Impact of Macro and Micro Factors on Tesco's Objectives and Decision Making

UNIT 1 :BUSINESS AND
THE BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
1. Evaluating macro environment with PESTLE analysis by indicating positive & negative
impact...........................................................................................................................................3
2. Analyzing SWOT of Tesco for identifying key strengths & weaknesses and their
interrelation with macro factors...................................................................................................5
3. Evaluating impact of both macro and micro factors on objectives and decision making of
Tesco............................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment refers to internal and external surroundings of organization that
influences its operational activities. In current era it is essential for business to focus on these
factors. The chosen company for present report is Tesco store which deals in groceries and
general merchandises goods. Current case study will give emphasis on PESTLE and SWOT
analysis and their impact on decision making process of organization.
MAIN BODY
1. Evaluating macro environment with PESTLE analysis by indicating positive & negative
impact
Tesco being a British multinational retail organization has good business strategies for
making its business functioning smooth. Macro environment is aggregate of several factors that
give both positive and negative impact on company’s success. Moreover, it becomes essential for
Tesco to identify all elements that can influence its business practices. PESTLE analysis
provides assistance in determining these crucial components which are as follows:
Political factors
Company operates in different nations which leads Tesco to face several political factors.
It includes financial stability, tariff rates, legislation, rules, etc. Organization need to be active in
responding these factors in positive manner (Cooper, 2020). Political circumstances of different
countries vary so suitable strategies for dealing with it need to be formulated. The shown factor
such as political stability provides opportunities to expand business for giving job opportunities
in that specified nation. Negative outcome from this can be enemy nation can impose more tariff
rates that can reduce profit margin and create barrier for obtaining raw materials.
Economical Factor
There are various economic factors such as countries GDP, interest, tax rates,
government policies, etc play crucial role in affecting business activities. Tesco being an UK
organization need to keep eye on changing circumstances for implementing appropriate
strategies for overcoming economic challenges. Nation has their own different norms for
allowing international firm to uses countries sources of funds. It is favorable for nation to be