BM461 Global Business Environment: Tesco Analysis and Impact

This report provides a comprehensive analysis of Tesco's global business environment, focusing on internal and external factors influencing the company's performance. It begins with an introduction to the global business environment and its impact on Tesco, followed by a detailed SWOT analysis, evaluating the company's strengths, weaknesses, opportunities, and threats. The report then identifies key drivers, such as political (Brexit), economic, social, technological, environmental, and legal factors, and assesses their impact on the marketing and finance departments. The analysis explores how these factors affect the company's operations, including pricing, consumer behavior, and financial performance. The report concludes by summarizing the key findings and implications of the analysis, emphasizing the importance of understanding the global business environment for strategic decision-making. References to academic journals and books are included to support the analysis.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
GLOBAL BUSINESS ENVIRONMENT...................................................................................1
INTRODUCTION.......................................................................................................................3
SWOT analysis........................................................................................................................4
Key drivers which will have impact on two departments of company...................................5
CONCLUSION............................................................................................................................7
REFERENCES............................................................................................................................8

INTRODUCTION
Global business environment is the business environment in other global countries, it
will include factors which will affect the organisation and influence the decision of the
company as well. The report is providing the knowledge regarding the internal and external
factors which will affect company in positive and negative way. Tesco is unable to understand
concept of global business environment. It consists of the swot analyses and factors which will
affect department of company.
SWOT analysis
Swot analysis is concentrating on strength, weakness, opportunities and threats of
company.
Strengths
It is the biggest grocery retail store and supermarket chain all over the world. It has the
leading market share which will help company in ruling the market. Tesco is growing rapidly
by way of increasing the number of stores all over the world. This is increasing the revenue
and also building big chain of stores in country. It is providing varsity of products and also
supermarkets will provide range of products. Customers can buy products as per their need.
Tesco is one of the largest private sector organization in Europe. Company has obtained
several international awards which will help them in building the brand image in market
(Fatricia 2017).
Weakness
Company is suffering due to brexit because due to brexit prices of products are
increasing rapidly and these will have negative impact on company performance. Tesco is
buying the raw material from UK and these are increasing the price of products. These all
have increased price of import and exports due to this company cannot decrease the price of
products. High inflation rate is affecting consumers and consumers are not using the products.
Consumers are eliminating their unwanted expenses and these have affected company on large
scale. Due to all these there is decrease in operating profits which is affecting performance of
company in market.
Opportunities
Company can expand the business in other countries by way of joint ventures and
online shopping (Julian 2017). Online shopping is attracting customers because online

shopping is available and it is done form any corner of world which will attract customers
towards company. Tesco is entering the market of developing countries which can expand the
business of company in other developing countries. Tesco is also collaborating with other
brands which can increase the sales of company and increase productivity as well. It will build
the brand image in market.
Threats
Tesco is dealing with various threats which will affect company image on large scale.
Increase in competition is affecting organization because there are giants in the industry of
retail sector. Like Walmart, Carrefour and many more. This is affecting the company most
because these brands are already ruling the market working in effective way. Organization is
facing challenges because of economic crisis. This is affecting company on large scale along
with it will affect company brand image in market. Brexit is the biggest threat for company
because due to Brexit prices of products have been increased which will have negative effect
company (Peng 2018).
Key drivers which will have impact on two departments of company
Basis Marketing Finance
Political factors Brexit have increased the prices of
products and these have affected
marketing department because
customers are not attracted towards
company in spite of using several
marketing activities.
Rise in prices of product have
increased profits of company but
these s having negative impact on
price of products. Suppliers from
which the company is buying
products is selling the raw material
at high prices. Import and export is
also expensive and these have
affected finance department of
company.

Economic factors Due ot brexit the economic condition
of country is not good and customers
are not buying product
(Tirawatnapong and Fernando 2019).
In order to increase sales marketing
department is using various
techniques but customers are not
affected by these activities.
Company is not providing wages
to employees on proper time along
with not kind of extra benefits are
given to them which will affect
employees of company. Due to
change in the value of pound
expense of import have been
increased.
Social factors Due to high rate of inflation
customers are not buying product and
only basic need are fulfilled by them.
This inflation has also affected
company because customers are
not buying any kind of products,
and they are eliminating the cost of
unwanted goods.
Technological
factors
Tesco is using the latest technology
for doing the marketing of product
successfully.
Company is buying the latest
technology which is quite
expensive and it will affect the
financial position of company.
Environmental
factors
Tesco is forming the own policies for
protecting environment on large scale.
It will increase used by marketing
department for working in effective
way. These policies will encourage
customers along with it will attract
customers towards company. Tesco is
taking effective measures for fuel
saving and reducing the use of plastic
bags which is used by marketing
department in increasing sales.
These environmental protection
related polices and programs will
need money and these will affect
the finance department of
company (ZHAO ZHAN Ying and
ZHU 2018).
Legal factors As company is paying equal pay to all
employees it will be used by company
As Tesco is paying equal wages to
all employees it is affecting the

and it will be useful for the marketing
department of company. It will create
brand image of company in market.
financial position of company
along with certain rules and
regulation which will be used by
company in effective way.
CONCLUSION
From the above report it has been concluded that Tesco is increasing the business all
over the world. Company is affected because of the Brexit and due to these prices of several
products is increasing rapidly. Hence, forth some factors are been discussed in order which
will discuss the impact on the two departments. Marketing department and finance department
is affecting the company performance. So swot analysis is also been done in report which will,
provide knowledge regarding strengths, weakness and threat and opportunities of company.

REFERENCES
Books and journals
Fatricia, R.S., 2017. STRATEGIC ANALYSIS OF TESCO SUPERMARKET. Jurnal
Manajemen Terapan dan Keuangan. 6(02). pp.69-86.
Julian, F., 2017. Etude de marché: Tesco, lancement sur la côte ouest américaine. %
citation_journal_title%.
Peng, S., 2018, November. The Status and Countermeasures of Rural E-commerce in
Shandong Province Based on SWOT Analysis. In 2018 International Conference on
Economy, Management and Entrepreneurship (ICOEME 2018). Atlantis Press.
Tirawatnapong, R. and Fernando, M., 2019. Factors Influencing Bangkok People Purchase
Intention towards Tesco Lotus House Brand Products. International Research E-
Journal on Business and Economics. 4(2). pp.15-29.
ZHAO, J.K., ZHAN, Q.N., Ying, L.O.N.G. and ZHU, Y.Z., 2018. Research on the
Development of Little Red Book—By Adopting SWOT Analysis. DEStech
Transactions on Social Science, Education and Human Science, (amse).