Business Environment Analysis and Risk Assessment of Tesco

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Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Internal environment analysis......................................................................................................1
External envirornment analysis....................................................................................................4
Risk assessment for the company................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment analysis could be termed as systematic process through which
factors of business environment are determined, impacts are assessed and strategy is devised for
mitigation or take benefit of them (Hamilton and Webster, 2018). Key purpose of the analysis is
to identify potential effects or influences of specific aspect of general abd operating environment.
At same time, risk management is termed to identification, evaluation along with prioritising
risks that are followed by coordinated together with economical applications of resources for
minimising, monitoring as well as controlling probability of unfortunate events or maximising
realisation of opportunities. For the assessment, Tesco is considered venture popular to sell
groceries and merchandise with more than 4673 stores across the globe. It carry out practices for
providing groceries, clothing along with electronics goods and range of services online.
The assessment covers internal environment analysis and external environment analysis
through various models. It also includes risk assessment of the company and action plan to
manage the identified risks.
MAIN BODY
Internal environment analysis
The term internal environment analysis arm management with knowledge to grab
benefits of strengths, expertise along with opportunities (Abdullah and Mansor, 2018). In
association to Tesco, internal environmnt analysis is carried through through mentioned below
models:
SWOT ANALYSIS
It is the strategic planning and management technique which uses by organizations, It is
an assessment tool and helps in identify its strengths, weaknesses, opportunities along with
threats. It provide an organization a clear view and build the business objective. In Tesco,
managers uses SWOT analysis for understanding health of the firm and carrying out internal
organisational evaluation. In aspect to Tesco, SWOT Analysis is mentioned below:
Strengths:
 Efficient supply network: Tesco
follows simple business model as well
as to reduce costs, it have efficint waste
Weaknesses:
 Weak operating performance: In
certain stores, the compan has weak
operational performance which is due
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management system.
 Multiple award holder: Performance of
the company is not restricted to fans
and statistics, it has won huge number
of awards that makes it more popular
nationwide.
 Intense diversification: Since its
establishment, the retailer has
diversified in 12 countries with approx
4673 stores.
to lack of marketing professionals.
 Low cost technique: Tesco works with
low cost strategy that cost the enterprise
in terms of restricted or low profits.
 Financial errors: Profits of the retailer
are impacted due to high credit card
debt (Gogokhia and Berulava, 2021).
Opportunities:
 New emerging markets: Although the
enterprise has expanded opertaions in
huge nations, it has opportunity for
tapping emerging markets including
South Korea, Turkey, etc.
 Alliance with other brands: Tesco can
partner up with small brands that are
popular to come up with better
offerings and facilitating customers
better.
Threats:
 Retail market competition: Tesco faces
threat of retail market competition from
giant players including Aldi, Carrefour
and hence forth.
 Global pandemic: The pandemic of
Covid-19 is threat for the company as it
has to invest in huge equipment and
maintain operations with limited people
at stores to adhere guidelines.
VRIO Analysis
VRIO framework can be defined as strategical internal analysis to access varied resources
and capabilities that a company have to attain competitive advantage for a prolonged period in
market (Khajeheian, Friedrichsen and Mödinger, 2018). It is beneficial for the mangers of Tesco
to identify unique value they offer to customers and which is difficult to copy for competitors.
Evaluation of varied elements of VRIO framework with accordance to Tesco are discussed
below:
Resources Valuable Rare Inimitable and Organised Competitive
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