Tesco's Business in Practice: Internal and External Factor Analysis

This report examines the internal and external factors influencing Tesco's business operations, utilizing SWOT and PESTLE analyses. The internal analysis identifies Tesco's strengths, such as its long-standing presence and diverse store formats, and weaknesses, including past fraud cases and quality control issues. Opportunities for expansion into new markets and threats from competitors like Aldi and Lidl are also discussed. The external analysis covers political, economic, social, technological, legal, and environmental factors, highlighting the impact of changing regulations, economic conditions, consumer trends, technological advancements, and environmental concerns on Tesco's business. The report concludes that understanding and utilizing these analyses are crucial for Tesco to navigate its business environment effectively.

INTERNAL AND EXTERNAL FACTORS
INTRODUCTION
 Both the internal and external factors of an organization affect the
ways in which the business performs.
 For Tesco both these environments are considered to be playing
important role in shaping the business of the organization.
 In this project the chosen organization is Tesco for which the
external and internal factors are going to be discussed.
 This project will pay attention towards the Pestle and SWOT
analysis of the organization.
Explaining how external and internal factors affect business of TESCO
There are several external and internal factors that affects any business. The
internal factors are affiliated with SWOT analysis, whereas PESTLE analysis
is a measure to external factors affecting the business.
SWOT analysis
Strengths
 Operating since 1919, still it is among the top retailers of the world
 Operate in different store format such as Express, metro and extra to serve
different customers.
 Servers millions of customers in its store and online (Khalid and Rahman,
2019).
 At grocer gold awards, won grocer of the year 2020
Weaknesses
 Failed to achieve business goals in USA and China.
 Reported for a fraud case in UK, although prosecution is avoided but the
whole scandal has bought negative impact on company's image.
 It has been fined for lack of quality control in some stores.
Opportunities
 TESCO may explore countries such as Mexico, south Africa, brazil, turkey.
 Strategic alliance with other countries will help TESCO in exploring more
business opportunities.
 Rising threats from German rivals Aldi and Lidl has made Tesco introduce
discount chain called as Jack
Threats
 Though TESCO is leading in UK, but still rivals such as Sainsbury and
ASDA are vigorously trying to fill the gap.
 Low pricing of Aldi and Lidl has resulted in giving high market competition
to TESCO.
Explaining the internal factors affect Tesco
Internal factors are those which can be controlled by company whereas external aspects are uncontrollable. With the help of Swot analysis
the internal factors of Tesco can be analyzed,
s

PESTLE analysis of Tesco
Political Factor  It is the largest retailer of the world with headquarters in UK company must ensure safety of its products
 With regard to changing political circumstances, company should maintain political stability with all countries.
 Company should be aware of different taxation policies, order to take its benefits
Economical Factor  In this factor the employment, internet rates, growth rates etc. are the ones which influences the business.
 The result of Covid-19 has been on the business which has resulted in effecting the business of the organization which as a
result creates misbalances in the performance of the purchasing power of the organization.
Social Factor  The beliefs of the customers of the market for the Tesco comes under this factor.
 Changes in the local trends results in the involvement of the operational profits and also the purchasing power of the
organization
Technological factor  China takes the place of leading stakeholder in providing technological equipment at economic prices, therefore has to retail
fast and cheaper technology to sustain and hold its position.
Legal factor  TESCO has changed its policy of selling cigarettes and alcohol (Phadermrod, Crowder and Wills, 2019).
 The organization to follows strict rules towards having the issues with the management of the legislative changes which may
occur.
Environment factors  TESCO's chief executive Dave Lewis says other supermarkets should follow TESCO in order to reduce waste of food products.
 They uses an application called “Food Cloud” that itemize surplus at each store at the end of the day.
CONCLUSION
With the help of the above project it can be concluded
that utilization of the Pestle and Swot analysis can help the
organization in the determination of their internal and external
forces.
REFERENCES
Books and journals
Khalid, L.S. and Rahman, I.A., 2019. Conceptual Model for the External Factors Affecting Project
Performance Using PESTLE Factors. Jour of Adv Research in Dynamical & Control Systems.
11(3). pp.246-250.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Managemen. 44. pp.194-203.