Tesco rates among the biggest food retail stores in the world, while the UK brand is also doing business with household goods, toiletries, electrical items and clothing stuff.
While the company has been rather successful over the past decades, still it faces economic challenges. As any other business, Tesco is prone to laws and government regulations posing the major economic challenges. The brand’s competitive advantage completely depends on its physical presence, and therefore it suffers from regulations that govern monopolies. As an indispensable part of consumer law, these laws primarily focus on the protection of consumer rights. The UK regulations deprive the company from reaching out to the profitable markets. Furthermore, Tesco’s pricing policies directly depend on state regulations and laws. Facing the risk of paying high prices, Tesco is prone to state assessments that may deter its market dominance. In addition, Tesco adheres to Planning Permission that is highly regulated in the UK and determines the actual market presence of the company.
Use your promo and get a custom paper on
"UK report".
Another factor that adversely affects Tesco relates to unemployment rate that is beyond corporate control and influences the company’s profitability. Unemployment eliminates the demand for Tesco’s products and services. Because of unemployment, Tesco loses marketing opportunities and growth potential on both domestic and international markets. In other words, unemployment shortens potential profits that the company would have potentially made both locally and globally.
Another economic downfall concerns the substitutes of Tesco’s products and services. This makes the company to review its prices and make them competitive. Unfortunately, the company’s performance also depends on economic slowdowns in the UK and the fluctuations on the UKs food market, in particular. This makes the company prone to market concentration risks. Finally, Tesco’s performance much depends on the demand and supply of its products (The Economist 2016).
Since 1913, Aston Martin has been a lead UK producer of luxurious sports cars and grand tourers. The company primarily operates as a domestic British brand and invests in long-term projects and manufacturing facilities in the United Kingdom. The brand is famous for manufacturing beautiful hand-crafted cars in England.
Currently, Aston Martin emphasizes the production of next-generation sports cars and all-electric vehicles. By 2020, the company is to create up to 1,000 new jobs. Overall, the announced investments so far will secure a further 3,000 jobs in total (Aston Martin 2016).
While the company faces global competition, it strives to extend its business to local sites, such as Wales, for example. To withstand competition and cope with economic hurdles, the company strategically emphasizes on testament to the corporate reputation, dedication and skills of its staff, and high quality of its luxurious hand-crafted cars.
These features have made Aston Martin an iconic British brand. Considering the growth potential of the UK automotive sector, its economic strengths and access to European markets, the company of such a caliber will thrive. Therefore, the corporate focus on local expansion and extension of manufacturing capacities is a sound strategic choice in today’s circumstances (This is Money 2014).
Aftermath Brexit, the economic situation in the UK has been unstable, which urges local business of all ranks reconsider their strategic plans and growth policies. With lesser access to EU markets, the UK companies will evidently lose their potential profits. Therefore, most of them will opt for regional expansion across the UK. Overall, business activity during the coming quarters will depend on Britain’s political decisions and the success of its relationships on the European scene (The Economist 2016).
