BM461 Global Business Environment Analysis

This assignment focuses on analyzing the global business environment of TESCO through a SWOT analysis and operational impact analysis. It includes a detailed examination of the internal and external factors affecting the organization, utilizing PESTLE analysis as a foundation. The report aims to identify key drivers that influence TESCO's functional areas, such as marketing and finance, and discusses the importance of these analyses in strategic planning.

Global Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................1
Internal Environment .................................................................................................................1
Impact of opportunities and threats on organisation...................................................................4
CONCLUSION................................................................................................................................5
REFERENCES ..............................................................................................................................6

INTRODUCTION
The term global business environment is drive by technological, political, economical
and other factors that are beyond control of organisation. With understand of global business
environment perspective of all countries from which management of business is unfamiliar are
monitored to reduce the negative impact of global business. This report is written from
perspective of TESCO and it is a retail organisation that operate and control its stores in different
geographical areas. Moreover, this report highlights on internal environment of organisation to
identify their competencies and capabilities for performing organisation operations in an accurate
manner (Wei, Thurasamy and Popa, 2018). In the last, importance of SWOT and impact of it's
factors on different functional areas will also included in this report.
Internal Environment
In order to understand, internal environment of TESCO management conduct PESTLE
analysis to match SWOT factors with external geographic areas. So PESTLE model in context of
respective organisation is mention as below:
PESTLE
 Political- TESCO is a British retail organisation and they manage store in different
countries such as Ireland, Poland, China and many more. Home market of TESCO is UK
and due to Brexit political environment of UK is uncertain but due to managing business
in different location. It is easy for management to perform business in conductive
manner.
 Economic- Global economic of country is impacted due to Covid-19 and it results
earning of individuals and organisation is reduced. So customer focus on cheap products
which create issue for organisation.
 Social- TESCO undertake different initiatives to response towards social change and
demand (Kasemsap, 2018). Like, increase in demand of non-veg food it is identified that
European market offer different opportunities for future growth. So social aspects aids
towards increase in social demand.
 Technological- TESCO identified that there are different technological advancement
exists over the years. Self-service check points provide base to customers and it aids
towards implement of managing cost of business.

 Environmental- Organisation that are established in UK, identify different countries
among the world generate enormous pressure on government to follow all environment
issue. This pressure is not only from governments but from public who is focused
towards environments safety. It create challenges for organisation to manage store in
strict guidelines.
 Legal- Government legislation and policy impact on TESCO directly and it define that
UK and EU formulate competition law. This generates challenges for organisation to
perform work in proper manner. Like, change in wage act create complexity and it
impacts on TESCO business.
Competencies and capabilities
With the analysis of resources, core-competency and capabilities it is identified that
financial aspects are a valuable resource for TESCO. Effective strategy aids an organisation to
manage it's stores in an organised manner. Ambience and infra-structure of TESCO is same and
it aids management to perform work with formulation of competitive-edge in market. From
perspective of TESCO potential capabilities are utilised by management to perform their work
with more efficiency (Kasemsap, 2016).
Distinctive competencies and distinctive capabilities
Human-resources of TESCO formulate distinctive capabilities for organisation and it
differentiate organisation from competitors by performing all work with more efficiency and
effectiveness. Supply chain of respective organisation define capabilities that aids to perform
work with more capabilities.
SWOT analysis
The term SWOT analysis is explained as a compilation that explain strength, weakness,
opportunities and threats. Primary objective of SWOT analysis helps organisation to formulate
factors with proper decision-making. The word S- stand for strength, W- for weaknesses, O- for
opportunities and T- for threats. SWOT in context of TESCO is mention as follow:
Strength Financial turnover is a major strength
and it support business to overcome
from weaknesses. Market share of TESCO is more in
Weaknesses
 Change in leadership is weak point for
organisation.
 Low quality control aspect is another
weak point for organisation.

home market which aids in minimising
political challenges. Strong performance provides aspects
that help to perform work with online
and offline stores. Innovation is a major strength to
perform work with optimise results
(Hampden-Turner and Trompenaars,
2020). Adaptability provide restriction to
perform work with motive of managing
stores. Presence of store at world-wide level is
an effective strength of TESCO. Better relation with stakeholders work
as an appropriate strength for business.
 Brand value and goodwill work as a
major strength for business.
 Product shortage increase weakness for
organisation.
 Inventory management create problems
and work as a weak point.
 Food safety issue increase weaknesses
for TESCO.
 Conflicts with subordinates increase
weak points for TESCO.
 High Dependence on UK market
generate weak perspective.
 Less purchase create problems and this
generate complexity for purchase.
 High competition in retail organisation
generate problems for management.
Opportunities Strategic alliance with other brands. Joint venture with local organisation. Online and digital platform provide
opportunities to market. Growth for online grocery sales. Employment opportunities in
developing countries. Demand for meat alternatives offer
opportunities to market. Social supermarket provide
opportunities to use by date. AI and machine learning offer
Threats
 Economic recession create threat for
market share.
 Competitive threats from international
organisation.
 Food prices are increasing at global
level.
 Labour related wage create complexity.
 Rise in raw-material cost (Hakanen,
Helander and Valkokari, 2017).
 Dynamic Government regulation work
as a threat for organisation.
 UK-EU relation generate threat for

opportunities to perform work with
more efficiency. Numerous opportunities such as to
operate retail format stores with high
demand.
 Entrance in private market.
organisation.
 Covid-19 create uncertain time period
threat for business.
 Competition from local and
international stores enhance number of
threats.
Impact of opportunities and threats on organisation
Finance Department
This is important for business to perform their work with more efficiency and it aids
management to complete all task and operations in an organised manner. From perspective of
finance department it is analysed by systems that by use of financial resources it is easy for
management to complete task in an organised manner. With enter in market of developing
countries TESCO accomplish opportunities of performing work in an organised manner. This
refers there are different task managed and it aids to improve market area by enhancing strength
that aids to complete work by formulate of strategy that enhance financial aspect for business. It
also improve market share to manage function according to decided budget (Brenkert, 2019).
Finance strength helps in achieving opportunity for entering in global market.
Human-resource department
With the development of organisation it is identified that human-resource of TESCO
perform an important role and it aids persons to complete their work with more efficiency.
Training and development aids TESCO towards implement of effective results and it helps in it
helps for performance of work. The existing human-resource department of TESCO aids to
improve work efficiency for completion of task in an appropriate manner. One of the most
important task that refers to human-resource department consider about developing task with
organisational perspective (Berman and Dalzell-Payne, 2018). It aids to accomplish opportunities
which define long term areas to control better results for organisation.
CONCLUSION
In the last, with the analyses of above report it is concluded that management pestle and
swot model perform an important role for organisation. This aids organisation to complete their

task through focusing on opportunities and threats that relates with internal and external aspects
for organisation. In the last, impact of SWOT analysis on company different departments is also
included in the report.

REFERENCES
Books and Journals
Berman, S. and Dalzell-Payne, P., 2018. The interaction of strategy and technology in an era of
business re-invention. Strategy & Leadership.
Brenkert, G.G., 2019. Mind the gap! The challenges and limits of (Global) business
ethics. Journal of Business Ethics, 155(4), pp.917-930.
Hakanen, T., Helander, N. and Valkokari, K., 2017. Servitization in global business-to-business
distribution: The central activities of manufacturers. Industrial Marketing
Management, 63, pp.167-178.
Hampden-Turner, C. and Trompenaars, F., 2020. Riding the waves of culture: Understanding
diversity in global business. Hachette UK.
Kasemsap, K., 2016. Advocating entrepreneurship education and knowledge management in
global business. In Handbook of research on entrepreneurship in the contemporary
knowledge-based global economy (pp. 313-339). IGI Global.
Kasemsap, K., 2018. Mastering business process management and business intelligence in global
business. In Global Business Expansion: Concepts, Methodologies, Tools, and
Applications (pp. 76-96). IGI Global.
Wei, L.H., Thurasamy, R. and Popa, S., 2018. Managing virtual teams for open innovation in
Global Business Services industry. Management Decision.
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