Analysis of Tesco's Business Environment and Stakeholder Impact

This report provides a comprehensive analysis of Tesco's business environment, examining its legal structure, operations, and key stakeholders. It explores the impact of digitalization, including e-commerce, social technologies, and their effects on business systems, operations, and decision-making. The report further delves into a business surroundings analysis using PESTLE and Porter's Five Forces frameworks to explain micro and macroeconomic factors influencing Tesco's organizational behavior and the national economy. It also investigates the challenges posed by globalization and the significance of effective management in the context of Tesco, offering insights into real-world examples and the interlink between company management and the business environment. The analysis includes stakeholder mapping, digital impact, and strategic recommendations for Tesco's continued success.

Contemporary Business
Environment(company
appraisal)

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Introduce the chosen organisation by determining the legal structure. In the introduction give
a design of the operations reasons of the company , its main aims the challenges . Include the
company key stakeholder and evaluate their acquirements and influence and illustrate how
they will implement the stakeholder mapping in the organisational responsibility- .................4
In the second section of report individual can explore the global effect of the internet of things
evolving collaboration networking, e-commerce, and social technological on business
system, operations, decision making . Discuss the role abd effect of digitalisation on the
business. .....................................................................................................................................5
Role of digitalisation on business structure operations and policies - .......................................5
TASK 1.......................................................................................................................................6
This projects needs to analysis the business selected and then undertake a business
surroundings analysis using a range of theories to explain the key factors of micro and
macroeconomics theories and their effects on organisational behaviour the national economy
- ..................................................................................................................................................6
Main instruments used to analyse the internal and competitive surrounding include for the
micro forces and its influences on the chosen company. .........................................................7
TASK 2 ......................................................................................................................................8
Discuss the issues posed to leading by globalisation theory in the relation of modern
frameworks and assessing the significance of management in effective business activity. On
the basis of company highlight the answer and justify the answer and give suggestions for
developments: ............................................................................................................................8
The different challenges which a re faced by the manager of Tesco for managing the
employee by using management theory are listed in below - ...................................................8
Analysis and investigate real works examples from the selected company using relevant tools
and illustrate an understanding of how company management and the business environment
interlink. ...................................................................................................................................10
CONCLUSION .............................................................................................................................10

REFERENCES..............................................................................................................................11

INTRODUCTION
The business environment is commonly stated as the group of operations or forces which
is used or determined by company for sustaining their competitive advantages in market.
Because of the effective determination of different elements is able to sustain their overall
growth and goodwill in market for long term (Kang, Burdon and Mooney, 2019) . The consider
company is Tesco and its headquarter is in UK which deals as a retailer In global market . The
company was founded by Jack cohen 1919. the report will cover launch the selected business by
determination the legal structure. It further the role and effect of digitalisation on the business
structure and policies.
MAIN BODY
Introduce the chosen organisation by determining the legal structure. In the introduction give a
design of the operations reasons of the company , its main aims the challenges . Include
the company key stakeholder and evaluate their acquirements and influence and illustrate
how they will implement the stakeholder mapping in the organisational responsibility-
There is a company selected is Tesco and company is UK based company deals as a
retailer which provides goods and services in global areas, the company was founded in
1919 by jack cohen . The products provide by company are telecommunication, furniture,
ad home based products and many others. The company is well known for its good quality
products. The company provides services in global areas with diversity of products.
The major aim of Tesco, is to manage powerful connection with its employees and
customers. Because of the popularity the customer prioritises the brand as a first o buy a products
from store. The main objective of company is to sustain profit margin and their market share at
maximum level in global market. The vision of the company is to maintain the trust and loyalty
of buyers for the company. The mission of the firm is to give quality products to buyers as per
the needs and wants for long term.
The different environmental pressure which is seen by Tesco while the time of
performing business are deficit of skilled employees and inflation. The deficiency of skilled
employees is main drawbacks which tend to simply reduce the performance of business at high
cost. Tesco is using advance technology for training the employees in content of inflation

because of happening fluctuation in the rate and cost of goods is not able to grow its sales and
profit margins effectively in market .
The tesco, is commonly a retail industry firm which is located in UK and this is the
second largest retail chain in company. Due to dealing with broad range of goodwill and
portfolio of this company is easily sustained at high cost (Hallioui, and et.,al., 2022.).
.
After the pandemic company faced a lot of issues and challenges for conducting their
business systematically. Those problems are seen in use to develop technology, implementing
governing rules and regulation and another. Tesco, is the company which uses the guidelines to
business for increasing the safety of employees and public. But for company it is difficult to
work on financial loss quickly as this causes a huge loss on business and its profit also the
company has lack of skilled employees and company is not capable to use developed tools so
that work can be done smartly.
Stakeholder analysis -
this model is basically a process which s used by business for growing development and
success effectively in market. The stage which are included in this process are listed in below -n
 High power, high interest - It is essentially definite as those individuals who have both
authority and curiosity in conducting business operations. The main purpose of this kind
of people is to maintain company goodwill and profit edge in market. Those kinds of
peoples are directors, CEOs and board of members.
 High power low interest - It is referring to those types of peoples whose control are very
high and involvement is low in company. The main aim of this type of individual is to
grow profit only. Those kind of people are investor or major shareholders.
 Low power , high interest - It is stated as those persons whose involvement are very high
and management is very low in business activities. Those are users because only they can
have high interest for purchasing the goods not have authority for performing business.
 Low power low interest - It is careful with those people whose attention and power both
are very less in commerce. That means the roles and tasks of those popular are very
restricted and those are workers and providers.

In the second section of report individual can explore the global effect of the internet of things
evolving collaboration networking, e-commerce, and social technological on business
system, operations, decision making . Discuss the role abd effect of digitalisation on the
business.
In consideration of organizational structure the above mentioned factors produced high
effect on consider company . The major effect is that due to the effective implementation of
listed factors of this company is able to manage strong communication with their workers by
online mode from any place. The another effect is that all employees are highly with in short
term. The another listed factor just as evolving collaboration networking ,e commerce and e
business and social technologies helps the business to serve meaningful details to their workers.
It consideration of operations changing all these factors helps the business foe
performing their functions systematically. The major effect is that the goods and services are
always serving the best quality goods so that good customer base can be made in company which
causes impact on company profit positive (Das, 2020)..
.
In respect of decision making the above mention factors are highly important for top level
management for taking right decision related activities the higher administration for determining
the real challenge of their employees which is faced by them in job roles.
Role of digitalisation on business structure operations and policies -
In company social media plays an important role in developing brand value and
connecting target audience easily. This can be an effective way to communicate with the
employees as well as this can also put positive effect on new customers. In aspect of operations
social media helps the company for performing their online services in smooth manner by using
developed technology. In respect of policies it helps the company to execute their different plans
effectively.
Impact of digitalisation on Tesco-
the socialisation generates main impact on all these terms factors . Initially total structure
and operation of Tesco are highly influenced. Another impact is developed among employee
and manager and buyers within short term. Firm is simply become global brand through this
social media.

TASK 1
This projects needs to analysis the business selected and then undertake a business surroundings
analysis using a range of theories to explain the key factors of micro and
macroeconomics theories and their effects on organisational behaviour the national
economy -
PESTLE Analysis -
This model helps in understanding the company macro factors effectively which is
responsible for producing positive and negative effect on their business -
 Political - There are various factor are consider in this factors just as political constancy,
governing rules and system and many others. In context of tesco due to having
influential survival of their outlets and forces in diverse locations supporting stability of
this company are merely continued in marketplace.
 Social - In context to TESCO, this has strong power on corporation concerning their
demographic trends, principles and trends and community norms. Because of this it is
important for the adminstration of TESCO that they should create modification
effectively in the method of demographics. In this manner company is able to target
correct buyers that leads to grow demand and supply of their goods and services
worldwidely.
 Technological - It is majorly stated as use of high-technology systems which is utilised
by TESCO in their concern activities. beacuse to the impresive use developed technology
such as artificial intellegnece firm effortlessly continued their spirited benefit in market
internationally. It also assist to expand strong association structure which lead to enhance
the expediency to buyers to buy their goods in affordable cost (Tarabasz, Selaković and
Abraham, 2018).
 Economical - 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.

 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. Due to this the positive relationship between employee
and employer or employer and customer are easily maintained.
 Environmental - In context to TESCO, due to the weighty use of carbon footprint in
workplace area workers are not able to do their operate easily. This is also accountable
for pollute the ambience of earth. Due to this business started to using eco-friendly goods
for wadding their goods which is not damaging for the clients.
Main instruments used to analyse the internal and competitive surrounding include for the micro
forces and its influences on the chosen company.
Porters five forces
This model is basically a framework which is used by business for sustaining their
competitiveness benefits in market . It is consist with some forces which is listed in below -
 Threat of new comer - in relation of Tesco, it is very low in competition with other brand
this is the only retain brand which have diversity of products and services in market the
requirements of users are simply completed in given time.
 Bargaining power of buyer – the company Tesco, have low power in comparison of
supplier. As It us only brand of the retail sector who serves their goods and services to
buyers with reasonable cost and good quality. Because of this users simply buy their
goods and products in affordable cost with extra benefits.
 Bargaining power of Supplier - Its is very low for Tesco, as they have so many providers
I market and those providers are reliable. Because of services and goods are easily
managed in market for long term, also delivered on time.
Threat of substitute - it is very low due to its this company all kinds of substitutes are already
accessible in their stores and by online mode too. This causes the increase in brand value of the
brand.
 Competition among challengers – in relation of Tesco, it is very high as in UK Tesco
another brands are also accessible in similar segment . Those brands are ASDA, mark and

spencer, Morrisons and others.Because of this company faced high competition for
growing the sale of their goods.
TASK 2
Discuss the issues posed to leading by globalisation theory in the relation of modern frameworks
and assessing the significance of management in effective business activity. On the basis of
company highlight the answer and justify the answer and give suggestions for
developments:
Management leadership theory -
In management leadership theory the higher authority of business is majorly concentrated
on the managing or supervise the performance employees as a unit or individual. This theory is
also known as transactional theory. In this the all over attitudes and behaviour of well managed
towards the lower level workers. Rather than with another management leadership management
theory. It is primely very effective tool due to this theory the coordination among employees is
highly maintained regarding job position and liability.( Zhou, 2019.) .The different challenges
which a re faced by the manager of Tesco for managing the employee by using management
theory are listed in below -
 Motivating workers - it is one of the difficult challenge for the leaders of Tesco
due to as employees has different mindsets and its hard to motivate employees
for sustain performance and development of employees effectively. But because
to bad management sometimes employees are not effectively encouraged in their
job roles and responsibility, due to this they are not able to do their work in
smooth functionating.
 Providing right direction - it is also another kind of challenge which is faced by
the manager of company. In this challenge the major role of manager or
management is to give correct direction or guidelines to their employees
regarding to their jobs and responsibility. As been providing right details to them
by their manager employees within company are able to serve good quality
services to buyers for long term.
 Allocating task and duty - this is other complexity which is faced by company or
manager. This is challenge for manager due to this earlier manager analysis the

capability and power of an employee after that task is assigned as per the skills.
Without the appropriate understanding of skills and specialization company is not
capable to perform their operations effectively.
 Keep coordination among employees – it is the hard task that is hugelt effect on
performance of the company and the manager. This is extermely complicated and
challenges task to them without coordinating employees are not getting theor
tasks work properly. Other issue is that without appropriate cmoordination
company is not able to sustain their objectives, mission, vision and many others
for long term.
Significance -
The importance of leadership theory in consider company is that it keep effective
communication with employees just as in present era business is using developed technology in
all the areas which tends to grow the performance of their employees at high rate. Another
benefit o f this theory is using quality and skilled workers in their organisation which leads in
completion of task successfully and systematically. It takes care of company vision, mission and
goals as well as manage the strong leads to sustain the company goals conceivably. Just as
currently, Tesco are using developed tools and KPI instruments to track the performance of
employees on regular basis . With help of effective supervisions on employees manager of this
company easily analysis that in which department employees required training (Dai and De
Meuse, 2021).
Recommendation -
from the above determination it is analysed that for decreasing cahllenges which is faced
by Tesco, management needs to created different changes in their rules and
regulationsalos required to utilised different strategies in their workplace areas.
Initilaly management required to give developed training sessions to their employees
which tends to develop their mental ability and skills effectively. Because of this type of
development employees are capable to manage task simply. Another suggestion is
management is also required to manage friendly surrounding in within company. With
having friendly atmosphere are able to so their work with complete passion and interest
and without any kind of hesitation for long term(Zhou and et.,al., 2021).
.

Analysis and investigate real works examples from the selected company using relevant tools
and illustrate an understanding of how company management and the business
environment interlink.
Business with management - both business and management are closely link with each
other. Just as organizational culture is none of the main factor which plays a major role among
management business globally in all location. The another advantage for having positive culture
is that here employees of all management or area put their full contribution in their job role and
duty. Because of this Tesco is able to serve high quality goods and services to their possible
clients globally for long term. With the assistance of giving high quality goods and services the
complete economy of UK and their Citizenry are completely changed.
Business with business environment - Company and business environment are also connected
with each other due to this factor which are consider ib business atmosphere are responsible for
attracting the development and success of company. In instance, ethical decision making plays
an important role in running business the activity of company in systematic and clear manner.
The ethical decision making also help the company for sustain reputation in market for long term
worldwide. Because of having strong connection among business and company atmosphere
answerable of firm are simply sustained at high ratio.
From the above evaluation it is understood the diversifying trends, ethical decision making
spacing or transparency and another plays the major role for growing the effectiveness of
workers. These factors are also important for determining the actual issues of workers and users
worldwide (Contractor and et.,al., 2020).
CONCLUSION
It is concluded from above analysis that the sources of business atmosphere plays an
important role for running the functions of business in systematic mode. In thus report different
models and framework is been used by company just as internal and external factor analysis for
determining the market competitiveness in market. The report will cover introduction of selected
organisation by determining the legal system. It further covers the role and effect of digitalisation
on the business , its operations and plans.

REFERENCES
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