Strategic management assigment Essay

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Introduction This compilation is an environmental analysis of the supermarket industry in Malaysia. The external environment will be analyzed in Part A by applying the PESTEL framework and The Porter Five Forces model will be applied to help identify the attractiveness of the supermarket industry in terms of competitive forces. In Part b, an internal company analysis of the hypermarket Tesco will be done to study how the externalities in Part A have effected the operation of Tesco as a whole. The value chain analysis and marketing mix model will be utilized in this part. The value chain is chosen as it separates the primary and secondary activities into a series of value generating activities that is common to various business establishments. Company background The supermarket industry in Malaysia has been booming and expanding positively over the past decade with the with the introduction and popularization of many supermarkets such as Giant, Jaya Jusco, Fajar, Makro, Tesco and Parkson. Tesco Stores (Malaysia) Sdn Bhd was incepted on 29 Nov 2001, as a strategic alliance with local conglomerate, Sime Darby Berhad of which the latter holds 30% of total shares. Malaysia was selected as the next market of entry because of its growing economy with political stability, market size & GDP and its ability to grow. The second store in Malacca was opened in October 2002, followed by the opening of the Klang Bukit Tinggi store in December 2002, the Mutiara Damansara store in March 2003, Sg Petani store in December 2003, Penang store in November 2004, Ipoh in January and Shah Alam in July 2005. We have also launched Tesco Banting, Tesco Express Selayang, Ipoh & Kuantan in 2005. [http://www.tesco.com.my/article.cfm?id=33(accessed on 2nd November 2008)} PART A : External environment analysis PESTEL FRAMEWORK Political
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