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INTRODUCTION Business understanding is dealing with a business solution in a way so that it likely to give a good outcome. It is a combination of internal and external environment which affect the situation of the business. Business is a strategy which is a system of economic where goods and services are exchanged for money or other thins. Present report is based on Tesco UK based retail company operating in clothing, electronics, furniture etc. This report covers the political and economic issues which affect the operations of Tesco. Further, it also covers the social, environmental and ethical issues which has a impact on Tesco. At last, this report focus on the legal or technological issues which affect the business(Davenport and Beck, 2013). BRIEFING NOTE 1 In order to analyse the political factors which influence the operations of Tesco where the political environmentthat is revolves in the nation and they also make the production as per the laws and legislation which is operating in their own market and in the overseas.As a research analyst,there is one of the main political factor which is supported by the government in a direct or indirect way as it also involves the corporation tax, vat and the fiscal policies which are linked with the taxes.The government of UK adopted a tax measure that affected Tesco as government increased the VAT with the aim of increase the revenue of government(McNamee, Boer and Pearson, 2015). Therefore, there is negative impact on the revenue of sales due to the increase in the rate of value added tax as this is generate by the stated organisation. Loans might be offered to the stated organisation asthey are suffering and not able to spend in order to buy better products. At the time of recession, the management of Tesco are not doingso well so that they are not able to spend money on new products sothat there is facility provided by government which helps them to afford the products which they want to buy.However, they do not need to pay it with interest rate. As normally they do not take loan due tothat they are never face the shortage of money as the stated organisation is considered as a big global company . Grants is other big thing which is linked with direct support as it considered as the funds which is provided by one party by trust or from the government department. In order to receive the grants there is requirement of written applicationwhich identify the eligibility of grants of a company. Tesco also have a charity which is called as charity trust of Tesco and grants affect the
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