Business Environment Analysis of Tesco Company: A Case Study Report

This report presents a comprehensive analysis of Tesco, a prominent company in the retail sector, focusing on its business environment. It begins with an introduction to business studies, emphasizing the factors influencing business operations. The core of the report involves a detailed SWOT analysis, evaluating Tesco's strengths (brand value, global growth), weaknesses (limited operational innovation), opportunities (business expansion, digital marketing), and threats (competition, pandemics, political instability). Furthermore, a PESTLE analysis is conducted, examining the political, economic, social, technological, environmental, and legal factors impacting Tesco. The political factors include government policies, while economic factors consider per capita income and pricing. Social factors encompass trends and customer buying decisions, and technological factors highlight the importance of IT advancements. Environmental factors reflect Tesco's eco-friendly initiatives, and legal factors address relevant laws and regulations. The report concludes by summarizing the external factors and the company's key strengths and threats, referencing academic sources to support the analysis.

Introduction to Business Studies

Table of content
 INTRODUCTION
 SWOT Analysis
 PESTLE
 CONCLUSION
 REFERENCES

INTRODUCTION
 Business studios denoted as understanding different aspects and factors associated with
the business operations and organisation.
 This report is based on the case study of Tesco Company in respect to analysis of the
business environment in respect to the organisation.
 Internal and external factor analysis will be done in this report.

SWOT Analysis
Strength
 Tesco Company contain positive brand value that
support company in engaging with customers easily.
 Company is growing rapidly across the globe.
 Positive brand value is also a major strength part of
company.
Weakness
 Less innovation in operations is a key weakness of

Cont..
Opportunity
 Business expansion opportunity.
 Social media marketing and digital promotion is a key growth opportunity.
 Technological development.
Threat
 Aggressive level of competition in retail market.
 Pandemic like COVID 19.
 Political instability at few business locations.

PESTEL Analysis
Political factor
 Policies of government is an integral part of the political factor influence business operations of company.
 Government in United Kingdom and other business locations have given an immense support to companies
especially the organisation part of retail sector due to the nature of product offer by companies.
 Government support could drive companies to gain strategic advantages in market.
Economic factor
 Economic factor comprises with the economic situation of country.
 Per capita income in United Kingdom allowed company to offer luxury products and to sell its premium range
products.
 Pricing policy of company is immensely influenced with the economic condition of the country.

Cont..
Social factor
 Social factor comprises with the fashion, trends and different other factors influence
the buying decisions of customers.
 This involves cultural, religious actors and different other elements that can influence
the decision-making process of the customers in market.
Technological factor
 Technological factor comprises with the development of information technology in
the society.
 Government in United Kingdom has given a huge emphasis over technological
development and advancement that support the companies to improve the scale of
business operations entertained by company.

Cont..
Environment factor
 Tesco Company is engaged selling eco-friendly products and services to attract the buying
decision-making of customers.
 Product segment of company matches the environment protection campaign of government as it
consume natural ingredients that protect the nature as well.
Legal factor
 Legal factor comprises with different laws and legal regulations that in case company required to
fulfil.
 All different laws like equality act, anti discrimination law, data protection act and many such laws
are applicable over the company.

CONCLUSION
 External factors comprises with the political, economic, social, technological, environment and
legal factors put impact over business.
 Company carry strength of effective resources, high brand value.
 Competition is a huge threat part of company.

REFERENCES
 Gaganis, C., Pasiouras, F. and Voulgari, F., 2019. Culture, business environment and SMEs'
profitability: Evidence from European Countries. Economic Modelling. 78. pp.275-292.
 Hahn, Y. and Kim, D., 2016. Corporate social responsibility: A comparison analysis. The Journal
of Business Economics and Environmental Studies. 6(4). pp.13-17.
 Kumar, V. and et.al., 2018. An empirical analysis of supply and manufacturing risk and business
performance: A Chinese manufacturing supply chain perspective. Supply Chain Management: An
International Journal.
 Maulina, E. and Raharja, S. U. J., 2018. SWOT analysis for business strategies: a case of Virage
Awi in the bamboo craft industries, Bandung, Indonesia. Review of Integrative Business and
Economics Research. 7. pp.213-224.