Impact of Global Business Environment on Tesco

Global Business
Environment

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
SWOT Analysis ..............................................................................................................................3
Operation impact analysis................................................................................................................4
CONCLUSION....................................................................................................................................6
REFERENCES.....................................................................................................................................7
Books & Journal:.............................................................................................................................7

INTRODUCTION
Business environment has deep impact on overall structure of enterprise at wider scale.
Global business environment refers to environment in different countries that impact upon home
environment of country (Carrillo-Higueras, 2018). Tesco, a multinational supermarket
headquartered in U.K. Firm deals in daily consumable items, goods & services such as groceries
products etc. Main aim of this report is to understand impact of global environment on enterprise.
MAIN BODY
SWOT Analysis
It refers to type of tool which is used by entity to examine or analyse their internal
capabilities through accessing to their strength weakness, opportunity & threat (Chang, 2016). It is a
time consuming process which require deep level of market information & sources. In relevance of
Tesco, they also use this tool which is further discussed below-
Strength
 Main strength of Tesco is that it is
located globally & run its operations
worldwide which reflects their strong
base (Civelek, 2016).
 Another strength is it has wide range of
product portfolio which reflects it strong
customer base.
 Then, it is functionally strong & it is
easy for them to access to resources at
larger scale.
Weakness
 Main weakness of ,Tesco is that due to
impact of Brexit it is difficult for them to
expand their business at many countries.
 Due to increase of labour and workers
wages, the overall cost structure is
getting affected which reflects their weak
HR policies.
Opportunity
 Tesco has wide opportunity of merging
up with other brand sin many countries
on basis of which they can enlarge their
business activities.
 Further opportunity is to enter into many
more Asian countries though using
market entry such as franchising,
licensing etc.
Threat
 The EU & UK relation can affect the free
trade agreement which is biggest threat
for firm.
 Another threat is that due to this
pandemic situations of COVUID 19 they
might decrease their profitability & sales
revenue.