Factors Affecting TESCO: Political, Economic, Social, Technological, Environmental, and Legal

Business in Practice (Assessment 2)
INTRODUCTION
A business is impacted by varied factors either in a positive or
negative manner. These factors include political, social,
economic etc. that affect overall management activities and
practices of companies. The current assignment will be based on
TESCO, which falls under list of top 10 supermarket in the UK.
By selling quality products and services, organization has
become a leading retailer in retail sector.
Supermarket has diversified stores which is quite beneficial for
its business in term of excellent growth, increasing profitability,
productivity and customer base. Some factors within company
may put positive impact while other affects negatively. For
example, low cost strategy is the example of internal factor
that put negative impact on sales of brand. Many people think
that low cost product may not satisfy their needs and
expectations and because of this thing they attempt to switch
to another firms that offer similar products.
Different ways in which organization can impact on
external environment-It is quite essential for any brand like
TESCO to overcome negative impact of external/internal
factors upon operations success and business growth. In the
world of corporate varied forms of methods, techniques,
approaches and tactics are accessible which allow a company
to effect external environment in term of decreasing their
CONCLUSION
By summing up above discussion, it has been
concluded that TESCO has impacted external environment in
term of hiring skilled and talented applicants who are able to
perform productively. Furthermore, organization has
overcome negative impact of tax rate increase in sort of
paying tax charges according to government rules and
Social factor- Market trends is one of the social factors that
affects TESCO inventory management process and decision-
making activity in negative manner.
Technology- Technology advancement put positive impact on
marketing activities and process of TESCO in term of making
firm able to reach at global level.
Environmental factor- High concern
of consumers and government for
environmental sustainability affect the
way TESCO conduct varied operations
and manage its business within retail
sector.
Legal factor- Changes in employment
laws, marketing regulations etc. affect
negatively upon TESCO product and
service promotions.
Internal factors that affect
supermarket- Just like external
factors, internal force also impact
current management practices and
productivity of TESCO.
External factors that affect TESCO- In the world of business,
different types of external factors accessible that may affect
entire productivity and performance level of many brands. There
are certain elements describe below;
Political factor- Brexit is the most appropriate example of
political factor that may affect sales and profitability of TESCO in
negative manner. Due to this element, many companies consider
dilemma relate to new legislations that might occur and cause a
decrease in sale.
Economic factor- High unemployment rate is one of the
economic factors that put positive impact on TESCO productivity
and profitability, as well as its performance level.
Political factor- TESCO may overcome negative impact on
high tax rate charges upon trading process of companies by
paying tax on time especially during period of trading, which
allow brand to conduct trading process worldwide.
Social factor- Organization overcome the impact of market
trend by considering the current needs and requirements of
consumers via market research, which is quite beneficial
approach.
Legal factor-supermarket impact on this external factor by
complying business regulations, laws and policies, which
strengthen brand image in market and its business in term of
operating venture worldwide without facing any kind of legal
challenges.
Workers competence and skills affect
how company sustain within retail
sector with strong consumer base.
Leadership and management is another
internal factor that impact the way
workers perform and contribute to
achieve set aims and objectives of
organization. Organizational culture is
included in list of internal factors that
impact productivity, performance,
motivation and morale of staff
members. In context of TESCO, higher
sales and greater revenue is its key
strength or internal factor that impact
brand in term of increasing their
operational efficiency. It enables firm to
invest in profitable projects and make
change in existing goods according to
market needs. Tesco is geographically
diversified which allow management to
obtain competitive edge and increased
more sales in effective manner.
REFERENCES
Shin, S., Kim, H. and Kim, W., 2020. Transnational corporations’
localization strategies via retail attributes: Focus on Chinese
Market. Journal of Retailing and Consumer Services. 55.
p.102088.