BUS4010: Contemporary Business Environment - Tesco Company Appraisal

This report provides a comprehensive analysis of Tesco, a leading multinational retail company. It begins with an introduction to Tesco, outlining its history, mission, and objectives. The report then delves into the micro and macro factors affecting the business, including a SWOT analysis of its strength...Read More

Contemporary Business Environment
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Table of contents
Introduction of the company.................................................................................................3
Micro economic: swot analysis ............................................................................................5
Stakeholder analysis .............................................................................................................6
Internal Stakeholders: ..............................................................................................6
External Stakeholders......................................................................................................7
Pestle analysis ......................................................................................................................8
Research on the performance of the company......................................................................9
Conclusion...............................................................................................................................10
References...............................................................................................................................11
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Introduction
The business environment refers to the atmosphere of the association which is associated
with the organisation that includes employees, customers, requirement, ethical values, belief
and transparency etc. the business environment deliver assistance in accomplishing the goal
of the company in effective as well as efficient manner (Hawas, 2019) . Along with that the
organisation is able to obtain the success and survive in the marketplace. the present report is
based on Tesco association which is leading company. the report will deliver the
introduction of the company and elaborate the detail of the company in an appropriate
manner. further the report will examine the challenges faced during the covid 19 and the
micro and macro factor affecting the business association. Furthermore the report will
analysis the global issues and challenges .
Main body
Introduction of the company
Tesco plc. is reorganised as the British multinational organisation which is leading the
domestic as well as international marketplace in effective as well as efficient manner. the
organisation is established in the year of 1919 in Hockey, London, England, united kingdom
by the reorganised personality Jack Cohen. The headquarter of the company is located in the
England up. The organisation is serving wide range of the customers with the wide range of
product and exclusive services of the company. the company is generating higher profit from
the marketplace due to which it is listed on top companies of the UK renowned for the best
retailing product that includes fresh food, drinks, grocery or eatable and non-eatable
products. the organisation delivers the grocery product to the customer and satisfy them
effectively . basically it is public limited company which is having great market shares in the
marketplace (Belyaeva, 2018) . Tesco covering great values to the customer in order to
improve the services and offer the best experiences to the consumer with the affordable
productivity. the aim of the Tesco company is to serve the numbers of customers, people of
the communities and of planet in order to improve their lifestyle. The objective of the
company is to perform the best role and responsibilities toward the customers. in context to
that the organisation is providing the series from online as well as offline stores as per the
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suitability of the buyers . further the company aim to offer the transparency and build thee
trust of the buyers for the long term business relationship with the people. due to which the
company is obtaining success from different market. the Tesco has high brand value in the
marketplace.
With the assistance of the marketing development strategy the company willing to expend
the business all over the world and share the value with the people. in context to that the
company always come up with the innovative ideas and creativity. Along with that the
mission of the company is to defeat the competitor and remove them from the competition
by delivering comparative advantages in the marketplace (Simanungkalit, and
ANDRIANI, , 2020). the company is generating higher revenue from the market and
focusing on improving the performance of the employees working within association. In the
current period of time the organisation is facing various challenges due to spread of the
covid 19. Along with the organisation the people or the customers are also facing certain
difficulty and issues. During the pandemic the organisation face the issues of unemployment
as many people aren’t willing to work as they are highly concerned for their health. Along
with that during the covid 19 the government or the authority of the nation announced the
lockdown which is difficult for the people as they are not allow moving outside in order to
control the situation. At that that the authority announced to shut down the business for
some time.
Further the outcome of that announcement is that many of the businesses are shut down or
allow to operate with the half capacity. so due to that the spending power of the consumers
also decrees and the unemployment rate is increased. After the pandemic the people are
willing to buy the product which are essential or important for the people and people willing
to avoid the purchase of luxury item at that time. This further result in decreasing in the
revenue of the company and scale down the profitability and productivity of the company.
along with that the Tesco need to ensure the health of the workers due to continuous
increment in the covid 19 situation (Syazali, and et.al 2019) . The employees of the
organisation are the assets so it is important to keep them on priority and be conscious for
their health. Apart from that the company is largely depend on the digitalisation and mage
all the information technology. For the proper services the company motivate the employees
and customers during the difficult time the people of the nation face. In order to mange the
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situation the association provide the flexible working hours for the better health of the
employees. beside this the organisation implement new policy and programmes as peer the c
covid 19 pandemic situations.
During the pandemic situation the digitalization play essential role in the growth of the
business enterprises. It deliver assistance in obtaining success and survive in the
marketplace. basically it deliver huge factor to increase the profitability and productivity of
the company. the digitalization process of company is contributing in the economy of nation.
In context of that the Tesco organisation implementing effective technology within the
organisation. the organisation introduce the feature of scan and shop in which the consumer
allow to shop directly with a scan without the interaction with the people (Akpoviroro, and
Owotutu, 2018) . due to the technology the organisation spend its network all over the
world. with the assistance of digitalization the company is exchanging the product and
services with the electronic media. Due to that the company is able to provide quick solution
to the people as the organisation collect the reviews from the customer on the regular bases
in order to improve the quality and manage the standard of the organisation. with the e-
commerce the organisation is able to deliver various facilities to the consumers. Along with
that due to the availability of the internet the Tesco is able to provide the the fast and better
services to the customers. the Tesco is connecting with the customer and develop the better
relationship with the consumers for accomplishing the long term goal.
For delivering the competitive advantages in the marketplace the organisation is providing
better facilities to the employees and involve in the process of decision making. Along with
that the organisation take the decision on the bases of the feedback and taste as well as
preferences of the consumer. in context to the digitalization the organisation launch the Club
card for the welfare of the people. the organisation is offering innovative equipment to the
workers of the organisation that motivate the workers to contribute in the productivity and
profitability of the organisation. the organisation is able to resolve the personal as well as
professional issues of the consumer(Shtal, and et.al 2018)
Micro economic: swot analysis
Strength: the Tesco is one of the best leading company of the united kingdom. The
company is obtaining continuous progress in domestic as well as international marketplace.
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the Tesco is having higher brand values in different marketplace and having potential
customer for increasing the profitability and productivity of the company.
Weakness: the organisation follow low cost strategy due to which the organisation is not
able to generate higher profit from the marketplace. due to the utilization of the Club card
the organisation indulge in the various controversy that result in shifting of the customers
toward different brands. Some of the stores of the organisation is not able to perform well in
the marketplace (Keiningham, Perkins-Munn, and Evans, 2013) .
Opportunity: the company has the opportunity to form the alliance with the other companies
or brand that contributes in the economy. Due to which the organisation is able to provide
additional product and services in the marketplace. the Tesco is having the possibility to
expend the network and workflow in the various countries.
Threats: the biggest threat of the company is increasing competition and increment in the
costing of the product and services. Along with that after covid 19 the taste and preferences
of the customers are changing.
Stakeholder analysis
Tesco gives stakeholders, both inside and outside the company, the same position to achieve
success. It also affects business decisions and the operation of the corporation and must be
sustained. In addition, Tesco 's can generate huge revenues with proper stakeholder
management.
Internal Stakeholders:
Shareholders: They are known as investors in companies that facilitate commercial
activities and decisions. similarly , Tesco 's gave shareholders and the right to make
corporate decisions for the continued benefit of the organisation in effective as well as
efficient manner.
Workers: This is one of the most important evidences that help an organization run its
business effectively and brand value of the company in the external market. It is also
important to remain as operating company that contributes to customer satisfaction, and
suggestions due to which the company makes significant decisions. In addition, Tesco
keeps its employees happy by assessing their work through the appreciating them with fiscal
and non-fiscal incentives (Wu, Mahajan, and Balasubramanian, 2013).
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Board Members and Boards: Management is essential to a company as it helps the
decision-making of a for-profit making company. All Tesco 's decisions are made by Senior
Advisors and the Board of Directors, who make every effort to find a suitable business plan
for the company and its business's continued success.
External Stakeholders
Community: The external environment impacts business, and some of its factors can have a
positive and undesired impact on business's growth. In addition, if the local company is not
familiar with commerce, the company is located within these borders and the organization
cannot compete in the market . Tesco 's activities such as CSR contribute to the well-being
of local communities and the development of society.
Vendors: Tesco ensures that vendors are considered when developing a company's
business model, as they play an important role in collaboration. In addition, Tesco purchases
most of its industrial raw materials through the various merchants available on the market.
This allows them to sell high quality products to its customers. Therefore, it is important for
Tesco 's to maintain sound relationships with its suppliers and customers in order to produce
the highest quality products. Association managers or personnel build trust between people
or customers (Bratianu, Stanescu, and Mocanu, 2021).
Customer: Tesco is a customer-centric business because all revenue comes from consumer
purchases. Together with them, it is the main source of information for the company and
therefore has a significant impact on business operations. Tesco sells all products to provide
value based on customer preferences and preferences. In addition, Tesco takes care of its
customers by providing them with appropriate customer service and benefits such as loyalty
programs. It attracts them, gives customers discounts on big opportunities, and increases
their sales.
Competitors: TESCO conducts market research before initiation of new commodity, but
can recognise viable commercial areas in the marketplace. Therefore, it is significant to
classify them as they have a direct impact on business and customers. TESCO uses a
variation of advertising methods, together with digital promotion media and platforms, to
respond to competition and reduce its competitive advantage. Therefore, it is significant that
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the establishment keeps them close and keeps patrons informed of new foodstuffs or services
of the corporation (Akpoviroro, and Owotutu,, 2018). . .
Pestle analysis
Political: it considered the rules and regulation which is imposed by the government for
participating in the marketing. Due to the certain restriction on the trade the Tesco unable to
grow in the domestic as well as international marketplace. along with that political stability
of the company supporting the organisation in expending the network of the company.
Economic: it consider the revenue of the company is generated as per the economic balance
of the nation. As the GDP income of the individual person is higher so the spending power
of the customer is also high. The flection in the income of the person decreases the spending
power of a person and consumer shift different brands as their taste and preferences are
changing. The changes in the inflation is consider as another factor that affect the growth of
the business.
Social factor : in the current market trend the taste and preferences of the customers is
changing after the covid 19. It is one of the major factor that affect the growth of the
company. in order to that the organisation conduct the market research and produce the
product as per the demand of the market and consumer. the social influence are encouraging
the consumer for buying the product. basically the customer by the product and services as
per the marketing trend(Hutasuhut, and et.al 2020).
Technology: it is one of the effective factor that is contributing efforts in growth of the
organisation. with the utilization of the technology the company is able to supply the
product and services to the consumer in effective as well as efficient manner. it attract the
customer toward the brand and motivating them to make purchase. For increasing the
purchase the organisation is utilizing various online platform that offering great experiences
to the consumer.
Environmental factor: the organisation is sustainable due to which the organisation is able
to improve the image of the company in domestic as well as international marketplace. for
the long term growth as the people are becoming conscious for the environment it is
important to adopt the strategy regarding environmental factor. The organisation sis offering
the recycle and reusable product and services in order to inhere the sustainability of the
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nation. Along with that the organisation deliver the contribution or efforts in corporate
social responsibility.
Legal: it includes all the rules and regulation imposed by the authority for controlling any
illegal activity in the nation. In context to that the Tesco is following all the norms and
considered the consumer law, employees law for the success of business enterprises. The
organisation is legally registered for operating the business (Pirtea, , Sipos, and Ionescu,
2019) .
Research on the performance of the company
Companies must address the changing demands of the retail chain and bring healthier
commodities to market for long-term and short-term success. Due to trade restrictions and
changes in client preferences, the company's financial stability suffered as a result of the
pandemic, and it was forced to close for months, which was the association's largest setback.
The company's marketing strategy is also outdated, as a result of which it has been unable to
attract significant clientele and sales have not increased. Organizations are also up against
stiff competition, therefore it's critical for associations to implement cutting-edge marketing
strategies. As a result, the corporation is working on some areas of development and
enlisting the help of support groups to solve long- and short-term issues. Tesco is
encouraged to make use of cutting-edge technologies.
Tesco is encouraged to use new technologies to improve their skills and produce or sell high-
quality standard items to its customers. Aside from that, improved technology will aid in the
restoration of the customer's purchasing experience. To entice consumers and make them
feel comfortable when shopping at TESCO, businesses must adhere to pandemic guidelines.
Clientele are encouraged to employ online business management with the help of marketing
as a result of digital. This helps firms to grow their networks and develop into new areas.
Furthermore, by publishing data about newly released commodities across numerous social
media platforms, TESCO can raise brand recognition in the market. Organizations may use
programmatic advertising to categorise customer preferences, favourites, and purchase
cycles. As a result, there are several advantages to a company's efficiency.
As a result, there are several advantages to businesses' effective use of digital technology.
Inform the firm that they may get consumer feedback. This will aid the firm in
comprehending the areas of growth that are encouraged by the organization's resources.
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Employee feedback is also significant. This is due to the modern concept's ability to
effectively address customer wants. Furthermore, it is vital to create good relationships via
society in order to live successfully in the long run (Duca, . and Gherghina, 2018) .
Furthermore, organisations may employ KPI devices to improve their distributors' overall
performance by achieving corporate fulfilment. Apart from that, it aids distributors in
determining the company's market position so that TESCO can respond in the event of a
crisis. Furthermore, while this approach will not work in the long term, it might be instantly
beneficial to the firm by enhancing customer income through branding fees and TESCO
product offers. Increasing revenue improves the company's financial balance, allowing
agencies to invest in new commercial business prospects. During the epidemic, internet trade
enterprises are the primary source of revenue for businesses. As a result, TESCO will be able
to materialise and realise new ambitions with entirely new modifications in the following 12
months. It's probably simpler for businesses to overcome opposition with the aid of web
advertising than it is with traditional approaches. To continue on High Street with more job
centres, the firm might be open 24 hours a day, seven days a week. Promoting a business can
help it earn more money, and it should cut the rate of premium premium items even more to
boost sales. Consumers may be attracted to the corporation if it offers loose clinical offerings
on ancient age and fitness. This is because it gives the agency a lot of money. It is critical for
TESCO to launch new items in order to improve the marketplace function.
Conclusion
From the above report it will be concluded that the Tesco is one of the leading organisation
is which is obtaining success in the marketplace by managing the environment of the
company in effective as well as efficient manner. for the business it is important to maintain
the culture of the organization. the present report mentioned the micro and macro
environment of the organisation to determine the factor which is affecting the business
enterprises and contribute in the growth of the enterprises in negative as well as positive
manner. for the long term survival the company is accomplishing the objective of the
association.
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References
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organizational performance. International Journal of Advance Research and
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