External Environment Analysis of Tesco plc

Business in the 21st
Century

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................4
References:.......................................................................................................................................5

INTRODUCTION
Business in the 21st century is full of competition and is changing rapidly with the
changing technology, globalisation and internationalisation. In order to sustain and remain
competitive the business opt different strategic plans for which different frameworks and theories
are used to analyse the external environment that bring major impact on the business
(Samusenko, Plaskova and Prodanova, 2020). In current business environment the business
researchers and marketing managers thoroughly analyse the external environment in order to
exploit market opportunities and to mitigate the threat. The present report is study of British
leading retail chain “Tesco plc”. It is the multinational groceries and general merchandise retailer
of the UK and is headquartered at the Welwyn Garden City, England, UK. The present essay is
the deep analysis if the external environment of the Tesco plc and what changes are incurred due
to external environment. It also aims to define the opportunities and threat due to the changes
and how successfully company has deal with such changes.
MAIN BODY
Tesco plc is the third largest retailer of the world in terms of the gross profit and revenues
earned by the company. The Tesco Plc is the public limited company and was established in year
1919 by Jack Cohen. The company is highly diversified in its product line into the different areas
such as clothing, furnitures, toys, books, food and beverages, telecoms, internet services etc. the
company in the years of growth has repositioned itself as the downmarket high volume low cost
retailer in order to attract the all type of customers. The company has overall strength 423,092
employees. The net revenue earned by the company in year 2020 is £64.760 billion and net
income is £0.973 billion. The net assets of the company are £12.897 billion. The company has
been growing in all its operations explicitly and also manages to garb the market opportunities
and mitigate the threats through its strengths.
The external environment of the Tesco plc is full of rivalry and is also changing rapidly
with emergence of new technology. The micro business environment constitutes of several factor
that brings both positive and negative impact on the business operations. The most suitable
framework to analyse the external environment is the Pestle analysis- a analytical framework to
analyse and identify the key external environment factor i.e. political, economic, social,
technological, legal and environmental that has a potential to influence the business operations
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