Implications of Current Affairs on Business Functioning

Business
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TABLE OF CONTENTS
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INTRODUCTION...........................................................................................................................3
MAIN ANALYSIS .........................................................................................................................3
CONCLUSION...............................................................................................................................6
REFERENCES ...............................................................................................................................6
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INTRODUCTION
Business environment is collection of both internal and external factors like supply and
demand, management, customers needs and preference, competition and government policies.
Both internal and external factors have positive and negative impact on function and operation of
business therefore companies in order to grow and sustain in market needs to effectively handle
the factors. Better understanding of business environment helps manager in identifying
opportunities, resources and threat in external environment and the way companies can gained
competitive advantages. Tesco is British multinational company which is third largest company
in retail industry that provide wide range of products and services at reasonable rates to meet
needs of each individuals. This report is essay on examining of implications of a topical current
affairs issue on business functioning so that better strategies can be formulated in order to get
particular outcome. Furthermore, it has also contained ethical theory in order to understand
internal and external factors that affects business environment.
MAIN ANALYSIS
There are numerous changes in business environment like innovation in technology,
change in taste and preference of people, introduce of new policies by government and many
more. Due to ever changing nature of business environment, company needs to change its
strategy so that it can easily retained its market positioning and growth, succeed further.
Currently there are numerous key issue in external environment like impact of Covid -19
operation, changes in technologies and taste and preference of people or government policies.
Therefore issue that are faced by Tesco in external environment can be illustrated as follows:
Ethical practices: Due to increase in awareness among people about increasing unethical
practices of companies in order to earn more profitability and market share. Many firms in order
to get maximum benefits make use of unethical practices which resulted in decrease in brand
image and market value. Like Tesco has overestimated its profit margin by £263 or conducted
accounting scandal that has affected negatively on reputation of company in external
environment. It further leads to loss of customers satisfaction and decreased overall profitability
of company as less number of people wants to be part of organisation (Seetharaman, 2020). Such
as utilitarianism, is one of the most common approach of theory of ethics which states that
manager or any individuals while taking particular decision need to considered its consequences.
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