Business and Business Environment of Tesco
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Added on 2020-10-05
Business and Business Environment of Tesco
Added on 2020-10-05
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Business and businessenvironment
Table of ContentsINTRODUCTION...........................................................................................................................1P4. Evaluation of macro environment factor which affect the business operations in terms ofpositive and negative...................................................................................................................1P5. Swot analysis of Tesco and how they form the decision-making of the firm.......................3P6. Evaluates how strength and weakness are interrelated with external macro factors............6CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10
INTRODUCTIONBusiness environment refers to the factors such as internal as well as externalenvironmental factors which influence the organization. Internal factors involves competitor,supplier, customers and stakeholders and external factor includes political, economical. Legal,social and technological factors(Beatty, Samuelson and Abril, 2018). This report presents variousmacro factors which affect the business operations of Tesco company. Tesco is multinationalgrocery and merchandise retailer and established in the Welwyn garden city, England. This studyalso defines the external and internal factors of Tesco in order to identify their strength andweakness of the company and also evaluates how weakness and strength interrelate with externalmacro factors.P4. Evaluation of macro environment factor which affect the business operations in terms ofpositive and negative.The macro environment consist of various factors such as political, economical,technological, social and legal factors, all of these factors has great impact on the businessoperations of Tesco company. Macro environment can be effectively analyzed through pestleanalysis framework. Tesco is multinational food retailer company established in United kingdomand located in 12 countries across the world. Political factorTesco is the multinational retailer company and operates across the world, political factoraffect performance of the tesco in terms of decreasing because of the instability of governmentand their tax rates, acts of legislation and also different countries have different policies andregulation and company has to make their policies accordingly which has great impact on theorganization. Government also encourage retailer to create employment opportunities which haspositive impact on Tesco in terms increasing the demand of its products as well as diversifyingits work force. Political factor also affect the marketing decision of the business becausegovernment provides low rate of the taxation on the retailer companies which impact themarketing decision of the Tesco(Bennett, James and Klinkers, 2017).Social factorThis factor is related with the marketing environment of the Tesco which is defined bythe relationship between customers and organization. This factor has great impact on thebusiness decisions such as which type product stock has to carry by the company. It also impact1
on the brand image of the company which is provided by the consumers on the market place, ifcompany provides the products according to the requirement of the consumers which encouragethe interest of the customers towards the company which results in high brand image of theTesco at the market place. Changes in the social factors takes place continuously and the bestexample is changes in tastes and fashions. Social factor is represented by the society orcommunities which affect the way of demand and supply of goods and services means increasingthe population results in increasing in demand of various goods and services. For maintaining theimpacts of social factor organization need to evaluate the various needs of the consumers interms of products price, quality as well as quantity or packaging(Charter, 2017).Environmental factorThis factor is related with various aspects of environment which affect the business interms of climate, culture and pollution. This factor affects the operational procedures of theTesco because it includes the various environmental policies which are committed to the rulesand regulation of the company which are related to the environmental issues. This factor also hasgreat impact on the organizational climate because it is very difficult for company to operateequally in every type of climate or weather condition. Pollution also have an impact on thebusiness strategies of Tesco because as a food retailer company can not survive in the pollutedenvironment and also increase the cost of raw material. Tesco need to make the contingency planfor dealing with them. Tesco faced the increased pressure from the government agencies to solvethe environment issues. At present company encouraged their customers to shop at tesco.com.Although tesco van drivers collect the plastic bags from customers for recycle them.Environmental factor also affect the efficiency level of work force, if organization maintainedhealthy working environment it will result in the high productivity of the firm(Georgescu andPopescul, 2015). Technological factorThis factor also influence the business environment of the Tesco. Technologyadvancement brought various new opportunities as well as threats for the company becausetechnological changes in the production procedures causes the conflicts among the managementand workers due to resistance of changes by worker. Technological advancement provides theonline shopping with home delivery facilities which attract the consumers towards the companyproducts. Technological changes also affect the cost structure of the company due to adopting2
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