Impact of Business Environment on Tesco: A Comprehensive Analysis

This report provides an analysis of Tesco's business environment, focusing on the various macro-environmental factors influencing its operations. It begins with an introduction defining the global business environment and its impact on resource utilization and decision-making, specifically in the retail industry. The main body of the report delves into specific aspects of Tesco's business environment, including political, social, economic, technological, legal, and environmental factors. It examines the impact of government regulations, taxation policies, and other governmental influences on the company's structure and operations. The report also assesses how changes in the business environment, such as shifts in consumer behavior and economic conditions like inflation, affect Tesco's activities. The impact of Brexit on Tesco is also discussed. The conclusion summarizes the key findings, emphasizing the significant influence of government policies and regulations, inflation rates, and consumer demand on Tesco's performance. The report references several academic sources to support its analysis.

Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Information to an analysis of business environment of firm ......................................................1
Impact of government on structure and operation of organization ............................................1
Impact of changes in business environment on organization and its activity ............................2
CONCLUSION ...............................................................................................................................2
REFERENCES ...............................................................................................................................3

INTRODUCTION
The global business environment can be defined as the atmosphere in various
independent nation which is influencing the utilization of resource and decision making process
with the business (Hamilton and Webster, 2018). This study is based on Tesco as retail industry.
Report will assess informations of firm's business environment. It will explain impact of
government on operation of firm.
MAIN BODY
Information to an analysis of business environment of firm
Tesco is the largest supermarket retailer located in the UK. The business environment can
be determined by macro environment which involves social, economical, technological, political
factors which are influenced on operation of Tesco.
Political Factors: The consumer restriction laws, government tariff and pay taxes that
are highly effected on operation of Tesco.
Social Factors: Company contributes in charity, give prepared food and respond to
changes in ages and population impact on business (Botha, Kourie and Snyman, 2014).
Economic Factors: Increasing inflation rate and interest are highly effected on operation
of Tesco.
Technology Factor: The radio frequency recognition, technological goods are provided
to consumers which are influenced on Tesco.
Legal Factors: Employment laws, labour regulations which are effected on operation of
and activity of Tesco.
Environmental Factors: The green practices, carbon emission and waste which are
affected on operations of Firm (Knoke, 2018).
Impact of government on structure and operation of organization
Government regulations, taxation policy, free trade, political stability, economic
condition of the nation where they are operating the business. For instance, Tesco is importing
stock from outside UK like China, so that import duty on goods can be affected company. The
tax on bigger supermarkets are called as Tesco Tax which was planned through local council of
government of UK. It can be refused initiative mainly to avoid price rise. This kind of initiatives
can affect negatively on Tesco in the future (Botha, Kourie and Snyman, 2014).
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In this context, there are other regulations related to government tariff, pay taxes which
are highly effected on operations of Tesco. High level of unemployment rate is also effected
negatively on selling of products and services of firm (Epstein, 2018). Increasing the corporation
tax has same effect on increasing the costs which is highly effected on activity of Tesco.
Therefore, these kinds of government rules and regulations effect overall business growth.
Impact of changes in business environment on organization and its activity
The changes in government, regulations, policies and political stability which are
involved political factors of business environment of Tesco. These changes are highly effected
on the operations and activities of firm. In order to that, if the changes in needs and wants,
culture and trends of consumer which are largely impact on selling of products and services of
organization (Hillary, ed., 2017). In addition to that, if the inflation rate is high, so that consumer
do not buy products and services of firm which directly impact on negatively on overall business.
These changes in highly effected on growth and development of Tesco in UK.
Another change is Brexit impact on largest grocery supermarket like Tesco. Company
has engaged in number of close term initiatives to offset its Brexit induced issues in efforts to
retain market share. Organization reacts to tell indicator of their long term resiliency and ability
to rebound in inside of the powerful headwinds imposed by Brexit.
CONCLUSION
This report has summarised that government policy and regulations, inflation rate and
consumer demand involving the macro environment which impact on company operations. It can
be concluded that government policies and regulations impact on business environment.
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REFERENCES
Books and Journals
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology. Elsevier.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Epstein, M. J., 2018. Making sustainability work: Best practices in managing and measuring
corporate social, environmental and economic impacts. Routledge.
Knoke, D., 2018. Changing organizations: Business networks in the new political economy.
Routledge.
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