BMP3002 - Tesco's Business: Impact of Internal and External Factors

This report provides an analysis of Tesco's business environment, focusing on the internal and external factors that influence its operations. It examines the impact of political, economic, social, technological, environmental, and legal (PESTLE) factors, highlighting the effects of the pandemic on unemployment and the rising demand for organic food. The analysis also considers Tesco's internal strengths, weaknesses, opportunities, and threats (SWOT), such as its wide product range, low-cost strategy, innovation potential, and increased competition. The report concludes that strategic development is crucial for overcoming the negative impacts of external factors and references academic sources to support its findings. Desklib provides access to similar solved assignments and past papers for students.

TESCO AND ITS ENVIRONMENT
Introduction-
Business environment is consisting several
factors, that affect business operations and
strategies. The current study will be based on
TESCO that has operated across United
Kingdom.
Conclusion
From above study it has been concluded
that by developing appropriate strategies,
organization has overcome the negative impact of
external factors.
Internal factor impact on TESCO-
Strength- range of products in varied categories
that company offer to its customers, is one of
company strengths that affect in term of increasing
sales.
Weakness- in term of weak point, low cost
strategy of organization may put negative impact
on business in term of creating ineffective image
in mind of customer.
Opportunity- Innovation and demand for
increasing vegan food items are the best
opportunities for firm, which may put positive
impact on it, in term of increasing sales.
Threat- Increase rivalry between the biggest
supermarket, in retail sector may affect business
growth and strategic management.
REFERENCES
Fitrianingrum, A., 2020. The Determining External
Factor of Export Performance In Manufacture
Industry. DIMENSI. 9(2). pp.264-279.
Zinecker, M. and et.al., 2021. Identifying the impact
of external environment on business angel activity.
Economic Research-Ekonomska Istraživanja. pp.1-
23.
Ways through which company can impact
external environment-
Firm may promote its products by using the best
marketing channel to gain the attention of buyers
and assure them about goods quality which they
may buy under reasonable prices. Furthermore, it
may recruit local people who possess great
knowledge.
Effect of external factors on
company-
Political factor- changes related to
any political factor may affect
organizational venture, while
operating in retail sector.
Economic factor- due to
pandemic, unemployment rate in
each nation has increased, which
may put negative impact of
business.
Social factor- rising demand for
organic food products may affect
positively upon TESCO venture, in
term of increasing sales.
Technology factor- technology
advancement boost the speed of
marketing operation of venture.
Environmental factor- CSR
practices help to boost brand image
in market.
Legal factor- employment
regulations may drive the attention of
venture towards providing better