Tesco and Its Environment: Impact of Internal and External Factors

Introduction
Business organization have a significant relationship
with their external environment as it has a major
influence on the overall decision making process or
the business. It also initiates various changes in the
overall management process of a business in the
industry. These factors have a direct relationship
where a change in certain aspect creates differences
in the other factor also.
Tesco And Its Environment
External Environment
Political factors: Restrictions in the political environment
of countries creates difficulties for Tesco to manage their
overall decision-making process. Poor relations between
governments of two nations increases the issues for the
business to enhance their market share and gain specific
advantage in the global business environment. Trade
issues between countries due to political conflicts which
creates difficulties for the business to undertake
international business operations effectively.
Economic factors: Inflation due to global pandemic has a
negative influence on the overall financial management
process of the business which increases the problems for
the company to stay profitable in the environment. The
reduction in the prices of competitor's products and
services forces Tesco to make unwanted changes in their
strategies also (Christodoulou and Cullinane, 2019).
Increasing tariffs on international trade of goods and
services can have serious repercussions on the overall
sales of the business in the industry.
How the company impact its context External
Environment
These external factors have a serious impact on the
decision-making process of the business and lead
towards effective changes in the business
environment. Due to these changes the stability in the
business environment of Tesco might get affected
which can have a major influence on the overall
success of the company.
Internal Factors
Strengths: Tesco has a wide market share which is
a major strength for the business to gain a
significant competitive advantage in the industry and
increase its overall success opportunities (Shadman
and et.al., 2021). The organization is having a
profession workforce which are highly trained
towards performing the key tasks and duties which
lay the foundation of the business operations of the
company.
Weaknesses: Reduced profit margins of the
business due to their low cost strategy is a major
weakness for the business to increase their overall
profitability in the business environment. Poor
operational performance of the business in different
countries due to the different policies and
procedures which has a negative influence on its
overall success as an organization.
References
Christodoulou, A. and Cullinane, K., 2019. Identifying the
main opportunities and challenges from the implementation
of a port energy management system: A SWOT/PESTLE
analysis. Sustainability, 11(21), p.6046.
Vardopoulos, I. and et.al., 2021. An integrated swot-pestle-
ahp model assessing sustainability in adaptive reuse
projects. Applied Sciences, 11(15), p.7134
Conclusion
It has been concluded from the above poster that
internal and external factors have a significant
influence on the overall productivity of a business in
the industry. These aspects lead towards changes in
the business environment of the organization which
leads towards new developments for the business in
the competitive industry.

Introduction
Main objective of this report is to better understand the concept of
internal and external factors which will affect the growth and success
of an organisation. It was analysis that internal factors will affect the
business profitability but organisation will have some control over
these factors (Autenshlyus, and et. al. 2020). On the other hand
business have no control over these factors and they will directly
impact the growth of business. For this report Tesco company is
taking into consideration which is a British multinational retail
company founded by Jack Cohen in 1919, headquarter is in UK. This
report will include impact of internal and external factor and impact
of organisation on these factors.
Tesco And Its Environment
Name of the Student
External Environment
It refers to the factors which are available outside the
organisation and business will have no control over these
factors. In context of selected company, various external
factor which affect the business most are mention below:
Technological factor- This factor will define the rate at
which technology will changes. It was analysis that any
change in technology will directly influence the growth of
business. In context of selected company, they are require
to invest more in new technology so that they will achieve
competitive advantage (Yanwei, 2019).
How the company impact its
context External
Environment
It was analysis that Tesco will also impact the external and
internal environment. Company will influence the external
environment through its products and services. Other than
this increase in the innovation and developing new
technology by the company will impact the technological
factor of external environment (Zhou, and et. al. 2018).
Internal Factors
It refers to the factors which are available inside an organisation and
also company will have some control over these factors (Jozkowski,
2019). In context of Tesco, various internal factors which affect the
business most are mention below:
Human resource- It refers to the people who are working in an
organisation for the achievement of company goal. It was analysis
that the performance of business will affected by the quality and
impact of the people who are work for it. It was analysis that because
of low productivity of Tesco employees the customer satisfaction
level will reduce. But company will manage this problem by
providing better training to their employees (Bhatti and et. al. 2021).
References
Autenshlyus, A.I., and et. al. 2020, July. Influence of
Internal and External Factors on the Production of
Cytokines by Peripheral Blood Cells in Breast
Cancer. In Doklady Biochemistry and
Biophysics (Vol. 493, No. 1, pp. 178-180). Pleiades
Publishing.
Bhatti, S.H., and et. al. 2021. Internal and external
antecedents of open innovation adoption in IT
organisations: insights from an emerging
market. Journal of Knowledge Management.
Conclusion
From the above discussion on this report it is
concluded that both the internal and external factors
will affect the growth and productivity of an
organisation. It is analysis that for reducing the
impact of internal factors company will require to
develop effective strategies and for external
environment they have no control but they can try to
adopt the change. Also it is analysis that organisation
will also affect external environment through its
activities.

Introduction
The business environment is defined as the sum of all the
factors present inside and outside the business
environment but has direct influence on the functioning
and profitability of the business. For this poster Tesco is
taken into consideration, Tesco is the multinational retail
company founded in 1919 by Jack Cohen. This poster
highlights how internal and external factor impact
business and ways in which company can impact on
external environment.
Tesco And Its Environment
External Environment
External factors: It includes all the factors present outside the
business environment but impact the profitability of the company.
In context to the Tesco, some of the factors highlighted below:
Political factors: It includes the government instability which
directly influence the functioning of business. Any change in the
government rules and regulations will impact the working of the
chosen company.
Economical factors: Another factors is the economic factors,
company working in the developed economy will move towards
continuous growth and success in any change in the interest rate,
inflation rate or employment will directly influence the functioning
of the chosen company.
Technological factors: With increasing use of the technology, any
kind of technology advancement or changes will influence the
profitability of the company, so to get the competitive advantage
the chosen company needs to ensure that they are using well
advance technology effectively.
How the company impact its context
External Environment
There are number of external factors present in the
environment which can directly influence the business.
in case of Tesco, the ways in which the company can
impact its context external environment is highlighted
below:
•While dealing in the international market company
needs to analyse and evaluate the changing political
factors of the country and accordingly implement their
strategy.
•In order to gain the competitive advantage in the
marketplace, company should adopt advance technology
and regularly scan the environment in order understand
the technological changes.
•The external environment should be analysed and
required information should be gathered in order to
analyse the current trends and changing taste and
preferences of the customers.
•The company needs to ensure that they are working in
the developed economy which will helps them to
enhance their productivity and profitability
.
Internal Factors
Internal factors: It includes the factors present within the
business and influencing its operations. In context to
Tesco the factors are highlighted below:
Organisational culture: The Tesco is one of the
multinational company operating globally so it has to deal
with different culture, not accepting and understanding the
dynamic culture will directly influence the functioning of
the business.
Employees: The employees are the main resource of any
organisation, not managing them will directly influence
the functioning of the business. The chosen company
needs to manage its employees and motivate them
towards achieving goals and objectives.
Organisational structure: The another factor is the
organisational factors, in case of chosen company not
having proper structure and understanding of role and
responsibility will leads to the failure of the business.
References
Golestani, H. and Jafari, S., 2018. Relationship of self-
oriented and society-oriented perfectionism with academic
burn-out regarding mediating role of the internal and
external motivation. Journal of Clinical Psychology, 10(1),
pp.79-89.
Liu, Z. and Jayaraman, V., 2019. Exploring the effect of
internal and external integration on the performance of
professional service outsourcing. Journal of Global