Impact of Internal and External Environment on Tesco's Operations

This report analyzes the impact of internal and external environment on Tesco's operations. It discusses the strengths, weaknesses, opportunities, and threats of the company and how it impacts its context.

Introduction
Internal environment is termed as the set of forces
that affects the working of the organization internally.
External environment are the factors that externally
affect the profitability and functionality of the
business.
BMP3002
External Environment
Technological factors – Advancement in the technology
brings many changes in Tesco. There has been wide use of
new technologies to sell goods like billing machines are
installed in the stores for quick billings.
Economic factors – Economy plays a vital role in impacting
the business of Tesco. Tesco can focus on lowering the prices
to increase the sales. This would attract new as well as
existing customers and will help to increase the customer
base of the company.
How the company
impact its context
External Environment
Social factors – It is the duty of the business to
fulfil the basic needs of the employees. Tesco runs
its operations in a way that cater to the needs of its
customers and increase the customer base. The
social obligation is fulfilled by the company and
this attracts the new as well as existing customers.
There are certain groups of people specially
children and women who are focused much
because of this factor (Soegoto, 2021).
Internal Factors
Strength – Tesco is the biggest retailer in the united
kingdom as Its share in the market is large. The
company has wide diversified on the basis of
geography and the no. of markets are growing
immensely. Online shopping option is a major
strength of the business for growth (Awadari and
et.al. 2019). The company uses superior technology
to run the business like advancement in its M-
commerce facility such as mobile banking app.
Weaknesses – Tesco started its operations
internationally in the markets of US and Japan
where it failed its operations. Another weakness can
be the frauds in the accounts of the business which
was a result from the misinterpretation of profits.
Low-cost strategy of the business has impacted the
overall profitability of the company as its total
operating profit reduced. Many foreign countries in
which Tesco runs its business are exploiting the
migrant workers.
Opportunities – Introduction of jacks and expanding
jacks, a new discount store have created many new
opportunities for the business.
References
Kim and et.al. 2021. The Sustainable Success and
Growth of Social Ventures: Their Internal and
External Factors. Sustainability, 13(9), p.5005.
Conclusion
It has been concluded from the above report that
internal and external environment affects the
operations of the business.