Understanding the Business Environment of Tesco: Implications of External Factors, Stakeholder Analysis, and Performance Evaluation

Understanding the
Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK ..............................................................................................................................................1
Introduction of Company............................................................................................................1
TASK TWO................................................................................................................................3
Implications of the external factors over the business organisation ..........................................4
Evaluate the development of the business with reference to short-term and long-term
performance.................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment may be defined as sum collection of various internal as well as
external factors such as customer needs and expectation and employees. All these factors impact
on company’s operations and defines how it operates either in direct or indirect manner.
Business function are affected by these forces either in positive or in negative way. It aids in the
identification of business prospectus. This project report is based on Tesco, a multichannel
grocery retailer merchandise super market chain, headquartered in Welwyn Garden City, UK.
This project report will cover introduction of company with its legal structure along with its
objectives. Further, it will include market structure in which it operates and effect of amelrt
structure in achieving competitive advantage. In addition to that, it will also cover differentiation
in stakeholder, shareholder and stakeholder analysis along with its applications in chosen
organisation. (Anwar and et. al., 2021)..At last, it will cover PESTEL analysis and and porter’s
framework and KPI to indicate its performance.
TASK
Introduction of Company
Tesco is a private multinational grocery and merchandise retailer store, headquartered in
Welwyn Garden city, England. In terms of gross revenues, it is the third largest retailer and
places ninth in world. It was founded by jack Cohen in 1919. It offers various brands to
customers such as Booker and Makro. It had expanded its business operation in 1990. In 1960, it
had diverse its business in clothing, books and electronics. It had launched Tesco value brand in
which it offers better quality products at a reasonable price. And for high class customers it had
launched Tesco Finest. Its main aim is to provide better quality of products to customers at cheap
price. In 1980s, it reinvests its profits and savings in business in order to make it cheap for
customers. The management of Tesco is strong as it optimally utilises its resources in such a
manner that yield higher profit. The company is operating its operations in privates basis and
have all control over it. This makes company more profitable as no other external stakeholder is
allowed to take part in decision making process. It analyses demand and based on that it
formulates effective strategies that will lead company towards the attainment of goals.
Purpose of Tesco
1

Introduction
Business environment contains internal and external factors
that impacts on business operations and functions effectively.
There are proper research is done by the business to identify
the factors and develop strategies and planning to ensure
smooth running of business. In this report the chosen
organisation is Tesco that multinational retaining organisation
of British established in 1919 by Jack Cohen.
Tesco
Name of the Student
External Environment
There are various factors are included in external business
environment that affect on performance of Tesco in various manner.
There are various strategies are developed by organisation to
overcome the impacts of these factors that are defined below:
• Political
• Economic
• Social
• Technological
• Environmental
How the company impact
its context External
Environment
Organisation affects the external business environment factors In
various manner. Some impacts are mentioned below:
• Political
• Environment
• Corporate Social Responsibility
Internal Factors
Internal factors exist in business by affect the organisation
performance as well as profitability effectively. Some internal
factors are mentioned below:
• Organisational structure
• Price Setting
• Suppliers
References
Direction, S., 2020. SMEs and strategy development: The impact
of leadership and internal and external factors.
Saleh, H. A. and Derbali, A., 2020. The importance of internal and
external factors in defining the profitability of UK insurance
companies.