Business Environment and Internal External Factors Analysis

The assignment requires an in-depth analysis of the business environment, including internal and external factors that affect enterprise. It involves identifying positive and negative impacts on businesses, considering internal and external factors as interrelated. The document provides a list of relevant books and journals, online resources, and references for further study. It also includes illustrations of annual reports and PESTEL analysis, demonstrating the importance of business environment in making informed decisions.

Business
and
Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between organisation function .........................................................................1
TASK 3............................................................................................................................................4
P4 Macro environment impact upon business operation ...........................................................4
TASK 4............................................................................................................................................6
P5 Analysis of Internal and external factor ................................................................................6
P6 Strength and weakness are interrelated with macro factor....................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment define all external and internal factor that highly impact
organisation function. It including customers, management, employees, demand & supply and
business regulation. It is aggregate of every events and conditions which influence upon
surround. BE is a way of entities, individuals and other factors collection which may or not be
under the monitor of the enterprises. But it can influence its productivity, performance and
growth etc.
This report is based on different types of organisation such as private, public and
voluntary sector. In this assignment their size and scope as well as relationship between various
function also described. Negative and positive impact of a macro environment upon business
operations also includes here. TESCO limited is a company which gives effective product and
services quality to the customers of their workplace. In this study PESTLE and SWOT analysis
also used which is very important to identifying the company position in market. Both strength
and weakness are interrelated with macro factors which determined in this report
TASK 1
Covered in PPT
TASK 2
P3 Relationship between organisation function
In order to give buyers with last services management of mentioned business requires to
perform different functions. As every efforts which is taken by the various department, it
includes finance, sale, marketing, and production department etc. main purpose of organisation
function is attain long term goals and objectives of enterprise (Becker and et. al., 2013). It has
been defined as the role and responsibilities of the manger to control all work with the help of
function. Tesco understand the development importance where business invest large number of
the cost in its function. There are many function which is perform by the cited company such as
planning, recruiting, controlling, evaluating and selecting all activities.
At the planning time company manager highly focus on various targets as well as goals
of an enterprise as to attain in a specific time duration. It is main challenge for industry to
attention on sustainability which needed exploitation. These function are necessary as well
1

essentials for every company because it support in adding few value in coming year. From the
same they complete buyers neds and wants in order to provide qualitative products and services.
Cited business organisation structure is well established which is based on crossed
strategy. It is means matrix and tall structure (Belás and et. al., 2015). It is very important and
this model is adopted by every organisation to attain sufficient money to work at their high. An
enterprise various functions which are determined as per the goods line and region. As per
identify the company all structure which is considered. It is supportive for firm as to understood
all duties of workers in an appropriate manner.
2

Illustration 1: Annual report of TESCO
TESCO is a retail company and they have different department in above image. All function are
very important because whole support enterprise in seeing all activity and task which are done
(Bovée and Thill, 2014). From the same different objectives and goals are achieved in a specific
time duration with the help of function.
Product: This department play essentials role to maintain their product quality which is offered
by business super store. It sustain all stock and check all service and product which are available
for the buyers.
Marketing and Sales department: This sector play important role in the marketing and sale of
their product. In this way company manger is capabler to use different communication channel
and promotion mix elements. These are help business in increase product sales. Tesco is a retail
business and they produce food products to the buyers (Cavalcante and et. al., 2011). They are
3

able to create research and development programs which are required for every business to
identify the customers basic needs and wants related to the goods.
Finance: This department also play essentials role and responsibility in maintain all sources
related to finance and funds. If manger documents whole revenue and capital that is achieved by
business in a financial year. It also gives finance requirement to each and every functions of firm.
So in this they help them in launching as well as operating their best.
Channels and Buyers: It is a best term that define as a sector which provide large satisfaction to
the customers (Chen and et. al., 2012). It includes different grievances about creative service in
order to attain high growth and success. So that all modification are can be made in the
improvement process of services.
Legal: This sector identified the all activities and function which are running as per regime
legislation. This department play important duty in preparing organisation framework. The role
of this department to give correct legal advise in range of procedural and substantive law
questions which boosting in administrative operations as well as functions.
TASK 3
P4 Macro environment impact upon business operation
Macro environment is define as the external factor which is not controlled by every
enterprise. They have negative and positive effect on enterprise and its functions. It is a sum total
of political, legal, environmental, economical and technological etc. (PESTEL Analysis, 2015).
These factors are changes in time to time and they highly influences on enterprise in direct as
well as indirect way. Tesco also use this elements in analysing their position in marketplace with
the support of PESTEL. Knowledge of this effect that can help in management strategy.
Implementation is a process which have a happening plan to deflect many impact from market.
Cited company PESTEL analysis are as follows:
Political factor: These are define as different components which are highly impacts upon cited
business. This business is presently operating their new business in international boundaries. It
makes maximum undependable to these factors (David, 2011). They are also effects on
enterprise capability which is perform as a term of imbalance in political which is highly
influences functioning of enterprise. In this government takes all necessary phase to see different
effects which is gets business. In this factor, manger of mentioned firm play essential and critical
4

role in giving productivity and improving person living standard in the state. This factor also has
positive effect which is favourable of the industry. From the same it will capable to flourish all
function in a smoothly. The negative effect is define slow decision which will impede on
enterprise.
(Source: Narayanan, 2015)
Economical: This is an another elements which is highly influences on enterprise (Dunning,
2014). Cited business is much likely to demand, leverage costs, prices and profits. Hence, the
firm should be alert of many modifications in policies. It includes taxation changes and many
component which could impact the finance and accessibility. It is essentials to citation that
through the industry is succeeding and growing internationally. TESCO is still silent dependent
on United Kingdom place where market shape is around 30%. diversification and internalization
have been 2 strategies which pursued by business over the year. Moreover, due to declination in
available household incomes and their levels.
Social factors: Different variety of trends, social changes indicate that buyers in United
Kingdom have moved towards one-stop and bulk shopping. Therefore, mentioned firm
maximised the different numbers of non food products content for sale (Elliot, 2011). The kinds
of services and goods which are demanded and needed by buyers in mostly effected by their
5
Illustration 2: PESTEL Analysis

attitudes and beliefs. It is also impacted by social conditioning because clients are aware of their
heath problem. Cited business selecting many modifications by accommodating the organic
products demand.
Technological: Advancement is the factor of technology that have different innovative
opportunities. There are two distinct first is introduction and development of online purchasing
with various facilities such as home delivery. The next is define, own service, it means there
restrained points have given conveniences as well as easy for buyers. Which in modify to have
been decrease labour costs (Ferrell and Fraedrich, 2015). Moreover, cited company has also an
essentials amount on strength project in an effective and efficient manner. It is very important to
complete long term goals and objectives in a specific time period and cut carbon footprint.
Environmental: There are several treaties which are subscribed by different locations as to
defend surrounding from exploitation. It is very essentials for every business to different persons
taste and their required related to product and services. TESCO follows every guidelines of legal
authority and sustainable improvement etc. It necessary to decrease pollution which are available
in an environment & keep safe. Cited business is fairly committed to decreasing 50 % of its
carbon footprint. Company also increasing their desert supplied in their retail store by
maximising social morals in buyers.
Legal factor: There are various legislation in United Kingdom which are existence in European
Union. Mentioned organisation is highly influence these law and regulation because they has
many branches in EU and UK. Government legislations and policies both are positively as well
directly influence the business performance. Example: FRC (Food retailing commission) in year
2004 which is suggested a practice code that should be identified various actual practices. For
example: modification in price without demanding or notice payments from provider (Hill and
et. al., 2013). To facilitate above policies, firm gives its clients value reductions on the process of
purchasing. From the same, various amount of the goods which are exhausted on their retail
stores.
6

TASK 4
P5 Analysis of Internal and external factor
SWOT analysis is a important and necessary elements because in this business can
determined their capabilities. It is needed to determined micro environment as well as all
productivity in an essentials way.
STRENGTH WEAKNESSES
 Leadership position is very good in
United Kingdom.
 Impressive online operations.
 Club-card as an impactive buyers
information tool.
 Powerful property portfolio (Kian
Chong and et. al., 2011).
 Financial performance is very weak.
 Brand image is damage related to
commercial income in year 2015.
 Reliance on United Kingdom and
European market.
 Diminished workers morale.

OPPORTUNITIES THREATS
 Maximising Non-food grocery and
retail range.
 Pursuing foreign market contraction
strategies.
 Increasing existence in industry of
financial services.
 Exchanging the marketing services in
an effective and efficient manner.
 Currency fluctuation.
 Incapability of the modern leadership to
expend over the firm.
 Quality to maintain cost of leadership
in order to achieve competitive profit.
 Emergence of different problems which
are relate with ethics.
Strength: TESCO is a multinational grocery, merchandise and well established in UK and EU
(Isik and et. al., 2013). This business was apply multi format plan and strategy in this store to
cater buyers needs and wants. They offers different services and products variety in its hyper,
super market as well as convenience and discount stores. They serves many kind of goods, it
includes general merchandise and grocery products to its potentials as well as target clients at
affordable cost. TESCO brand name in market which is known every person.
7

Weakness: There are several weakness of the business which is not good for the company to
achieve high and success. This are interrelated with the current argument such as negative media
and damage public image. Their financial condition also very weak so the trust of investor is less
in business. Cited firm history, it considers debit & credit card, financial debt and insurance
claims which are given so it is define as the industry weak position in market.
Opportunities: There are several opportunities of the business in order to attain high productivity
and preferences of the employees (Onetti and et. al., 2012). It includes: modernization in digital
media promotion and advertisement which is very helpful to introduce their brand in market.
They needs communication channel and promotion mix for highly attracting their buyers in order
to satisfy their needs. There are also several option which apply by store into developing tie ups
as we small chain.
Threats: The increasing price raw material in the range of both non food and food products
which at the marginal profit. They have to keep minimum prices which threats their profitability
and productivity. It leads to increase in competitions will become threat for the organisation.
Effect on judgement making process
SWOT Analysis is essentials elements and it necessary for the every enterprise and their
mangers to formulate and implement their plan. TESCO is also known their ability and
productivity level. It is define the variances and requirement changes which are present in their
store. So the company handler is capable to manager all problems to take correct judgement. All
process of decision making which is based on their SWOT analysis. It also increase the ability of
manager in complete different activity by taking decision in an effective and efficient manner.
P6 Strength and weakness are interrelated with macro factor
Every company required to determine the SWOT analysis in identifying their strength,
weakness, opportunities and threats in order to achieve high growth and success. This will also
important to measure their performances in national and internation country (Porter and Rivkin,
2012). Also there are several external factors which is highly impact the business are they are
interrelated with SWOT. Main purpose of this to get high opportunities in market place and
increase product sale. This activity is very helpful for mentioned retail store in identifying their
functions and operation. Both strength as well weakness are linked with external factor and each
other are as follows:
8

Political: TESCO has different functions and operations which is highly impacted upon the
political factor. This part is very important to reduce company capability and increase
performance in market.
Economical: Both rate such as deflation and unstable inflation are having indirect effect on
company. This factor is highly influences on company selling rate.
Social: This will define as the Unequal distribution of the salary which is provided by the
company (Pulver, 2012). In this situation they are capable to to achieve goals and objectives in
order to fulfil their employees needs regarding income. In the UK where several business are not
capable to check their work quality in market so it is also effect industry.
Technological: TESCO have many power and capability to select different new technology in
their stores which is essentials to decrease cost and increase profit in order to achieve goals and
objectives in a specific time period. From the same their staff member also develop the process
of supply chain management, it is significant to attain their values and targets.
Legal: Cited firm also face different issues related to legal factors such as policies, rules,
regulations and other. This elements are highly influences business performance and their
productivity. Company has legal advisor that take many decision regarding place and product.
This kind of procedures are known as lawful regime. With the support of government duties
company can attain objectives of organisation.
Environmental: Different countries has many treaties which are framed in order to prevent
surrounding. From the same various consults are frame lawful structure and agreement which is
necessary to decrease carbon emission and unlawful act by using several essentials tools &
techniques. Moreover, company staff members are adopted different methods in environment
protection matter. It is important for both business and customers in order to increase
performances and productivity of the organisation (Schaltegger and et. al., 2012). It provides
benefits for store to meet its short and long term goals and objectives.
CONCLUSION
From the above important details it can be determined the business position in market
place. In this report different kinds of organisation such as private, public and voluntary sector
enterprise which are ply important role in their sector. Size and scope of business which identify
the current figures and recent position of the mentioned company. Structure of organisation and
different functions of the company both are interrelated with each other so it is beneficial for the
9

enterprise to get long as well as short term goals and objectives in order to increase their product
sell. In this assignment company use different tools and techniques such as PESTEL, SWOT
analysis both are significant elements. These components are required for every business in
identifying their positive and negative effect on enterprise. Internal and external factor are
interrelated with each other and both have positive and negative impact upon enterprise.
10

REFERENCES
Books and Journals
Becker, J., Kugeler, M. and Rosemann, M. eds., 2013. Process management: a guide for the
design of business processes. Springer Science & Business Media.
Belás, J. and et. al., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
(1). p.95.
Bovée, C. L. and Thill, J. V., 2014. Business in action. Pearson Higher Ed.
Cavalcante, S., Kesting, P. and Ulhøi, J., 2011. Business model dynamics and innovation:(re)
establishing the missing linkages. Management Decision. 49(8). pp.1327-1342.
Chen, H., Chiang, R.H. and Storey, V. C., 2012. Business intelligence and analytics: From big
data to big impact. MIS quarterly. 36(4).
David, F. R., 2011. Strategic management: Concepts and cases. Peaeson/Prentice Hall.
Dunning, J. H., 2014. The Globalization of Business (Routledge Revivals): The Challenge of the
1990s. Rbusiness environment
Elliot, S., 2011. Transdisciplinary perspectives on environmental sustainability: a resource base
and framework for IT-enabled business transformation. Mis quarterly. 35(1). pp.197-
236.
Ferrell, O. C. and Fraedrich, J., 2015. Business ethics: Ethical decision making & cases. Nelson
Education.
Hill, C. W., Cronk, T. and Wickramasekera, R., 2013. Global business today. McGraw-Hill
Education (Australia).
Isik, Ö., Jones, M. C. and Sidorova, A., 2013. Business intelligence success: The roles of BI
capabilities and decision environments. Information & Management. 50(1). pp.13-23.
Kian Chong, W., Shafaghi, M. and Leing Tan, B., 2011. Development of a business-to-business
critical success factors (B2B CSFs) framework for Chinese SMEs. Marketing
Intelligence & Planning. 29(5). pp.517-533.
Onetti, A. and et. al., 2012. Internationalization, innovation and entrepreneurship: business
models for new technology-based firms. Journal of Management & Governance. 16(3)
pp.337-368.
11

Porter, M. E. and Rivkin, J. W., 2012. The looming challenge to US competitiveness. Harvard
Business Review. 90(3). pp.54-61.
Pulver, S., 2012. Business and the Environment.
Schaltegger, S., Lüdeke-Freund, F. and Hansen, E. G., 2012. Business cases for sustainability:
the role of business model innovation for corporate sustainability. International Journal
of Innovation and Sustainable Development. 6(2). pp.95-119.
Online
PESTEL Analysis. 2015. [Online]. Available through:
<https://www.kbmanage.com/concept/pestel-analysis>. [Accessed on 21th September
2017].
12