Global Business Environment

This document provides an overview of the global business environment and its impact on companies. It discusses the importance of various departments within an organization and explores the concept of SWOT analysis. The document also provides strategies to overcome challenges in the global business environment.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
SWOT Analysis...........................................................................................................................3
Importance of various departments within an organisation.........................................................5
CONCLUSION................................................................................................................................5

INTRODUCTION
Global business environment refers to the environment which includes various sovereign
countries including suitable factors towards the home environment of the company that
influences the decision making regarding the usage of resources and capabilities. In terms of this,
the below report is based on TESCO which is the supermarket store in UK and has various stores
in different countries including Europe and Asia. The report is going to cover the evaluation of
SWOT analysis and importance of various units in the company.
MAIN BODY
SWOT Analysis
It is the strategic planning framework or technique which is helpful for the company in
order to identify the probable strengths, weaknesses, opportunities and threats and also helps in
developing suitable strategies which is useful in overcoming threats and weaknesses (Barac and
et. al., 2016). In relation with this TOWS matrix is developed which is mentioned as under:
TOWS Matrix:
TESCO STRENGTHS WEAKNESSESS
OPPORTUNITIES  Brand image and reputation
 Strong ecosystem
 Diversification
 Decision making
THREATS  Technological advancement
 Customer needs
 Substitute products
 Political
uncertainties
Strengths/Opportunities: It depict the Rapid development of TESCO which is found in
the associations by consolidating its piece of the pie ascend to 12% because of roughly 1.1
million extra clients visiting their stores which portrays that its piece of the overall industry turns
into an open door for organization so as to expand its client base. In addition the meaning of
organization is valuable in giving practically identical quality that helps in driving brand at low
costs rather than some other contenders as its notoriety depicts and extraordinary contribution
that resounds inside the psyche of potential clients that prompts bring about opening their new
stores in 2017 according to the interest of clients (Kasemsap, 2018). Notwithstanding this

markdown store affix like TESCO will in general build up a solid environment that changes the
basic parameters of food retailing. It turns into an open door for organization as far as contending
with its rivals based on costs as its markdown factor add different components to it like
accommodation of shopping, various areas and low sitting tight an ideal opportunity for clients.
Strengths/Threats: By breaking down the innovative headway and improvement of
organization it is examined that organization right now utilizes refreshed and cutting edge
innovation inside the business which can become danger for its rivals regarding their endurance
as the advanced clients are pulled in towards the new advances that help in sparing the time. Also
the dealing intensity of providers is as of now expanding that prompts decline the quantity of
providers from the market which delineates that the expense of sources of info could improve for
TESCO. Notwithstanding this the every now and again changing contrasts and prerequisites of
clients put focus on organization to continually changed their items so as to meet the necessities
of clients as it prompts increment wastage of products. In the interim continuous changes will in
general acquire headway the working way of organization which helps in making progress in the
entire business condition.
Weaknesses/Opportunities: So as to adequately dispatch item in the Marketplace
Company of broadening methodology that can create hazard factor as far as making it’s
encouraging. In the mean time it can become open door for organization by leading legitimate
statistical surveying and information mining the entire condition and circumstance of market
with reasonable structures as it helps in disposing of hazard factor for organization and
improving its benefit (Lasserre, 2017). Notwithstanding this right now the authority of dynamic
of TESCO is in the hands of top level administration that will in general have constrained
proposals and conclusion to manage circumstance in the interim for this organization can include
Their workers just as it is valuable in getting new and one of a kind thoughts with respect to the
upgrade of organization and its turn of events.
Weaknesses/Threats: At present TESCO bargains in like manner items that are given by
different retailers just as it expands the odds of client changing starting with one brand then onto
the next brand and all things considered for the entire business in regards to the utilization of
current item is diminishes. Notwithstanding this the political strength is very uncertain due to the
effect of brexit and after this different new arrangements are created and numerous alterations
are finished with respect to the exchange strategies that impacts the retailing business as far as

sending out its products portfolio which can become danger for organization and aggravate its
endurance. As the uncertain political conditions become hindrance in business and handle the
general execution and cause the business to bring about pointless expenses (Hamilton and
Webster, 2018). The Strategies and approaches of the universal exchanging continue changing
and for this reasonable consistence are required by organization so as to offer its administrations
and work its business all inclusive.
Importance of various departments within an organisation
Marketing department: This department is important within an organisation in order to
promote and advertise the products within the market. In terms of this, the head of this
department develop suitable strategies in order to increase the sales of products within the market
and also consider various marketing factors like product, pricing, promotion and distribution.
Despite from this, marketing always become the strength for the company and try to reduce
negative impact by considering the threat. Away with this, TESCO use it as its strength by
modifying and improving its marketing strategies like penetration pricing and so on that can
overcome the weakness of marketing.
Human resource department: It is significant as it leads to hire the best candidates within
an organisation which is best for the smooth running and functioning of company. Moreover, it
is possible by considering various functions like recruitment, selection, training and
development, employees’ relations and many more (Tallman, Luo and Buckley, 2018). In terms
of this, TESCO use it as its strength by having and developing skills and knowledge of its
employees as it helps in eliminating risk factor from it. Moreover, it can become weakness for
TESCO if they do not offer suitable job security that leads to increase employee turnover and
absenteeism.
CONCLUSION
Therefore, by considering the preceding information, it is analysed that global business
environment is the sum total of both internal and external factors that influence the running and
functioning of the company. Apart from this, it also helps in analysing the risk factor which is
associated with all these elements and leads to develop prominent strategies to overcome and
eliminate risk factor.

REFERENCES
Books and Journals
Barac, Kand et. al., 2016. The capability and competency requirements of auditors in today's
complex global business environment.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Kasemsap, K., 2018. Mastering business process management and business intelligence in global
business. In Global Business Expansion: Concepts, Methodologies, Tools, and
Applications (pp. 76-96). IGI Global.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Tallman, S., Luo, Y. and Buckley, P.J., 2018. Business models in global competition. Global
Strategy Journal. 8(4). pp.517-535.