Report on Understanding Business- Tesco UK

Added on -2020-02-14

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UNDERSTANDING
BUSINESS
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 environment that 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 as they are suffering and not able to spend in order to buy better
products. At the time of recession, the management of Tesco are not doing so well so that they
are not able to spend money on new products so that 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 to that 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 application which 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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