Business and Business Environment Analysis: Tesco Case Study Report

This report provides a comprehensive analysis of Tesco's business environment. It begins with an introduction defining internal and external factors and their influence on business operations. Task 1 covers organizational structures, specifically functional, divisional, and matrix structures, relating these to Tesco's operations, particularly focusing on design and production, finance, and human resources. Task 2 delves into a PESTLE analysis of Tesco, examining political, economic, social, technological, environmental, and legal factors. It then proceeds with an internal analysis, outlining Tesco's strengths (diversified company, strong product, patents) and weaknesses (infringement controversies, concentrated operations), and identifies opportunities (new research and developments, strategic acquisitions) and threats (global economic environment, seasonal variation, risk). The report concludes by interrelating these strengths and weaknesses with the macro factors identified, highlighting how external factors influence Tesco's strategic decisions and operational effectiveness. The analysis emphasizes the importance of adapting to changes in the business environment and leveraging strengths to mitigate weaknesses and threats.

Business and business
environment

Table of Contents
Introduction .....................................................................................................................................1
Task 1...............................................................................................................................................1
P! Covered in PPT..................................................................................................................1
P2 Covered in PPT.................................................................................................................1
P3 relationship between different organisation function and objectives................................1
TASK 2............................................................................................................................................3
P4 Pestle analysis of tesco ....................................................................................................3
P5 Internal analysis of tesco ..................................................................................................4
P6 How strengths and weakness interrelate with macro factors..........................................5
Conclusion ......................................................................................................................................6
References:.......................................................................................................................................7

Introduction
Business environment have two factor that is external and internal which affected
business. In business environment, external and internal factors influence each other and work
together to affect any business. For example, healthy and safety regulations is an external factor
that influence the internal environment of business.
In business define that persecution of business affected the business or employees
behaviour. It is corrected the business and created the level of variable equation of control in
business environment (Drucker, 2017). It is required that the business environmental problems
should be take superiorly by the company, organisation industries. A business can be established,
but to successfully sustain a business, the business need resource like finance , financial
institute , social norms, which depend on the society proper market condition is depend on the
market or reliable the nature and condition will be applicable of continuing of business
environment. It required of benefits the nature of significances of variable controlled by the
selective nature. Then there are natural resource and ram material, for which it has to depend on
nature
Task 1
P! Covered in PPT
P2 Covered in PPT
P3 Relationship between different organisation function and objectives.
Functional structure- Most of functional organizational structure with a chain of command of
different function go into separate departments that reports to department manager. A functional
structure for an organization is not without its drawbacks , however of the level of functional
equation variable of correcting nature of , it may relating nature are variable resorts for the
equation of controlling nature (Crane, and Matten, 2016). It is for the corpus for the equation
for the reasonableness functional of equation to relating nature of objective for the the propose
for the equation-for the variable corrective nature relating parts of elective nature of equation to
recreating nature of equating. For functional of equation are relating nature are perception of

variable continuing nature of effective nature of creating variable process. It may be a corrective
nature of variable process of controlling nature of process
Divisional structure- a divisional organization structure are spreads of function or across
different branches .If organization have different structures line , the divisional of productivity
are has been included in Owen functional groups. Such as marketing ,sales and marketing
correcting level of function of variable of contracting nature of equation of valuation of structure
relating parts of variable issues and its a variable contracting nature of divisional for its business
operational more or less autonomously (Goleman,, 2017). The drawback is that with with
employs in realign variable influence . It managing five human resources, rather that a single,
centralized operation, mean duplication of functions,management systems, policy development
and so on. Divisional structure are relating a profitability in selective nature of variable
resources.
Matrix structures- this structures is help to easy way in business function that a more
hierarchical organization. In a matrix structure, each employees, it assumed each employee
works in function- based a more organizational changes. I
In tesco functional structures in follows because there different types of department
1. design and production- In TESCO design and production are based
laborious,capital,energy,material,information .this are the factor of production that scribed that
how tesco company described his design. It the function of creating nature of variable resources
and the level of creating part of variable selective nature ( Belás, and Sipko, 2015). For design
and production it required and tesco company reasonableness for the company production
problems and selecting nature of evaluating suppose of variable resources of creating nature of
relating part of variable remorse and it may incorrect parts of selecting organization,.
2.finance function- in this function the finance department or unit may also be responsible for
administrating employees expanses and salaries. For pay of wages the finance department will
also be statement for tax purposes and to implicitly with the ledgers semi-retirement information
3.Human resources function- In tesco hum,an resources or personnels main responsibilities in
the recruitment, selection, training and development of staff. This will involve developing staff
to maximise their potential in a manner that furthers the organisation objectives, in human

resources organizational function selecting process is important because good selecting process
is showing that organization have qualities are selecting process is good for the future
organization profits.
TASK 2
P4 Pestle analysis of tesco
1. Political factor- the tax on supermarket is proposed by local council and uk government and
is also knows as tesco tax (Hair and Page, 2015). This companies s is operating in 12 countries
including Asia and Europe. It is exposed to many political factor that can affected the operation
of tesco. These factors including tax rates ,Current and impending, legislation, political
instabilities,unemployment rate , economic condition of the countries. Political factor .
2. Economic factor- It is important labour cost economic factor that affected tesco that is cost
prices and profits . In past years there are two most important strategies for international market
diversification and presence. There are many factor that effeteness in economically way in
3 Social factor- social responsibility in TESCO are constantly changing over time. People have
talk about to the scheduled and want same day and first delivery with the purpose for accepting .
TESCO company is UK based and understands UK culture and schedules . In UK consumers
they want right product at right place. due to this tesco have to change there distribution
channels and services they had to make changes in the service in order to meet the need of
society
4.Technological factor- advancement in technology has resulted in facing issue like costumer
satisfaction in tesco does change in technology is forcing tesco to make changes in there process
and procedural (.Hillary, 2017). With the help of technology tesco have new opportunities to
regain the customer trust. Tesco have new technology for costume that they can easy way to
payment with this payment system customer can shops and tag products. this technology saves
time and labour cost as well.
Environmental factor- Many companies or organization have problems that government pressure
for address environmental issues but tesco very Responsible for environment issues and tesco
committed that his sources and productivity are less used electricity by 2030 and it minimize up

to 50% of carbon footprint by 2020. which is very big commitment for any organization because
in productivity electricity is very important. Tesco have also support for recycling plastic bags .
Legal factor-a business legal environment it is important that you have knowledge about yours
business area and its laws. Many companies and organization faces that they cant be search the
laws results that that company have pressurised by the government (Savrul, , Incekara and
Sener,, 2014) . Tesco also faces this problems and understands by his customer response and
authorities of governments
P5 Internal analysis of tesco
 Strengths
1. Wide and Diversified – tesco is very wide and diversified company because it has different
segments or various customer based serves departments . Tesco diversified his work constantly
and include customer base which is drilling contract, equipment brokers, oil and gas companies.
Tesco is not particular segments depended for revenues generates.
2. Strong product -in tesco organization they have strong product segments , and also they
provided segments according on its clients depends . It helps for tackle competition in global
market. Tesco have different segments that qualities of product and service useful for different
type of customer and creates customer captures in mind for better option priority
3. Patents- TESCO have various patents of development in technology that company have
beneficial for its main business (Cull,, Navajas,, Nishida and Zeiler, 2015) . Strong patent
describe that tesco have opportunities that attracts for organization many projects .
 Weaknesses
1. Infringement controversies: in reputed organization working for his customer benefit product
and services , controversies creates customer mind impact very badly. tesco legal cost have
increased for clearing controversy or clams by violating of there patents . If claim is realisable
and against tesco its effect of his business and image in global market .
2. Concentrated operation -TESCO commonly business operates in north America and gets his
revenues of 40% in particular areas of north America and it contribute in us a and Canada . If any
economic slowdown in this business its impact of tesco business revenues.
 Opportunities

1.New research and developments –tesco is based on technology and new service . tesco have
opportunities that new ides and innovating his new segments and creates business for
comparative market tesco also offers something new to the existing clients and attract new
clients.
2.Strategic acquisitions – tesco have strategic acquisitions for the purpose to get better access to
technology and save time and money to build technology . For strategic position it help to tesco
and chance to lookout for acquiring companies which can offer it to them (Sekaran and Bougie,
2016 )
 Threats
1. Global economic environment- tesco effectually for global economic conditions is considering
volatility in gas and oil rates for political turmoil in the world . Due to this adversely affects for
demand of top drive units for tesco. Tesco globe effects the markets segments to evaluating
economical condition .
2. Seasonal variation – tesco follows seasonal variation for drilling operation can only be carried
out in certain regions . In seasonal variation tasco have opportunities creating his segment for
particular areas like some ties areas in hot or cold weather according to them segments realized
and effect tesco activities and business .
3.Risk – tesco is basically oil and gas production system (Deasy and Emil, 2017) . Its risk on
specially in line exploration, production application if any incident in this activities .
P6 How strengths and weakness interrelate with macro factors
In tesco organization if relating with weakness with political view some policies and laws that
have been imposed by the government for the purpose of protecting environmental risk because
of tesco production. Uprising of globally oil prices its effect that socially which people can not
afford of prices increasing. The major weakness is that breaking the laws and impact of
environments of controlled. Strength directly related to business growth and development .tesco
are able to determine the changes that occurs (Drucker, 2017) . It helps company to expand his
business operations and increase their sales. tesco is very well studied factors that helps them
establishing their plans over there that a strengths in tecso. If company focused in political views
laws rules of government , that effectively run business in proper manner their major weakness is
imposing of various laws for protecting the environment that is restricting them in doing business

effectively. In order to following these laws now they have restricted their orations and focusing
on producing environments friendly product . One of the most good Strengths that is his
technology views and innovating ides of tesco organization that needed of this organization have
highly profitable of technically factor its profitably depend on his technology way of transaction
and Costumer satisfaction (Crane, and Matten, 2016) . If customer is useful to necessary his
product and certain area of technology tesco is not upgrade in long time its impact that tesco
customer . If customer impact of necessary good and it relating for tesco production. Tesco
production are depressant on his market relating with combustor and continuing his amaretto his
segments and it effected market structures globe .
Conclusion
Form this file it is concluded that there are different type of organization such like public,
private, join voluntary which have size and scope for improving organization business
structure . Organization have different function and operation that its functional , divisional
matrix which have difference types of department that show company design , human resource
and finance. In this study there is pestal and swot analysis so that we can say that organization
stands in global market

References:
Books and journals :
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Cull, R., Navajas, S., Nishida, I. and Zeiler, R., 2015. A new index of the business environment
for microfinance. World Development, 70, pp.357-388.
Deasy, S. and Emil, S.I.T., 2017. User interface for controlling use of a business environment
on a mobile device. U.S. Patent 9,544,274.
Drucker, P.F., 2017. The Theory of the Business (Harvard Business Review Classics). Harvard
Business Press.
Goleman, D., 2017. Leadership That Gets Results (Harvard Business Review Classics). Harvard
Business Press.
Hair Jr and Page, M.J., 2015. Essentials of business research methods. Routledge.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences, 150, pp.35-
45.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
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