Analyzing Business Environment and Objectives

This assignment delves into the complexities of a business environment by analyzing Tesco as a case study. It examines both internal and external factors influencing Tesco, such as its organizational structure, market competition (illustrated in UK Grocery Market), and stakeholder relationships. The analysis further explores Tesco's diverse objectives, which shape its size, scope, and type of operations. The assignment emphasizes the importance of understanding these factors for effective strategic management.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types and purposes of organisations..................................................................3
P2. Size and Scope of different types of organisations..........................................................5
P3 Relationship between different organizational functions..................................................8
TASK 2..........................................................................................................................................12
P4 Positive and negative impact of Macro environment on Business operations................12
P5 Internal and external analysis with strength and weakness.............................................15
P6 Inter-relation of strengths and weakness with external macro factors............................16
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Business environment are collection of internal and external factors which can influence
company in different ways. Firm's have to perform environment scanning so that they can create
necessary plans and polices to deal with them. Report describes about Toyota company which is
found in 1937. It is profit firm. Assignment explains about Red cross in U.K. which is non profit
firm in U.K. And Oxfam international which is a non government firm and is found in U.K. The
organization was established with the objectives to work together in corroboration to amplify the
impact at international level to reduce and eradicate poverty and injustice. Project discusses
about various types and purposes of firm. Project explains about size and scope of various
organization's and relationship between various functions of different organizations.
TASK 1
P1 Different types and purposes of organisations
An organization when formed has to adopt some purpose or obstructives regarding its
future which strivers and motivates it to carry on its functioning to achieve that purpose and for
its overall prosperity and sustainability (Deasy and et. al, 2016). There are a number of
organization that exists in market place to fulfil economic, social and basic requisites. There are
majorly two sectors in which companies are running their operations public and private sector:
Basis of
Comparison
NGO NPO For Profit
Meaning NGO is a non
government firm which
is formed by ordinary
people working
autonomously of
government
NPO is an association
which operates business
for benefiting people
and to fund other
projects instead
distributing it to
shareholders.
Business organization in
this sector are indulge in
buying and selling of its
products and services with
to generate revenues and
maximum outcome from
within the marketplace.
Objectives The motive of such firms
is to work for the welfare
of society and public
along with improving
This sector is developed
with aim to promote
science, research, art
anything apart from
The main and sole
objective of firms is to earn
maximum profits by
capturing more and more

economic conditions earning profits. customers to purchase their
goods and services.
Mentioned below are the three major sectors :-
Public Sector: This sector is controlled and managed by government and operates as
their per defined structure and guidelines. It comprises providing goods and services to the
public and involves large workforce that proves to point of speculation in these firms. For
instance Sainsbury's is the second largest grocery retail chain in UK providing reasonable and
quality product and services to consumers (Eling and Schaper, 2017).
Purpose: The main objective of establishing firm in this sector is to enhance the growth
and development of economy and to provide benefits like employment generation, helping
people from backward classes to have access to basic necessities of life and so on.
Private Sector: Companies belonging to private sector are self owned establishments.
They run their business under the guidelines incorporated by legislations but are independent in
setting up of their own mission, visions, objectives and organization structure. Toyota motor
manufacturing is private limited auto mobile firm providing vehicle manufacturing and
assembling services to customers. It was established in 1989 with its headquarters in Burnaston,
Derbysgire, England. With the team of around 3,800 members the total investment of Toyota
Manufacturing is approx £2.5 billion.
Purpose: These firms are set up with the purpose to earn profits by identifying and
catering the needs and requirements of customers by providing quality products at optimum
level of prices.
Voluntary Sector:- These are the association formed by a group of people having
common interests united voluntary for addressing some social issues for the welfare and benefit
of the society (Goleman, 2017). Red Cross Society is a voluntary charitable organization set up
for providing relief to the vulnerable and poor people at times of disasters and emergencies. It
was founded in 1870 with the motive of supporting and serving people all around world without
discriminating them on basis of caste, religion or nationality. With the staff of more than 3500
and more than 32,500 volunteers society run sits operation with mission to mobilise power of
humanity so that people can prepare for dealing and recovering from crisis.

Purpose:- Main motive of these enterprises is to make people aware about human rights and to
increase and improve education level and standard of living as per legislations incorporated for
society benefits.
Legal structure of the sector
Private sector:- It is divided into two categories:- Sole proprietorship:- The business is whole and solely owned and run by an individual
who is responsible for all profits, losses and to make and manage all strategies, policies
and procedures related to business (Hillary, ed., 2017). Partnership:- It is joint venture formed by tow or more people under a partnership deed
for deciding profit sharing an d capital ratio along with duration of firm
Public sector:- Mentioned below are government bodies covered under this:- State government:- It is the deciding authority at state level which incorporates all laws
and regulations to be followed by citizens. Local government:- Local government bodies generally deals in local commodities
besides working for providing social welfare.
 Central government:- It is the central administration system which regulates the
working of both state and local government.
P2. Size and Scope of different types of organisations
Market share refers to the proportion that any business organisation have in market place.
It is consider most important aim for the company as they have to continuously increase it in
order to establish sustainable image. Basically, market share of an organization shows its actual
position at marketplace with the help of various facts or figures. According to KANTAR
WORLD PANEL it has been assessed that TESCO is improving their positing in coming time
period as it increase by almost 27.6% in the mid of 2017. Along with this focussing on their
market strategy to maximize it by the end of 2018.

Profit share refers to the earnings that business organisation make in terms of revenue and
outcomes. TESCO have earn 28% of annual gains and profits.
(Source:- UK Grocery Market, 2017)
According to above graphical representation it has been understood that TESCO is
getting succeeded in gaining maximum advantages by satisfying needs or demands of distinct
Illustration 1: UK Grocery Market

clients. Along with this, company is becoming a top most organization in UK retail sector and
inflation plays a very crucial role in raising the income level of an organization.
Sustainability is the process that every company aims for as they have to remain for
longer period of time in the market place. Its all about that organization wanted to continue their
business for longer time period by acquiring trust or loyalty of distinct clients. Hence, believes in
designing qualitative products and services.
Different types of organization formed on the basis of size, structure and business
operations are divided into three major categories small, medium and large sized organisation.
Mentioned below are the size and scope of these firms:- Micro Scale:- Micro scale divisions are small in size and operates with the main aim of
earning sufficient profits manage livelihood of person. In general it consists of small
entrepreneurs who business size is small, having less employees fewer than 10, low
turnovers less than €2 million or PhP 3 million and are handles by a sole owner (Kew
and Stredwick, 2017). Small scale:-They are large when it comes to size as compared to micro enterprises and
consist minimum 50 -100 employees and have turnover not less than 56 million dollars.
Hakim Group is a UK based small scale company having a strong portfolio conducting
its operations in optical industry with a team of around 62 employees. Medium scale:- The number of employees working in these organizations are not more
than 250 employees and revenue earned goes around 5 to 23 million dollars. Black
Construction are commercial builder than runs their operations in Santa Clara with a
team of around 170 employees and revenue of approx $125 million. Large Scale:- These firms includes huge capital investment, large business operations
consisting more than 250 employees. Revenue generated in these organization is around
250 million dollars. John Lewis is an international chain of departmental stores with its
base in London. It has an annual turnover of approx £243.2 million with a team of
around 38,100 employees who are managing its operations worldwide. (Kolk, 2016).
Objectives differentiation:
Micro Small Medium Large
 Micro  This type of  Medium  This type of

enterprise is
basically a
small business
that employs
people not
more than 10.
The major
objective of
micro
enterprises is
to give
employment to
people and
eradicate the
problem of
unemployment
form the
country. They
establish their
industries in
poor villages,
towns to
encourage
people to
contribute their
efforts in
national
development.
 The market
share of micro
enterprise
employs small
number of
people and are
generally
privately
owned. They
greatly impact
on Gross
Domestic
Product of the
country. Their
main objective
is to create
employment
opportunities
in country.
They also
improve
standard of
living of
people. They
remove
backwardness
of rural areas.
 Small scale
industries
having
enjoying large
turnover in
enterprise is an
enterprise
which invest
more than 2
crore in their
equipments.
They play an
important role
to provide
different
services to
people of
country and
have
contribution in
economy of
country.
 Medium scale
industries
stood second in
economy with
the total
market share of
9.5%
enterprise is that
employs large
number of people
and invest more
than 10 crores in
their equipments.
They provide
great
opportunities to
suitable
candidates and
greatly impact on
economic
conditions of
country.
 Large scale
industries leads
and capture
market share by
attaining 90.63%
in the total
economy

industries in
UK is around
0.29% in total
100%
comparison to
micro
industries
capture market
share of around
0.48% in total
economy
Scope of different types of organisation:-
 Micro scale:- Been small in size their expansion is quiet difficult in same city or town
 Small scale:- Different tools and techniques are utilized buy these firm sin order to
improve and increase their scope and business operation level to expand in more than one
city or place.
 Medium scale:- Medium scale firms enjoys high scope and formulates several strategics
ad plan to expand their business boundaries globally by taking government permission tin
the form of license.
Growth level of MSME's and Large scale industries
 From 4.9 mn business operation in UK MSME's accounts for 99.9% in all private sector,
48.1% of private sector with a combines turnover of £1,600 billion. The distribution of
SME's in various sectors in UK economy constitutes 27.5% in financial and insurance
sector and 95.4% in agriculture ,forestry and fishing sectors. Micro scale industries forms
75.1% in total registered UK SME's i.e. 4,872,690
 SME's added £473 billion or 49.8 per cent of the UK economy.
 Large scale industries such as manufacturing units contributes around 25% in UK GDP
making it 8th largest manufacturing nation around globe. These industries contributes
44% of total exports of UK as well.
P3 Relationship between different organizational functions
Every organization operate differently in different environment and run their operations
according to their set goals and objectives. They design their functioning in order to accomplish

their targets within time frame. TESCO is a leading retail international supermarket company
dealing in groceries and general merchandise (Prajogo, 2016). It a public limited company with
its operations running in operations in 13 countries with around 3275 stores and a team of more
than 476.000 employees. It is the third largest retailer having diversified geographically dealing
in variety of business related to clothes, furniture, electronics, toys, software and so on.
Difference between transnational, international and global companies structures.
TRANSNATIONAL INTERNATIONAL GLOBAL
Meaning Transnational companies
are much more complex
firms running their
It a company which is
indulge in imports and
exports only. These
Global firms also have
its operations in
different countries but

operations in more than
one country. These firms
are having advantage of
getting responsiveness of
the local markets.
companies don't have
any investments done
outside their home
country.
each of its unit follow
similar company
culture with same
processes running in
each of its divisions.
Organizational
Structure
Locally responsive, highly
efficient learning and
sharing
Centralized focus on
learning and sharing
Highly decentralized
and locally responsive
Complexities related to Transnational, international and global organizations.
Various problems related to transnational, international and global organizations are mentioned
below:-
International company structure:- It deals with the capability ODF firm to have a
proficient team of employees that is capable of conducting its business operations overseas other
than in it s home country. It involves weather a company follows centralized approach as in case
of international companies or having decentralized organizational structure like in case of global
companies.
Foreign laws and regulations:- Apart from organizational structure other prominent
feature or complexities faced by companies operating its business in more than one countries is
variation in various laws and legislation and government policies pertaining to different countries
to which a firm is abide to follow.
Accounting standards:- It relates to different tax compliance that form the most crucial
part to considered in doing business in international market. Different tax systems, rates and
accounting systems forms a challenge for these firms firms in deciding their accounting
strategies.

(Source:- Dudovskiy, 2016)
Currency Rate Fluctuations:- It is the most crucial problem to navigate. AS global
economy is volatile it makes it very difficulty to predict profit margins in the scenario when there
is high fluctuation sin currency rates of the countries in which a company is running its
operations. Serious fluctuations can impact balance between business profits and its expenses
Organizational structure of TESCO
It has observed that TESCO is having a highly hierarchical reflecting its large size of
business operations. Even in its store management it has four layers of management which give
much broader span of control over its huge workforce. Each mangers have a dedicated and
trained team of employees to communicate tasks and delegate responsibilities. However the key
decisions are made by board of directors making company centralized in its decision making
process. (Zidar and et. Al, 2016).
Different types of organization structures:
 Functional organization system: Under this, various functions are divided in accordance
to functional area so that each and every individual could work in accordance to their key
areas.
 Matrix organization structure: Inh this type of structure there is proer relationship among
every level of management or there is proper hierarchy system. Example: Tesco have
proper system of management in every level consists of managers that perform work
related to their functional area.
 Divisional organization structure: In this big organizational system in further divided into
smaller entity and each performing separate functions.
Illustration 2: Tesco Organizational Structure

 Flat and tall stagnation structure: Tall business organizations have large hierarchy system
whereas flat organization have less number of management levels.
 Product Based: In this business organization is divided into different parts in accordance
to their separate products produced by them. Example, single company can deal in
number of lines that is confectionery, food etc this helps them to focuses on this specific
area.
Mission:- Their first or foremost mission is to “create value for clients in order to acquire
life time loyalty”
Vision: Accodring to this
Objectives: The company focuses on their shareholders and all employees so that they
could able to work in order to achieve final aims and objectives of the company in effective
manner. The management system plays an important role in this regard as they keep on
improving their working style to satisfy their customers and maintain goodwill in market place.
TESCO follow all their functions such as Human Resource Management, Research and
development, finance, accounting, sales , purchases etc in effective manner to maximize their
profits and encourages sales. They all are inter related to each other. Different functions of
organization are mentioned below in detail:
Production and operation: This is an important department of organization as
production and operation are carried out at early stages to manufacture desired products. It
worked They manufacture quality products which are capable enough to satisfy all desires and
need of consumers. It works in interdependence with other departments like human resource
department to which they provides requirements related to specific quality and quantity of raw
materials, latest machinery for product designing and manufacturing which is essential for
carrying out its production functions smoothly. It is an important function as it is responsible for
converting raw material into maximum outputs to earn higher returns.
Human resource department: It is considered as backbone of any company as it
managers the manpower of company. They have various important functions like hiring
employees, managing, controlling, providing compensation ad benefits, leaves and holidays,
performance appraisals and so on. It is the efficiency of this department that supports a firm to
maintain a cordial relationship with it workforce which serves as a source of innovation an
knowledge utilizing whose efforts and abilities a firm reaches its mission. It works in

collaboration with all other divisions like marketing department to which it provides proficient
and most appropriate employees who have sufficient knowledge and skills to influence and
persuade others to buy their products which proves to be much of us eat times of marketing a
company's product or service.(Smith, 2017).
Marketing department: This is one of the important department as they carry out all
crucial activities like promotion, advertising, distribution, etc. They make effective market plans
to sell their products in target market. Managers uses different promoting and advertising tools to
attract more and more customers towards their products which lead to attaining company's
mission and objectives of providing goods and services as per customer's requirements to attain
customers satisfaction. Marketing department like every other department is dependent on
various business divisions for successful completion of its tasks. For example it dependents
upon research and development department to provide it with latest market scenario related to
customers taste , preferences, competitors and government policies on the basis of which it
formulates it marketing scenario. (Sodeyfi, 2016).
Accounting and finance: This department also plays a crucial role as they manage all
transaction of company. They keep record of all profits and loss and also provide appropriate
budgetary plans to company within available resources and funds. Without this department
company won't be able to manage their funds and investment properly and can bear loss. This
department is interdependent on all other departments who provide it with all the financial details
of all expenses incurred and revenues earned (Wack, 2017).
Research and development: With the help of this department, company can perform
their research on critical areas like customer preferences and desires, target market, funds
requirements, etc. This division plays a critical role in the success of an organization as it helps
in providing with innovative and creative ideas that can help a company to take a lead even in
times of environment changes. Research and development department works in collaboration
with finance department which supports it in providing necessary funds for carrying out various
surveys, interviews and other important tasks required to conduct research.

TASK 2
P4 Positive and negative impact of Macro environment on Business operations
Business organisation is affected mostly by external factors and macro environment
which influences productivity and profitability. Managers of entire retail sector conduct regular
update their knowledge about recent trends and technologies running in market. In fact, they are
having no control over these factors so they have to formulate effective plans in order to
encounter different issues and prevent their company form possible loss (Demil, and et. al.,
2015). Company should be ready about unpredictable changes and should be prepared with
alternate strategies. External factors can impact positive as well as negative effect on
organisation. To analysis these factors company uses different tools and techniques such as
PESTEL, SWOT Analysis, etc. With the help of this, they can easily get to know about positive
and negative effect on business operations. Following is the PEST Analysis of UK retail sector: Political factors: This include all rules, polices, regulations which are created by
government. Therefore, overall sector should carry out their activities according to
policies which is implemented by government of that country (Ullah and Lai, 2011). If
there is any updates in any rules and regulations, company should apply those updates in
their functioning to avoid any problems.
Example: As company operates worldwide , they have to face many political issues
which greatly influences performance of entire retail organization. Factors which influences are
tax policy, acts of legislation, political stability, etc.
Positive effect- This allow regular and smooth flow of operation and avid companies to indulge
in illegal procedures. They can arrange their activities according to regulations of that particular
country.
Negative effect- If there is any updates in policies like tax rates, etc. made by government, then
company should plan their distribution and supply of products according to that. If they fail to do
that, they might bear huge fines imposed by government officers (Doh, Husted, Matten and
Santoro, 2010). Economical factor: These factors mainly include inflation ,growth rate, wages, salaries,
etc. of a particular country. Company should make their strategies by considering all
economic factors to enhance their profits. These factors differ form country to country,

so if M&S wants to expand their business in other nation, they should know about their
economic condition and plan their activities according to that.
Example: Retail sector needs to be aware about taxation policy, demand, price change etc in
countries in which they are operating in order to run their business successfully. This help them
to manage their finances more effectively and accurately.
Positive effect- If company considers all economic factors while expanding their business in
other country then can earn profits and can maximise their sales too (Solomon, and et. al., 2014).
Negative effect- If there is increase in inflation rate, customers tend to but less products as prices
of the products are increased. Social factors: Every organisation should work towards welfare of society so as to
encourage their brand image in society. They can initiate corporate social responsibility
to take responsibility of company's effect on environmental and social well being. These
type of activities greatly impact positive effect on company's image. Industry can
organise different activities to show their concern to the society in which they are
operating.
Example: Industry has increased the the number of non- food item and improved their services
according to preferences of customers. This help in attracting more customers towards their
products.
Positive activity- This factor help company to get associated with people and and get to know
about their likes and dislike which they can implement in their manufacturing and production
strategies to produce product which can satisfy them (Dunning, 2013).
Negative effect- If an industry fails to produce products which are of customer's choice, then
they can loose their loyalty as well as there will be decrease in their profitability and sales. Technological factor: It is necessary for a company to update their technology with
recent trends to stay ahead in the market as well as to retain its position. With recent
advancements they can manufacture new and creative designs of products which can
attract customers towards their products and encourage company's sales.
Example: Advancement in technology has bring many opportunities for industry such as online
shopping with facility of home delivery, etc. has increased their profit levels.

Positive effect- If an industry implement new technologies in their company, they can easily
manufacture products which can satisfy and fulfil all desires of customer. This will ultimately
leads to more profits to company.
Negative effect- If company fails to implement recent technologies, they can loose their lead in
the market as well as customers will start preferring products of rival team against them (Herbst
and Merz, 2011).
Environmental effect: It is very important to follow rules and create ways and methods so
that there are no problems related to environment. It provides benefit to people as they adopt
legal ways of creating retail products and giving them fair price.
Example: In today's era, there is an immense pressure on companies to address environmental
issues and to adopt effective operations to reduce pollution. An industry is working in the
direction to reduce carbon emission as well as minimising waste produced generated in their
stores.
Strength: They can benefit to people who are living in society as they follow legal rules
in operational activities. Hence they can earn more profits.
Weakness: It has to spend money in reducing carbon footprint. Lot of money is spend on
these tasks.
Legal factors: An industry had to follow rules of Govt. so that it cannot perform unethical
ways in performing their activities or tasks. Hence they can perform task in proper manner.
Example: Government policies directly impacts the performance and productivity of an industry.
So, they need to follow every laws enacted by them to avoid any problems in future.
Strengths: If it has to follow Government rules then it can run their operations efficiently.
Hence firm can attract more customers by providing lower prices in attractive promotional
offers.
Weakness: If it do not follow Govt. rules and can change price without informing them
then Govt. can ban company to produce goods and it can hamper operations of retail sector.
P5 Internal and external analysis with strength and weakness
Strength and weakness of company can be find through SWOT analysis. This helps
company to achieve business objectives more effectively and perform duties in more effective
manner.

SWOT Analysis
STRENGTH
 This company has good image in
market. They are good in online
services. To select information from
customer they use effective tool i.e.
club-card.
 They are having effective strategic
business events.
 Effective working capital management.
 Act as a most powerful brand at
marketplace.
WEAKNESSES
 Financial condition of company is
weak. There is damage to the image of
company in 2015. employee staff is not
satisfied with their work place so there
are dissatisfaction among workers.
 Currency inflation is the main threat for
company. There is lack of leadership,
so performance of employees get
affected. There is new trends in market
which might affect business of
company.
OPPORTUNITIES
They must expand their brand in different parts
of international market. They can use different
promotional events, which helps in increase
demand of product and services. As other than
food retail sector is enhancing so they can
expand in it.
THREAT
 High level of competition such as;
emerging Sainsbury with unique
products and so on.
 Fluctuation in various foreign currency.
Porter five force analysis of Aldi
Industry rivalry: There is a tough competition in retail supermarket as there are many
rivals present which tend to offer more attractive offers and products than other at similar prices.
Main competitors of Aldi are Woolworth, Coles, Walmart, etc. Each organisation wants to
increase their market share and focuses on one factor and that is cost. Aldi operates on
minimizing fixed costs of products just like other competitors. Thus, industry rivalry of Aldi is
very high.

Threat of new entrants: There are many big brands which have strong hold on retail
industry which become difficult for other companies to enter the market. Existing companies like
Aldi, are present in market for long time and have build loyalty of large number of customers so
it will not be easy for new entrants to pose any kind of threat to Aldi. There are many barriers for
new entrants which make it more difficult for them to establish their business. Those barriers are
huge capital investment, access to different distribution channel, gaining the right target
market,etc. So there is very low threat of new entrant for Aldi.
Threat of substitutes: There is an increase in small stores in almost every countries
which provides products similar to big companies. This increases the options for customers to
choose from these small stores. Aldi is under the threats as consumers can easily shift to these
small convenience stores available in the market. So for Aldi, there is a moderate threat of
substitute.
Bargaining power of suppliers: As Aldi is a huge retail supermarket and have
established a strong brand image, which decreases the bargaining powers of suppliers as they
don't want to loose out on such big company. So in case of Aldi, bargaining power of suppliers is
low.
Bargaining power of buyers: Customers have various options to choose their products
in the market which become a threat for Aldi to retain their customers, also switching cost is very
low. Customers can prefer other options easily as they are mostly concerned about prices.
Wherever they get the products at low prices, they will shift towards it automatically. Thus
bargaining power of buyers is high in case of Aldi.
P6 Inter-relation of strengths and weakness with external macro factors.
There are many factors which affect business and it is essential to analyse them so there
are positive results out of it. It is essential that company has to make strategies which are
profitable for enhancing company's growth (anita and Miranda, 2013). Inter- relation of
strengths and weakness with external factors are discussed in detail as under-
Political- There are changes in political party of country then it has impact on business
also. Plans and policies get changed due to which it is essential for them to modify policies and
laws. This affects internal environmental of business (Li, Lai and Wang, 2010).

 Strengths- It gives a proper and standard framework for TESCO to run their business
accordingly. There are many political policies which help company to avoid any kind of
discrimination with employees.
 Weaknesses- TESCO fails to adopt recent tax policies which has caused huge loss to
them.
Economical- This is main source through which company can run its business in proper
manner. It is essential that company must analyse all sources of funds and then select best among
them. Strengths- Economic condition of United Kingdom has been showing positive signs and
is great opportunity for company to grow their market.
 Weaknesses- At the time of recession, TESCO has to face increase in unemployment due
to which they has to suffer a huge loss.
Social- It is important to take care of social factor where business run. TESCO runs in
different parts of country so it is essential to frame policies as per requirement of society. It is not
possible that same policies are applied at different outlets (Schaltegger, Lüdeke-Freund and
Hansen, 2012). Strengths- There is increase in number of elderly people in UK due to baby boom
generation which can easily use TESCO online service to order their items and they also
ave home delivery options which ensures delivery of items at home.
 Weaknesses- There are some items online which have higher prices than market prices,
this prevent people to prefer market products as compared to online products.
Technological- Technology has to be changed to improve quality of product and services
and reduce production time. This factors can affect perform of workers in negative manner also.
There is requirement of training to employees so they can work with full efficiency. Strengths- TESCO is implementing every technology and updating them with recent
advancement also. This help them to maintain their position in market.
 Weaknesses- They need to be attentive for disruptive technology which occur frequently
in retailing. They need to cope up with every change.
Environmental- It has improved use of technology so hence it can create unique method
and ways to reduce the wastage and to minimize carbon footprint. Through this there is less
wastage and company can provide good quality products at less costs. Hence through this

strength environment can be turn as bigger opportunity for TESCO. Hence it can earn more
profits and can easily increase the market share. Strengths- TESCO has implemented various operations in order to reduce carbon
emission and environmental pollution. They also manage their waste products effectively.
 Weaknesses- Company sometimes fails to implement environmental operation due to
lack of funds for implementation which leads to increase in pollution as well as global
warming.
Legal- Company is one of largest and biggest supermarket which is earning more profits.
Hence they want to increase the market share. So it has to follow Government rules and thus can
run their operations very efficiently. Hence as a result it can change their prices and charges low
prices in attractive schemes given to users. So thus all activities functions in proper manner.
Hence they can earn more profits. Strengths- There are many legal policies and laws which help TESCO to avoid any
discrimination within premises.
 Weaknesses- There are number of laws which affect TESCO while marketing their
products in other countries.
CONCLUSION
From the project undertaken it is concluded that business environment have an immense
effect on the working of small, medium and large scale firms and thus it is required for every
business to identify, analyse and make policies keeping in mind the internal as well as external
factors of business environment. In addition to there every business operatives with different
objectives which defines its business size, scope and type.

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