Global Business Environment

This document discusses the global business environment and its impact on Tesco, including a SWOT analysis, factors affecting functional areas like marketing and HRM, and the influence of technology and economics. It also provides study material and solved assignments on Desklib.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
TASK 1............................................................................................................................................1
SWOT ANALYSIS.....................................................................................................................1
TASK 2............................................................................................................................................2
Determine the factors that affect the functional areas ; ..............................................................2
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Global business environment refers to the environment of various countries which affect
the different or specific industry. This is determining the decision making on resources use and
abilities. This is show the quality of international trade and there are two types of business
environment one is internal and second is external environment (Hamilton and Webster, 2018).
The report below is based on Tesco , this company is retailing company founded in 1919 and
company have 8400 + outlets in different cities and countries. Tesco 's head office is in London,
united kingdom. The report below include the swot analysis, identify the external and internal
environment, impact of technological factor, political factor, economical factor on marketing and
HRM.
MAIN BODY
TASK 1
SWOT ANALYSIS
Swot analysis is planning of strategies tool which used to observe the strength ,
weakness,opportunities and threats in business and planning.
 Strength : The UK's political factor is stable but due to Brexit war there is many
changes in rules and regulations but company maintain their brand value in market in
effective way. The company's sales got affected but they manage with the use of
strategic planning. In company employees participation bis very strong , they provide
employment laws for employees satisfaction. In UK the product demand is very high of
Tesco's company so they maintain their productivity accordingly. Company use natural
resources as much as possible and dispose the waste in proper manner. Tesco has
advantages in internal environment for better growth (Hampden-Turner and
Trompenaars, 2020).
 Weakness : In Tesco company has issue with controlling quality of food, once they get
complaints about food they were selling chicken with partially digested feed although
company apologized for this mistake. Tesco has issue with food safety. Some times they
face challenges because of products shortage.
 Opportunities : Tesco pairing up with amazon company , this is great strategy for
increasing sales and productivity. Online or social marketing is great opportunity for
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Tesco company. The UK's government take lots of policies in environmental factor for
companies which can improve climate conditions of UK. Environment policies helps in
develop good brand image. Due to the corona virus unemployment rate is high in UK ,
Tesco offer job opportunity to people in various outlets. They provide beast quality
products at affordable rates. During lock down people can't visit stores so they take order
through online platforms it increase their sales and brand value (Jones, 2019).
 Threats : Due to Brexit war the united kingdom and European country has worst
relations, they changed their rules, regulations and trade policies. Brexit war affect 80%
of goods import sold in various stores. Both the countries restricted the goods at entry
points. This war affect the sales and productivity. other example is corona virus, people
can't visit stores so Tesco quickly shift to online services. But they not get proper
response from customers.
TASK 2
Determine the factors that affect the functional areas ;
Marketing : It refers to the advertising, selling, promoting services and goods in market,
it needs market research for better sales. In current scenario digital marketing is very popular
brands are promoting their products and providing services on different online channels. Tesco
promote their products on online platform and provide online services to customers.
 Technology factor : Tesco pairing with amazon company, this is great decision for
company it increasing sales, productivity and profitability day by day. Company promote
their products on digitally. This factor makes easy process for customers and Tesco's
staff. Customers can give order on online they can see product rating, offers, price and
delivery timing, also use online payment options. For company it is easy to maintain
records of products and customers information and provide them better services, get
payment on time. Tesco have feedback option for improving their services according to
customers needs . Company's staff take feedback through email or application. But some
times customers not like product price and rating then it give negative impact on
customers.
 Economical factor : Due to corona virus UK'S economical condition is on worst level,
this affect the sales of Tesco company. But company manage all things they shift to
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online services through application. Tesco providing products and services to customers
on their doorstep. They make great strategic planning for growth their promotion
activities high in number. But some times there is lack planning it affect the sales and
profitability.
HRM : Human resource management is exercise of managing people in organisation for
improving performance and growth. It include the process of recruiting,selecting, providing
induction or orientation, training, develop their skills, allot work to them, giving benefits,
motivate them and maintain proper relations in an organisation.
 Technology factor : Tesco company have great technology. Company recruiting
employees through online platform , for HR department it is easy process using digital
platform (Kokodey, Gnezdova and Lomachenko, 2018). They maintain records of goods,
service and other information easily, in current scenario it is easy process there is no need
of paper work every thing is done through online application. Tesco company offer job to
people on their own application and providing training also but some times company hire
unskilled employees so this affect on performance, brand image and relations with
customers.
 Economical factor : Due to corona virus unemployment rate is high but Tesco offer job
to people in different outlets. But due to less sales and productivity employees received
proper salary amount this affect on performance of employees also. This factor affect in
positive and negative both manner.
CONCLUSION
It is concluded that business environment is important factor in every country. It is
helpful for determine the external and internal environment for better performance and growth.
company use various techniques for increasing sales. They use various technologies for
providing better services to customers and it increase brand value. Company needs to analyse
market trends and develop strategies accordingly. Swot analyse internal and external factors that
affect the company in positive manner as well as in negative manner. The technological and
economical factors affect the marketing and HRM in positive and negative way.
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REFERENCES
Books and Journals
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hampden-Turner, C. and Trompenaars, F., 2020. Riding the waves of culture: Understanding
diversity in global business. Hachette UK.
Jones, G., 2019. Origins and development of global business.
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.
Online
Tesco swot analysis. 2020 . [Online] Available through: <https://pestleanalysis.com/tesco-swot-
analysis/>./
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