logo

Business Environment Assignment | TESCO organisation

11 Pages2975 Words963 Views
   

Added on  2019-12-18

About This Document

Strengths and weaknesses linked to external macro-factors. Positive and negative impacts of the macro-environment on Tesco’s business operations Tesco, the multinational food retailing company holds the title for the second-largest retailer after Wal-Mart, with its stores in twelve countries. You can also go through "A case study on Tesco" where you will know " Tesco Marketing Strategy".

Business Environment Assignment | TESCO organisation

   Added on 2019-12-18

ShareRelated Documents
BUSINESS AND BUSINESS ENVIRONMENT
Business Environment Assignment | TESCO organisation_1
Table of ContentsP5. Analysis of internal and external factors in identifying Tesco’s strengths and weaknesses....5P6. Strengths and weaknesses linked to external macro-factors....................................................8Reference list:................................................................................................................................10
Business Environment Assignment | TESCO organisation_2
Part 2P4. Positive and negative impacts of the macro environment on the Tesco’sbusinessoperationsTesco, the multinational food retailing company holds title for the second largest retailer afterWal-Mart, with its stores in twelve countries. Apart from food retailing services, it expands itsbusiness providing finance, hardware services, insurance, mobile, non-food products and othersas evaluated through PESTLE analysis of Tesco (Wood et al. 2016).PESTLE analysis:Pestle as an external factor, with its disadvantages allow multiple advantages on Tesco’sbusiness organization by providing a simple and easy-to-use framework. The positive aspectsinvolves cross-functional skills and productivity, encourages strategic thinking within itsoperation, reduces potential threats, provides successful mechanisms enabling effective workproduction in identifying multiple job opportunities, finally, entering new markets globally(Karim et al. 2015).Political factors: As Tesco functions across national borders, political factors affect the business operations andperformance of Tesco. The political factors include tax, security of country Tesco operates in.Tesco’s operation and management is influenced by the acts of legislation and country’s rulesand regulations that it seeks to operate. Increase of VAT rates affects negatively the revenue ofsales produced by Tesco (Zubizarreta et al. 2017). The ultimate source of income of Tesco is itssales revenue; therefore, the outcome follows the profit margin. Alarming threat of illness affectsthe sales revenue of Tesco, for which government of UK suggested in embracing control ofobesity and medical issues, to which Tesco introduced a healthy food range in the year 2014.Tesco provides job opportunities for the mass that include students as well as elderly people,creating jobs for domestic population and helping the stabilization of finance. With Tesco’semployment opportunities, it even upholds and encounters huge demands of products resulting inthe diversification of workforce.
Business Environment Assignment | TESCO organisation_3
Economic factors:Economic factors affect Tesco’s business operation influencing its costs, profits, demands andprice. The decrease in the effective demand of certain products is affected by the unemploymentstructure resulting in low-production of such goods (Wood et al. 2016). During economic-recession, unemployment increases, as a result, it reduces disposable income and allowscustomers in buying cheaper products. Tesco should be aware of any change in policy andregulation, price-rates and taxation that might affect the approachability of finance. The two keybusiness strategies that are internalization and diversification helped in Tesco’s progression andadvancement (Lee and Vachon 2016).Social factors:Society is a major macro-level environmental factor affecting Tesco’s business operation.Customer’s demands of products and goods are affected by their belief and social attitudes. Thebeliefs and attitudes are governed by social conditions, as people are concerned about healthissues more that determine their selection of products. Tesco thus tries to adapt the change in themode of demands of customers, producing more of organic goods. Tesco examines that there is agradual shift from bulk shopping toward limited shopping or one-stop shopping, whichinculcates in the production of non-food products (Zubizarreta et al. 2017).Technological factors:Technology enhances the advancement of Tesco’s production of new products. Technologyhelps in mass production with the wants and demands of ready availability of products.Therefore, the technological factors benefit both the customers along with the organization.Customer is satisfied through efficient service response, for which Tesco stands as the secondlargest retailing company, implementing its best strategies on workforce and productivity. Withthe use of wireless devices, electronic shelf-labeling, electronic funds transfer systems, electronicscanners, radio frequency identification and self-check-out machine, Tesco becomes successfulin its operation (Karim et al. 2015). These factors acknowledge Tesco’s efficiency of distributionand stock activities.
Business Environment Assignment | TESCO organisation_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Business and Business Environment Tesco
|12
|3237
|28

Marketing Essentials: Tesco's Marketing Plan and Strategies
|13
|2440
|2

Tools of Strategic Development: PESTEL, SWOT, and Porter's Five Forces Analyses
|8
|2034
|413

International Journal of Cleaner Production
|11
|2871
|59

Context of Business: PESTLE Analysis, Leadership Style, CSR and Effects of Covid-19 and Brexit on Tesco
|12
|3709
|197

Introduction to Business and Management
|9
|2587
|98