Analysis of Global Business Environment Trends Since September 2017

This report provides an overview of the global business environment since September 2017, focusing on the retail sector and the strategic adaptations of Tesco. It examines the external and internal environments, analyzing changes driven by consumer behavior and market growth. The report applies Porter's Five Forces model to assess threats and competitive dynamics, particularly in the food and clothing retail markets. It also explores Porter's generic strategies, including cost leadership, differentiation, and focus strategies, to determine how companies like Tesco can structure their business in response to environmental factors. The analysis highlights key market trends, competitive rivalries, and supply chain dynamics, supported by references to relevant academic sources.

Global Business
Environment

TOPIC: “Present an Overview of the Global Business Environment since
September 2017”.
Global business environment is basically defined as the overall aspects of sovereign
nation which is having certain specific factors to the home condition of an organisation. It can
impact on the overall decision making on the available resources that are used by the company
during the time. It can be categories into two parts such as external and internal environment. As
the global environment is continuously changes since 2017 because of various factors. The
specific changes are seen over the retail sectors business in which Tesco has transform their
business more effectively till now. In the present scenario, retail trends are driven through
anticipation of consumer will spend more confidently throughout 2017. The market growth rate
would also be increase with 3.2 to 3.8 percent (Ferraro and Briody, 2013). To analyse more
closely it is essential use specific model that is mentioned below:
Porter five forces model:
 Threat of substitute products: It has been seen that from 2017, food and clothing retail
market for Tesco has grown drastically as compare to other products. The substitutes of
food retailers are small chain with organic shops that are major threats to supermarket.
 Threat of entry of new competitors: With the modernisation of global business
environment, Tesco is having threat of other competitors such as Sainsbury and ALDI.
But the competitors into the food retail sectors is minimum (Adekola and Sergi, 2016).
 Intensity of competitive rivalry: From 2017 to till now intensity of competitive rivalry
in the clothing as well as food is found extremely high. It should be shown that ASDA is
one of the major competitors in this particular segment with the increase of the market
share with 16.8% (Popescu, 2013).
 Bargaining power of buyers: In this particular point, it is also fairly high. It has been
proposed that client is attracted towards the minimum prices as well as availability of
online retail products can be better option.
 Bargaining power of suppliers: It has been noted that suppliers is very low as it should
be noted that the suppliers are associated with the major food as well as grocery retailers.
The major derivers of global environment are associated with the larger market size of
the company.
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These can be responded though using Porter generic strategies to determine the
structure and content of retail business. It has been discussed below:
 Cost leadership: The company used to target broad market and tried to offer lowest price
for their products. Tesco can easily apply this model successfully because of they would
have substantial investment (Harrison, 2013).
 Differentiation: It is essential for the company to make target in those market which is
having maximum demand but the products would have specific feature and quality.
Tesco can use various products such as food, clothing and grocery.
 Cost focus: Tesco need to target into a niche market and offer the minimum prices. In
this particular strategies, people can target a clear market by the help of using dynamic of
the market.
 Differentiation focus: With having target of minimum competition Tesco product or
services would have unique feature. It is done to attain strong brand loyalty between
customers (Simic and Dimitrijevic, 2012).
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REFERENCES
Books and Journals:
Adekola, A. and Sergi, B. S., 2016. Global business management: A cross-cultural perspective.
Routledge.
Ferraro, G. P. and Briody, E. K., 2013. The cultural dimension of global business. Upper Saddle
River: Pearson.
Harrison, A., 2013. Business environment in a global context. Oxford University Press.
Popescu, G. H., 2013. Macroeconomics, effective leadership, and the global business
environment. Contemporary Readings in Law and Social Justice. 5(2). p.170.
Simic, V. and Dimitrijevic, B., 2012. Production planning for vehicle recycling factories in the
EU legislative and global business environments. Resources, Conservation and
Recycling. 60. pp.78-88.
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