Global Business Environment: SWOT Analysis and Impact on Tesco Functional Areas

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
SWOT Analysis .........................................................................................................................1
Impact of key drivers on Tesco functional areas .......................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Global business environment encompasses the role of internal and external factors based
on which an organisation need to utilises their resources and capabilities in order to make the
viable decision. As the existence of uncontrollable and unavoidable factors can hamper the
business operations so the better classification of market condition helps to maintain the
favourable conditions. To better define the global environment topic Tesco company has been
selected which is the multinational retailer and has strong chain of physical store. They deals in
wide varieties of the necessity products, grocery item, electronics, furniture and so on. This
report cover topic like preparation of Pestle and SWOT analysis. Based on which the impact on
diverse functional area like Marketing and Human resource management are covered in the
report.
MAIN BODY
SWOT Analysis
SWOT analysis is the internal framework that can assist Tesco company to anticipate its
strength and weakness based on which it can gain core competency. Further, it helps to exploit
the untapped or uncovered opportunity by mitigating the chances of threat gained from the
existence of competitive rivalry.
Strength
 Tesco has the strong position in terms
of retail store because it has
successfully build the competitive
position by offering viable and
excellent shopping experience to
customer where they can find wide
varieties of alternative under one roof.
 The advantage of the economies of
scale helps the company to offer high
discounts on the commodities. Further,
the result of high footfall helps the
manager to invest in latest technology
Opportunity
 Optimum presence of company in the
digital media act as an opportunity
because the dependence on the e-
commercial and online shopping sites
are constantly increasing. So in the
upcoming duration the customer will
remain more keen to explore such sites
and leverage the advantage of home
delivery of items (Tukundane and et.al.,
2015).
 Further, the company can focus to
widespread their operations in the
1