Macro Environment Analysis of Tesco in the Global Business Environment

Global Business
Environment

Macro environment analysis:
External environment analysis is based on analysing the different factors that may affect the
functioning of organisation. There are many different scenarios that can possess an impact on the
overall functioning of business organisations. Presently there is an analysis of retail sector
industry that is Tesco in context of various factors affecting its present functioning.
Political factors: Tesco is having its headquarters in United Kingdom and their operating
across various countries. It is one of the largest retail brands in the world and has to follow
regulations to ensure safety and compliance of the products (Vincent, Alihodzic and Gale,
2021). The brexit scenario has led to political instability that is affecting information of new
regulations that may increase or decrease the same in coming time period.
Economic factors: Tesco encompasses a range of products and economic factors that are
affecting the present functioning of business. There are many factors that include revenue
distribution profit the organisation must be aware of taxation policies that has changed in UK
recently. The present covid-19 virus has also affected the reduction in personal disposable
income of people which has led to more focus on necessity products.
Social factors: there are some of the social preferences of the people that have changed
recently. It includes the societal and social influences that have lead to changing culture. The
present covid-19 virus has led to people focusing on more online purchasing of products (Pollock
and Edwards, 2019). There has been a complete shift towards development of online delivery
facilities and Tesco is working to enhance their supply chain management process.
Technological factors: there are many technological trends that are affecting the present
scenario of retail sector. Tesco is experimenting with different aspects of retaining and has
achieved some success in endeavour (Sasaki and et.al., 2018). This brand has managed to shift
the trends of shopping online with large segment of customers who are willing to get the
products delivered at safety and security of their home in the covid-19 pandemic situation. There
is also creation of new technology revolution analyse the way retail shopping is undertaken.
Legal factors: there are been changes in government policies that is affecting directly the
operations of organisation. It includes food retailing commission focusing on lying down of