Tesco's Analysis: Navigating the Contemporary Business Environment

This report provides a comprehensive analysis of Tesco's business environment, examining its legal structure, operations, and strategic responses to various pressures, including post-COVID-19 challenges. It identifies Tesco as a public company established in 1919, focusing on a wide range of products and services offered at competitive prices. The report explores the impact of digitization on Tesco's strategies, operations, and business structure, highlighting its role in enhancing communication, streamlining online services, and implementing effective plans. Furthermore, the report employs PESTEL analysis to assess macro-environmental factors, including political, economic, social, technological, and environmental influences on Tesco's performance. It also discusses stakeholder analysis, identifying key stakeholders and their influence on the organization. The report concludes by emphasizing the importance of strategic management and scanning in appraising real-world examples within Tesco, providing recommendations for improvement and demonstrating an understanding of how organizations, management, and the business environment interrelate. Desklib provides access to similar past papers and solved assignments for students.

Contemporary Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
Introduce your selected company, by identifying the legal structures. In your introduction,
facilitate an outline of the operations / aims of your company, its main purposes, the
organization's vision/mission, key environmental pressures, Industry, market and post Covid-
19 difficulties. Include your organizations’ key stakeholders and evaluate their requirements
and influence and demonstrate how you would apply the stakeholder mapping in your
organisational responsibilities................................................................................................3
In the second part you can explore the global effect of the internet of things, evolving
collaboration, networking, ecommerce, eBusiness and social technologies on organisational
structures, operations, decision-making and ways of working from your chosen company.
Describe the impact and role of digitisation on the strategies, operations and business structure
................................................................................................................................................5
TASK 1............................................................................................................................................6
This Task requires you to research the compaany chosen and then undertake a business
environment analysis using a range of models to describe the key components of micro and
macroeconomics and macroeconomics theories and their affect on company's behaviour and
the national economy..............................................................................................................6
Main techniques used for anaalysing the internal and competitive environments include for
the micro forces and its influences on your chosen firm........................................................7
TASK 2............................................................................................................................................8
Describe the difficulties posed to leadership by contemporary global business models in
respect of modern theories and assessing the importance of control in effective organisational
performance. Based on your company’s review, highlight in your answer the importance of
strategic management and scanning in appraising real-world examples. Justify your answer
and provide recommendations for improvement....................................................................8
Investigate and analyse real world examples from your chosen organisation using relevant
tools and demonstrating an understanding of how organisations, management and the business
environment interrelate.........................................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The concept of business environment is basically defined as the set of activities or forces
which is utilized or analysed by organization for sustaining their competitive benefit in market.
With effective analysis of various forces firm is sustained their overall growth and goodwill in
market for long time. Here the selected organization is TESCO and the headoffice of this firm is
located in United Kingdom. The organization was established in 1919 by Jack Cohen (Bentley-
Goode, Omer and Twedt, 2019). The report will covers introduce your chosen organisation, by
identifying the legal structure. It further covers the role and impact of digitisation on the business
structure, operations and strategies.
(A)
Introduce your selected company, by identifying the legal structures. In your introduction,
facilitate an outline of the operations / aims of your company, its main purposes, the
organization's vision/mission, key environmental pressures, Industry, market and post
Covid-19 difficulties. Include your organizations’ key stakeholders and evaluate their
requirements and influence and demonstrate how you would apply the stakeholder
mapping in your organisational responsibilities
Here the selected organization is TESCO and this firm is basically public based
company. The company was established in 1919 and this company is deals with wide range of
products which involves home appliances, grocery items, telecommunications, furniture’s and
others. In comparison with other brands, it is only one company who provides their goods and
services to users in low price which is affordable for all types of customers (Bešić, 2019). In
public legal structure some elements are also involved which are known as central, state and
local. In public based firms’ management are focusing on both profit of company and welfare of
employees and customers.
The main purpose of TESCO is to maintain strong communication and relationship with
consumers and their workers and consumers for long time. Due to this the popularity of
organization products and services are easily sustained in market and in customer mind for long
duration. The ultimate objective of organization is to maaintain profit margin and their market
share at maximum level for long duration. The other objective of company is to changes the
overall lifestyle of people by facilitating high quality goods and services to them. The vision of
TESCO is to maintain the trust and loyalty of customers towards their goods and services in long

term and also to become number one business leader in market. The mission of this organization
is to facilitate best quality products to users according to their needs for long time.
The various environmental pressure which is faced by TESCO during the time of
running their business are lack of skilled employees, and inflation. The lack of skilled employees
is one of the major drawbacks which leads to easily decrease the productivity of company at
maximum level. Due to this the management of TESCO is used advanced technology for train
their employees. In aspect of inflation due to occurring fluctuation in the rate of currency and
price of products organization is not able to enhance their sales and profit margin effectively in
market. For reducing this issue company, they fixed competitive price in their product.
The TESCO is basically a retail-based firm which is situated in UK and this is the
second largest retail store in UK (Cahen-Fourot, 2019). Due to dealing with wide range of
products the goodwill and portfolio of this firm are easily sustained at higher rate.
After the end of COVID pandemic organization faced lot of challenges for running their
organization smoothly. Those challenges are use of advanced technology, adapting government
rules and regulations and others. After the end of pandemic, the government of UK and other
countries are introduced new guidelines to business for increasing the safety of employees and
public. But for TESCO it is not an easy task and due to this they used various tactics for
enhancing effectiveness in the government rules and regulations which is adapted by company.
Due to shortage of skilled talented employees’ company is not able to utilize advanced
equipment’s in efficient manner. For overcoming this problem company facilitates advanced
training to their workers.
Stakeholder Analysis -
It is basically a procedure which is utilized by firm for enhancing their growth and
success effectively in market. The stages which are involved in this procedure are described
below -
 High power, high interest – It is basically refer to those peoples who have both interest
and power in whole business functions. The main purpose of this type of people is to
sustain company goodwill and profit margin in market. Those kinds of peoples are
directors, CEOs and board of members.

 High power, low interest – It is referring to those kinds of peoples whose powers are
very high and interest is low in business. The main objective of this kind of people is to
enhance profit only. Those type of people are investors or major shareholders.
 Low power, high interest – It is connected with those people whose interest are very
high and power is very low in business activities. Those are customers because only they
have high interest for buying the product not have power for running business.
 Low power, low interest – It is connected with those those persons whose interest and
power both are very less in business. That means the roles and responsibilities of those
peoples are very limited and those are employees and suppliers.
(B)
In the second part you can explore the global effect of the internet of things, evolving
collaboration, networking, ecommerce, eBusiness and social technologies on
organisational structures, operations, decision-making and ways of working from your
chosen company. Describe the impact and role of digitisation on the strategies, operations
and business structure
In aspect of organizational structure, the above-mentioned elements produced huge
impact on TESCO (Farah, Ramadan and Harb, 2019). The major impact is that due to the
effective adaptation of above-mentioned elements management of this firm is able to maintain
strong communication with their employees through online mode from any location. The other
impact is that the all over infrastructure of company are highly with in short duration. The above-
mentioned elements such as evolving collaboration, networking, ecommerce, eBusiness and
social technologies assist the organization to deliver meaningful information to their employees
and clients.
In aspect of operations the above mentioned elements assist the organization for running
their functions smoothly. The main impact is that the products and services are always delivered
in best quality to customers asper their desires and wants. Due to providing quality service and
goods to users quickly and as per their needs goodwill or reputation of the firm are easily
enhanced at higher rate.
In respect of decision making, the above-mentioned elements are highly essential for top
level management for taking right decision regarding activities of company and activities of

employees. For example, the above-mentioned tools easily assist the higher authority for
identifying the real issues of their employees which is faced by them in their job roles. Then after
that company easily strong solution for them within low time.
Role of digitisation on strategies, operation and business structure -
In both these three elements digitization plays the major role for enhancing the growth
and success of TESCO effectively. Firstly, in aspect of business structure it assists to maintain
strong communication between all departments. Due to these employees of this firm is able to
accomplish their task in systematic manner. In aspect of operations, digitisation assist the firm
for running their online services in smooth manner by using advanced technology. In respect of
strategies, it helps the firm to implement their various plans effectively.
Impact of digitisation on business structure, operation and strategies
The digitisation produced major impact on all these three elements (Jorge Alberto and
Cristian Armando, 2021). Firstly, overall structure and performance of TESCO are highly
enhanced. Secondly, positive relations is developed between employee and employer or
employee and consumer within short duration. Thirdly and last is firm is easily become global
leaders in market.
TASK 1
This Task requires you to research the compaany chosen and then undertake a business
environment analysis using a range of models to describe the key components of micro and
macroeconomics and macroeconomics theories and their affect on company's behaviour
and the national economy
PESTEL Analysis -
This framework also assists the company macro factors effectively which is responsible
for producing positive and negative impacts on their business.
 Political – There are various elements which are involved in this factor such as political
stability, government rules and regulation and others. In context to TESCO, due to having
strong presence of their stores and services in various locations political stability of this
firm are easily sustained in market. But in negative side due to creating changes in rules
and regulations by government firm is not able to run their functions in smooth manner.

 Economic – There are various components which are comes under these factors. Those
are supply and demand, employment rate, currency fluctuations, fiscal and monetary
policies, circular flow of income and others. In context to TESCO due to occurring
fluctuation in currency rates and changes in the fiscal and monitory policy by government
on regular basis performance of firm are highly decreased. It also leads to reduce the
demand and supply of company goods and services at higher rate.
 Social – In context to TESCO, this has strong influence on company regarding their
demographic trends, values and trends and societal norms. Due to this it is important for
the authority of TESCO that they must made changes effectively in the pattern of
demographics. In this way organization is able to target right customers which leads to
enhance demand and supply of their goods and services globally.
 Technological – It is mainly defined as use of high-tech systems which is used by
TESCO in their business activities (Jovanović, Dlačić and Okanović, 2018). Due to the
effective use advanced technology such as AI firm easily sustained their competitive
advantage in market globally. It also assists to develop strong organization structure
which leads to increase the convenience to customers to buy their product in less time.
 Environmental – In context to TESCO, due to the heavy use of carbon footprint in
workplace area workers are not able to do their work smoothly. This is also responsible
for polluting the atmosphere of earth. Due to this company started to use eco-friendly
products for packing their products which is not harmful for the customers.
 Legal – The components which are involved in this factor are legal laws, measures and
strategies. In context to TESCO, they must run their functions with full transparency and
fairness as the government laws. In this way positive relationship between employer and
employee or employer and customer are easily maintained.
Main techniques used for anaalysing the internal and competitive environments include for the
micro forces and its influences on your chosen firm
Poter's Five Force Model -
The porters five force model is basically a tool which is utilized by company for
sustaining their competitive advantage in market.
 Threat of new entrants – In context to TESCO, it is very low because in comparison
with other retail brands this is the only retail brand who diversified their product at wide

range. Due to providing wide range of goods and services in market the needs of users
are easily fulfilled in time.
 Bargaining power of buyers – In respect to TESCO here the bargaining power of buyer
are very less. Because it is only one of the retail brands who provides their goods to users
with affordable price and high quality. Due to these users easily buy their essential
products with valuable price.
 Bargaining power of suppliers – It is also very low because TESCO have so many so
many suppliers in market and those suppliers are very reliable. Due to having reliable
suppliers demand and supply of services and products are easily balanced in market for
long time.
 Threat of substitutes – It is also very less because in this firm all types of substitutes are
already available in their stores and through online mode (Mateos-Ronco and Peiró
Torralba, 2019). Due to this customer are not switch to other retail brand for long time.
 Competition between rivalry – In context to TESCO, it is very high. Because in UK
like TESCO other brands are also available in same segment. Those brands are ASDA,
Mark and Spencer, Morrison and others. Due to this firm faced heavy competition for
enhancing the sale of their goods.
TASK 2
Describe the difficulties posed to leadership by contemporary global business models in respect
of modern theories and assessing the importance of control in effective organisational
performance. Based on your company’s review, highlight in your answer the importance of
strategic management and scanning in appraising real-world examples. Justify your answer
and provide recommendations for improvement
Management Leadership theory -
In management leadership theory, the higher authority of organization is mainly focused on
the monitoring or supervise the performance employees as a group or individual. This theory is
some time known as transactional theory. In this theory the all over attitude and behaviour of
well-maintained towards the lower-level employees. In comparison with other management
leadership management theories, it is highly very effective tool because in this theory the
coordination between employees is highly maintained regarding job role and responsibilities.

The various challenges which are faced by the manager of TESCO for handling the
employees by using management theory are described below -
 Motivating employee's – This is one of the challenging tasks for the manager of TESCO
because motivation is highly essential for sustaining performance and growth of
employees effectively. But due to poor management sometimes employees are not
effectively motivated in their job roles and responsibility. Due to this they are not able to
do their work in systematic manner.
 Providing right direction – It is also one type of challenge which is faced by the
manager of TESCO. In this challenge the main role of manager or management is to
provide right instruction or guidelines to their workers regarding to their job roles and
responsibilities. Due to receiving right guidelines to them by their leader or manager
employees within company are able to deliver high quality goods and service to users in
long time.
 Assigning task – It is another challenge which is faced by organization or manager (Rana
and Chopra, 2019). This is challenging for manager because before assigning the task
first they analyse the talent and specialization of every employee. Then after
understanding the specialization or talent of every employee work is assigned to them.
Without the proper understanding of skills and specialization company is not able to run
their functions smoothly.
 Keep coordination between employees – It is another challenge which is highly
produced impact on the performance of the company and the manager. This is highly
complicated and challenging task to them because without coordination employees are
not able to understand their work properly. Another problem is that without proper
coordination company is not able to sustain their vision, mission and objectives for long
time.
Importance
The first importance is by using this leadership theory is TESCO is able to keep effective
communication with employees. For example, today’s organization is using advanced
technology in all the departments which leads to enhance the performance of their workers at
higher rate. Second importance is that due to using skilled workers in their workplace area the
various task which is assigned to them by higher authority are easily accomplished in time. It

leads to sustain the company vision, mission and objectives and also able to maintain strong
positive connection with customers in long term. For example, presently TESCO are utilizing
advanced equipment’s and KPI method for track the performance of employees on daily basis.
With help of effective supervision on workers manager of this firm easily understand that in
which area employees are lacking.
Recommendation -
From the above analysis it is understood that for reducing challenges which is faced by
TESCO, management required to made various modifications in their rules and regulations also
needs to use various strategies in their workplace area. Firstly, management needs to provide
advanced training to their workers which leads improve their mental ability and skills effectively.
Due to this kind of improvement employees are able to handle complicated task easily. Secondly,
management also needs to maintain friendly atmosphere in within organization. With keeping
atmosphere friendly workers are able to do their work with full passion and interest and without
any kind of hesitation for long time (Salam and Hasan, 2020).
Investigate and analyse real world examples from your chosen organisation using relevant tools
and demonstrating an understanding of how organisations, management and the business
environment interrelate
Organization with management – Both organization and management are closely
connected with each other. For example, organization culture is one of the factors which plays
major role between management and organization. Because with help of positive work culture
strong connection are maintained between management and organization globally in every
location. The other benefit for keeping positive culture is that here employees of every
management or department put their full effort in their job role and responsibilities. Due to this
TESCO is able to deliver high quality goods and services to their potential clients internationally
for long time. With help of providing high quality goods and services the overall economy of UK
and their citizens are totally changed.
Organization with business environment – Organization and business environment are also
closely connected with each other because the factors which are comes under business
environment are responsible for influencing the growth and success of TESCO. For instance,
ethical decision making is one of the factors which are mainly taken by top level management of
TESCO. That means ethical decision making played the major role for run the business activities

of firm in smooth and transparent manner. The ethical decision making also assist the
organization for sustain their reputation in market for long time globally. Due to keeping strong
connection between organization and business environment accountability of firm are easily
sustained at higher rate (Sani and Nwite, 2021).
From the above evaluation it is understood that diversifying culture, ethical decision
making, openness or transparency and others plays the major role for enhancing the effectiveness
of employees. These elements are also essential for understand the real issues of employees and
customers globally.

CONCLUSION
After the evaluation of above information, it concludes that the forces or factors of business
environment played the major role for running the functions of organizations in smooth manner.
In this report various models are used by organization such as PESTEL and Porters five force for
sustaining their competitive advantage in market. The report will cover introduce your chosen
organisation, by identifying the legal structure. It further covers the impact and role of
digitisation on the business structure, operations and strategies.

REFERENCES
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