Impact of External and Internal Factors on Business Practices: A Case Study of Tesco

This poster presentation discusses the impact of external and internal factors on business practices using Tesco as a case study. It covers PESTLE analysis, SWOT analysis, and ways in which Tesco impacts the external environment.

BUSINES IN
PARCTICE

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Describe and discuss how the external and internal factors effect a specific business or
organisation of your own choice..................................................................................................1
Describe and discuss the different ways in which your chosen business or organization can
impact on the external environment. ...........................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
Business practices are those aspects which is used in order to develop business entity in a
way that its operations are conducted with perfection in particular organization. These practices
are important in terms of developing internal and external analysis. The poster presentation is
based over internal and external analysis required to be conducted regarding an organization.
Also, different ways an organization impact external environment has been covered.
MAIN BODY
Describe and discuss how the external and internal factors effect a specific business or
organisation of your own choice
External analysis is an important perspective which is used in order to enhance various
factors which impacts external working of business organization(Ogden and Roy-Stanley, 2020).
These analysis are carried out by using tool that is PESTLE analysis. It is an important part of
business development which deals upon various factors like political, economical, social,
technological, legal and environmental. Further, PESTLE analysis in relation to Tesco has been
conducted as follows:
 Political factor – These factors are based upon different policies that has been
formed by government of country. It includes policies related to tax and trade
aspects which is important for business to grow. In relation to Tesco, if tax rate
increases then product prices will increase that results upon causing decrease
within sales of the organization.
 Economic factor- The factor is based upon aspects like inflation and deflation,
import and export rate with unemployment. In relation to Tesco, increase in
inflation makes demand decrease which results upon making direct impact over
revenue and profit generated by Tesco.
 Social factor- This is based upon culture, trade and taste of individual present
within particular market. In case of Tesco, manager of organization must focus
upon satisfying needs of customers which makes its product circulated within
market on large scale.
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 Technological factor- It is based upon advancement within technology taking
place on daily basis. Thus Tesco is required to embed these advances within its
delivery and production process in order to enhance its supply chain management.
 Legal factor- Under the factors legislation and laws developed by legal
authorities of a country is covered. Tesco should use Intellectual property rights
for making its products registered with patents that makes products protected
from any legal issues.
 Environmental factors- It is based over creating environmental awareness within
society by dealing over issues like carbon foot prints and pollution. Tecso holds
responsibility towards environment which makes it develop programs used for
creating environmental awareness within society.
Internal analysis means that kind of aspects which is based over developing
understanding about strength, weakness, threats and opportunities(Qomariyah, 2019). This is
done with the helps of SWOT analysis that has been conducted in relation to Tesco as follows:
 Strength: Tesco has the finest marketplace proportion amongst different aggressive
companies. It is main at 26.9%. Strong overall performance for the duration of pandemic:
Despite of COVID pandemic Tesco corporation attain to the best in final three months
the increase price is 10.5% and the increase is specifically boosting because of on-line
income because the increase is clear seen as corporation is hiring 16,000 personnel to
cater.
 Weakness: Tesco serves low quality sometimes as one incident was highlighted Tesco
selled chicken with partially digested feed. Tesco is facing shortage of few product due to
continuing sales they are restocking the products by increasing cater.
 Opportunity: Due to COVID as absolutely each person is scared to step out because of
which absolutely each person is buying from on line grocery store. So Tesco ought to
leverage the trend. As there may be huge decline of employment numbers however
supermarkets are the location in which much less certified and much less skilled humans
also can work. So the employer should get the growth.
 Threats: If financial recession is there then there'll be low deliver of buy due to the
unemployment. Tesco modified the possession of Walmart to is a brothers as Tesco
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brings 6000 forecourts throughout 10 international locations so due to the fact if this
opposition is improved for Tesco.
Describe and discuss the different ways in which your chosen business or organization can
impact on the external environment.
External environment factors are most important factors which is used by an business
organization for conducting operations that impacts profit and revenue generating mechanism for
an organization(Susanty and et. al., 2021). The external environment of an organization keeps on
changing on daily basis which is required to be monitored by manages of an organization. This is
used for making business developed with social impact upon society. Business organization with
the helps of these factors are able to make business growth possible in particular market. These
aspects has been discussed in relation to Tesco as follows:
 CSR responsibility: These are those aspect which is based upon dealing with issues that
has been taking place within society by providing social services. Through this Tesco is
able to impact external environment by creating social bonding with individuals of
society.
 Wants and needs of society: It is related with the wants and needs of consumers within
society. Tesco through such aspect is able to contribute towards economic stability by
selling its products within market.
 Employment opportunity: It is based over various factors that relates towards
generating jobs within country. Tesco has helped in creating job opportunities for an
individual which makes stability created within unemployment rate of an organization.
Thus its contributes towards external development of society.
CONCLUSION
From the above discussion it can be concluded that business practices are those aspect
which is used by business in order to monitor growth and development of its operations
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regarding particular market. In this poster presentation internal and external analysis is done with
the help of appropriate tool. Then impact of organization upon external environment of country
has been discussed.
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REFERENCES
Books and Journals
del Carmen Xotlanihua-Gervacio, M and et. al.., 2019. Relationship between internal and
external factors and the activity of PON1. Environmental Science and Pollution
Research, 26(24), pp.24946-24957.
Doan, C.D and et. al., 2018. Internal and external factors affecting the crystallization, gelation
and applicability of wax-based oleogels in food industry. Innovative Food Science &
Emerging Technologies, 45, pp.42-52.
Ogden, J. and Roy-Stanley, C., 2020. How do children make food choices? Using a think-aloud
method to explore the role of internal and external factors on eating
behaviour. Appetite, 147, p.104551.
Qomariyah, A., 2019. The influences of internal and external factors in auditor choice: a
literature study. Asia-Pacific Journal of Accounting & Economics, 26(1-2), pp.124-130.
Susanty, A and et. al., 2021. Impact of internal and external factors on halal logistics
implementation. Journal of Islamic Marketing.
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