Global Business Environment - BM461: TESCO Analysis and Impact Report

This report presents a comprehensive analysis of TESCO's global business environment. It begins with a SWOT analysis, identifying the company's strengths, weaknesses, opportunities, and threats, considering factors like customer service, brand awareness, competition, and government regulations. The analysis further delves into the operational impacts of key factors, specifically examining marketing, production, customer service, Brexit, and the COVID-19 pandemic. The report explores how these factors affect TESCO's operations, sales, and overall market position. The discussion highlights the challenges posed by competition, economic downturns, and changing consumer behaviors, as well as the need for strategic adaptations in marketing and production to maintain and improve market share and profitability. References from academic sources are included to support the analysis.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
SWOT ANALYSIS.........................................................................................................................3
OPERATIONAL IMPACT ANALYSIS OF TESCO.....................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Global business environment is the one in which there is the analysis for understanding
the environment for the business purpose in all over the world. In this discussion, there is going
to be talk about the SWOT analysis which is there on the basis of PESTLE analysis which
further there is the operation impact analysis is there which can be helpful in understanding the
global business environment (Habimana and et. al., 2018).
SWOT ANALYSIS
This refers to the framework which is there for analysing the internal environment of the
business where there is the identification of the strength, weakness, opportunities and threat
which is there in the company. There primary objective of the SWOT analysis for developing the
full awareness of the factors which are there can affect the business decision making.
Strength
 Having excellent customer service which gives excellence experience to customer. In
this, company is able to provide the high customer service which is through maintaining
better customer relationship.
 Having high brand awareness and the high market share which creates huge number of
customer base which is there in the market which leads to the high productivity and the
high profitability. Brand is having the high cash reserves which is there able to create the high market share
and the wide range of property which creates the high financial position in the market.
This can help in future for improving the business strategy which will require high cost
(Wang 2019).
Weaknesses
 Due to high competition, the price of the product are very less, which creates less profit
for the company and the operational charges are high which creates future crises for
expanding the business.
 In some countries, there are not fully structured in the retail shops and not having
performing well which should be there. So, there can be chance of not having the proper
market research.

 Due to having the some number of countries where its operates which is due to Brexit
referendum there is less market share and this creating the decrease in sales of products
(Abedi and et. al., 2018).
Opportunities
 TESCO is having the opportunity regarding the strategic alliances along with other brand
which can help in increasing the high customer base.
 Company is having the more ability to perform, so they need to have joint ventures with
the local companies which can help in analysis the local market which can help in
improving the performance. TESCO should grow as a online shopping which could create the high market which is
through the online business. This need to offer home delivery services which should be
there for minimum time for attracting and retaining the costumer.
Threat
 In this COVID situation, there is recession in the market which can creating less number
of sales in the company which is there can loss the customer base which can leads to
decrease in retention of employee and customer both.
 Competitive threats are getting higher due to presence of giant retailers who are able to
offer products in less price along with large variety of products which can creates loss of
customer base for the TESCO.
 Raise in raw material cost is one of the threat for the brand which can creates the high
production cost and leads to increase the product price which customer would like to find
the alternative.
 Government regulation are the one which are creating the threat for adhere new
regulation through which TESCO need to make changes in their structure of operations
which requires highly additional expenses (Adrees 2016).
OPERATIONAL IMPACT ANALYSIS OF TESCO
Key Factors Marketing – TESCO Production – TESCO
Customer service or customer
relationship
It is one of the most important
thing in the business where the
marketing is one of the
This the one which is there is
need to production according
to the demand otherwise the

essential function of the
business. In this customer
relationship within the
employee and the customer
need to have better to
improvement along with
providing the best to them.
production is meaningless.
There is higher production
when there is relationship
between the customer and
employees are good which can
help in attracting large number
of customer which is the
reason of the high sales.
Brexit This is the factor which is
today's one of the most
effective factor. This created
totally change in the business
module where due to Brexit
referendum there is huge
change in the marketing.
TESCO need to change the
marketing strategy which can
help in creating the high
awareness which can help in
creating the high sales for the
profit. Due to decrease in the
market share they need to
create high awareness along
with demand which can help in
for the high sales of the
TESCO products.
Due to this, TESCO need to
decrease the production of
their product which is due to
change in the market which is
not able to create the demand.
Hence, decrease in the sales.
This decrease sales is there
need to boost up but till then
company need to have some of
the less production otherwise
due to high production they
need to have decrease the price
of the product for clearing the
stock which can lead to down
the share along with the value
of the brand product which is
not good for the brand.
COVID impact In 2020, this is one of the most
important factor which affects
the business in which there is
very less business and creates
Due to not demand of product
which creates less number of
sales and the production of the
brand needed about to stop

the loss in the business and
there were no advantages of
marketing here.
which creates loss in the
business and leads to less
production of the products.
CONCLUSION
From the above discussion, one is able to understand the global environment of the
business which is including the SWOT analysis of the given company which is upon the
PESTLE analysis and there is also discussed about the operation impact analysis which is having
the affect on the business.

REFERENCES
Books and Journals
Habimana and et. al., 2018. The contribution of SWOT analysis in the competitiveness of
business enterprises in Rwanda. Journal of Economics, Business and
Management, 6(2), pp.56-60.
Wang 2019. On the spatial scales to be resolved by the surface water and ocean topography Ka-
band radar interferometer. Journal of Atmospheric and Oceanic Technology, 36(1),
pp.87-99.
Abedi and et. al., 2018. Correction to: Analysis of the Patient Referral System in Urban Family
Physician Program, from StakeholdersPerspective Using SWOT Approach: A
Qualitative Study. Journal of Mazandaran University of Medical Sciences, 28(162),
pp.204-205.
Adrees 2016. Cloud computing adoption in the higher education (Sudan as a model): A SWOT
analysis. American Journal of Information Systems, 4(1), pp.7-10.
Anggadwita 2016. Competitive strategy of creative application content in the ASEAN economic
community: Software development using SWOT analysis in Indonesia. International
Journal of Economics and Management, 10(1), pp.95-107.