Business in Practice: A Report on External Factors Affecting Tesco

This report provides a comprehensive analysis of the internal and external factors that influence Tesco's business operations. Internal factors, such as human resources, including employee skills, commitment, and motivation, are examined for their impact on the company's strengths and weaknesses. The report also delves into external factors like economic conditions and customer demands, highlighting how these elements affect Tesco's performance and ability to sustain itself in the market. The analysis emphasizes the importance of monitoring the macro environment and adapting strategies to align with changing market dynamics and governmental regulations. Ultimately, the report concludes that a thorough understanding of both internal and external environments is crucial for Tesco's growth and success, requiring continuous updates to knowledge and skills to meet market changes and customer needs.

Business in Practice
INTRODUCTION
Business environment includes all the internal and external
environmental factors that can impact the production, functioning and
working of a company. For this report, Tesco is considered which a
Multinational grocery store and retailer and headquarter in England, UK.
It is considered as the third largest retailer in the world in terms of gross
revenues.
Internal Factors:
Internal factors refer to anything that is
under the control of Tesco and helps in
figuring out its strengths and weaknesses.
• Human resources:
It includes the quality of employees which
Tesco appoint. The success of Tesco
majorly depends upon the skills,
capabilities, attitude, commitment,
performance and motivation of an
employee towards work.
External Factors:
Factors that can impact the working of a company from outside
and is not in the control of the Tesco.
• Economic situation:
The ups and downs in the economy cycle of a nation determines
the success of Tesco.
• Customer demands:
To sustain in the market for a long time Tesco must satisfy the
demands and needs of the customers.
Impact of external environmental factors:
• External environment directly influences the performance of
Tesco. For instance, if a government changes laws regarding
the types of goods and increases the importation costs then it
can majorly impact the feasibility of one’s business.
• It is important to monitor the macro environment that can
impact Tesco and must respond in appropriate way for the
development of respective company.
REFERENCES
• Kiradoo, G., 2021. Analysis of Dynamics of Business Environment and Their Impact on Human Resource Management. Turkish Journal of Computer and Mathematics Education. 12(2).
pp.2692-2697.
• Werner, S. and Balkin, D.B., 2021. Strategic Benefits: How Employee Benefits Can Create a Sustainable Competitive Edge.
CONCLUSION
From the above information we can
conclude that a company must understand
all the internal and external environmental
factors for the growth of their business and
must update their knowledge and skills to
meet the changes in the market. These
factor helps a firm to analyze its strengths
and weaknesses and to plan strategies
accordingly.