Analysis of Tesco's Global Business Environment: SWOT and Impact

This report provides a comprehensive analysis of Tesco's global business environment. It begins with a SWOT analysis, evaluating the company's strengths, weaknesses, opportunities, and threats, including the impact of Brexit and the COVID-19 pandemic. The report then delves into an operational impact analysis, specifically focusing on the marketing and finance departments. It highlights the need for marketing strategy adjustments to address changing consumer behavior and the importance of sound financial management to mitigate risks and maintain cash flow. The conclusion emphasizes the need for Tesco to adapt to market uncertainties by focusing on its weaknesses, capitalizing on opportunities, and refining its strategies to ensure long-term survival and success. The report draws on academic sources to support its findings and recommendations.

GLOBAL BUSINESS
ENVIRONMENT

Contents
INTRODUCTION...........................................................................................................................3
Portfolio paper 2..............................................................................................................................3
SWOT Analysis of Tesco............................................................................................................3
Portfolio Paper 3..............................................................................................................................4
Operational Impact Analysis.......................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
This report is classifies information in two parts one with the SWOT analysis of Tesco and other
one in operational impact analysis. It also gives information about which of the departments of
the company has been harshly affected and which of them needs changes in their methods to
achieve growth in market (Tallman, Luo and Buckley, 2018).
Portfolio paper 2
SWOT Analysis of Tesco
Strength-
The company has highest revenue in UK than any of their competitors and they have
achieved 11 per cent growth last year. The company has maintained a good network with their
suppliers which help them to get raw materials at time in less rate which saves cost and helps tem
to order inventory as per their requirement which helps to eliminate the aspect of waste. With the
help of advancement in technology they are utilizing every aspect of it as they have launched
their own app for online orders and with the help of RFID system they are automatically
processing the shoppers.
Weakness-
The company was not successful in expanding their operations in countries such as US
and Japan because they were not able to expand their products at time which met failure and got
to huge losses. There was one more reason to their losses as they were in high credit card debt as
they were not successful enough to reduce the aspect of debt and increase their profits. They
even made errors in accounting and presented so that they can avoid tax for which they had to
fight lawsuits.
Opportunities-
The company is already serving in 14 markets but they still have much scope to enter into
those markets that are emerging and those that have the potential to increase their revenue even
more. The company has the option to get into partnership with their other competitors so that
they can improve their offerings and enter into other markets easily. This way they can claim the

opportunity of improving their customer service. Other than joining with big companies they are
starting to join and merge with local shop retailers so that they can grasp the market in depth
(Kokodey, Gnezdova and Lomachenko, 2018).
Threats-
Tesco is facing the threat of deal of Brexit as it has changed the rate of taxes and ways of
exporting their products which is making it difficult for them to maintain their structure of
pricing. This is because company has to export their goods to many countries which is getting
difficult after brexit. They are also facing difficulty in factors of economy such as rate of taxes,
credit, rules formed by government all of these are affecting the performance of the company.
Portfolio Paper 3
Operational Impact Analysis
Marketing-
Department of marketing have to change their strategies and methods in which they
conduct the program, sessions or schemes of promotion to attract people in order to get the
attention of people. Due to the threats of Brexit and Covid-19 marketing team of Tesco needs to
work on different approaches such as target people as per the demand which can make their work
easy. For instance currently almost everyone wants to stay at home and get everything and for
that marketers of the company can promote the online platforms of Tesco and make them aware
about their services so that do not lose business even at these uncertain or unpredictable times.
The weakness and threats of the company is affecting their business and in order for marketers to
remain safe from virus they can even use the strategy of digital marketing through which they
can market and promote their brand and services as this way they can remain safe and with the
help of this they can cover every market they serve in as this aspect has no reach.
Finance-
Due to their failures and the lawsuits filed against them they faced many backlash and
anything such as these affect the finance of the business directly which makes it difficult for
them to manage their cash flow. This makes it difficult for the managers to maintain the flow of

operations. It is important that company maintains their accounts in a better way and make no
attempts of frauds so that they can save their money. Apart from this many of the investors has
withdrawn their money from Tesco and it is getting difficult for them get new investors.
Ultimately they are facing difficulty in raising their funds from market which earlier was very
easy for them as everyone trusted them. It is necessary that management takes the help of
financial institutions or banks as at the time of Covid-19 and Brexit they need liquid cash as a
necessity because if they are not available then they won’t be able to pay off their suppliers for
the inventory they need to maintain. Also this may lead to their failure and will create difficulties
for their survival. It is important that they manage and raise cash and do not try anything illegal
which creates another case on them because even marketing requires funding and without
managing it appropriately they won’t be able to fund any of their department (Keivanpour, Ait
Kadi and Mascle, 2017).
CONCLUSION
From the above studies it has been concluded that Tesco needs to focus on their weakness and
threats they are facing and work with new approaches and methods to counter threat them so that
the survival of the company does not remain at risk even at the time of uncertain market. Also it
is important to evaluate the marketing strategies and financial aspects of the company so that
they are no errors from their side which may lead to losses.

REFERENCES
Books and Journal
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.
Kokodey, T., Gnezdova, I. and Lomachenko, T., 2018, October. Modeling the global business
environment based on polycyclic theory. In The International Science and Technology
Conference" FarEastСon" (pp. 487-499). Springer, Cham.
Tallman, S., Luo, Y. and Buckley, P.J., 2018. Business models in global competition. Global
Strategy Journal, 8(4), pp.517-535.