Tesco And Its Environment: Impact of Internal and External Factors on Business

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