Impact of Global Business Environment on Business Functions

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
MAIN BODY...........................................................................................................................................3
SWOT analysis...................................................................................................................................3
Impact of business environment on business function.....................................................................4
Marketing..........................................................................................................................................4
HRM..................................................................................................................................................5
CONCLUSION.........................................................................................................................................6
REFERENCES..........................................................................................................................................7
Books & Journal:................................................................................................................................7

INTRODUCTION
In organisation, global business environment plays vital role because there external
and internal forces affects the business and structure at deep level. It is essential to focus on
such elements which slow down the growth of business and overall development. Tesco, a
leading supermarket which deals in variety of products and headquartered in UK. Due to
changing of industrial sector across the globe, it is becoming difficult to maintain uniformity
in business. This report includes impact of SWOT Analysis and their effects on
organisational functional areas. Managing global business environment is crucial because it
enhances the economy status of country through international trade.
MAIN BODY
SWOT analysis
It is tool which is used by organisation to determine and identify the factors which
affects it internally. In relation with Tesco, they are the global leader and it is not easy to do
international trade in proper manner. Through this framework, it becomes possible to deal
with challenges and issues which are being faced by firm in trade. Thus, this tool has been
discussed below-
Strengths Weakness
 Tesco deals in variety of products
such as groceries, apparels, etc. With
it’s diversify interest by converting
themselves into food retail to non-
food retail has benefited them at
higher level. This also leads to larger
market share growth. Because of
dispersed of their departments and
stores in different countries.
 Strength is that they are able with
their extension of product range they
are able to deal with substitutes and
alternatives of their product easily in
market (Tallman, 2018).
 Further they do also have loyal
customers because of which their base
is strong in the market and this also
 Profitability of Tesco is affected at
depth because of high debt from
financial institutions. This makes it
difficult for them to acquire resources
for their production.
 Then, there are many stores of Tesco
which are not performing properly
due to which their profit margin is
decreasing at rapid level (Kasemsap,
2018).
 Also, ethical issues are faced by
Tesco such as child labour, giving
less than minimum wage etc. This has
affected the marketing of their
product at larger level.
 Tesco rely on their vendors for their
raw materials of the product. This