FY021 Introduction to Business Studies: Factors Impacting Businesses

This report, submitted as part of the FY021 Introduction to Business Studies module, examines collaborative working practices and the internal and external factors that impact businesses, using Tesco as a case study. The report explores how collaborative efforts, such as those facilitated by video conferencing during the COVID-19 pandemic, enhance employee knowledge and innovation. It also analyzes internal factors like employees, managers, money, and resources, alongside external factors including competition, government policies, and customer/supplier relationships. The conclusion emphasizes the importance of managing both internal and external elements and fostering a collaborative environment to meet market demands and achieve business objectives. The report is supported by relevant academic references.

INTRODUCTION TO
BUSINESS STUDIES

Contents
INTRODUCTION 3
LO 2 Understanding of collaborative working practices 3
LO 3 Understanding of the main factors, both internal and external,
which impact businesses 3
CONCLUSION 5
REFERENCES 5


INTRODUCTION
This reports highlights different areas which helps to understand the needs
of different areas such as collaborative working, management of finance,
marketing mix and the analysis of internal as well as external factors of
Tesco.

LO 2 Understanding of collaborative
working practices
Collaboration in Tesco is done when many of the people are able to work
together for a goal that is common by working on it together and share their
ideas. It has been helpful for the employees of Tesco to work together from
their homes on video conferencing at the time of Covid-19.

CONTINUED..
They have more knowledge combined than a individual possess which helps
them to offer new initiatives and ideas through which they are able to
become more competent. Also the benefit of work from home has helped
company to save their costs for developing their infrastructure etc. as many
less people work from office. Having other people on the tasks means that
they have more experience of the market and more skills and if both of
them are used in a better way then they will be able to offer their
prospective customers the best deal they can.

LO 3 Understanding of the main factors, both internal
and external, which impact businesses
 Internal Factors-
 Employee and Managers-
Employees and managers are considered to be the
strength of internal aspects of the company. If they perform their duties well
enough then they will be the strength of the company.
 Money and Resources-
It is necessary for Tesco to have the liquidity in order to carry out
the operations of the business. This is because without cash no business can
survive. More cash will increase the level of flexibility and with that Tesco
can expand their business even if the economy is not well.

CONTINUED..
External Factors-
Competition from other businesses-
It is important for Tesco to keep their portfolio unique from their competitors so
that they can remain ahead of their competition. The competition in the market
will never end either company will have to compete with new companies or
compete with old..
Politics and Government Policy-
This is one of those factors which can affect the business deeply as any change in
the policy. For instance the decision of Brexit has affected the company in a very
negative manner
Customers and Suppliers-
It is important for the company to maintain relationship with both of them and
satisfy their needs so that they are able to receive goods at less rates from
suppliers and make substantial profits to their customers.

CONCLUSION
From the above studies it has been assessed that the management of company
needs to look after their internal as well as external factors and maintain the
aspects of collaborative environment. This will help them to prepare for the
needs of the market and achieve their objectives

REFERENCES
 Ghauri, P., Grønhaug, K. and Strange, R., 2020. Research methods in
business studies. Cambridge University Press.
 Kimotho, R.M., 2016. Pedagogical challenges facing the teaching of
business studies and impact on students’ achievement in secondary schools
in nyandarua county-Kenya. Unpublished Master‟ s Thesis), Kenyatta
University.
 Rana, M.B. and Morgan, G., 2019. Twenty-five years of business systems
research and lessons for international business studies. International
Business Review, 28(3), pp.513-532.