SWOT Analysis of TESCO in Global Business Environment

This report discusses the SWOT analysis of TESCO in the global business environment, assessing its strengths, weaknesses, opportunities, and threats. It also explores the impact of key drivers on the firm's functional areas, including human resources management and marketing function.

Global Business Environment

Executive summary
Global business environment is determined as the procedure in which the business
firm focuses on accomplishing goal as well as objective by boosting its profit. In this report,
the SWOT analysis of TESCO is discussed for assessing strength, weaknesses, threat and
opportunities of firm. In addition to this, the marketing as well as human resource department
plays an important role for success and growth of business organisation.

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
SWOT analysis...........................................................................................................................3
SWOT analysis of Tesco........................................................................................................3
Key drivers can impact firm’s functional areas.........................................................................4
Human resources management...............................................................................................5
Marketing function.................................................................................................................5
CONCLUSION..........................................................................................................................5
REFERENCES...........................................................................................................................6
Books and journals.................................................................................................................6

INTRODUCTION
Global business environment is considered as an environment in which there are
various activities and function in conducted in relation to business organisation. There is
different kind of factor which involves social, political and so on which helps in assess the
strength as well as weaknesses. This report is based on TESCO; it is the multinational firm
which is located in UK. This assignment provides discussion on SWOT analysis as well as
influences on different marketing and HRM functions (Berman and Dalzell-Payne, 2018).
MAIN BODY
SWOT analysis
SWOT Analysis is the tool which is adopted by supervisor for assessing micro
environmental factor which enforces profitability as well as sales influences the business
organisation.
SWOT Analyses of TESCO
There are various strength, opportunities, weaknesses as well as threat which impose direct
impact on performance level of organisation that is going to be mentioned below:
Strengths Weakness
 TESCO is multinational chain of
supermarket which provides superior
quality products and services to its
customer at affordable cost. It helps
them in retaining customer for longer
period of time (Chasdi, 2017).
 TESCO possess good supply chain
management can be considered as the
major strength for organisation.
 TESCO have good transportation
system that provides satisfaction to its
customer at marketplace.
 There are various competitive firm of
TESCO such as ALDI, Sainsbury’s
and many more which imposes
negative impact on productivity of
business organisation.
 It is necessary for business firm to
impose price according to its rival
firm. Thus, it enforces negative
influences on profit of company.
 There are many retail stores is not
performed well in several countries
can be determined as a weakness for
company.

Opportunities Threats
 Due to implementation of advanced
technology, it is possible for business
firm to provide innovative as well as
unique products and services to its
customer at affordable cost. It helps
them in maximize profit and sales in
future period of time.
 The major benefit for TESCO is to
start online shopping as well as home
delivery services for its customer
(Prakash and Barua, 2016).
 Economic downturn as well as credit
crunches can be considered as the
major threat for business
organisation.
 Due to increase in wage rate, it adds
extra cost to the products and services
of business organisation is the threat
for TESCO.
 Due to implementation of advanced
technology, it adds additional cost for
business firm at marketplace.
From the above mentioned topics, it has been analysed that there are different strength
and opportunities which manager tries to grab for increasing profit in future time period as
well as minimize the threat in order to get favourable outcomes.
Key drivers can impact firm’s functional areas
There are different type of functional area in which the strength as well as
opportunities which imposes both favourable and negative influences on specific area of firm.
In context of TESCO, there are two types of functional area which is going to be mentioned
below:
Human resources management
HR Manager plays an important role for success and growth of business organisation.
And it imposes direct impact on strength as well as weaknesses of firm at marketplace. The
HR professional perform different function and activities of organisation in an effective
manner. In addition to this, the appropriate management as well as superior pricing policy is
handling by human resource department (Kasemsap, 2011). They also focus on recruiting
capable and talented employees in order to increase productivity as well as efficiency level of
business firm. And also, they provide their cooperation in managing all department of

organisation. Therefore, it has been stated that, SWOT analyses also helps in hiring best
candidate according to the need and wants of firm. Thus, HR is important for growth as well
as development of business organisation. They also help in achieving goal and objective in
stipulated period of time.
Marketing function
Marketing is considered as a procedure in which the business firm focuses on
promoting the products as well as services in order to attract large number of customer at
marketplace. It helps them in maintaining good relationship with its customer. There are
different promotional tool such as advertising, publicity as well as sales promotion is used to
attract the ample of client in the market. The marketing manager makes effective strategy,
policies and procedures according to the strength of organisation as well as eliminating the
threat. For instance, TESCO use different promotional tool in order to promote the product,
thus, they consider all those limitations of US as well as Japan to gain favourable outcomes
without any wastage of resources (Keivanpour, Ait Kadi, and Mascle, 2017).
CONCLUSION
From the above mentioned report, it has been examined that SWOT analysis plays an
essential role for assessing internal environment of business firm. The manager takes
effective decision based on this framework which will be beneficial for organisation. Herein,
the manager focuses on handling different function in order to get favourable outcomes by
using resources in better way. SWOT is depending upon PESTLE analyses but there is the
difference among both is that PESTLE is used to identify external environment as well as
SWOT is adopted to assess internal environment at marketplace.

REFERENCES
Books and journals
Berman, S. and Dalzell-Payne, P., 2018. The interaction of strategy and technology in an era
of business re-invention. Strategy & Leadership.
Chasdi, R. J., 2017. Corporate Security Crossroads: Responding to Terrorism, Cyberthreats,
and Other Hazards in the Global Business Environment. ABC-CLIO.
Kasemsap, K., 2016. Fostering supply chain management in global business. In Handbook of
research on global supply chain management (pp. 45-71). IGI Global.
Keivanpour, S., Ait Kadi, D. and Mascle, C., 2017. End-of-life aircraft treatment in the
context of sustainable development, lean management, and global
business. International Journal of Sustainable Transportation, 11(5), pp.357-380.
Prakash, C. and Barua, M. K., 2016. A multi-criteria decision-making approach for
prioritizing reverse logistics adoption barriers under fuzzy environment: Case of
Indian electronics industry. Global Business Review, 17(5), pp.1107-1124.
APPENDIX
 Brief introduction of topic: Global business environment is considered as an
environment in which there are various activities and function in conducted in relation
to business organisation.
 Table of swot analysis: contain strength opportunities, threats as well as weaknesses
of TESCO.
 Key drivers can impact firm’s functional areas
A. Human resources management
B. Marketing function