Internal and External Factors: Impact on TESCO Plc

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Internal and external factors are those which the
company in their operation, in this there are various
external factors economy, politics, competitors and
customers are some uncontrollable factors which effect
the organization performance.
In this there are some internal factors which are staff,
company culture, finances and SWOT analysis (Gore,
Griffin and McNierney, 2016). This report is based on
the company TESCP Plc, it is the British Multinational
groceries and general merchandise retailer headquarter
in Welwyn Garden City, England. In this there is the
analysis of the external and internal factors that effect
the entity. There are some ways in which company
impact the external factors.
Economical factors- Economical factors means factor
which affect the economy are demand, expansion and
growth. In, TESCO Plc, through the high wages it give
impact to retail margins.
Social- social factors means size of the market, age,
population growth which is very important for the company.
In TESCO plc, there is the popularity of their grocery shop
through social media.
Technological factors- Technological factors means use of
the technology rapidly, in the TESCO plc, they use new
technology which satisfy every customer and increase their
revenue.
Impact of external environment
In the external environment there are various factors that
help in influence the company.
Economy- In the bad economy Tesco is not able to survive,
they cut the jobs.
Competition- In this Tesco is make such strategy to remain
in market.
Customers and suppliers- In this they have huge impact
cost and in the customers they are free to choose any shops.
So they have to maintain their brand image (Tolstoguzov
and Pitukhina, 2017).
Internal and external factors affect the business
In, internal factors there is the use of the Swot
analysis for the company and in the external factor there
is the use of the Pest analysis for the TESCO Plc.
SWOT analysis
Strength
They focus on innovation
product ranges and all
customer services.
They focus on technology
which is different from their
competitor.
Weakness
There is more job
costing.
Cost reduction also
overseas production.
Opportunity
They want to expand their
market in retail sector also.
They have to merge with
other company to get more
scope.
Threats
There is increasing
competition in retail
sector.
There is cybersecurity
threats.
Pest analysis
Pest analysis means external factors which effect
the company in their operation which is more competitive
to the market, there is the description of the Pest that give
impact on the TESCO PLC.
Political factors- political factors means government
regulation, rules and regulation of the government which
remain stable and there is the use of the employment
laws, environment laws and study of the tax policy. In
TESCO, they have Foreign direct investment in other
country (Meyer, 2016).
Internal and External factor
INTRODUCTION Marketing Mix