TECSCO Global Business Environment: SWOT and Functional Impact

This report conducts a SWOT analysis of TECSCO within the global business environment, derived from a PESTLE analysis, examining strengths, weaknesses, opportunities, and threats. Strengths include effective technology use and quality products at low prices, aligning with food and drug administration policies and CSR efforts. Weaknesses involve slow adaptation rates and sensitivity to labor cost increases. Opportunities exist in increasing market share through customer-centric products and strong CSR. Threats arise from government policy changes, shifting customer demands, and technological variations. The report further analyzes the impact of internal factors on functional areas like operations, where weaknesses in adapting to change and labor costs pose challenges, while strengths in technology enable operational opportunities. Marketing functions are impacted by the need for effective customer interaction strategies to understand evolving tastes and demands. The report concludes that internal factors are highly influenced by external factors, and their impact on business functions necessitates careful analysis and strategic management.

Global Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
SWOT Analysation......................................................................................................................3
Impacts of the internal factors over the functional areas ............................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Global business environment refers to the worldwide environmental factors that affects the
business. This report will conduct the SWOT analysation of the TECSCO. The SWOT
Analysation of the company is based on the PESTLE Analysation of the company. Apart from
this, the report will highlight the impact of the internal factors over the functions of the
organisation.
MAIN BODY
SWOT Analysation
SWOT Analysation refers to the strengths, weaknesses, opportunities and threats to the firm.
This has been derived from the internal factors of the company (Saenz, 2021). These factors are
in the control of the organization. And this highly gets affected by the external factors of the
company. Here is the SWOT Analysation of the TESCO on the basis of the External factors that
are impacting the firm.
Strengths:
Strengths refer to the internal ability of the firm that helps in facing the risk of the external
factors. Also, ensures the growth to the firm. The major strengths of the TESCO are that
company is using the effective technology in order to perform their operations. Also, the firm is
assuring the quality products in low prices (Bashir and Verma, 2019). It has been found from
various studies, TESCO has adopted all the policies that has been determined by the food and
drug administration in UK. This is also the major strength of the firm. On the basis of the
PESTLE Analysation if the TESCO, the major strengths of the company has been found out are,
the company is effectively performing the concept of CSR in order to ensure safety to the
environment. Also, the social factor has revealed that the firm is producing the products in
accordance with the demand of the customers.
Weaknesses:
The major weaknesses of the company that has been found that, the adaption rate of the company
is slow. As in order to grow the business. It is important that, the changes that are occurring in
the external environment has to be adopted in quick manner. So, it does not affect the internal
environment. The another weakness that is deriving from the external factors are change in

economic factor. If the cost of labour increases then it directly affects the cost of production. The
firm has to put a focus over the power of adaptability. So, the changes can be easily accepted.
Opportunities:
These refer to the set of chance that can increase the growth and success rate of the firm. The
major opportunities available to the firm are, the company has the opportunity of increasing the
market share (Islami, Mulolli and Mustafa, 2018). As the company puts their complete efforts in
producing the products in accordance of the customer's demand. Also, the company pays the
major focus over performing the CSR. This leads to create the effective image for the company.
The consumers shows their faith towards the organisation. There is an opportunity to the firm in
terms of producing new products and increasing the market share.
Threats:
Threats come from the changes takes place in the external environment of the business. The
major threat to the TESCO are, changes in the policies of the government, changes in the
demand of the customers and variations in the technology. These are the major threats to the firm
and can affect the internal abilities of the company. In order to maintain these threats a proper
strategic management is required in the company.
Impacts of the internal factors over the functional areas
The functional areas refer to the business operations that has been performed by the business in
order to ensure the success of the business. These functional areas of the business highly gets
influenced by the business environment of the company. As the factors of business environment
directly affects the business functions (Power and et.al., 2018). Therefore, the proper analysation
of the business environment is needed ion order to lower the risk arises from the impacts. Here
are the impacts of internal environment of TESCO over the two main functional areas of the
company.
Operational:
The operational functional area of the business refers to that area where all the decision
regarding the production process of the firm's takes place. TESCO is a leading firm in the retail
sector. The company produces the large amount of retail products. It simply shows that, the
operational process of the company goes from the large fluctuations (Bulakh, Plakhotnikova and
Hromadskyi, 2020). In order to maintain the demand of the customers, the variation has to be
taken in the operational process. The major internal factors that are impacting the operational

activities of the firm are, the weakness in relation of adopting the changes in fast manner. As the
company has the ability of adopting the changes in slow manner. The changes leads to adopt the
new techniques for performing the operations. Also, increasing in the cost of labour leads to
increase the over-all cost of the operations. The positive impact of the internal factor is the
strength of the TESCO in relation of using the effective technology and meeting the demand of
the customers. This leads to creating the opportunities of performing more operations by the
company. This assures the higher profit to the company. Thus, the internal strengths of the firm
enables the firm to deal with the weaknesses arises in the operational functions.
Marketing:
Marketing function of the business refers to performing the complete activity in relation of
making products available to the customers. It includes all the functions related to the
communicating and delivering the products to the customers. It involves analysing the taste and
demand of the customers and on the basis of that, the operational process has been performed.
TESCO has adopted the effective marketing strategies in order to interact with the customers.
The internal factors of the TESCO are affecting the marketing function of the company. The
more opportunities to the firm in terms of expanding in the market creates the numerous task for
the marketing department (Podaras, 2018). The marketing department makes the keen
analysation over the market and on the basis of that, the other functions has been performed in
the company. The major impact over the marketing function of TESCO arises due to the internal
factor of the company is that, the firm has to adopt the effective strategies of making effective
interaction with the customers. So, the taste and demands of the customers can be known and on
the basis of that, the products has been produced.

CONCLUSION
From the above report it has been concluded that, how the internal factors in the company highly
gets affected by the external factors. Also, the report has highlighted, internal factors of the
organization provides the impact over the business functions.

REFERENCES
Books and Journals
Bashir, M. and Verma, R., 2019. Internal factors & consequences of business model
innovation. Management Decision.
Bulakh, T., Plakhotnikova, L. and Hromadskyi, R., 2020. Classification of Franchising and
Specifics of Its Types in Business Operation.
Islami, X., Mulolli, E. and Mustafa, N., 2018. The Effect of Industrial and Internal Factors to the
Firm’s Performance. Acta Universitatis Danubius. 14(5).
Podaras, A., 2018. Measuring the accuracy levels regarding the dual business function criticality
classifier. IEEE Access. 6. pp.41598-41606.
Power and et.al., 2018. Defining business analytics: an empirical approach. Journal of Business
Analytics. 1(1). pp.40-53.
Saenz, C., 2021. The Internal and External Assessment. In Creating Shared Value to get Social
License to Operate in the Extractive Industry. Emerald Publishing Limited.