Global Business Environment

This document provides an overview of the global business environment and its influence on strategies and tactics. It includes a SWOT analysis of Tesco and discusses the impact of key drivers on functional areas of business. The document also highlights the importance of evaluating the business environment to remain competitive.

Global Business
Environment
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Executive summary
For an organisation business environment plays very much important role to
build strategies and tactics in order to gain potential outcomes. Respective factors
influence on the business functions in both positive and negative way to remain always
competitive in marketplace.
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Table of Contents
Executive summary............................................................................................................2
INTRODUCTION...............................................................................................................4
MAIN BODY.......................................................................................................................4
SWOT analysis..........................................................................................................4
Impact of key drivers on functional areas of business..............................................5
CONCLUSION ..................................................................................................................7
REFERENCES..............................................................................................................................8
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INTRODUCTION
In a business firm, global business environment defined as the various external
forces that surrounds firm and influence their decisions making and operations. In that
regards organisation faces the unprecedented challenges and opportunities in social,
political and business environment. Respective report is based on Tesco which is a
multinational retailer of general merchandise in England. Respective report is based on
the CW 1 by evaluating PESTEL analysis determine the effects on the firms functional
areas and determine SWOT analysis.
MAIN BODY
SWOT analysis
SWOT analysis is one of the most important strategic planning technique
enables to an individual as well as organisation to identify strengths, weaknesses,
opportunities and threats related to business competition or planning of project (Atiku
and Fields, 2020). In context of Tesco their SWOT analysis are as follows:
Strength
The major strength of the Tesco that they
are leading grocery retailer and foremost
super market chain in the UK marketplace.
They have higher sales and revenue in
comparison to the other market chains in
British market. So respective factor proved
beneficial for organisation to enlarge
business opportunities in other market as
they possess distinctive identity.
By using the diversified marketing strategy
that proved beneficial to satisfy consumer
wants positively (Dabelko and Conca,
2019). They deals in clothing range, home
appliances, mobile phone business and
Weaknesses
The major weaknesses in front of
respective organisation that they charged
with fines due to misleading accounting
declaration of profits that lower down their
image in market.
Although Tesco is leader in the UK
marketplace, but due to the low cost
strategy they not able to gain high profit
margins.
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music downloads.
Opportunities
They always find out spheres to enlarge
business opportunities, as they recently
introduced Jacks which is a new discount
store that helps them to gain higher growth
opportunities. They have adequate funds
and brand identity so by using that they
easily open their stores in various nations
(Gray, 2019).
They possess the greater brand identity
they by focusing on the formulation of
strategic partnership with the other well
known organisations will proved the
excellent opportunity for Tesco to remain
competitive in marketplace.
Threats
The major threat in front of respective
organisation that due to the Brexit, the
trade deals and cost matters a lot for them.
So managing all affairs in effectual manner
is a fierce threat for respective
organisation.
They operating in the fierce competitive
world, with the rising growth and
performance of Walmart, carrefour and
Aldi which are biggest competitors. So
building a distinctive identity in
marketplace is a great threat for them.
Impact of key drivers on functional areas of business.
The common functional areas of business consist of the sales, marketing,
finance and accounting, customer service that are affected by both the internal and
external business environment (Hair Jr, Page and Brunsveld, 2019). So it is very
important for management to evaluate respective factors to overcome from the adverse
impacts of business environment. In context of Tesco they evaluate impact of key
drivers on two functional areas that are HRM and marketing.
Impact on HRM:
Brexit:
While Brexit takes place in the environment of UK the HR department not
prepared for the impact that it will have and already had (Klepac and Berg, 2019). HR
directors ordered to the teams to collect the necessary data and information by
undertaking scenario planning to give direction for attracting and retaining potential
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talent Post Brexit. So in context of Tesco's HR department they face problem of
decrease in no. of talented workforce that simultaneously decrease their profitability.
Various laws and regulations:
Tesco adopted the various kinds of laws and regulations that helps in better
functioning of business activities. By using employment, safety and national minimum
wages that provides discipline and positive work culture within the organisation. All rules
and regulations that are applied by them internally positively influence on their level of
productivity and profitability.
The another major functional area is marketing that helps to acknowledge
consumers taste and preference to reach them for providing better consumer
experiences to them (Trad and Kalpić, 2019). In context of Tesco with the help of
PESTEL analysis organisation evaluate the impact on their marketing activities that are
as follows:
Technological advancement:
Tesco always focus on using most technologically advance tools and techniques
that helps them to reach at large no. of consumer base by evaluating their needs and
wants properly. By using social media tools, visualisation effects they can be able to
market their products in most ease way. So technological advancement provides them
competitive advantage and enhance their level of profitability.
Investment in CSR activities:
In context of Tesco they pay attention on save the environment and also invest
their money on CSR activities. It helps them to build distinctive identity in minds of both
consumers and employees that positively affect on the employees productivity and
enhancement in no. of consumers. Therefore environmental factors proved very much
beneficial for marketing to market products and services profitably (Tran, 2019).
Consumers changing needs and demands:
In the competitive era the consumers are very demanding as they always want
innovations in the products. In that series marketing department responsible to satisfy
the emerging needs and wants (You and et.al.,2019). So it enhance their
competitiveness and more technical to compensate demand of consumers in most
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strategic manner. So respective factor enhance the no. of competitive people in
organisation that always dedicated to serve the consumers in best manner.
So all respective factors are very much potential for organisation as well as
individual to satisfy the consumers wants in most positive manner. So evaluation of all
factors is significant for organisation to behave strategically for gaining competitive
advantage.
CONCLUSION
From the above report it has been concluded that for an organisation it is very
much important to evaluate or examine the business environment to build strategies
and tactics. It is effective to analyse the internal and external factors and their effect on
the functional areas of business in order to remain competitive.
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REFERENCES
Books and journals:
Atiku, S.O. and Fields, Z., 2020. Multicultural orientations for 21st century global
leadership. In Multicultural Instructional Design: Concepts, Methodologies,
Tools, and Applications(pp. 1-24). IGI Global.
Dabelko, G.D. and Conca, K. eds., 2019. Green planet blues: Critical perspectives on
global environmental politics. Routledge.
Gray, D.E., 2019. Doing research in the business world. Sage Publications Limited.
Hair Jr, J.F., Page, M. and Brunsveld, N., 2019. Essentials of business research
methods. Routledge.
Klepac, G. and Berg, K.L., 2019. Proposal of analytical model for business problems
solving in big data environment. In Web Services: Concepts, Methodologies,
Tools, and Applications(pp. 618-638). IGI Global.
Trad, A. and Kalpić, D., 2019. The Business Transformation Framework and its
Business Engineering Law support for (e) transactions. In Advanced
Methodologies and Technologies in Business Operations and Management (pp.
230-246). IGI Global.
Tran, B., 2019. The next generation of leaders: Women in global leaderships in hotel
management industry. In Gender Economics: Breakthroughs in Research and
Practice (pp. 492-518). IGI Global.
You, K. and et.al., 2019. Bridging technology divide to improve business environment:
Insights from African nations. Journal of Business Research. 97. pp.268-280.
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