Tesco & Its Business Environment: Internal & External Analysis Report

This report provides a comprehensive analysis of Tesco's business environment, examining both internal and external factors that influence its operations and strategic decision-making. The internal analysis highlights Tesco's strengths, such as its wide market share and professional workforce, alongside weaknesses like reduced profit margins and operational inefficiencies in diverse international markets. The external analysis focuses on political and economic factors, including trade restrictions, inflation, and competitive pricing pressures, which significantly impact Tesco's ability to maintain stability and achieve success. The report concludes that understanding these internal and external dynamics is crucial for Tesco to adapt and thrive in a competitive industry. Desklib offers a variety of resources, including past papers and solved assignments, to aid students in their studies.

Introduction
Business organization have a significant relationship
with their external environment as it has a major
influence on the overall decision making process or
the business. It also initiates various changes in the
overall management process of a business in the
industry. These factors have a direct relationship
where a change in certain aspect creates differences
in the other factor also.
Tesco And Its Environment
External Environment
Political factors: Restrictions in the political environment
of countries creates difficulties for Tesco to manage their
overall decision-making process. Poor relations between
governments of two nations increases the issues for the
business to enhance their market share and gain specific
advantage in the global business environment. Trade
issues between countries due to political conflicts which
creates difficulties for the business to undertake
international business operations effectively.
Economic factors: Inflation due to global pandemic has a
negative influence on the overall financial management
process of the business which increases the problems for
the company to stay profitable in the environment. The
reduction in the prices of competitor's products and
services forces Tesco to make unwanted changes in their
strategies also (Christodoulou and Cullinane, 2019).
Increasing tariffs on international trade of goods and
services can have serious repercussions on the overall
sales of the business in the industry.
How the company impact its context External
Environment
These external factors have a serious impact on the
decision-making process of the business and lead
towards effective changes in the business
environment. Due to these changes the stability in the
business environment of Tesco might get affected
which can have a major influence on the overall
success of the company.
Internal Factors
Strengths: Tesco has a wide market share which is
a major strength for the business to gain a
significant competitive advantage in the industry and
increase its overall success opportunities (Shadman
and et.al., 2021). The organization is having a
profession workforce which are highly trained
towards performing the key tasks and duties which
lay the foundation of the business operations of the
company.
Weaknesses: Reduced profit margins of the
business due to their low cost strategy is a major
weakness for the business to increase their overall
profitability in the business environment. Poor
operational performance of the business in different
countries due to the different policies and
procedures which has a negative influence on its
overall success as an organization.
References
Christodoulou, A. and Cullinane, K., 2019. Identifying the
main opportunities and challenges from the implementation
of a port energy management system: A SWOT/PESTLE
analysis. Sustainability, 11(21), p.6046.
Vardopoulos, I. and et.al., 2021. An integrated swot-pestle-
ahp model assessing sustainability in adaptive reuse
projects. Applied Sciences, 11(15), p.7134
Conclusion
It has been concluded from the above poster that
internal and external factors have a significant
influence on the overall productivity of a business in
the industry. These aspects lead towards changes in
the business environment of the organization which
leads towards new developments for the business in
the competitive industry.