J P Morgan Chase is the second largest financial holding company in the United States with over $1.2 trillion in assets and $ 106 billion in stockholder s equity. With operations in more than 50 countries and many other banking subsidiaries, the firm has a staff of over 160,000. In 2002 the management made a strategic decision to outsource a significant portion of their Information Technology infrastructure to IBM to gain a better position in various markets. This decision however did not workout as expected, the firm faced a decrease in productivity due to fall in employee moral caused by the shift and management faced difficulties in carrying out their day to day duties.†¦show more content†¦These rules of competition are embedded in five competitive forces which are entry of new competition, the threat of substitute products, the bargaining power of buyers, the bargaining power of suppliers, and the rivalry among existing competitors. If we look at Diagram 2 we can see a simple view of the Five Forces Model. http://en.wikipedia.org/wiki/Five_forces Threat of new entrant As new firms enter to a market, they have the potential to extract the profit unless the demand grows faster than new entrants to a market, average profitability will decline. The threat of entry or entry barriers is to discourage other companies from entering a market as new competitors by establishing a level of service or value to the customer that will be expensive or difficult for the new entrant to replicate. IS/IT often require large investment in complex software. JP Morgan Chase invests millions of dollars into IS. In comparison with other banks, JP Morgan Chase would spend more than twice as much on technology per employee, approximately $28,000 compares to $13,000. Because of this it has become more difficult for new firms to enter the market as they will have to meet high standards and spend a great deal on IS in order to gain competitiveness. . Threat of Substitutes This represents the buyer propensity to surrogate one firm s product for another product. The strength of competitionShow MoreRelatedUk Retail Industry1442 Words   |  6 PagesSupermarkets. There has been a fight for supremacy between the likes of J. Sainsbury, Tesco, Marks and Spencer, Asda, and further south, Waitrose. Around ten years ago, Sainsbury s used to have the top spot but their loyal shoppers started turning their heads towards Tesco and better value for money later on in the nineties. I will analyse the United Kingdom s grocery industry, involving a P.E.S.T. analysis, which is a way of evaluating different parts of a business. (Political, Economical,Read MoreFutsal Business Plan9711 Words   |  39 Pagesthe manager (the owner) and seven other employees and staff. The operation is held 7 days a week, from 10am to 3am. The perfect spot to run our sports centre is located opposite Tesco and besides McDonalds. The reason why this place is a hot spot is because, it has high traffic flow and also adjacent to Giant Mall, Tesco and 9 Avenue where these are high end areas and approximately 30,000 visitors per day. Thus, by choosing the right location, it will not only help to gradually build brand name andRead MoreMarks and Spencer Strategic Develpoment History5913 Words   |  24 Pagesstrategy by using same traditional business formula without restructuring organization design and culture as result management focus just confined to day to day operation rather than lon g planning. The environment analysis P.E.S.T., Porter (1985) five competitive forces, Stakeholder analysis supports that the MS should remain continue to quality focus â€Å"Differentiation† strategy but it should be based customer focus to satisfy customer needs and wants. The strategy should be supported by value chainRead MoreMarketing Strategy of Bionade Essay12314 Words   |  50 Pagesmarket are supermarkets/ hypermarkets. The sales with organic food products in the German supermarkets increased 2005 up to 10%. There is a trend on concentration in the wholesale and retail level at time. Metro in Germany, Carrefour in France and Tesco in the UK are the main players on retail level. High listing prices as well as smaller portfolios make it difficult for organisations without big financial resources to be presented in their shops (appendix chapter 2.1.2.2). Bionade could get over