Business and Business Environment: Analysis of Tesco's Macro Factors

This report provides a comprehensive analysis of the business environment, focusing on both macro and micro factors and their influence on business objectives and decision-making. It begins with an introduction to the business environment and different organizational types. The report then delves into the macro environment using PESTLE analysis, illustrating the positive and negative impacts of political, economic, social, technological, legal, and environmental factors on a company like Tesco. Internal and external analyses are performed, utilizing the SWOT model to identify strengths, weaknesses, opportunities, and threats. The interrelation between these factors and external macro influences is clarified. The report further explains how the SWOT/TOWS model affects decision-making and critically evaluates the impacts of both macro and micro factors on business objectives. The conclusion summarizes the key findings, emphasizing the importance of analyzing both internal and external factors for successful business operations.

Business and business
environment
TASK 3 and TASK 4

Table of content
 Introduction
 Different types of organizations
 Size and scope of different types of organizations
 Relationship between different organizational functions
 Conclusion
 References

Introduction
The business environment is associated
with marketing term which is used by an
entity in order to take the competitive
advantages. There are different types of
business are running in market that all
needs to be analysis themselves so they can
identify which factor has impacted on
business. In other words, if a person is
going to start an run their activities in
relation to business then it should use
different tools and models for the purpose
of evaluating business environment.

Describe the positive and negative effects of macro
environment has on company processes, with concrete
examples to illustrate.
Macro environment – This refers as combination of various external factor which arises out of the
organization in competitive environment and has impacted on business whether positive and negatively.
Whenever, some is going to start or establish their business in business environment then it should analysis
the macro environmental factor that states how such factors are related to business sand affected the business
activities.
PESTLE analysis – This is a tool which is used by organization to analysis the industry and particular
business in order to know how such factor has affected the business and can run it successfully..

Cont..
Political factor – The relation of political factor with government, political system, trade barriers, political stability,
taxation rates, terrorism and military and fiscal policies which all are set by government that has impacted the
profitability and survival chances of a business entity. The positive and negative impacts in context to Tesco
business are as defined:
Economical factor – The relation of economical factor with pertaining to the economy in particular country and
nation that involves foreign exchange rate, inflation rates, GDP rate, interest rate that has impacted on business in
case of little bit shifts. The impacts on Tesco business of such aspects are as defined:
Positive impacts – In UK, there is high level of employment that means it is supplying greater jobs at lower cost that
is impacting positively on Tesco business as reduction in cost. Moreover, stability in exchange rate that is
supporting Tesco to trade at international level that helps to generate high profits.
Negative impacts – After Brexit, in UK interest rates are increased due to which it become difficult for Tesco to
expand its business in other areas by taking loan because there has to pay high interest charges.
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Cont..
 Social factor – The association of such factor with society which consists attitudes, culture,
beliefs, values and majority of people in community which focuses on needs and lifestyle of
people. this has affected the business of Tesco that are as defined:
 Technological factor – In competitive environment, technology is changing rapidly where it is
important for organization to focuses on innovation and new technology that can support and helps
to take the competitive advantages.

Cont..
 Legal factor – In UK, government has formulated many regulation which are important to follow that
involves, labour law, minimum wages, healthy and food protection etc.
 Environmental factor – For running a business there is need to follow the environmental standard
which have formulated by government. This involves ethical consideration, carbon emission, wastages,
spoiling water in case of not following.

Adapt the PESTLE model correctly to enable a
thorough study of an organization's macro climate.
 PESTLE analysis is an appropriate framework that should be used by organization in order
to analysis the external environment. This is important for organization to focuses on
political, social, economical, technological, legal and environmental factor which has
impacted on business. For instance, changes in technology can be risky due to spending
amount where management need to research properly and should hire skilled employees who
can perform well. Moreover, not following health and safety standard can be threat for
organization that needs to be improve by following and providing best quality of food to
customers.

Perform internal and external analyzes to define
strengths and deficiencies in different organizations..
Internal analysis – This is related to internal analysis of business where management is required to
use a appropriate framework and analysis the internal environment so strength, weakness,
opportunities and threats in relation to business scan get easily. This arises and can be evaluated
internally by using SWOT analysis that helps to operate a business and increase the organizational
profitability.
SWOT analysis – This is a framework which uses by companies to identify their strength and
weakness. The weakness and threats of business needs to converted in to opportunities so a
business can be run effectively and maintain the high profits. Such as Tesco is using SWOT
analysis that are as explained:

Continue….
Strength Weakness
 Tesco is having strong brand and global presence
specifically in Europe that helps to run a business and
increase organisational profitability.
 It has incredible growth place which help to operate
business.
 Leading organisation in competitive environment.
 Selling of retailing products and services
 Applying strategic business model that uses to operate a
business.
 Researching on marketing areas and using various
distribution channel.
 Focusing on customer needs and wants then deliver kind of
products.
 The manager are researching the market and bring
innovation and new technology in their process that
 Business concerns are following the centralised system.
 Lack of product range as per customer demand.
 Having competitor such as Walmart, Asda, Morrison etc.
 Shifting pricing charges activity that reduces
organisational sale.
 Sluggish and slumming profitability in USA.
 Shifting in people demand and choices.
 Spiked operation cost
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Continue….
Opportunities Threats
 Tesco is using new technology and innovation in their
organisation which helps to grow the business effectively.
 It ahs skilled and talented employees who works collectively.
 Best distribution channels.
 Larger stores in different countries.
 Developing customer needs and wants.
 Providing better quality of products .
 Focusing on minimal reduction of wastages and reducing
carbon emission.
 Government stability that provide opportunities to run a
business appropriately.
 The substitution of retailing products are available in market.
 Entrance of new business and using technology by them.
 Changes in culture, taste and preference of people.
 Climate changes that can reduces organisational productivity
and selling activity (Uluskan and Godfrey, 2018) .

Clarify how shortcomings and strengths interrelate
with external macro influences.
In competitive business environment this is highly important that to focus on external factors and run their
business effectively. If business concern are able to control and reduce the negative impacts then no change
to loss with high competition. To run a business a person should focuses on their macro factor which are
relating to external environment that means they arises out of the organisation. Such factors have contribution
in organisational productivity and brand increasing by attracting customers and deliver them best quality of
products. Tesco is retail supermarket that is focusing on external environment that has interrelation with
strength and weakness that are as defined:
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