Analysis of Tesco's Internal and External Business Environment

This report analyzes the business environment of Tesco, examining the interplay of internal and external factors that influence its operations. It begins with an introduction to the competitive landscape of the retail industry and highlights the significance of understanding the business environment. The report then delves into a PEST analysis, assessing the political, economic, social, and technological factors affecting Tesco's performance. It also discusses Tesco's strengths, weaknesses, opportunities, and threats. The report concludes by summarizing the key findings and implications of the analysis, emphasizing the importance of adapting to both internal and external dynamics for sustained success. The report also highlights the importance of SWOT analysis in assessing internal and external factors and how they affect the company's performance. The report also mentions the importance of online platforms and the impact of new technologies.

Introduction
Business Environment is collection of peoples, organisations and
different internal and external factors that control the productivity as
well as efficiency of business entity. In this presentation analysis
internal and external factors that impact on the Tesco business
environment and various ways impact on the external environment.
Tesco And Its Environment
Name of the Student
External Environment
PEST analysis: It is a structure that imperative for business like Tesco, as it
supports to understand market structure and changes continuously. There are
mentioned different factors that impact on the business such as:
Political: Tesco operates their business activities into different nations so it
requires to keep a tab on the changing political circumstances. The political rules
and regulations must follow by the business entity that assure compliance and
safety of its products.
Economical: Tesco requires to aware about the economic changes occurs in
different nations because it impact on the business operations. Along with also
aware about the taxation policies in regard to leverage the same for its own
advantages.
Social: Company has planned about its stores to facilitate for requirements. The
organization has switched from major food items to a non food model. These
products are demanded by the people and based on the social influence. The
trending culture and customer requirements impact on the business activities.
Technological: Tesco has been experimenting with different elements of retailing
and accomplished some amount of success in a few enterprise. They are managed
to shift the trends of shopping to online one with 43% of its shoppers today and
getting their ordered products.
How the company impact its context
External Environment
There are defined various ways in Tesco that impacts on business
external environment in direct manner:
Political: Changes in political rules and regulations affect on the
performance of business operations. For this require to develop
different strategy to survive into different nations effectively.
Economical: Changes in Taxation policies affect on the economic
structure. When company do not follow all economic changes so
face tough competition in business environment.
Social: Due to change perception of customers impact on sales and
social media application influence for online shopping.
Technological: The online shopping and social media promotions
essential part of business that impact on the clients. After the
application of new technology in business impact on other business
of retail industry as well as on business environment.
Internal Factors
The business environment of Tesco based on the external and internal
factors that supports in decision making procedure. There are
conducting SWOT analysis to understand how internal factors impact
on business:
• Strength: The main strength of Tesco is a large network of retail
stores makes shopping favourable for clients and considering on
market shares from competitors.
• Weakness: The weakness of company the they are following old
technology and do not apply innovation so it will directly impact
on the net income.
• Opportunities: From past few years the company has invested
large amount of money into the online platform. The investment
provides opportunity of new channels ways for Tesco. Along with
in the next few years the organisation can advantage of this
opportunity by analysing its client base and serving their needs by
big data analytics.
References
Ducruet, C. and Wang, L., 2018. China’s global
shipping connectivity: Internal and external dynamics in
the contemporary era (1890–2016). Chinese
Geographical Science. 28(2). pp.202-216.
Srakar, A., 2018. Internal and External Factors in the
Development of a Network Organization in the Arts:
Case Study of Društvo Asociacija. Croatian
International Relations Review. 24(82). pp.90-116.
• Threat: Due to enter more retailer companies in the retail industry face
tough competition. They are selling their products at discount price that
impact on the Tesco selling provide in direct manner.
Conclusion
As per the presentation it has been concluded that business
environment mixture of the internal and external factors that
impact on the business operations.