Business in Practice: Internal and External Factors Impacting Tesco

This presentation discusses the internal and external factors impacting Tesco, the UK's market leader in retail. It covers the company's strengths, weaknesses, opportunities, and threats, as well as its impact on the external environment. The presentation also explores how Tesco is adapting to political, economic, social, technological, legal, and environmental factors.

Introduction
Business practices are the techniques used to do this in
the most cost-effective manner feasible. A company must
have business practices standards in place to guarantee
that its workers are effective at respective jobs and that
all laws and standards are observed. Tesco is a
multinational food and retail corporation that offers
clothing, electronics, furniture, and a variety of other
goods. It was founded in 1919 by Jack Cohen and is
headquartered in London, United Kingdom.
BUSINESS IN PRACTICE
External Environment
P: The trade war between China and the United States
E: Being a COVID 19 sufferer
S: Selling things in response to evolving client
preferences
T: Partnership with Amazon Go
L: Make a $12 million settlement payment
E: Plastic removal, reduction, reuse, and recycling
How the company impact
its external environment
Organizational ties with the external environment are
reciprocal, the prior affect the environment through its
goods and services, while the former effect the
environment with its goods and services. When the
firm could run efficiently while taking external
environment factors into account and delivering
solutions, it could be capable to escape being impacted
by the difficulties. To overcome the factors that affect
its production and performance the firm employs a
number of strategic initiatives. It might also consider all
of the internal aspects as they use strengths and
opportunities to convert all of the weaknesses and
threats. This could have a substantial impact on
external environmental instances.
Internal Factors
S: TESCO is the industry leader in the United Kingdom, with a
market share of even more than 34%
W: They are unlikely to grow into other markets owing to their
key position in the UK
O: By embracing the digital retail industry, the business's sales
increased
T: Rivals like Sainsbury's, Aldi, and Morrison represent a serious
challenge
References
Guenole, N., Ferrar, J. and Feinzig, S., 2017. The power of people:
Learn how successful organizations use workforce analytics to
improve business performance. FT Press.
Kreusel, N., Roth, N. and Brem, A., 2018. European business
venturing in times of digitisation-an analysis of for-profit business
incubators in a triple helix context. International Journal of
Technology Management, 76(1-2), pp.104-136.
Kwartler, T., 2017. Text mining in practice with R. John Wiley & Sons.
Oldman, A. and Tomkins, C., 2018. Cost management and its
interplay with business strategy and context. Routledge.
Sacolick, I., 2017. Driving Digital: The Leader's Guide to Business
Transformation Through Technology. Amacom
Conclusion
By this poster, internal and external environmental
variables have an influence on the industry. This poster
discusses internal and external factors that impact the
business, and an analysis of the firm's impact on the
external environment.

BUSINESS IN PRACTICE
INTERNAL FACTORS
• Strengths: TESCO is the market leader in the UK retail business with a marketplace share of more than 34%. TESCO draws customers by offering a broad range of
items under one roof.
• Weaknesses: Although TESCO's low-cost approach pushes the firm to the top of the UK pricing league, it has a detrimental impact on the company's profits. Due of its
crucial position in the UK, the firm has been unable to expand into other areas. P&G and Nestle, and a variety of local competitors, declare their supremacy into
question at every turn and increase the stakes in the Trillion Dollar FMCG arena.
• Opportunities: If the company approaches the digital retail market, its revenues may grow. TESCO may create collaborative partnerships with regional firms to get
efficient access to a worldwide market.
• Threats: Sainsbury's, Aldi, and Morrison are just a few of the foreign and domestic competitors that pose a major challenge to TESCO. The present global financial
crisis has an impact on the company’s revenue.
EXTERNAL FACTORS
• Political factors: For the previous four years, the trade war between the Chinese government and the United States has dominated the media. Tesco's main market is
the United States. It is a British company with no ties to the United States or China.
• Economic factors: The covid-19 outbreak has wreaked damage on businesses and corporations. It was owing to physical interaction restrictions, social remoteness, a
lockout, and the firm's failure. Tesco escaped becoming a victim of the outbreak owing to its extensive e-commerce network and online buying.
• Social factors: In recent years, people have been shifting away from meat-based meals and more towards plant-based vegetarian diets. In the Western and European
industries, vegetarianism is acquiring momentum. In 2020, consumer awareness in vegan goods and plant-based meals is expected to increase by 4.1 billion pounds.
Tesco is fully aware of the growing vegetarian tendency.
• Technological factors: Tesco's latest article on its cooperation with Amazon Go to create new cashierless checkout systems is a real game - changer that would
transform the way people buy food. People will be able to bypass huge queues and save hours with hassle-free payment.
• Legal factors: Tesco refused to provide an accurate depiction of its finances and revenues in 2017. The brand was heavily fined by the courts for supplying false
information. The company agreed to pay a $12 million settlement.
• Environmental factors: Tesco has just begun phase 2 of their recycling effort, which covers the elimination, reduction, reuse, and recycling of plastic. This might aid
the company's efforts to minimise and reduce non-recyclable plastic. Most significantly, it operates in a loop, continually decreasing trash.