Business in practice

Business in practice
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
SWOT ANALYSIS.....................................................................................................................3
PESTEL Analysis........................................................................................................................5
How the company impact its context External Environment......................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
There are various associations which conduct their business which are of different size at
market place. Their main purpose of organisation is to improve financial position of the
company. In present time, it has been analysed that various types of organisation focuses on
performing their business in particular sector in order to achieve favourable outcome. In this
report, the organisation is taken named as TESCO. It is considered as an international chain of
Supermarket which is located in UK. They offer different variety of goods and services to its
user in order to satisfy them. In this assignment, it also provides discussion regarding internal or
external factor which imposes direct impact on the company. In addition to this, there are various
business organisations that operate their business in particular field for achieving favourable
outcome in future period of time (Allen and Truman, 2016).
MAIN BODY
SWOT ANALYSIS
The SWOT analysis is used for examining of internal and external environment of
organisation which has direct impact on operations and activity of organisation. The strengths,
weaknesses opportunities, as well as threat of company which is going to be discussed ad
follows-
Strengths
 The strength of TESCO is to access number of rewards for providing better services to its
customer during particular phase of time period.
 TESCO is determined as a biggest organisation that operates their business in retail sector
that assists in achieving competitive advantage over rivalries within a market.
 Further, they focus is on increasing the adoption of latest technology with aim to provide
cost-effective product to its customers that is considered as a main strength or advantages
for company.
Weaknesses
 Due to subsidiary of Tesco do not conduct their business in an appropriate way it
imposes direct effect on profit of organisation in future interval of time.
 Due to increase in competitive pressure, it decreases the profit margin of Tesco during
particular phase of time period.
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 Due to decrease in income level of individual, they do not spend their money in
purchasing luxurious products and services to its customer that decreases the income
level of Tesco.
Opportunities
 There are various opportunities which are available for Tesco such as strategic alliance
that provide more attractive product to its customer in market.
 There is an important opportunity to boost online shopping that help in providing home
delivery services to its user.
 They also focus on offering western goods to its customers according the demand of end
users that help in increasing profit margin in an interval.
Threats
 The economic recessions and credit crunches are considered as a main threat of
organisation and it reduces purchasing power of customer during particular phase time
period.
 Due to increase in food prices across the world, it decreases the income level of Tesco.
 Labour is considered as the main issue which is faced by Tesco because due to increase
in wage rate across the world it adds additional costs to company (Johnson and Garvin,
2017).
On the basis of above mentioned analysis, it has been identified that SWOT analysis is
adopted for identifying internal and external environment of organisation which have direct
impact on operations and activity of organisation. The strengths, weaknesses opportunities,
as well as threat of company are necessary to consider for smooth running of organisation.
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