Business Environment Analysis: Barclays plc and Tesco plc

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THE BUSINESS ENVIRONMENT
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Table of Contents
Introduction...................................................................................................................... 3
Organization 1..................................................................................................................3
Organization 2..................................................................................................................4
Stakeholders.................................................................................................................... 6
Reference list................................................................................................................. 10
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Introduction
The business environment is management term that is referred to forces and factors,
which affect the ability of building and maintaining customer relationship successfully
(Vom Brockeet al., 2016). The public sector is one of the largest sectors of any
economy. Government bodies mainly undertake it. NHS, British Army and others are
the example of public sector organizations (Christensen et al., 2014). On the other
hand, 99.2% of the businesses across the UK premises are included in private sector
list. This type of firms is targeted to make high amount of profits in business. Social
enterprise is type of business organizations that mainly conduct activities for betterment
of the society rather than making profits. NGOs are the example of social enterprises.
Organization 1
Barclays plc is one of the oldest financial services providing company across the UK
premises that were established in 1690 in the city of London, UK. Across all the
subsidiaries of the organization, more than 78,000 employees perform different
business activities. In 2018, the company generated £21.654billion revenue in business
(home.barclays, 2019).
The mission statement of Barclays plc is “to deliver superior sustainable value we run
our business with integrity and openness, delivering optimum financial outcomes within
clearly defined business principle”.
The vision of the company is to be the most competitive, innovative, profitable and
successful financial company across the firm.
SWOT
Strengths
 The company was established in
1690, over 320 years ago.
Therefore, the company is trustable
and has high brand image in
Weaknesses
 Lack of technological advancement
 Lack of clearance in goals to
employees
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market.
 The customer base of the company
is loyal
 Simplicity of financial services
 High number of trained employees
Opportunities
 The company can expand globally
 The company can increase
profitability and sales performance
(home.barclays, 2019)
Threats
 Bank of Scotland, Bank of England,
Netwest and others are the major
threats of the company.
Table 1: SWOT analysis of Barclays plc
(Source: Created by learner)
Organization 2
Tesco Plc is one of the largest retail chain organizations in the Great Britain region. The
company was founded in 1919, 100 years ago by Jack Kohen. The company has more
than 6569 numbers of stores worldwide. Last year, the generated revenue of the
company was £57.214 million, where the employee number is over 460,000. The
company also has its online presence from where they generate high amounts of profits
(Tesco plc, 2019).
The mission statement of the company is “we make what matters better, together”.
Their vision is shaping the company and building most competitive retail company. The
key goal of the organization is becoming the most popular retail firm.
SWOT
Strengths
 Well-established customer base
due to over 100 years market
domination
 Huge workforce units for conducting
Weaknesses
 The company has low
technological infrastructure and the
IT performance is also not satisfying
that is considered as a major
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any kind of projects within the
deadline
 Wide product portfolio for attracting
huge customers
 Advanced marketing strategies and
improved leadership performance
disadvantage of Tesco plc (Tesco
plc, 2019).
 Due to competitive pricing, the
profitability of the company has
reduced
Opportunities
 Business expansion in international
market place for accelerating sales
revenue of the firm
 The company can improve its
business performance by adopting
different technologies such as
Communication technology,
production technology, IOT, IT,
cloud computing, GPS and more
others.
 Opportunity for increasing online
presence
Threats
 Main threats of Tesco plc are
Sainsbury’s, Primark, Zara, H&M,
John Lewis Partner and others that
are creating high commotion in
market.
Table 2: SWOT analysis of Tesco plc
(Source: Created by learner)
Comparison
Both of the companies are successful in their industry and has different internal
capabilities and gaps that have been uncovered by the above SWOT analysis of the
specified company. Tesco plc is a popular and successful multinational British based
retail chain company that has several product options to meet the needs of the
customers. The company follows extended product portfolio for increasing the
satisfaction of the customers. On the other hand, Barclays plc does not focus on
increasing the product portfolio. They use their well-established brand image and
market reputation for capturing customers. Leadership and managerial issues can be
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found in Barclays plc that is one of the major disadvantages of the company. However,
Tesco plc does not have this kind of issues at all. One of the major weaknesses of
Tesco plc is reduced profitability due to maintaining the competitive pricing strategy. It is
undeniable that Tesco plc has to face high market competition compared to other
business industry, as market competition level is extremely high in retail industry.
Stakeholders
Stakeholders are the important part of business. A stakeholder is an individual or
organization who can affect or is affected through a firm, project or strategy (Lawrence
and Weber, 2014). Meeting needs of stakeholders is another important consideration.
As per the consideration of modern market researchers, stakeholders are the backbone
of business organizations in respect to economic, social and ethical growth and
development.
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Stakeholder analysis mapping of Barclays plc
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Anticipate and
meet needs
Community,
government
Regular minimal
contact
Employees and
customers
Keep completely
informed
Directors, Bank
officers
Managed most
thoroughly
Customers,
investors
Interest of
stakeholde
rs
Influence of stakeholders

Like all other companies, Barclays plc also have various stakeholders those have
different effective roles in organizational development and progression. Stakeholders of
the company are customers, employees, community, investors, bank officers, directors,
government and others (home.barclays, 2019). However, the company provides highest
priority to customers and investors.
Stakeholder analysis mapping of Tesco plc
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Anticipate and meet
needs
Customers, investors
Regular minimal
contact
Workers, unions,
community
Keep completely
informed
Directors
Managed most
thoroughly
Customers, Employees,
community
Interest of
stakeholders
Influence of stakeholders

Tesco plc is popular for its best class retail products and in the entire process, different
stakeholders play diverse role. Key stakeholders of the company is supplier, creditor,
governments, directors, workers, community union and others (Tesco plc, 2019).
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Reference list
Christensen, T., Lægreid, P., Roness, P.G. and Røvik, K.A., 2014. Organization theory
and the public sector: Instrument, culture and myth. Routledge.
home.barclays 2019. Barclays Corporate Communications | Barclays. [online]
Home.barclays. Available at: https://home.barclays/ [Accessed 16 May 2019].
Lawrence, A.T. and Weber, J., 2014. Business and society: Stakeholders, ethics, public
policy. Tata McGraw-Hill Education.
Tesco plc 2019. Tesco PLC. [online] Tesco plc. Available at: https://www.tescoplc.com/
[Accessed 16 May 2019].
Vom Brocke, J., Petry, M. and Gonser, T., 2016. Business process management. In A
Handbook of Business Transformation Management Methodology (pp. 137-172).
Routledge.
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