International Business Environment: Tesco's Opportunities and Threats

This report provides an analysis of Tesco's international business environment, focusing on the opportunities and threats the company faces. It examines the growth of online sales, high unemployment rates, and the rise of plant-based protein as potential opportunities. Simultaneously, it addresses threats such as the impact of Brexit on supply chains and trade, economic recession, and the COVID-19 pandemic. The report also explores the problem-solving and critical analytical skills employed by Tesco's management, including creativity, research skills, teamwork, and risk management. The conclusion emphasizes the importance of addressing threats and capitalizing on opportunities for Tesco's continued success in the global market, referencing the impact of external factors and internal strategies. The report draws upon academic sources to support its analysis.

INTERNATIONAL BUSINESS
ENVIRONMENT

Contents
INTRODUCTION...........................................................................................................................3
Critically analyze the opportunities and threats for Tesco in current global business
environment.................................................................................................................................3
Problem solving and critical analytical skills..............................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
This report analyze the critical and problem solving skills of management of Tesco and the
opportunities and threats they have to face in the current global market.
Critically analyze the opportunities and threats for Tesco in current global business environment
Opportunities for the company in this market are
Growth of online sales-
In the time of pandemic of Covid-19 people have changed their methods of buying goods
and they have switched to making it online so that they do not have to face any restrictions and
they know that buying goods online is keeping them safe. This is the opportunity that company
must claim as it is the perfect time for them to promote this medium of sales because the current
condition of environment demands it and this will help the company to grow substantially in the
markets.
High unemployment rates-
From the several reports of market it has been assessed that the rate of employment has
decreased at times like this which is specific for the youth who age around 16 to 20 years.
Supermarkets is considered as the sector for students to get a job easily and maintain their
expenses. Tesco can claim this opportunity of hiring those individuals and train them into
making them a better sales person as this will help them to achieve growth in the market.
Increase in Alternatives-
As per the recent analysis the sector for plant based protein has made their way into
billion dollar sector which increases another scope for Tesco to stop the goods of meat and enter
into this sector as this sector will keep the business sustainable. They are working on the change
as they have calculated that the alternative industry is more profitable given the conditions of
current market (RAO, 2020).
Social Supermarket-
This form of supermarkets stores huge amount of stock which is nearby expiry but not
expired and they sell them at very decent rates which helps to stop the pile of goods from getting

waste. The management of the company is interested in it because they want to serve good cause
in the market and that is why they are considering for participating in it.
Threats-
Currently Tesco is facing many threats such as health as well as economic crisis.
UK-EU Relations-
The deal of Brexit has lead to problems for the company as now they are not allowed to
trade freely with EU. Now they have to trade with following the rules formed by WTO which is
based on EU. This has created problem for them as the rate of taxes, quotas have increased and
affecting the profits of the business.
Brexit and Supply Chain-
The decision of Brexit has affected around 80 per cent of the imported food in the
market. This is because restricting the entries from port has affected their supply chain which has
resulted negatively in their business.
Economic Recession-
The economy is under recession due to the holiday season and the crisis of low level of
employment as all of this has reduced the power to buy out goods which is increasing the
uncertainty in financial aspects (Hamilton and Webster, 2018).
Covid-19 Pandemic-
Many of the companies has to shut their operations down at the time of pandemic but it
was due to shifting to online that they were able to survive in that market. still they had to bear
the expenses and losses of around £533 million. One of their competitors Ocado beat Tesco and
took their position in this market.
Problem solving and critical analytical skills
The problem solving skills that were used by the management of the company was that
Creativity-

The management of Tesco has to look out for new things that can help them to survive in
this extreme uncertain market and their decision of shifting to online and looking for new
employees is one of them. They used their experience and logical reasoning to come out of this
problem so that they can trade continuously in international markets.
Researching Skills-
In order to solve the problem the research and development team of the company was
that they needed to take out those things that drive customers to their stores or increase their
sales and bring new approaches for the company to use it.
Team Working-
In order to solve the problems at times like this company used to conduct sessions of
brainstorming with the members of team as any idea would be helpful for them to reduce the
level of complexity in their business and maintaining the flow to a normal pace.
Risk Management-
The management of the company had to analyze the risk of every aspect and approach
they could think of before executing it so that they would come to know the failure of those
methods.
Decision Making-
Problem solving and the skills of decision making are considered to be relatable to each
other. This is because in order to solve problems they need to take decisions for that after
considering all the alternatives.
Other than this company had to use critical and analytical skills.
With the help of these skills they were able to take out the materials that are updated in their
inventory. Other than this they had to collect the information that is relatable so that they can
provide their investors with evidence that implying these factors will help them to achieve
growth (Aithal, 2017).

CONCLUSION
From the above studies it has been concluded that Tesco needs to look after the threats as it can
steal their share in the market which will be a failure for them. It is necessary to focus on all the
viable opportunities and claim them.

REFERENCES
Books and Journal
Aithal, P.S., 2017. Impact of Domestic, Foreign, and Global Environments on International
Business Decisions of Multinational Firms: A Systematic Study. International Journal of
Management, Technology, and Social Sciences (IJMTS), 2(2), pp.93-104.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
RAO, S.P., 2020. International business environment. HIMALAYA.