Internal and External Factors Impact on Tesco

INTERNAL AND EXTERNAL FACTORSINTERNAL AND EXTERNAL FACTORS
INTRODUCTION
The internal factors refers to anything within the organization which are under the control of the company without affecting that whether it is tangible or intangible in
nature. These factors include strengths and weaknesses of the organization (Rosen, C., 2020). While on the other hand external factors are those who influences
situation that a business can never control and affect business decisions prepared by business owners as well as stakeholders. This poster will highlight the concept of
internal and external factors impact on Tesco and different ways through which business can impact external environment.Internal and external analysis of TESCO
Tesco is one of the most successful grocery stores dealing in
retailing food items in the world. Company operating in 2678
stores all around the world and offer employment to various
candidates nearly approximately 327,000 people (Gupta, B.,
2018). The internal analysis describes the detailed evaluation
internal SWOT analysis of the firm which states that the factors
are within the control of the organization while on the other hand
external factors describes with the help of PESTLE analysis
which are out if the control of the establishment. Below are the
detailed evaluations of SWOT as well as PESTLE analysis:
Strengths
•Huge network of retail store makes shopping activity
convenient for consumers: Large number of company stores
helps the Tesco in order to reach out large number of consumers
and which creates good image of the firm within the market
space or among the consumers which also recommends the
establishment to enhance their shopping network. With the
involvement of effective distribution network by the Tesco, the
company is able to create an effective image within the outside
environment.
•Offer flexible methods of payment: In order to moving forward
in the direction of providing cashless facilities to their
consumers Tesco offer various payment options to their
customers in order to satisfy their needs as well as requirements
in highly detailed manner. The company offer digital wallet
facility and a new contactless club card to provide consumers a
quick and convenient way to pay at checkout.
Internal and external analysis of TESCO
Tesco is one of the most successful grocery stores dealing in
retailing food items in the world. Company operating in 2678
stores all around the world and offer employment to various
candidates nearly approximately 327,000 people (Gupta, B.,
2018). The internal analysis describes the detailed evaluation
internal SWOT analysis of the firm which states that the factors
are within the control of the organization while on the other hand
external factors describes with the help of PESTLE analysis
which are out if the control of the establishment. Below are the
detailed evaluations of SWOT as well as PESTLE analysis:
Strengths
•Huge network of retail store makes shopping activity
convenient for consumers: Large number of company stores
helps the Tesco in order to reach out large number of consumers
and which creates good image of the firm within the market
space or among the consumers which also recommends the
establishment to enhance their shopping network. With the
involvement of effective distribution network by the Tesco, the
company is able to create an effective image within the outside
environment.
•Offer flexible methods of payment: In order to moving forward
in the direction of providing cashless facilities to their
consumers Tesco offer various payment options to their
customers in order to satisfy their needs as well as requirements
in highly detailed manner. The company offer digital wallet
facility and a new contactless club card to provide consumers a
quick and convenient way to pay at checkout.•Private labels brand products give their consumers a cheaper choice: Self produced brand
products has been offered by the Tesco helps them to adopt the strategy which is offering of
goods and services at cheaper cost to the consumers but with good and efficient quality
products. It becomes possible for the firm because if their own produced brand goods and
services. Tesco also have contracted numerous brands to produce their goods but distribute
them under their own named roof. With the help of adopting this strategy, Tesco is able to
increase customer loyalty.
•Private labels brand products give their consumers a cheaper choice: Self produced brand
products has been offered by the Tesco helps them to adopt the strategy which is offering of
goods and services at cheaper cost to the consumers but with good and efficient quality
products. It becomes possible for the firm because if their own produced brand goods and
services. Tesco also have contracted numerous brands to produce their goods but distribute
them under their own named roof. With the help of adopting this strategy, Tesco is able to
increase customer loyalty.Weaknesses
•Participating in various retail activities: Tesco tries
their maximum to provide various kind of services to
the customers in order to satisfy their needs but those
business only contributed to an increased number of
head offices as well as jobs rather than providing results
in the favour of the firm highly affects the brand image
within the market space (Woodward, R., 2019).
•Lack of innovation leads to cost cutting: It has been
utilized as a main strategy by Tesco but due to
struggling for increase sales and profit margin of the
firm, the culture of the company does not encourage the
establishment and finding new ways to grow the
business. However, cost cutting is not a sustainable
strategy since the company can only cut down so much
until it backfires.
Weaknesses
•Participating in various retail activities: Tesco tries
their maximum to provide various kind of services to
the customers in order to satisfy their needs but those
business only contributed to an increased number of
head offices as well as jobs rather than providing results
in the favour of the firm highly affects the brand image
within the market space (Woodward, R., 2019).
•Lack of innovation leads to cost cutting: It has been
utilized as a main strategy by Tesco but due to
struggling for increase sales and profit margin of the
firm, the culture of the company does not encourage the
establishment and finding new ways to grow the
business. However, cost cutting is not a sustainable
strategy since the company can only cut down so much
until it backfires.