Impact of External Environment on Tesco: Opportunities and Threats

Assessment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Introduction of company.............................................................................................................3
Discuss how changes in its external environment over the last three years have affected the
company......................................................................................................................................3
Linkage between the changes in the external environment over the last three years and the
opportunities and threats faced by the company.........................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business practices are evolving bringing revolutionary changes in industry and in
marketplace (Coe, Lee and Wood, 2017). These evolving and changing business practices are the
result of changing market conditions that is the factors existing in internal and external
environment of organisations. Tesco is the chosen company for the assignment which was
founded in 1919 by Jack Cohen and headquartered in England, United Kingdom. The report
consist a thorough evaluation of external environment of Tesco for identifying the impacts over
the last three years on company of the changing conditions and how company have reacted in
order to gain benefits form those changes.
MAIN BODY
Introduction of company
Tesco Plc. which is commonly known as Tesco founded in 1919 by Jack Cohen as a
small grocery shop and within years the company have earned success and reach to the level on
which not other brand render any harm to its competitive position. Tesco is known to be the
worlds largest grocery retailer of food and non-food products. It has operations in United
Kingdom, India, South Korea, Ireland and many other large potential countries with developed
and developing economies. The diversified portfolio of Tesco have exposed it to several markets
and to huge risky changing environments (Johnson and et. al., 2018).
Discuss how changes in its external environment over the last three years have affected the
company
EXTERNAL ANALYSIS
SWOT Analysis of Tesco Plc.:
Strengths Weaknesses
Biggest grocery retailing store in the UK, is
Tesco. The organisation is known to be one of
the best supermarkets. According to past
figures and financial reports annual operating
profits of Tesoc was increased by 28%.
Europe's largest private employer, is Tesco
Failed operations in Japan and USA, is the
biggest weaknesses of Tesco as the company
have lost huge resources and money in past
five years.
Low cost strategy, can lead the firm to
reduced profit margins as the competition is