Business Environment Assignment Solution Tesco

Added on - 21 Feb 2021

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BUSINESS ENVIRONMENT
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3Literature review on United Kingdom business Environment....................................................3Internal factors influencing decision making and operating in business environment of UnitedKingdom......................................................................................................................................4Analysing external factors that influence decision making and operating in businessenvironment of United Kingdom................................................................................................5Theories and models describing the influence of the key factors of influencing price of goods/services........................................................................................................................................6TASK 2............................................................................................................................................8Brief overview of position and debates relating to Brexit..........................................................8Some possible obstacles and option which United Kingdom faced at time of Brexit................9Effects of Brexit currently and for future..................................................................................10Conclusion and some recommendation to overcome the obstacles..........................................11CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................13
INTRODUCTIONBusiness environment refers to as a summation of all the internal as well as externalforces which directly or indirectly affects the working of the company. For a successful runningof business it is very necessary for company to take into consideration all the changes takingplace within business environment. This is majorly because of the reason that business runs inan ever changing and dynamic environment. The present assignment is divided into two task.The first task relates to Tesco. Tesco is a British multinational company which deals inmerchandising and groceries stores. It was founded in year 1919 by Jack Cohen. The task willstart by outlining business environment of United Kingdom. Further it will discuss some keyinternal and external factors which influences the operations and working of company. Next itwill discuss a relevant theory which describes key factors influencing the prices of the goods andservices of the company.The next task will focus on Brexit. It will start by providing for a brief overview of Brexitand its current position in context with present situation. Next the assignment will cover some ofthe obstacles which United Kingdom faces at time of Brexit. Next the assignment will discussthe effects of Brexit. In the end there will be some conclusion and recommendations will bedrawn from the discussion.TASK 1Literature review on United Kingdom business EnvironmentAccording toDriffield and Karoglou (2019),there are recent changes that had been takenplace in the business environment of United Kingdom's. There is a free market economy in UK,which leads to facilitate the allocation of resources in UK as per the forces of demand andsupply. It is being observed that, free market economy in UK has been traditionally perceived tobe much greater in comparison with other alternative types of economies in terms of significantallocation of resources. Then too, global economic and financial crises of year 2008-2010 and it'scontinuing implications has effected in inefficiencies that re associated with a free marketeconomy.As per the view ofDadhich and et.al., (2015),fiscal and monetary policies of UK play avital role in economic uncertainties, such as the global economic and financial crises. As UKvoted to leave the European union in the year 2016, the government is being negotiating theterms of the country's exit. Growth of GDP is being less as compared to last few years, as it was
noted 1.4% in year 2018 that is less than the year 2017 which was 1.7%. UK's economy is beingplaying a major impact by the uncertainties which are being surrounding to the ongoing processof Brexit negotiations with the expectations of higher trade costs.Internal factors influencing decision making and operating in business environment of UnitedKingdomThere are several internal factors which influences the decision making and operationsprocess of Tesco which can be determined with the help of SWOT factors that includesstrengths, weaknesses, opportunities and threats, that helps in analysing the factors influencingdecision making of the company in the business environment of United Kingdom(Phadermrod,Crowder and Wills, 2019).SWOT AnalysisStrengths:Tesco has a secured cash reserve with a wide range of properties in its portfolio whichhelps them to survive in a tough economic condition. Company has improved its usage oftechnology throughout its operations with building trust and loyalty towards customers whichcan help the company in decision making of several aspects that may include increase in pricesof products as the customer base of the company is good, or providing membership cards forattracting the same customers again and again.Weaknesses:There several weaknesses of Tesco which influences decision making process of thecompany. The competitive pressure which is being faced by Tesco, impacted the company intaking decision for reducing the profit margin and decreasing the cost of the products forproviding a competitive edge in the market.Opportunities:In the business environment of United Kingdom, there are several opportunities whichcan be grabbed through effective decision making by Tesco for the purpose of growth. Companycan execute strategic alliances with other brands in order to offer more products and attractingmore customers. Company is having several opportunities to enter into the private label marketwhich can influence the company in decision making for expansion.Threats:
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