Impact of External and Internal Factors on Tesco: Business in Practice

BUSINES IN PARCTICE
INTRODUCTION
Business practices are those aspects which is
used in order to develop business entity in a way that
its operations are conducted with perfection in
particular organization. These practices are important
in terms of developing internal and external analysis.
The poster presentation is based over internal and
external analysis required to be conducted regarding
an organization. Also, different ways an organization
impact external environment has been covered.
Describe and discuss how the external and internal factors effect a specific business
or organization of your own choice
External analysis is an important perspective which is used in order to enhance various factors which
impacts external working of business organization(Ogden and Roy-Stanley, 2020). These analysis are
carried out by using tool that is PESTLE analysis. It is an important part of business development which
deals upon various factors like political, economical, social, technological, legal and environmental.
Further, PESTLE analysis in relation to Tesco has been conducted as follows:
 Political factor – These factors are based upon different policies that has been formed by
government of country. It includes policies related to tax and trade aspects which is
important for business to grow. In relation to Tesco, if tax rate increases then product prices
will increase that results upon causing decrease within sales of the organization.
 Economic factor- The factor is based upon aspects like inflation and deflation, import and
export rate with unemployment. In relation to Tesco, increase in inflation makes demand
decrease which results upon making direct impact over revenue and profit generated by
Tesco.
 Social factor- This is based upon culture, trade and taste of individual present within
particular market. In case of Tesco, manager of organization must focus upon satisfying
needs of customers which makes its product circulated within market on large scale.
 Technological factor- It is based upon advancement within technology taking place on
daily basis. Thus Tesco is required to embed these advances within its delivery and
production process in order to enhance its supply chain management.
 Legal factor- Under the factors legislation and laws developed by legal authorities of a
country is covered. Tesco should use Intellectual property rights for making its products
registered with patents that makes products protected from any legal issues.
 Environmental factors- It is based over creating environmental awareness within society by
dealing over issues like carbon foot prints and pollution. Tecso holds responsibility towards
environment which makes it develop programs used for creating environmental awareness within
society.
Internal analysis means that kind of aspects which is based over developing understanding about strength, weakness, threats and
opportunities(Qomariyah, 2019). This is done with the helps of SWOT analysis that has been conducted in relation to Tesco as follows:
 Strength: Tesco has the finest marketplace proportion amongst different aggressive companies. It is main at 26.9%. Strong overall
performance for the duration of pandemic: Despite of COVID pandemic Tesco corporation attain to the best in final three months the
increase price is 10.5% and the increase is specifically boosting because of on-line income because the increase is clear seen as
corporation is hiring 16,000 personnel to cater.
 Weakness: Tesco serves low quality sometimes as one incident was highlighted Tesco selled chicken with partially digested feed. Tesco
is facing shortage of few product due to continuing sales they are restocking the products by increasing cater.
 Opportunity: Due to COVID as absolutely each person is scared to step out because of which absolutely each person is buying from on
line grocery store. So Tesco ought to leverage the trend. As there may be huge decline of employment numbers however supermarkets
are the location in which much less certified and much less skilled humans also can work. So the employer should get the growth.
 Threats: If financial recession is there then there'll be low deliver of buy due to the unemployment. Tesco modified the possession of
Walmart to is a brothers as Tesco brings 6000 forecourts throughout 10 international locations so due to the fact if this opposition is
improved for Tesco.