Business in Practice

BUSINESS IN PRACTICE
Introduction
Business environment are the factors which impacted upon business
directly or indirectly. It has two main factors first is internal factors
which occur within the business firm like relationship between
management team and employees, organizational structure, firms
policies and many more.
On the other hand second factor of business environment is external
factors which are consist of political factors, technological factors,
social factors, economical factors and many more. These external
factors occur outside the business and companies have no control over
these factors. Tesco is a multinational groceries and general
merchandise retailing company which is founded in 1919 by its
founder Jack Cohen. It is headquartered in Welwyn Garden City,
Hertfordshire, England, and UK. The following report covers analysis
of external and internal factors of Tesco and to identify the impact of
external environment of business upon Tesco.
SWOT Analysis
Strengths: Tesco have created a good brand image in customer’s eye. Hence, due to their good brand image they can
attract more customers and their loyalty.
Weaknesses: Tesco is facing issues with their financial department. They misconduct the financial statements and they
declare wrong information about their profit due to which they have to pay fine also to UK government for avoiding
their law that no company will share wrong information to government and their investors.
Opportunities: Recently Tesco introduced Jacks Stores where they offer discounted goods. These stores are shown a
rapid growth in UK. Hence, investing in these stores is a good opportunity for them.
Threats: The biggest threat of any company is generated from their competitors. Tesco has many competitors like
Morrison, Sainsbury, Lidl and etc. which are growing faster and gaining customers trust by applying new and powerful
strategies.