Evaluation of Business Environment of TESCO

Global Business
Environment

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Portfolio Paper 2: Swot analysis in relation to business environment:.......................................1
Portfolio Paper 3: Operational Impact analysis:.........................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
Business Environment consists of factors that influence performance of company, it can
be internal or external. It is an collection of various forces that have huge impact on survival of
business as well as its profitability and growth opportunities (Dima, Dima and Mahagaonkar,
2018). Basis of this report is evaluation of business environment of TESCO. This organization
has it headquarter in UK and its operates in retail sector. Foundation year of company is 1919
and founder is Jack Cohen.
MAIN BODY
Portfolio Paper 2: Swot analysis in relation to business environment:
Swot analysis is an internal evaluation technique that is utilised by companies for
enhancing their strategy making capacity. It addresses the pros and cons of working of an
organization, which helps in development of business and achievement of its targets (Kannan
and Miah, 2019). Hence, Swot analysis serves a source of strategic planning for TESCO. It helps
firm to align internal business environment with goals of an enterprise. Following is the Swot
analysis of an entity:
STRENGTHS WEAKNESSES
 Constant innovations and invention is
TESCO serves as a strength for firm.
 Company excels in retail sector and
hence, is a market leader.
 Upholds cost effectiveness as due to
highly expert team of management,
which enhances profitability of
company.
 Its operations are highly dependent on
UK.
 Firm faces food safety issues as
customers complaints about lapping
adherence to safety guidelines provided
by government in relation to food.
 Inventory management policies of
TESCO is not appropriate.
OPPORTUNITIES THREATS
 There are various untapped areas which
firm can target.
 TESCO can incorporate strategic
alliance with other companies for
 Increasing number of competitors are
increasing competitive threat of
TESCO.
 Rising prices of food leads to reduction
1