Impact of Internal and External Factors on Business Performance: A Case Study of Tesco

Business in Practice Internal and
External factors

Contents
INTRODUCTION...............................................................................................................................3
TASK....................................................................................................................................................3
How the external and internal factors effect a specific business or organisation...............................3
Different ways in which your chosen business or organisation can impact on the external
environment.......................................................................................................................................6
CONCLUSION....................................................................................................................................7
REFERENCES....................................................................................................................................8

INTRODUCTION
In a competitive era, business environment is considered as an effective collection of
both internal and external factors that directly impact over the performance level in both
positive and negative manner. Thus, it is important for company to analysis all the internal
and external factors in order to reduce negative impact by maximising the positive impact.
This will directly contribute in enhancing overall performance of company at market place
(Shad and et. Al., 2019). Current report is based on Tesco, is a famous British multinational
groceries and general merchandise retailer company that operate their business in over the
world. The main focus of this organization is to capture larger market share by serving
quality services to its customers as per their demand. Project is focusing on external and
internal factors that effect over the business performance. In addition to this, different ways in
which business can impact on external environment is also mentioned in this project.
TASK
How the external and internal factors effect a specific business or organisation
Internal and external factors are the controllable and uncontrolled components that
affect a business. From strategic planning to day-to-day activities, it is all too essential for
employers to focus on what it believes it can handle domestically. These elements have an
impact on the company's function and how it operates, either directly or indirectly. The
combination of all these factors determines the surroundings and condition of the company or
business organization. If a company wants to gain in the market, it must thoroughly
comprehend the aspects that influence the development of their company. They may develop
appropriate plans to deal with any foreseeable event once they are aware of both good and
unfavourable repercussions both within and without firm. For attaining the same, Tesco also
analyse both internal and external factors to improvise their overall growth at competitive
market place.
Internal factors: In business organization, Internal factors are defined as everything within
the company that is in the firm's influence, whether material or conceptual. After determining
these criteria, they are classified as the company's financial records. If one aspect has a
beneficial impact on business, it is seen as a source of strength. As there are some internal
factors that directly affect the Tesco operational activities.
 Leadership: It is referring to the individuals in a corporation who make all significant
financial, budgetary, sales, marketing, and human resource decisions. Companies with