Analysis of Internal & External Factors on Tesco's Marketing and R&D

This report provides an analysis of Tesco's global business environment, exploring the influence of internal and external factors on its marketing and research & development (R&D) functions. It examines how Tesco's internal strengths, such as brand recognition and diversified product offerings, and weaknesses, such as unsuccessful ventures in certain markets, impact its marketing and R&D strategies. The report also discusses the effects of external factors, including market competition, opportunities for expansion through mergers and acquisitions, and the risks associated with marketing missteps. The conclusion summarizes the impact of these factors on the company's overall performance and suggests areas for strategic improvement, such as enhanced market research and refined marketing strategies.

Global Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
Influence in the perspective of Internal and external components..................................................3
Impact of internal factors on the Marketing and R&D...............................................................3
Impact of external factors on Research & development and Marketing.....................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................1

INTRODUCTION
The following report will examine the impact of internal and external factors on the
different operational functions of the organisation.
Influence in the perspective of Internal and external components
The factors reflect their impact on Marketing and R&D departments is discussed below:
Impact of internal factors on the Marketing and R&D
Tesco is the largest consumer goods retailers and they are leading the market by
outrunning their competitors in the retail business. They are frequently expanding their business
by establishing new outlets in various different regions and countries. It is very beneficial for the
marketing and research & development departments to conduct their activities as the
establishment is already known and popular among their consumers. They are well renowned
brand and conducting the marketing for the brand is convenient as they are best known for their
diversified product offering as Tesco have a wide range of product to choose from under one
roof (Anzola-Román, Bayona-Sáez and García-Marco, 2018). Industry excel in geographical
diversification as they operate in many countries having distinct outlets like, Tesco home-plus,
metro, one stop and express etc. delivering various commodities. They used the best technology
to make the consumer shopping experience more convenient and time savvy, they have radio
frequency identification system which automatically counts the number of products in people
carts which is handy for billing. Establishment have very efficient distribution and supply
channel.
The biggest issue company have faced is their failure of business in the US and Japan,
and they also have very low performing outlets in some countries. They haven't conducted
efficient market research before entering these markets and opening their stores, which leads in
demolishing overall profitability and productivity of the company. To maintain the competitive
advantage in the market they keep their pricing strategy very low and provide consumer goods at
affordable pricing which helped the company in short term but in the long run they are facing
low profit margin (Dmitrijeva and et. al., 2020). Enterprise should focus and rearrange their
marketing activities and should develop good strategies for conducting marketing research and
development of the industry productivity and growth.

Impact of external factors on Research & development and Marketing
Tesco have so many available opportunities which they can attain by conducting
sufficient market reach and promotional activities. Company introduced new venture named
Jack's, which is basically a discounted outlet. This project of theirs have effective market
potential and with the help of correct marketing strategies they can easily attain growth and
defeat their competitors. Industry have strong R&D team through which they have identified
opportunities that through mergers and alliance with other brands and companies, they can
expand their business and this will enable the establishment to acquire even more larger
customer base by providing their elevated product range. There is also a huge possibility for the
industry to regenerate their business activities in areas their outlets are underachieving by
mergers and partnership with local companies and industries (Peris-Ortiz, Devece-Carañana and
Navarro-Garcia, 2018).
Organisation have risk factors as they are facing immense competition from big brands as
Wall mart done a acquisition with Tesco competitor ASDA . One of them includes the wrong
marketing activity which include naming their products with false organic and farm names,
which made their customer belief that they are organic products and received backlash from
people. This will effect the activities of Marketing and R&D as they have to work with more
efficiency in order to prevent the company from future risk factors and also in managing the
current situations.
CONCLUSION
The above report conducted a detailed evaluation for analysing the the effects of the
internal as well as external environment component on the functionality of Marketing and
Research & development sections of the company.

REFERENCES
Books and journals
Anzola-Román, P., Bayona-Sáez, C. and García-Marco, T., 2018. Organizational innovation,
internal R&D and externally sourced innovation practices: Effects on technological
innovation outcomes. Journal of Business Research.91.pp.233-247.
Dmitrijeva, J and et. al., 2020. Context matters: how internal and external factors impact
servitization. Production Planning & Control.31(13). pp.1077-1097.
Peris-Ortiz, M., Devece-Carañana, C.A. and Navarro-Garcia, A., 2018. Organizational learning
capability and open innovation. Management Decision.
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