Global Business Environment

Global Business Environment

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3

INTRODUCTION
Global business environment is defined as set of all the countries environment which
globally influence an organisation and their operations throughout their decision making. The
analysis of global environment is helpful for the businesses in order to recognise market
competencies and opportunities (Amran, Lee and Devi, 2014). The company taken in this report
is Tesco, which is a British multinational grocery store having headquarter in UK and operates in
13 countries globally.
TASK
PESTLE Analysis:
PESTLE is a framework through which macro environmental factors are analysed in
order to recognise opportunities and to perform strategic management. The PESTLE analysis of
Tesco is as under:
Political factors: Political factors includes tax policy, country's fiscal policy and trade tariffs on
import and export which impacts the operations of businesses. For Tesco this factor is providing
opportunities as well threats, which are mentioned as below:
Opportunities: As due to Brexit the major sector which is affected is grocery sector. Due
to which EU suppliers or food manufacture have ceased to supply their products in British
market which is providing opportunities to Tesco in promoting British grocery items in their
store (Dubihlela and Sandada, 2014)
Threats: As the British grocery items are comparatively expensive so this may create
threat for Tesco, as expensive items are purchased by a particular segment of population.
Economic factors: These factors including buying power of public, GDP, economic
growth rate and so forth. As in context of Tesco this factor is obtaining the following
opportunities and threats: