Global Business Environment

This document provides an analysis of the global business environment and its impact on companies. It discusses the PESTLE analysis of Tesco, examining the political, economic, social, technological, legal, and environmental factors. The document also explores the drivers of change, both internal and external, and their influence on company strategies. Overall, it emphasizes the importance of analyzing the business environment for companies to succeed in the global market.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PESTLE of company...................................................................................................................3
Drivers of change........................................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
With the increase in globalisation the free trade among countries has increased and also
the businesses have started dealing on the global level which means that they are also affected by
the global business environmental factors (Thanetsunthorn and Wuthisatian, 2016). This business
environment must be analysed so that companies can spread ion an international level in an
efficient manner and do not get negatively affected by the cultural differences, language barriers,
time and sociability etc.
MAIN BODY
PESTLE of company
PESTLE is a strategic management tool which can be used by company so that the
external business environment can be analysed so that strategies can be formed which can help in
the success of Tesco. PESTLE analysis of Tesco: Political: UK is a politically stable country which means that the rules and regulations do
not change frequently which can help Tesco in expanding its business in market in a
profitable manner (Dubey, 2016). Economical: UK has a growing economy which means that the purchasing power of
people in UK is high so that they can purchase goods offered by Tesco even at high
prices. Social: The living standard of people in UK is high which mean that they can afford the
high priced goods and services which are offered by Tesco (Hamilton and Webster,
2018). Technological: UK is highly developed in technology which mean that Tesco can use
technology to increase its customer base efficiently. Legal: Tesco needs to follow all the laws related to employment and conducting business
in UK so that it can function legally in the market and gain the trust of its customers.
 Environmental: It is important that Tesco follow the acts related to protecting
environment like environmental protection Act, 1990 so that it can function ethically in
UK.

Drivers of change
Internal drivers of change : The changes which are made by BOD of company which affect the
way in which company functions like: Resources: Change in the availability of resources within Tesco can lead to change in
company operations like human resources, capital, finance etc.
 Capabilities: If the employees of Tesco are unable to use their full potential and
capability then changes are done in company strategies and policies so that company
objectives are efficiently achieved (Kasemsap, 2016).
External drivers of change: These are the external changes which occur from outside the
company like: Government regulations: If there is a change in government policies and rules like
taxation policies, trade tariffs etc. lead to changes in Tesco policies and strategies. So
that it can function profitably in market.
 Customers: Change is customer taste can also affect change in company policies so that
the changing customer demand can be profitably fulfilled. This lead to innovation in
Tesco's products and services so that competitive advantage can be gained (Lewis and et.
al., 2017).
CONCLUSION
From this report it can be analysed that in order to survive in the market in a profitable
manner the company needs to perform PESTLE analysis so that their external environmental
factors can be analysed. Also drivers of change must be determined so that change can help the
company in becoming profitable in market.

REFERENCES
Books and Journals
Dubey, M., 2016. Developing an agile business excellence model for organizational
sustainability. Global Business and Organizational Excellence, 35(2), pp.60-71.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Kasemsap, K., 2016. Analyzing the roles of human capital and competency in global business.
In Project Management: Concepts, Methodologies, Tools, and Applications (pp. 2190-
2218). IGI Global.
Lewis, H., Gertsakis, J., Grant, T., Morelli, N. and Sweatman, A., 2017. Design+ environment:
a global guide to designing greener goods. Routledge.
Thanetsunthorn, N. and Wuthisatian, R., 2016. Current state of corporate governance: global
business and cultural analysis. Management Research Review.