Business & the Business Environment - Part 2

This presentation analyzes the macro environment factors that influence the working of Tesco plc. It includes a PESTLE analysis of Tesco, as well as a SWOT analysis to evaluate the internal factors of the organization. The presentation also highlights the importance of analyzing these factors for maintaining a competitive edge in the market.

Business & the Business
Environment
PART 2

INTRODUCTION
 This study includes both positive and negative factors of macro
environment factors which influence the working of the organization.
 This is done by analyzing SWOT of business and by applying PESTLE
framework.

PESTLE ANALYSIS OF TESCO
 PESTLE analysis is done to analyse and
monitor all those macro environment factors
which are outside the business organization
and largely affect or influence the operations
of the Tesco plc.
 This method help analyse how these factors
influence the working of the Tesco plc and
help management to take necessary
controllable action in case it affect the
operational efficiency of business.

CONT..
 POLITICAL FACTORS: Tesco public limited company is a
multinational retail company who has operations worldwide in various
different countries across the globe.
 ECONOMIC FACTORS: Tesco plc is more concerned about economic
environment factors which are most likely affect the profit, price, cost and
demand of the company
 SOCIAL FACTORS: There are various social factors like demographic
issues, religion, value, ethics, population growth rate, lifestyle attitude
and cultural barriers, etc which influence the operational efficiency of the
organization.

CONT..
 TECHNOLOGICAL FACTORS: Technology is changing at a faster pace regularly with
large level of innovation and automation in retail industry. Tesco is largely influenced by
change in digital revolution and social technologies
 ENVIRONMENTAL FACTORS: : Macro environmental factors that influence
operations and productivity of business are weather, climate change, environmental
pollution, air and water pollution regulation, etc
 LEGAL FACTORS: Tesco plc is a multinational retail company which has to comply
with all legal laws of different countries like health and safety laws, employment laws,
copyright and patent laws, consumer protection laws, discrimination laws, antitrust laws
to improve operational efficiency and productivity of business

SWOT ANALYSIS
 SWOT analysis is an effective technique used to
evaluate the internal factors of the organization
which help analyse strength, weakness,
opportunity and threats to evaluate competition
in he organization and take effective measures to
increase operational efficiency and productivity
of the organization.

CONT…
STRENGTH:
 Tesco plc is one of the leading brand in the retail industry who provide
wide range of diversified products varying from high value to low value
products like clothing, furniture, toys, electronics, groceries, etc.
 Tesco plc has leading market share of 28.4% in United Kingdom.

CONT..
WEAKNESSES:
 Subsidiaries of Tesco plc are not performing well well which leads to
lower level of profits.
 Increase in competition offering same range of products leads to price
war in the market and lead to lower profit margins.

CONT…
OPPORTUNITIES:
 There is an opportunity to expand and grow their business by proper
corporate restructuring and strategic alliance with other competitors in the
market to attract more customers and this leads to larger market share and
company will achieve economies of scale.

CONT…
THREATS
 There is increase in competition who provide substitute products with
better innovation and attractive price which will grasp attention of
customers and shift their focus and buying behaviour which will
eventually affect the profitability and credibility of business.

CONT…
 Tesco is influenced by both macro environmental factors and micro environmental
factors, so therefore these factors should be thoroughly analysed to maintain competitive
edge in the market.
 Macro environmental factors helps in decision making by evaluating all these factors and
take measures to attain economies of scale and achieve operational efficiency by
implementing various laws and regulations and technology which helps gain competitive
advantage in the market.

CONCLUSION
 From the above study it has been summarized that there are various macro and
micro environmental factors which affect the operational efficiency of the
business.
 It also highlights external factors and is analysed through PESTLE framework
which highlight key areras which affect operational efficiency and performance
of business.
 Further this study also highlights SWOT framework which gives
company an idea about its competitive position in the market. It also includes
interrelationship of macro environment factors in SWOT analysis.

REFERENCES
 Chang, J. F., 2016. Business process management systems: strategy and
implementation. Auerbach Publications.
 Charter, M., 2017. Greener marketing: A responsible approach to
business. Routledge.
 Grünig, R. and Kühn, R., 2015. Global Environmental Analysis. In The
Strategy Planning Process . (pp. 89-96). Springer, Berlin, Heidelberg.
 Hamilton, L. and Webster, P., 2018. The international business
environment. Oxford University Press.

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