Desklib - Online Library for Study Material with Solved Assignments, Essays, Dissertations

Desklib is an online library for study material with solved assignments, essays, dissertations, and more. It offers a wide range of products for various subjects and courses. The organization aims to provide quality service and products at a low cost. It follows the marketing mix 4Ps to provide competitive pricing and accessible locations. Desklib has a strong presence in the market and operates in an oligopoly market structure. It has various internal and external stakeholders that have a significant impact on the organization. The organization has performed well in the business environment and has developed better profits in the industry.

UNDERSTANDING THE
BUSINESS ENVIRONMENT

Table of Contents
TASK ONE......................................................................................................................................3
TASK TWO.....................................................................................................................................4
TASK THREE.................................................................................................................................5
TASK FOUR...................................................................................................................................9
REFERENCES..............................................................................................................................11

TASK ONE
Tesco is the multinational grocery retailer and belongs to retail industry, it carried out the
business through multi format store and online. The headquartered is situated in Welwyn Garden
City, London. It has several stores in various formats with differentiate size and structure with
wide range of products. It also offers foods and non-food products which includes all the grocery
items for daily needs. Apart from this it provides the finance related service such as retail
banking, consultancy, insurance via Tesco bank in UK. The organization has the presence across
Europe and UK (Betti and Sarens, 2020).
Tesco is the huge company and its legal structure help to ensure the business is operating
properly, Tesco is the public limited company and the legal service deal with business legal
matter with whom the company has to deal with it. The culture of organization is to provide the
goods and products to customers which is the groceries, food, drink etc. it has also introduced the
clothing and electronics with the purpose of gaining the valuable customer and providing them
better service. Tesco has Corporate Governance legal structure and people in such sector deal
with shareholders for making sure the company is getting toward their strategies which
shareholder want to meet them with business objectives. For community organization takes over
responsibility to ensure by reducing the use of carbon footprint which mean they minimum the
amount of using carbon dioxide.
The main aim of Tesco is to become the leading retailing supermarket as well as
providing the quality service and product at low cost. They want to retain loyal people as well as
form value for customer to earn lifetime loyalty. By such objectives they follow the marketing
mix 4Ps which is split under four aspects. In the case of pricing they provide the competitive
pricing which can be easily affordable by the customer and provide the competition in market.
While placing the product to accessible locations to enhance their service and reach to more
valuable customers (Nashiruddin, 2018). For Public, the company thinks for them in most
favourable terms and product they provide the high range of product differs from store to store at
several locations.
The market structure of Tesco is Oligopoly, it is the structure with small amount of firms
in which no one can prevent other from having significant influence in industry. Oligopoly is
likely to have kinked demand curve and the market share of company in the retail industry used
to determine the concentration ratio. The features of this market structure is interdependence,

exploitative relation of supermarket and suppliers, barriers of entity, non price competition, price
fixing etc. the advantage of this structure to Tesco would be, it is highly competitive strategy
which generates similar benefits to be more competitive. Firms who make market uncompetitive
there is highly competitive. It is efficient in terms of innovation as well as new product and
process development. Pricing stability forms the benefits to consumers and macro economy as it
helps customers to plan ahead and stabilize the financial loss which help to strengthen the trade
cycle. Tesco enhance their competitive advantages than other companies as it have powerful
company in its own brand marketing whereas many companies think they should sell the brand
before selling out the product (Negro and Mesia, 2019). The organization is bale to control its
operating cost by the cost leadership, so it enables to price their product competitively and
generate high profit margins.
TASK TWO
Stakeholder is referred as an individual, organization or a group who are influenced by
the output of a business or a project. The stakeholders may have a direct or indirect impact on the
decision making process of an organization. They may provide adequate support to the
organization in order to ensure their success in the business. A business may keep their
stakeholders updated about the different aspects of the company which can increase their
relationship and have a positive impact on the sustainability of the business.
A shareholder is considered as a person or an organization that holds stocks in a company
which makes a partial owner of the business (Huma and Ahmed, 2022). These shareholders
receive a significant amount of dividend after a company performs well and succeeds in the
business environment. They may not share the debts and financial obligations which are incurred
by the company which is a major advantage of being a share holder. They have an appropriate
role in the decision making process and the right to vote in crucial meetings of the organizations.
The stakeholder analysis is considered as the process of identifying the major
stakeholders of the organization which has a significant impact on the business. The process may
involve the level of contribution, influence and interest of the stakeholders on the project in order
to evaluate their viability towards the project. This is helpful in order to establish better
communication between the organization and the major stakeholders of the business. It is the
process of identifying, addressing and prioritizing people who have an effect or are affected by

the business. The stakeholder analysis is beneficial for an organization to increase reduce the
negative impact of potential issues that may frequently arise for the business in the industry.
Tesco is one of the most popular retail organizations in the UK market which has various
internal and external stakeholders that have a significant impact on the organization. The major
internal stakeholders of the business are its managers, employees, executive committee and
shareholders which have an influence over the decision making process of the business. The
organization may have highly potential executives from different parts of the world which helps
in increasing the quality of work for the organization (Luo, and et.al., 2021). There are different
stakeholders in the Tesco's board such as the chairman, chief financial officer, executive, etc.
which have a powerful impact on the crucial decisions of the company. These key stakeholders
may be analysed with the help of stakeholder analysis which is beneficial for the business to
prepare effective strategies and increase their satisfaction levels.
The external stakeholders are the suppliers, customers, creditors, competitors,
government etc. which may be responsible for changes in the policies and procedures of the
organization. The customer base of the business is huge and it is one of the most important factor
which affects the decision making of the business. The organization operates in a highly
competitive environment where the major competitors such as Sainsbury's ASDA etc. may
influence the market share of the business in the retail industry. The government may have an
important role as the rules and regulation imposed by it can have a major effect on the business.
The needs and preferences of these stakeholders may be given due consideration by the
management of Tesco in order to improve their relationship with the business. This can increase
the quality of output for the organization and increase its growth opportunities in the industry.
With the help of this stakeholder analysis the business may be able to improve their stability and
gain enhanced output in the sector.
TASK THREE
PESTEL Analysis of HSBC
The importance of organization for analysing the business environment is to identify the
potential influence of some aspects such as political, economic, technological, natural,
international environments. The operating environment of the company are its suppliers,
competitors, suppliers and public. The analysis carry out report and examine the information for

factors and outside conditions of business. This observes the all aspects such as trends, new
technology, culture and the factors affecting the environment which is important to consider by
organization (Baliyan, 2021).
Political Factors
While operating worldwide the political factors influences the performance of the
company which involves taxation, act of legislation and stability of country in which it operates.
HSBC plays part in creation of employment opportunities which increase in demand for product
and enhance the diversity of the workforce as well. Whereas being one of the major retailer in
world, organization must follow several regulations to ensure about the safety of their products.
Overall operating in different countries also it is important to consider changing political
circumstance.
Economic Factors
Company should keep an eye on the economic changes which appears in operating
country ans such aspect effect the revenue, distribution as well as sales and profit. It is important
factor to look for the taxation policy as they are likely to leverage cost, profit and prices. It is
important to measure business is growing internationally (Rosnizam and et.al., 2020).
Social Factors
By the variety of social changes the trends indicate the customers in UK are moved
forward to the online banking and UPI payments. HSBC increased the use of these aspects and
offers for providing better banking services to the customers for influencing the beliefs and
attitudes. With proper planning and facilitating the requirements of financial information
demanded by the customers is dependent on social influence.
Technological Factors
The technological aspect are important as the new modern technology ease to make the
service easy and helps the company to make their growth by adopting such methods. There are
several aspects of banking sector which experimented and provide success in some endeavours.
The technology has bought many opportunities for HSBC, first it is development and
introduction to online banking with facility of door to door banking services. Secondly, advanced
machines improved the convenience to the customers which also have reduced the labour cost.
Environmental Factors

HSBC has implemented phase of Remove, Recycle, reduce and reuse plan by
undertaking the initiative of removing all the non-recyclable plastic to lower level. Also, it is
totally committed to reducing carbon footprint and minimizing waste being produced in stores by
enhancing social moral in customers.
Legal Factors
Government policies are linked with impact on the performance of HSBC, the change in
policy impact to the operations of company. It needs to followed by lock and international
market for continuing their operations smoothly. Thus, it also provides the customer price
reduction on the offers they purchase as well as the amount spent on banking services. There are
also various promotions reward where prices are lowered (Merritt and Zhao, 2021).
Porter's five force of HSBC
It aims to identify the impact of five forces such as supplier power, buying power,
competitive rivalry, threat of new entrants., and threat of substitutes over company which deals
in supermarket industry. Whereas HSBC is the market leader of UK and deals in number of
countries.
Bargaining power of customers
The company provide service to millions of customers on local and online basis, buying
power of banking services is high as they make use of this in their daily life. There are several
competitor bankers in market such as Commerzbank compete for same customer and in
comparison with HSBC some other retailer are cheaper than it. The company may maintain the
competitive price range and provide the financial services at cheaper price so people will more
likely to consider their business rather than shifting to other competitors (Adelakun, 2020).
Bargaining power of supplier
Suppliers have less bargaining power in the case of products offering of HSBC, switching
to the different supplier is not a big deal for the business. The negotiation power appear at bank
only where they have upper hand in concluding deal by deciding the final price. With availability
of multiple supplier it enables retailer to select the product by vendor with the lowest price.
Threat of new entrants
One of the major factors can affect the operations of HSBC is threat of new entrants in
marketplace. For such situations setting up the store and starting operations demands amount of
capital requirements. The existing player in the culture may come up with own economy of scale

operations as well as discounts. But for new player it will be difficulty in providing the offers
and discounts on their products. Thus, threat of entrants is weak force for HSBC.
Threat of substitutes
There are lot of product which can substitute the actual product whereas the product
HSBC is selling are supposed to meet the basic needs. Threat of substitute is minimum,the
company offers banking and financial services. Such services are replenished on constant basis
in banks at the time of shortages, also pricing is important. If the competitor offer better pricing
of services people might pay attention to buying tanking service from them as they cater daily
needs of people (Bentham, 2018). The threat of substitute will intermediate external force
affecting its overall operations.
Competitive rivalry
The sector in which entity is operating have intense competition from various bankers
such as Commerzbank, Standard Chartered, Lloyds Banking Group etc. these firms are strong
with their supply chains and logistic networks which bring different from one another and offer
similar services with almost same prices. Every company try to position itself in unique manner
as compare to their competitors by diverse marketing strategy. The new strategies company will
try to implement it will always be replicated by competitors.
Internationally HSBC business is growing immensely and expected to contribute towards
profits. The market environment bring competition for the organization as it seems from the five
force that competitive rivalry is high for company in which they can build sustainable
differentiation and scale to compete in better terms. On the national and international basis they
can collaborate with competitor to improve the market size rather than competing in the small
basis. One International levels making relation with competitors will be more beneficial and the
demand of their production will also increase. Also, it engages them with supplier of competitor
as well. They can identify the game change trends early on and respond to effort in emerging
opportunity, manger can shape those forces in their favour (Monte, 2021).

TASK FOUR
The key performance indicators in the annual report of the organization depicts that the
business is profitable and is among one of the most benefited organizations in the industry. It
reflects that the short-term and long-term performances of the business have been better than the
previous years and the organization have developed better profits in the industry. The business is
considered as one of the most popular banks in the UK which has a great market share in the
industry increasing its growth and developmental opportunities (Yu, Qian and Zhang, 2021). The
organization has significantly performed well in the business environment by analysing the key
factors that have an impact on the crucial decisions of the company. There are different factors
which may have an effect on the sustainability of HSBC in the industry. The revenue growth of
the organization shows that the profits of the business have experienced growth in years of its
operations and the business have been able to develop better practices by introducing new and
innovative policies for their proper management. With the help of this aspect the business has
been able to increase their productivity and have a better image among their competitors in the
market. These efforts of the business in the environment are beneficial for improving its stability
ion the market and increase the developmental opportunities of the company.
HSBC has proved to be one of the most important organizations in the banking sector
which has a better advantage over their competitors and looks forward to having better
profitability in the market. It has expanded in various new marketplaces which has been
beneficial for the organization to improve their market share. HSBC bank is considered as one of
the market leaders in the business and have a significant advantage in the banking sector which
shows its dominance in the market (Adamseged and Grundmann, 2020). The current growth of
the organization seems to be balanced in terms of the non-financial and financial measures of the
business. The financial reports of the business displays its stability and has shown that the
organization may have decent measures which are helpful in their overall growth. This is shown
in their financial records that the organization manages their measures appropriately which has a
positive impact n the growth of the business and helps the organization to remain profitable in
the industry. With the help of these services the organization has been able to develop better
practices and increase its productivity in the industry. The HSBC bank is considered as a major
business in the banking industry which has enhanced their profits by consistently making
effective changes in their approach and improving the current profitability of the business. There

are different factors which may be evaluated by the company that may increase its productivity
in the banking sector.
There are certain areas that the organization may focus in order to improve the financial
reports and gaining better advantage in the industry. The organization may effectively manage
their expenses and try to gain the best possible output in the industry. HSBC may look forward to
improving their financial statement by taking advice from the top consultants and professionals
who are specialized in the industry and have a better knowledge about the business (Dilawo and
Salimi, 2019). There are different measures which can be understood by the organization with
the help of this financial help as it may increase their growth opportunities in the industry.
Advanced technology may be introduced by the business to control their business activities and
reduce the possibility of losses for the organization.
There are different aspects of the business which are beneficial for the organization to
manage their debts and increase growth opportunities in the industry. With the help of different
techniques and tools these issues may be controlled by the company and the management may
look towards having a better advantage in the competitive environment of the UK market
(Łabędzka, 2018). The organization may develop multiple payment option for the customers in
order to improve their overall experience and develop their engagement towards the development
activities of the company. These factors may have a positive impact on the company and can
reduce the overall impact of these services. The management of the business may improve their
strategies in order to properly organize their working and have better financial stability in the
future financial records of the business.

REFERENCES
Books and journals
Adamseged, M.E. and Grundmann, P., 2020. Understanding business environments and success
factors for emerging bioeconomy enterprises through a comprehensive analytical
framework. Sustainability. 12(21). p.9018.
Adelakun, A., 2020. Should Porters Five Forces have value in Businesses today. Computing for
Business (BSC) Aston University Birmingham.
Baliyan, R., 2021. A Shift in Paradigm for Apparel Industry Post Covid 19. Turkish Journal of
Computer and Mathematics Education (TURCOMAT). 12(13). pp.5203-5211.
Bentham, J., 2018. Business and Economics in the News–Sainsbury's and Asda-the decade's
mega-merger. Teaching Business & Economics. 22(3). pp.11-12.
Betti, N. and Sarens, G., 2020. Understanding the internal audit function in a digitalised business
environment. Journal of Accounting & Organizational Change.
Dilawo, R.S. and Salimi, Z., 2019. Understanding TQM implementation barriers involving
construction companies in a difficult environment. International Journal of Quality &
Reliability Management.
Huma, S. and Ahmed, W., 2022. Understanding influence of supply chain competencies when
developing Triple-A. Benchmarking: An International Journal.
Łabędzka, J., 2018. Integrated understanding of Business Intelligence in technological
innovation processes. Journal of Machine Construction and Maintenance-Problemy
Eksploatacji.
Luo, Y., and et.al., 2021. A creative approach to understanding the hidden information within the
business data using Deep Learning. Information Processing & Management. 58(5).
p.102615.
Merritt, K. and Zhao, S., 2021. An innovative reflection based on critically applying ux design
principles. Journal of Open Innovation: Technology, Market, and Complexity. 7(2).
p.129.
Monte, A., 2021. A study of value chain reconfiguration processes under Covid-19 pressures: the
case of Tesco PLC in the United Kingdom.

Nashiruddin, M.I., 2018. Understanding the Turbulence of Business Environment in Telecom
Industry: Empirical Evidence from Indonesia. Buletin Pos Dan Telekomunikasi. 16(2).
pp.75-90.
Negro, A.R. and Mesia, R., 2019. Organization and Society: Understanding Corporate Social
Responsibility and The Inclusive Business in The Peruvian Business
Environment. Journal of Applied Business & Economics. 21(5).
Rosnizam, M.R.A.B., and et.al., 2020. Market opportunities and challenges: A case study of
Tesco. Journal of the Community Development in Asia (JCDA). 3(2). pp.18-27.
Yu, K., Qian, C. and Zhang, L., 2021. Understanding sustainable development flexibility: An
information perspective. Business Strategy and the Environment. 30(4). pp.2173-2183.

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