Analyzing Tesco's Global Business Environment and Operations

This report provides a comprehensive analysis of Tesco's global business environment. It begins with an introduction to the impact of the global business environment on enterprises, specifically focusing on Tesco, a multinational supermarket. The main body of the report includes a detailed SWOT analysis, examining Tesco's strengths, weaknesses, opportunities, and threats. It also explores internal and external drivers impacting the company, such as employees, shareholders, market economy, and the impact of Brexit. Furthermore, the report delves into the operational impact analysis, focusing on marketing and human resource management functions within Tesco and how they are affected by these drivers. The report concludes by emphasizing the importance of understanding the global business environment for effective decision-making and market research. The report references various books and journals to support its findings.

Global Business
Environment

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
SWOT Analysis ..............................................................................................................................3
Operation impact analysis................................................................................................................4
CONCLUSION....................................................................................................................................6
REFERENCES.....................................................................................................................................7
Books & Journal:.............................................................................................................................7

INTRODUCTION
Business environment has deep impact on overall structure of enterprise at wider scale.
Global business environment refers to environment in different countries that impact upon home
environment of country (Carrillo-Higueras, 2018). Tesco, a multinational supermarket
headquartered in U.K. Firm deals in daily consumable items, goods & services such as groceries
products etc. Main aim of this report is to understand impact of global environment on enterprise.
MAIN BODY
SWOT Analysis
It refers to type of tool which is used by entity to examine or analyse their internal
capabilities through accessing to their strength weakness, opportunity & threat (Chang, 2016). It is a
time consuming process which require deep level of market information & sources. In relevance of
Tesco, they also use this tool which is further discussed below-
Strength
 Main strength of Tesco is that it is
located globally & run its operations
worldwide which reflects their strong
base (Civelek, 2016).
 Another strength is it has wide range of
product portfolio which reflects it strong
customer base.
 Then, it is functionally strong & it is
easy for them to access to resources at
larger scale.
Weakness
 Main weakness of ,Tesco is that due to
impact of Brexit it is difficult for them to
expand their business at many countries.
 Due to increase of labour and workers
wages, the overall cost structure is
getting affected which reflects their weak
HR policies.
Opportunity
 Tesco has wide opportunity of merging
up with other brand sin many countries
on basis of which they can enlarge their
business activities.
 Further opportunity is to enter into many
more Asian countries though using
market entry such as franchising,
licensing etc.
Threat
 The EU & UK relation can affect the free
trade agreement which is biggest threat
for firm.
 Another threat is that due to this
pandemic situations of COVUID 19 they
might decrease their profitability & sales
revenue.

Drivers of internal & external environment-
Internal drivers-
 Employees- It is an internal driver which impacts upon environment as they are one who
are responsible for getting work done & increase productivity of company. In context of
Tesco, employee of company are easily accept the change & work accordingly which affects
environment.
 Shareholders- These are also to be considered as internal driver which affects environment
of entity at larger scale. This is because, critical discussion are being take by shareholders. It
makes it difficult for employees & management to work independently on their their own.
Both these internal drivers are necessary to be determine effectively so that work is done
appropriately (Coyne, 2020).
External drivers-
 Market economy- It is external driver which affects the company environment as because
it market is flexible & it affects the strategies of business at larger scale. In reference of
chosen entity, market economy of retailing industry is evolving with changing time period.
Therefore, after analysing above matter, it is examined that it is crucial to examine internal
& external drivers of environment so that objectives are achieved properly. Furthermore, it is too
stated that they internal analysis is required to implemented, so that weak & strong areas are easily
accessed. Both these drivers of environment are essential to be examined so that objectives are
achieved properly (Igliński, 2016).
Operation impact analysis
Business operation does get impacted by external as well as internal drivers at depth. In
context of selected organisation, they perform various types of operations as well as functions such
as marketing, and human resource management. The impact on operations are needed to be
analysed properly so that decision making is carried out effectively. The functions of company are
explained below-
 Marketing function- It is a function in which main work is to increase & enhance
productivity as well as output of firm. Marketing department main role is to generate higher
profit, increase sales ration etc. In relevance of Tesco, they internal driver which impact the
function are employees who work in management & perform different roles. They impact
because work is done by them & potential employee deliver benefits to firm whereas non
potential subordinates impacts in negative way. For example- personnel of selected firm
does not stay for longer period in business which affects their work environment.

 Human Resource Management- It is function of enterprise in which main work is to hire
& select talented staff at workplace to increase efficiency of company. In reference of
chosen corporation, they too carry out this function in such a way that goals & objectives
are achieved (Kordana, 2017). HRM is critical function in which they focuses more. The
external driver which is market economy does impacts upon HRM as because it increases
competitiveness in market. The increase of competition leads to impact on HR jobs & role.
Therefore, market economy has deep effect on enterprise functions,
Thus, from above stated matter, it has been examined that it is crucial to states there It is
essential for companies to carry out or use these tool & functions in such a way that appropriate
objectives are achieved (Mondal, 2017).

CONCLUSION
After a brief analysis of above report. It haws been concluded that it is essential to be aware
about global business environment so that decision making process is carried out in proper manner.
Further, this report gives a brief information about affects of business environment on entity
functions & operations. So, discussions has been made about SWOT analysis & operation analysis.
Thus, it has been evaluated that it is necessary to conduct a market research so that goals are
accomplished in correct way.

REFERENCES
Books & Journal:
Carrillo-Higueras, 2018. Environmental commitment and its drivers in the Australian wine
industry: A behavioural approach.Australasian Journal of Environmental
Management,25(4), pp.439-458.
Chang, 2016. Sustainable evolution for global business: A synthetic review of the literature.J.
Mgmt. & Sustainability,6, p.1.
Civelek, M., Ključnikov, A., Dobrovič, J. and Hudáková, M., 2016. A model of measurement of the
quality of business environment in SME segment.Journal of International Studies.
Coyne, 2020. Identifying economic and societal drivers of engagement in agri-environmental
schemes for English dairy producers.Land Use Policy, p.105174.
Igliński, 2016. Wind energy in Poland–history, current state, surveys, renewable energy sources
Act, SWOT analysis Renewable and Sustainable Energy Reviews,64, pp.19-33.
Kordana, S., 2017. SWOT analysis of wastewater heat recovery systems application. In E3S Web of
Conferences(Vol. 17, p. 00042). EDP Sciences.
Mondal, 2017. SWOT analysis and strategies to develop sustainable tourism in Bangladesh.UTMS
Journal of Economics,8(2), pp.159-167.
Namusonge, 2017. Influence of procurement capabilities on firm performance of manufacturing
entities in Kenya.International Journal of Academic Research in Business and Social
Sciences,7(2), pp.507-520.
Wood, 2016. Multi-scalar localization and capability transference: exploring embeddedness in the
Asian retail expansion of Tesco.Regional Studies,50(3), pp.475-495.
Yadav, 2016. The influence of green marketing functions in building corporate image.International
Journal of Contemporary Hospitality Management.
You, 2019. Bridging technology divide to improve business environment: Insights from African
nations.Journal of Business Research,97, pp.268-280.