Impact of Internal and External Factors on TESCO

Introduction
The internal environment advert to the civilisation, associate, effect and component in
an company that has the capabilities to determine the conclusion and judgement of
the company, particularly the action of its human resources. The factors of external are
those that determine the conditions, portion that a company cannot manage the
impact of the organization judgement that is created by the owner or stakeholder of
the company. This context describe the impact of the internal and external factors of
the company of TESCO. TESCO is a British internal company that provide variety of
products like grocery, clothes, furniture , shoes and many more. TESCO company is
founded by Jack Cohen in 1919(Rostiana, and Hillah, 2016)
TESCO
External Factors:
There are some external factors that create a impact on the company. External factors include the
elements that is related and connected with outside environment of the organisation. This report is
going to consider PESTLE analysis for analysing external factors of the company. PESTLE analysis
consider six factors that create impact on the company and that is Political, economical, Social,
Technology,legal and environmental.
Political Factors: Political factors include some policies like tax policies , norms and laws of different
countries. The company TESCO operates globally and so the company have to follow different rules
and norms of the country. Because of its diversified nature, it become more challenging for the
company to put and keep their eyes on the political condition and regulations of the different nations.
The another major problem for the organisation is political stability because the company have to
assure the glassy trade flow in various and different nation.
Economic Factors: The factors of economic are describe about the dynamical regulation of economy
and what are the strategies that is followed by the company to make profits by identifying the
economic conditions. The economic factors consider the growth of economy,, rising prices rate,
transaction rate and much more. The company TESCO trade with a variety f of goods and for
distributing these products the economy factor plays a vital role. It is very mandatory for the company
to analysis and determine these factors so that will not going to create affect on the revenues and sales
generation of the organisation(Shen, Sun, and Wang, 2018).
Social Factors: This factor is also known as socio-culture factors. This factors include the survey and
analysis of the customers feeling and behaviour and action towards the products and goods of the
organisation. The company TESCO understand this needs of their consumers and move from food
models to non food-cum model. The taste and wants of the customers are also depend on their
disposal income and their lifestyle because of all these reason a company moved themselves towards
organic products.
Technological Factors: This factors directly create impact on the customer mind. Technological factors
is much important for the company to grow and attract much customer base because now a days
every customer want more facilities and services and new technologies to use so according to the
survey the company is not applying much techniques and acquire advanced technologies so this will
create impact on the company towards their profitability and making much loyal and huge customer
base.
Legal Factors: This factor describe about legal policies and norms of the company. This factor involve
rights and norms of the company and employees or for their customer. This include some rights like
consumer right, safety and security rights, employees rights and many more. The modification in the
norms of the government will create impact on daily functions of the company in a both aspect
positive as well negative(Salim, and Wahyuni, 2019).
Environmental Factors: TESCO has also makeshift its around 800 goods and because of this 4000
tons of plastic waste has been minimised from the surroundings. TESCO company manage in marine
goods that are authorised and certified.
Impact of the external factor:
There are so many impacts of the external factors towards the company and it can
be both positive and negative. The political environment of TESCO in regard of UK
create a good opportunities for the company and also create better impact because
there is political stability in the environment. As the company is focusing on social
factors and the desires of the customer so it also create positive impact on the
company but in the regard of technology factor , this factors is create some
negative impact because as the company is not much aware about advance
technologies. So all over the external environment create better impact on the
company and also assist the company to identify uncertainties and
growth(Honey,Newman and Schapiro, 2017).
CONCLUSION
From the above report It has been summarised that there are two types of factors
that create impact on the company in positive and negative manner. The
organisation have to solve some problems that is related to the legal issues and
clear their marque name from all the legal transactions, and come forward as clean.
So the audience can believe them again and show their love towards the company.
Internal Factors
Internal factors of the company create impacts on the internal sources and environment of the
company like what are the strength of the company, weaknesses, opportunities and threats of the
company that can affect the company in positive manner as well in negative manner. There is a
SWOT analysis of the TESCO company that include strength, weaknesses, opportunities and threats
of the company
Strength: TESCO is a multinational company that provide their products across the globe. TESCO
company cater so many variety to their customer and these are strength of the company that they
have so many outlets and store. TESCO provide low price goods with the fine and good qualities
Therefore these things creates a loyalty of the consumers towards the company and loyal customer
is best strength for the brand. TESCO company is operating with cost minimisation strategies with
potential unit of suppliers, wholesaler. Providers or suppliers is perform like and main pillar of the
company means they means a lot for the organisation. TESCO has also become much reputed and
popular organisation for jobless person because the company is diversified into many sectors as
they have so many outlets and stores so this will help the unemployed people to work their and
earn money(Thamrin, Dewayani, and Fidyah, 2020).
Weaknesses: TESCO company has not much sufficient management because of the company
engagement in several assorted kinds of sectors. The company has much deficiencies of innovation
because of the company operates and perform in many departments and sectors. The organisation
TESCO is also have lack of inaccuracy because of financial and some accounting errors and faults in
the internal surroundings. The profit margin and income is extremely affected because of increasing
debt. As the company is operate on the international level so its so obvious that they have so many
challengers and competitor in the market so because of lack in innovation and trends so this is very
major weaknesses of the company
Opportunities: As the company perform on the multinational level so this platform create high
possibility to develop more opportunities for the company because TESCO provide number of
variety to the customer and now they also perform on the online platform so this will create more
opportunities for the company to attract more customer and create wide customer base for the
company and develop and increase more and much productivity for the company. In the growing
and developing marketing the company is emerging with many companies or brands and to increase
their growth and profit level.
Threats: As TESCO is international company and cater so many varieties to the customers at very
huge level so it is much clear that they have so many rivals and competitive brands in the market so
this will create huge threat for the company because the other company always want to grab their
customers. The national economic also create effects on the companies supply chain management
and the activities of the companies. There are so many external factors also that create impacts on
the company and become threat also(Farooq, Rupp, and Farooq, 2017).
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