This report discusses the impact of internal and external factors on Tesco's business environment. It includes an analysis of the strengths, weaknesses, opportunities, and threats within Tesco's internal environment, as well as a PESTLE analysis of the external environment. The report concludes that external and internal factors have a significant impact on businesses and can bring changes to their working and revenues. It also highlights the different ways in which businesses can overcome unfavorable reactions from the external market.