Global Business Environment: Tesco SWOT Analysis Report

This report presents a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Tesco, a major UK-based supermarket retailer, within the context of the global business environment. The analysis examines Tesco's strengths, such as its extensive geographic reach and well-trained workforce, which enable it to cater to a large customer base. Weaknesses include the high operational costs associated with a large workforce and limited overseas market presence. Opportunities are identified in the shift towards online buying and digital marketing, allowing Tesco to reach a wider customer base more cost-effectively. Threats include political instability impacting international trade and the need to adapt product offerings to local cultures and regulations. The report emphasizes the importance of a strong business environment and effective relationships with host countries for Tesco's success.

Global Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Global business environment is the analysis of external sovereign country business
market conditions which affect company's working capabilities. Tesco is one the largest
supermarket retailer of UK and SWOT analysis of Tesco is done in this report.
MAIN BODY
SWOT
Strength-
Tesco is having large number of geographic reach across the globe and because of which
it is having large number of well-trained employee workforces which enables it to provide high
level of working capabilities to its customers and because of which it has managed to achieve
many customers. Through this large number of customers company is able to achieve a good
economical background which has empowered Tesco an ability to provide products on the basis
of customer requirements (Heese, Srinivasan and Kelley, 2019). Tesco is one the largest retailer
which provide products on the basis of customer requirements and because of which it provides
wide range of products to wide range of customers for high sales.
Weaknesses-
Tesco has to provide wide range of products to wide range of customers and for which it
has to employee large number of employees, because of which its organizational expenditures
are increased. Tesco is having large number of store throughout the country but company fails to
extend its market into other countries because of which its overseas market is limited to only a
few stores (Awadari and Kanwal, 2019). Tesco is having large number of employee count which
provide high level of services to customers but due to changing customer buying processes
company has to increase its involvement in online market also and because of which it has to
provide additional training to its employees due to which organizational expenditures will
increase.
Opportunity-
Customer are changing the ways of buying products from traditional buying to online
buying and because of which Tesco has to increase its involvement in online marketing by which
it will be able to achieve high sales in reduced efforts. This is important for organization because
digital marketing is cheaper than compared to traditional marketing and because of which high

effectiveness can be achieved at a lower cost, which is an opportunity for the company because it
is able to reach wide range of customer minimum expenditures.
Threat-
Global marketplace changes with the changes in global politics and because of which
company's performance in other sovereign countries is affected because if political instabilities
arises between its host country and home country then trading will be affected which will make a
negative impact on company's performance (Adamyk, 2019). Also Tesco has to change its
product placement because each country is having its own culture and laws because of which
company may not be able to sell some of its products into other locations which will make
negative impact on its performance.
CONCLUSION
Global market conditions change rapidly with the changing local governments and thus
Tesco has to effectively choose a business environment on the basis of efficient relation of its
home country with the selected sovereign country, by this country will be able to achieve high
sales.

REFERENCES
Books and journals
Adamyk, K., 2019. PESTLE Analysis on Tesco PLC.
Awadari, A.C. and Kanwal, S., 2019. Employee participation in organizational change: A case of
Tesco PLC. International Journal of Financial, Accounting, and Management. 1(2).
pp.91-99.
Heese, J., Srinivasan, S. and Kelley, J., 2019. Accounting Fraud at Tesco Stores (A).