Business Environment Analysis: Tesco, Mintzberg's Theory of Management, Corporate Responsibility and National Culture

INDIVIDUAL PROJECT

Contents
Part B Business Environment..........................................................................................................3
INTRODUCTION.......................................................................................................................3
Pestle Analysis of Tesco-.............................................................................................................3
Porter’s five forces.......................................................................................................................5
CONCLUSION............................................................................................................................6
Part A Management.........................................................................................................................6
INTRODUCTION.......................................................................................................................6
Describe Mintzberg’s theory of management. How does Mintzberg’s theory of management
roles complement that which identifies the tasks of management?.............................................6
CONCLUSION............................................................................................................................8
Part C Corporate Responsibility and National Culture....................................................................8
INTRODUCTION.......................................................................................................................8
Practices that organization uses to promote and monitor corporate responsibility.....................8
Identify two recent examples of corporate malpractice and two of philanthropic behavior.
What were their effects?..............................................................................................................9
Hofstede’s five dimension of national culture.............................................................................9
CONCLUSION..........................................................................................................................11

Part B Business Environment
INTRODUCTION
This task emphasizes on two methods and their effective use that is pestle analysis to undertake
the analysis of external environment so that on the basis of impact of the environment strategies
can be made and other than it porter’s five force analysis.
Pestle Analysis of Tesco-
Political Factors-
Tesco serves as one of the largest retailers in the market and that too in different
countries. It is necessary for the company to work under the regulations provided by the
government. This way they will be able to serve safely in the market. it is necessary to assess that
political factors are stable in a country because it helps the company to look after their trade. The
decision of Brexit has created a impact on the regulations which has affected the sales of the
company (Daft and Marcic, 2016).
Economic Factors-
The company needs to assess the economic environment as it will help them to know the
rate of success. It will help the company to comply with the policies of tax and on the basis of
that they take out their revenue. They have setup their stores in different countries still most of
the revenue collected is in UK. It is important that company keeps the prices of the products
stable as they deals in the line of products that are required on daily basis and if they increase
their price then their customers will get influenced. It must be noted that the prices of the product
needs to be as per the basis of inflation in the country.
Social Factors-
Tesco complies with the culture that is required in order to achieve their goals. There are
cultures and habits of people which states that it is necessary that needs of consumers are
achieved with first time. Tesco has even changed their model as now they deal in no food
products too which was major food products (Prajogo, 2016). The needs of people are influenced
by social factors. It is necessary that company offers wide range of products so that they can
meet with the level of needs of people of new generation. Even the choice of their products will

be on the basis of the culture they follow. The company has been successful in knowing their
needs on the basis of culture and that is to promote and offer promote organic goods so that they
can match with their needs.
Technological Factors-
These factors have helped the company to bring changes in their culture as it has
revolutionized the way of conducting the business and it is necessary for Tesco to keep up with
the pace of change. With the help of this factor it has been possible for the company to take their
business online and shift about 43 per cent of their customers to this. Also with the help of this
they have been able to cope up with the use of channels and promote the aspects of their business
online through which they are able to grasp the attention of people with no reach. Other than this
Tesco has partnered up with Amazon Go so that they can make and pay bills without the cashier
and this way they will be able to update the aspect of shopping on retail. This way the long
queues of billing will not exist anymore and it will save a lot of time of people.
Legal Factors-
These factors are concerned with the changes that are made by the government. It is
necessary for the company to follow all the laws and regulations so that they are allowed to serve
in their country. Difficulty is in managing the operations as they have to keep in mind the laws
and regulations of all the countries they serve in. Also there are many cases which are linked to
these factors which has affected the image of the company. There have been cases where it has
came to knowledge that the culture of work in the company is gender biased. Also a fraud was
committed by the company and in order to settle that case they had to pay $ 12 million. It is
necessary to work under the guidelines so that they do not have to loose their reputation (Fabuš,
2017).
Environmental Factors-
Company is putting a lot of efforts in order to preserve the environment and make the
aspects of the society more vulnerable. They are working on launching the initiatives through
which they can reuse, reduce and recycle the aspects. They are exploring the areas where they
can take the use of residual plastic so that they can reduce the level of waste that is lying on the