Micro and Macro Environmental Factors of Tesco

Added on - Nov 2020

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Context of business(Essay and
report)
Table of Contents
INTRODUCTION...........................................................................................................................1
PROJECT 1......................................................................................................................................1
Presenting micro and macro environmental factor that change the modern business............1
Importance of individual and organisation to manage and behave ethically.......................3
PROJECT 2......................................................................................................................................4
1 Brief history and summary of the business.........................................................................4
2 Leadership styles, management practices and another theories and strategies...................5
3 Implement and development strategies and theories at organisation..................................8
4 Recommendation and improvement....................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
INTRODUCTION
A business can be defined as an organisation where goods and services are exchanged in
order to earn money. This report is divided into 2 parts. First part covers and shows the dynamic
changes and nature of the company about global business. It operates worldwide and provides
services to their customers. It also includes external and internal factors that affect the company's
process and activities. The second part is based on retail sector company which is Tesco. It is
groceries retailer company whose headquarter is in UK with over 3000 outlets. It operates and
provides worldwide services to its customers (Evans and Mason, 2018). It wants to expand and
develop its business. This study covers and will show about leadership and management
strategies and practices through different theories that help the company in order to achieve their
goals. It also help them in effective leading and management for their employees.
PROJECT 1
Presenting micro and macro environmental factor that change the modern business
Micro factor:This factor affect the business innegative way as well as positivebecause
the company is operating in different size, capacity and financial resources. These factors are as
mentioned below:
Customers:Customers are the central part of a business because they help to generate
revenue. Therefore, M&S adopt strategies which help it in attracting the customers from
analysing the need and wants of the customers and later providing the best services to them.
(Avelar-Sosa, García-Alcaraz and Maldonado-Macías, 2019).The firmalso creates the positive
impact upon the modern business. For example, Marks and Spencer is operating in a retail
industry in which the organisation always creates new and innovative products for their
customers by analysing their needs. This creates positive impact upon the firm by maximizing its
profitability.
Employees:It has been analysed that a skilled employee helps an organization to achieve
the company's goals and this begins with the hiring process and also continue through regular
and timely training and development sessions.For example,TESCO is having skilled labours to
raise the productivity of the business and on the other side, it is also schedules its training
sessions for better performances (Macro factors, 2014).
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Macro Factors:The firm iseffected by external factor as well, in which it does not have
any control. These factors are mentioned below:
Political factor:The political environment of the country affect the business in negative
way as well as positive way and also change the nature of modern business in global context. It
is directly related to political situation of the company and the environment. Along with it, it is
depended upon the political beliefs and ideologies of the party in power of the state such that if
the government raise the tax rates then it creates pressure upon the business and the cost of the
product will be higher. In this way it tends to create negative impact on the organisation.
(Marandu, 2015).
Legal factor:Rules, laws, regulation affect the functioning of the business on a large
scale. Such factor creates both positive and negative impact upon business such that as the
taxation laws and budget may varies year after year then it affects the business negative way.
While on the other side, stable government laws also helps for smooth functioning of a business.
Ecology and physical Factor:For production and manufacturing company, this factor
affect the business a lot. For instance, change in physical environment also started affecting the
rainfall in certain regions, thus it directly affects the raw material and directly affect the overall
production level of a retail industry. On the other side, if the nature is positive then it helps the
business for smooth functioning as well.
Social factor:this factor affect the business when the social environment changes, such
change in the customer shift affect the business performance in negative way while on the other
side, the firm keep providing the products after analysing the needs of their customers and
creates positive impact in order to raise profitability. (Appelbaum and et.al., 2015).
Technological Factor:Technology is constantly changes and it is quite necessary for the
business to keep cope up with these changes. For example, Sainsburry is also adopting new
smart application for their customers to save cost and minimize times. The global updates in the
technology has become essential for the organisation to adopt them because these updates are the
necessary ones in maintaining required growth and advantage. s
Economical Factor:The economic condition of the country and the performance of a
business have close relationship and when there is a fluctuation the economy of the country. It
directly affects the business performance in negative. On the other side, the stable economy of
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