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Introduction to Business Environment of Tesco

   

Added on  2020-12-29

8 Pages1732 Words133 Views
BusinessEnvironment

Introduction Business environment is defined as the combination of internal and external factors. This business environment include supplier, government, market economic trend etc. in this external business environment include political, economic, and legal etc. In this manager of Organization should understand the environment. TESCO is the third largest retailer in world by gross revenueits headquarter is in Welwyn garden city, UK. In this report its help in understand negative and positive aspect of macro environment on the business. At last this is effective in understanding the SWOT of the company with the interrelationship with of macro factors.TASK 1P1. Identify the negative and positive impact of macro environment on business operations with example.In this there are many factors which affect the business it may be negative and positive. With the help of PESTLE analysis it is easy to understand macro factors which give negative andpositive impact on the business operations.Political factors: This are the factors which is determine as the extent in which agovernment influence certain business with their rules and regulation. These political factorsinclude tax policy; fiscal policy etc. changes in the rules and regulation give negative impact onthe business. When UK government change its rules and regulation regarding the businesses thenits affect the businesses operation. Changing in the rules and regulation create problem and riskto set up again. For example in 2014 a group of local council asked UK government for changesin tax. This is refuse by the government and similarly political initiative may succeed in thefuture with the negative impact on Tesco. In this there is positive impact in this buying polticalrisk insurance the way from which business can manage its political risk.Economic environment: In this there is a some economic factors which affect thebusiness such as interest rate, supply rate etc. This factors has some positive point and some arethe negative points. In this for businesses are a positive point for example it help TESCOCompany for the growth and the development. The amount of money is invested for the growth.In this there are some negative aspect are also there for example: at the time of recessionbusinesses face a lot of losses this affect businesses negatively.Social environment: These are the factors which affect the businesses in several ways.In this now days society is changing on the continue bases. In this now the customer is morerelated to the network in which the more dependent on the technology. This technology factorsalso affect the businesses. In this businesses need to focus on the every aspect like culturalchanges. The positive part of in the this in this if company is not focuses on the changes then itscreate the negative impact on the customer.

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