Organisation and Business Environment Assignment
Added on 2020-10-05
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BUSINESSORGANISATION ANDENVIRONMENT
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1BACKGROUND INFORMATION................................................................................................1BACKGROUND INFORMATION ON BUSINESS ENVIRONMENT.......................................2ANALYSIS OF BUSINESS SCENARIO.......................................................................................4CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7
INTRODUCTIONBusiness environment includes internal and external environmental factors which affectthe performances of organisation. This is way through which business can be updated withwhat's new are prevailing in market. There are two factors which are micro and macro thatconstitutes business environment. This report will analyse the environment of Belgium withreference to Tesco which desires to expand its business in the country. This company is dealingwith online groceries, banking and mobile phones. This entity is planning to expand its businessin Belgium which has lot of chances of getting success. This entity can do well in this nationbecause people of this country are fond of food. So supermarket works best in these situationsand probability of getting return are more.BACKGROUND INFORMATIONTesco was founded in 1919 which is a British multinational grocery store. This is thirdlargest store in UK. Number of employees working under this entity till 2017 are 476000.Operating income earned by entity is ₤1280 million in 2017. Area which served by this entity isUnited Kingdom, Ireland, India, Malaysia, Thailand, Czech Republic and Hungary. This entity isdealing with grocery store, clothing and mobile phones. This cited entity has expanded itsbusiness in 1994, 1987 in Japan and Czech Republic (Ahuja, 2017). Cited entity has diversifiedits market by purchasing of stores in different nations like Japan at two networks in 2003. In2002 this has purchased 13 HIT supermarkets in Poland. It has lot of subsidiaries like Bookergroup, Tesco bank, Telecom, Tesco tech support etc. Tesco comes under renowned retail storeswhich serves lots of customers. Current international operations which Tesco is performing areexpansion of its business within UK to 11 nations in worldwide. This entity is operating with lotsof nation and is working successfully. In 2005 this store was selling its services to Taiwan,Carrefour and purchased Carrefour stores in Czech Republic and Slovakia. Tesco is a big brandwhich is selling its products in diverse nations. Market share of Tesco is 30.25 % in 2012 andincreased with time as well. Corporate Social responsibility of Tesco includes remunerative andpaying of pre profit taxes to charity organisations. It has contributed 1.87% in 2006. This is morefrom other competitors which is prevailing in market. Financial of Tesco by selling its productsare £55,917 till 2017 (Baxley and et.al., 2016). The cited entity is selling products with lot moreadvertisement slogan which is “Every little helps". This attracts more customers which helps in1
maximising its sales of entity. It is helping entity in selling its products to more customers.Background Information on business environment. BACKGROUND INFORMATION ON BUSINESS ENVIRONMENT For determining Business environment of Tesco, Pestle and Porter’s five forces Model isused which help in analysing its external factors which facilitates in reviewing its activityposition and its competitors prevailing in market. This tool is used for launching of new productin market. Factors included under this are Political. Legal, technological, environmental andmany more. These points are described below:Political Factor - factor which impact on government policies on economy of country.This factor includes tax policies, trade tariffs, fiscal policies. All these policies effect on workingcriteria of business. Like change in trade policies which impact on operations of Tesco. Citedentity is working in UK and it is well established which reduces any negative impact onbusiness. For example, government has launched or introduced new policies and tax which canimpact on costing of business (Brandon-Jones and et.al.,2016). This can cause loss to cited entityas well. It is affecting business environment in significant way. Government of Belgium in quitestable which help Tesco in doing its business in successful way. This will increase sustainableposition of entity. Economical Factor - This factor refers to analysing of economic performance ofbusiness in industry. It consists of inflation rate, saving rate, foreign exchange rates, economicgrowth patterns. For example, there is rise in inflation rates due to which prices of cited entityare high which makes it difficult in selling its products to consumers. This will affect inprofitability position of business. Impact of this factor are long term because change in taxpolicies lasts long for years on entity. This affects the purchasing power of Tesco whichultimately impact on their market position (Chiarini and Vagnoni, 2015). Economic stability isquite good in market which help in reviewing its position in market and its profitability. Tesco isdoing its business without taking stress of regular changes in tax and tariffs. total foreign directinvestment in Belgium is increased to 3119 EUR Million in first quarter of 2018. From 2018 -2008 investment in Belgium in averaged to 4651.54 EUR Millionand it was comparativelyhigher than 2016.2
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