Impact of External Environment Factors, Leadership Style, CSR and Effects of Brexit and COVID-19 on Tesco

CONTEXT OF BUSINESS
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Discussing the impact of external environment factors over organisation..............................3
2. Recommending suitable leadership style to organisation that incorporates with business
objectives.....................................................................................................................................4
3. Critically commenting on organisational Corporate social responsibility...............................6
4. Discussing the effects of Brexit and COVID-19 pandemic in 2020/2021 on the selected
business brand and their measure to manage these situation:......................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business is one of the most common but important term in the world which focus on
dealing and trading product and services in the market. Today’s business era demand firm to
become more competitive and effective enough to provide neck to neck competition to brands,
current sustainability measure allow firm to enjoy competitive advantage in the market (Boone,
Kurtz and Berston, 2019). This study is based on Tesco, one of the leading retailer in the world.
This report will discuss external environmental factors and its influence and will discuss suitable
leadership style to achieve business objectives. At last this report will discuss Corporate social
responsibility (CSR) and effects of Brexit and COVID-19 pandemic in the selected business
operation including their measure to manage such critical situation in the market.
MAIN BODY
1. Discussing the impact of external environment factors over organisation
Macro environment analysis helps the businesses in term of redesign their strategies, it is
crucial part of organisational strategic management that makes the organisation to find and
analyse the potential growth opportunities as well as certain risk that have major impact over the
business (Baiev and et.al, 2019). Tesco, a British multinational grocery is one of the leading
supermarket chain within retail sector of UK. For external analysis Pestle framework is most
commonly used that helps in determining the impact of certain factors over company
performance, such factors are discussed below:
Political: It involves governmental policies, international regulations, consumer rights, it helps in
examining at what extent government influence the particular sector. As for UK political
environment is somehow stable but changes drives in it imposed certain challenges for Tesco
company, as well as because of ongoing financial stability in market due to covid pandemic,
government are pressuring retail organisation to create jobs for domestic people.
Economical: Inflation rate, interest, unemployment rate, demands, profit, prices all comes under
this category. Changes in any rate can cause serious challenges for the retail industry (Li, 2020).
Any changes within the UK policy can lead to major change within delivery model of Tesco, as
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well as additional cost that is linked with reforming company’s strategies may be massive. Tesco
also need to make sure that product pricing will influence the sale.
Social: Age, gender, income, interest and all demographic factors have greater impact over
business, as changing behaviour of consumer regarding organic or health conscious food is
creating several challenges for retail organisation. by keeping consumer demand in mind Tesco
is also adapting such changes to accommodate with the demand of organic food.
Technological: This factor in this era has creating several challenges for the business, it is now
becoming a trend that every organisation must proceed with sort of software, technologies in
order to cope up with market demand. This aspect is also creating opportunities for business as
providing them expansion and other growth chances. Therefore, advancement in it is creating
new opportunities for Tesco as well, as they keep on improvising their online shopping presence
for consumers also they are working on providing self-service checkout points which in result
reducing the labour costs.
Environmental: Pollution, carbon gas emission, green economy, sustainability all factors have
major influence over the business (Hommes, 2021). Right now consumer in the market always
prefers their buying from organisation which is committed to environmental sustainability. Tesco
is also committing to sustainability where they are working on reducing their carbon gas
emission, as well they are working on reducing the waste produced in their stores.
Legal: Legal laws, tariffs, import, export quotas, punitive actions by higher authorities falls
under this legal factor, it has greater impact over operability of business failure in this will lead
the firm to shut down their doors forever. Tesco always make sure that they are meeting legal
requirement to prevent from vulnerable consequences. They provide their consumer price
reduction over fuel they purchase, on the basis of amount that spend on their grocery stores.
2. Recommending suitable leadership style to organisation that incorporates with business
objectives
Leadership have always greater influence over business that makes the firm to stand strong
in the market as well as acquire the greater market share that makes them more competitive.
Some of the advantages that are associated with it- better leadership within workplace increases