Internal and External factors affecting Tesco: SWOT and PESTLE analysis

INTERNAL AND EXTERNAL FACTORS
INTRODUCTION
 External and internal factors are important as these influences
organizational performance in both positive & negative both factor.
 In the current environment, internal & external both aspect play
crucial role in impact organizational growth which requires firm to
remove negative elements to have positive working condition.
 Present report is based on Tesco which operates in retail industry.
 Current case study will pay attention on SWOT & PESTLE analysis
for assessing internal and external aspects and ways to overcome
uncontrollable situations.
Explaining how external and internal factors affect Tesco
Internal factors are those which can be controlled by company whereas
external aspects are uncontrollable. SWOT analysis is one of the tool which can
be applied to assess internal factors impact on Tesco. PESTLE is one of the
external environment evaluation approach that can be executed to get
information so that lacking areas can be assessed.
SWOT analysis
Strengths
 Biggest grocery retailer in the UK
 Higher market shares in retail industry
 A grower number store due to higher availability of financial resources
(Soegoto, 2021).
 Diversified market & product range has firm successful
 Good brand image due to superiors technologies utilization
 Efficient network of suppliers has made Tesco to diversify its operations.
Weaknesses
 Low profitability due to less cost technique model.
 Less operating performance because of insufficient ground of research.
 Larger financial errors by increasing credit card debts.
 Accounting Fraud scandals damaging reputation
 less effective inventory management & quality control created food safety
issues.
Opportunities
 There are various chances of joint ventures in less effective area.
 Digitalization has emerged online based platform presence which is
increasing reach.
 Strategic alliance with other popular brands might incline sales.
Artificial intelligence & machine learning can boost productivity.
Threats
 Brexit & supply chain is one of the biggest threat
 Larger number of entry rivals are creating competition which may make
firm unstable.
 Fake farm and Brexit deal is still threat for Tesco
 Covid 19 pandemic is crucial to highlight as limitation which can affect
development.
Explaining how external and internal factors affect Tesco
Internal factors are those which can be controlled by company whereas external aspects are uncontrollable. SWOT analysis is one of the tool
which can be applied to assess internal factors impact on Tesco. PESTLE is one of the external environment evaluation approach that can be
executed to get information so that lacking areas can be assessed.
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