Environmental Audit Concerning Entry of TESCO in Bahrain Essay

Environmental Audit Concerning Entry of TESCO in Bahrain - Essay Example are (1) The Political Environment (2) The Economic Environment (3) The Socio-Cultural Environment (4) The Technological Environment (5) The External Environment and (6) The Legal Environment (Boddy & Paton, 2009, 5). Analysis of each of these elements separately will indicate the opportunities and threats they hold for a business entering that particular local environment- it is largely country specific. Michael Porter has mentioned in his book ‘Competitive Strategy’ that there are five forces impacting on the survival of any firm in a particular industry. These are (1) Barriers to Entry and Exit (2) Bargaining Power of Buyers (3) Bargaining Power of Suppliers (4) Threats of Substitutes and (5) Competitive Rivalry (Porter, 1980, 15). Obviously TESCO has to take a look at all these elements while considering its proposed entry into Bahrain. PESTEL Analysis of TESCO from the Perspective of a Setup in Bahrain I will start this part of my paper by narrating a short history o f TESCO’s origins and its methods of expansion as I believe these have an impact on organizational culture and management’s thinking and analysis of opportunities and threats. I will next launch into the particular environments in Bahrain and see what opportunities or threats each of the six forces discussed above in PESTEL provide for TESCO in terms of setting up business here. Tesco began operating in the UK in 1919 after its founder Jack Cohen purchased a running business from one T.E Stockwell: he took the first three initials TES and added the first two of his last name CO from Cohen to serve as a name for the newly acquired enterprise. TESCO initially was a grocery store type outlet in which the founder sold surplus items. The first branded TESCO store made its appearance in 1929 in Burnt... This assignment is an attempt to conduct an Environmental Audit for an international brand TESCO entering Bahrain market. A company like TESCO must think very carefully before it embarks on an international expansion. The author believes conducting an environmental analysis and using the PESTEL format to analyze forces in the local environment of Bahrain may give positive or negative signals to TESCO management. Therein lies the importance of an environmental analysis to TESCO or any other firm considering investment in Bahrain. The work provides the description of a typical environmental audit. It involves the analysis of the following six forces affecting the business environment, in terms of the opportunities and threats they provide for new entrants. These are (1) The Political Environment (2) The Economic Environment (3) The Socio-Cultural Environment (4) The Technological Environment (5) The External Environment and (6) The Legal Environment. The analysis of each of these eleme nts separately indicate the opportunities and threats they hold for TESCO. The author also conducts the Analysis of Opportunities and Threats, Strengths and Weaknesses (SWOT), where the opportunities, threats, strengths and weaknesses regarding TESCO’s proposed entry into Bahrain are discussed. The conclusion of the work is TESCO will not go wrong in entering the Bahraini marketplace if it chooses to position itself as a low-cost provider and a premium goods seller, targeting all and different segments of the market.