Impact of Global Business Environment on Tesco

global business environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Internal and external factors within business environment and key Drivers of change .............3
Ways in which key driver impact on HRM, Marketing, Finance, operation and R&D .............5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The global business environment can be defined as the environment within the different
resign or countries that directly affect to the companies operation and their business strategies.
Some of the internal and external forces impact on company so it is necessary for the business to
be aware of those forces.
This report will cover case study of Tesco plc which is British multinational company
who are operating their business in more than 6500 location globally. It is second largest
company in terms of collecting gross revenue every year, and they are selling products such as
grocery, financial services, assessors etc.
MAIN BODY
Internal and external factors within business environment and key Drivers of change
There are some internal and external factors within the business environment that has
huge impact on the strategies and operations of the Tesco company (Amankwah-Amoah., 2016).
It is necessary for the Tesco company leaders to be aware of those factors, so they can identify
the negative factors and convert them, into the opportunities for the Tesco.
PESTEL Analysis
Political Factor
Tesco is operating their business in different different countries which mean that they are
affect with various political environment Slovakia, Malaysia, China, Czech Republic, and others.
Tesco’s home market is the UK where political environment is stable though Brexit has created a
lot of uncertainty. A Brexit memorandum bring the negative impact on the company because
Europe counties increase their tax and tariffs which affect on their profitability. It is also an
drivers of change because this make Tesco to create new polices and regulation.
Economic
Economic factors such as Covid 19 which is not affect the companies but it also affect
on the salaries of the people and many people lose their jobs. Due to the lower wages and
salaries most of the Tesco customers shifted to the cheaper brand but Covid crises also decrease
the prices of the raw maternal which was an positive impact and company was able to provide
their prices on lower prices. This shows that the economic factors are change drivers for the
company because slow down in economy force company to decrease their [product prices.
Social