This presentation discusses the business environment and its impact on Tesco, a leading retail business in the UK. It covers PESTLE analysis, internal and external analysis, interrelationship between macro factors and strengths and weaknesses, and concludes with the potential for Tesco to develop new operations in the UK.
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Business and the Business Environment
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Contents •Introduction •PESTLE analysis •Internal and external analysis •Inter relationship between macro factors and strengths and weakness •Conclusion •References
INTRODUCTION Business environment is described as sum total of all internal (employees,directors,customersetc.)andexternalfactors (political, social, technological etc.) which directly or indirectly affect business in the open market place. This presentation is based on Tesco which is a leading retail business in United Kingdom. It came into existence in the year 1919 by Jack Cohen.
Internal and external analysis Strengths Tesco is one of the largest chain of supermarkets in United Kingdom which has thousands of regular customers. Using a sound brand image and ample regular customers, Tesco can easily market their new operations to the potential customers without spending too much on promotional activities. Weaknesses Tesco currently deals in a retail industry which largely depends on the operations of selling products of other brands. This company has no experience of providing household services which can result in their weakness which can impact on customer satisfaction.
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Continue.. Opportunities The industry which revolves around providing household services is at boom in the region of United Kingdom. Every large organisation nowadays is intending to launch their own subsidiary which can provide household services to the customers. Threats UK is currently in a vulnerable position as the organisations of this country has to pay high costs if they are procuring supplies from states of Europe which is a result of BREXIT. In this situation, developing new operations in UK can be a threat for Tesco.
PESTLE analysis Political– Brexit brought political instability in the country and it is making a huge negative impact on companies like Tesco as they are failing to make investment related plans for long term. This reason is rapid changes in regular and post Brexit fear of uncertainty. Economical– Low inflation is a major positive for Tesco as it will increase demand of their products and services. They will not face any major hindrance related to demand in initial period if they start new operation. Social– UK has place in top 10 most educated population. This element is a positive factor for Tesco as they can easily get good quality of human resource in less period of time.
Continue.. Technological– Technological development is happening in every field and Tesco can use latest technology for bring more efficiency in their new operations by using latest technology. Legal– Strict regulation are not good for business of Tesco as it increases company's recurring expenses. Environmental– Tesco is committed to reduce pollution and develop a sustainable business. They are investing huge amount in reducing carbon emission so they can attain the target of bringing down their carbon footprint by 50% by 2020. This decision is improving their image in public and influencing their businesses in positive way.
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Inter relationship between macro factors and strengths and weakness •Political factors -Strengths -Weaknesses •Economic factors -Strengths -Weaknesses •Social factors -Strengths -Weaknesses •Technological factors -Strengths -Weaknesses
CONCLUSION Fromtheabovereportitcanbeconcludedthatbusiness environmentisthecombinationofallexternalandinternal factorswhichimpactsanorganisationbothpositivelyand negatively. From the above report, it has been found that Tesco is a large scale organisation which has potential to develop new operations in the region of United Kingdom.
REFERENCES •Ayios, A., 2018. Trust and Western-Russian business relationships. Routledge. •Fabus, M., 2018. BUSINESS ENVIRONMENT ANALYSIS BASED ON THE GLOBAL COMPETITIVENESS INDEX (GCI) AND DOING BUSINESS (DB): CASE STUDY SLOVAKIA. Journal of Security & Sustainability Issues. 7(4). •Geissdoerfer, M., Vladimirova, D. and Evans, S., 2018. Sustainable business model innovation: A review. Journal of Cleaner Production. 198. pp.401-416.
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