Global Business Environment

This report explores the impact of the global business environment on Tesco, a British multinational groceries store. It includes an analysis of the external factors affecting Tesco's operations, such as political, economic, social, technological, legal, and environmental factors. The report also identifies the key drivers of change for Tesco.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
External environmental research.................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The global business environment depicts as the environment with various independent
countries including different factors for the home environment that tends to influence the
decision making on the resources for the effective use and capabilities (Manning, Kannothra and
Wissman‐Weber, 2017). Tesco is considered to carry forward the report which is the British
multinational groceries store and headquarter in Hertfordshire, England, UK. This report include
external environment research and also identify the key drivers of change.
MAIN BODY
External environmental research
PESTLE analysis is conducted, as it is used by marketers in terms of analysing and
monitoring the external factors that has major impact on the functioning and running of
company. The detailed analysis for Tesco is mentioned as underneath: Political: Tesco has the large presence in West Europe and has the severe impact of
COVID-19 in specific region because of stockpiling early and also driven sales for
grocers (Kasemsap, 2017). Along with this, Brexit put negative impact in terms of
enhancing the cost of raw materials for the food producers and other retailers undertaking
the various norms and conditions. Economical: As per this factor, labour cost is essential for economy as it has major
impact on the supermarket of UK. Along with this, after Brexit it tends to negatively
impact the overall economy as after this, there are various policies and norms that are
changed which is not much beneficial for company. Furthermore, it tends to increase
prices and cost and decrease its profitability (Čepel and et. al., 2018). Social: Tesco took various initiatives towards the social change and demand as customers
shopping trend was prominently changing on continuous basis. After COVID-19 tends to
change the current trends of company considering the purchasing of customers and
payment options by considering online payment and delivery method which is safe and
convenient for them. Technological: Tesco currently uses advanced technology that bring various new
opportunities as effective development and launch of online shopping tends to offer
effective facilities to deliver products at home. After COVID-19, it is important for Tesco

to opt self-service checkout which is convenient regarding the ease and comfort zone for
their potential customers that tends to eliminate labour cost and also for the safety as well
(Kaynak and Lee, 2018). Legal: By identifying the pandemic, there are various laws and regulations that are
strictly developed and imposed on retail industry including the safety and security, social
distancing, contactless delivery and so on. Moreover, Tesco also need to take care of
various factors like social distancing, health standards and entry of guests with mask and
so on.
 Environmental: Because of COVID-19, lockdown was imposed in various countries that
tends to stop factory working, travelling and eliminate pollution which positively impact
the overall environmental condition of world. Hence, Tesco tends to opt solar energy in
terms of saving energy and spread awareness for green factors (Głodowska, 2017).
CONCLUSION
Therefore, by considering the discussion it is identified that Tesco majorly suffers from
the impact of COVID-19 towards its performance and productivity. For this, PESTLE analysis is
conducted which is useful in identifying the risk factors, threats and weaknesses and also find out
prominent strategies to overcome from them.

REFERENCES
Books and Journals
Čepel, M and et. al., 2018. Business environment quality index in the SME segment. Journal of
Competitiveness.
Głodowska, A., 2017. Business Environment and Economic Growth in the European Union
Countries: What Can Be Explained for the Convergence?. Entrepreneurial Business
and Economics Review, 5(4), pp.189-204.
Kasemsap, K., 2017. Mastering entrepreneurship education in global business.
In Entrepreneurship: Concepts, Methodologies, Tools, and Applications (pp. 2013-
2040). IGI Global.
Kaynak, E. and Lee, K.H. eds., 2018. Global Business: Asia-Pacific Dimensions (Vol. 14).
Routledge.
Manning, S., Kannothra, C.G. and Wissman‐Weber, N.K., 2017. The strategic potential of
community‐based hybrid models: The case of global business services in Africa. Global
Strategy Journal, 7(1), pp.125-149.