Business Environment Analysis Report: Tesco PLC Case Study

This report provides a comprehensive analysis of Tesco PLC's business environment. It begins with an introduction to the company and its position in the UK retail market. The report then delves into a PESTEL analysis, examining the political, economic, social, technological, environmental, and legal factors affecting Tesco's operations. A SWOT analysis is also included, highlighting the company's strengths, weaknesses, opportunities, and threats. The report further explores the impact of government policies on Tesco's structure and operations, as well as the effects of changes in the business environment and other activities. The conclusion summarizes the key findings, and a list of references is provided at the end. The analysis covers the business environment for Tesco PLC, exploring the factors affecting its performance and strategies.

Business environment

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
Business Environment Analysis..................................................................................................1
LO2..................................................................................................................................................2
Impact of government of the structure and operation of the business........................................2
LO3..................................................................................................................................................2
Impact of change on the business environment and other activities...........................................2
CONCLUSION ...............................................................................................................................3
REFERANCFESS...........................................................................................................................4

INTRODUCTION
This report is providing brief of business environment for Tesco PLC which is one of the
biggest grocery and retail store in UK. Relevant information regarding business organization will
be explained in report. The impact of government on structure and operation of organization will
be studied in the report. The impact of change also will be analyse for the business of an
organization.
LO1
Business Environment Analysis
PESTEL Analysis
Political- The attitude of government can affect the business processes of organization in the
target market. The political instability in UK due to Brexit also can reduce the performance of
organization in target market.
Economical- Brexit is one of the biggest issues for Business of Tesco PLC (Heese, Srinivasan
and Kelley, 2019). This can reduce the investments that are gained by organization in the target
market. This also can reduce
Social- Due to changing social trends Tesco provides variety of food or non-food products to
their customers. Their popularity on social media is also increasing continuously which helps
them in reaching their targeted customer base.
Technological- Advancement in technology especially in retail sector has helped Tesco in
bringing improvement within their customer experience and optimize their operations in an
enhanced manner.
Environmental- Tesco has committed to use 100 percent renewable resources for electricity
generation by 2030 in order to reduce their carbon footprint by at least 50 percent. This is mainly
because of increasing pressure from government on organizations to address environmental
issues.
Legal- 17 employees of Tesco took legal action against the organization in 2016 because of
gender and age discrimination. They have also faced legal actions for mis leading their investors.
However, they have also committed to focus on strict Food Retailing Commission (FRC) code of
practise.
SWOT Analysis
Strengths Weaknesses
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Leading market share- currently at 28 percent
Variety of products for choice
Successful diversity strategy
Fines for misrepresenting profits
Some buyouts were not cheap, in fact were
quite costly and did not match with the
company’s ethics
Opportunities Threats
Grow online business
Diversification strategy like Tesco Bank
Britain leaving EU
Lower cost rivals gaining market share
LO2
Impact of government of the structure and operation of the business
Government has huge impact of the TESCO business when government change in their
polices then it also impacts on the companies polices and their decision-making. It is important
for the TESCO company to follow the polices of the government.
Change in the tax structure also impact on the product and operation of the company
because they have to pay more to the government, and they can face many loses in their business
(Albugar., 2017). They also make some laws which are related to employees shifty and their
security which is necessary for the every organization to follow them if company does not
follow and run their operation accordingly then they have pay charges to the government, and
they can also take strict action against the TESCO company. Superiors of the company have to
follow the legal rules of the government and take decision making of the company according to
the laws and governmental polices.
LO3
Impact of change on the business environment and other activities
Change can directly impact on the companies workplace and their environment because
task and other activities can be change and it can demotivate employees because they can fear
of losing their job from the TESCO company (Gupta., 2018). Changes can negative impact on
the companies environment if the superiors of the TESCO company does not communicate with
the employees and convene them to give their support in the change management. They have to
make employees understand why change in the workplace is necessary and how this can help
TESCO company to achieve their business goals and objective. Change mostly impact on the
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employees motivation, and they can deny for the change because they can have some question
related to the change management so management of the company should ensure them or
provide them financial rewards, so they can be motivated and employees can give their best
towards the companies task and help them to achieve their objectives. Change can be anything
like implementation of the new equipment . Organizational change so it has also impact on the
operations of the TESCO company.
CONCLUSION
As per the report has been analysis has been covered TECO company for this case study.
This report has been concluded PESTEL to understand factories affect on their business. It also
has been analysis impact of government on the companies operation and their structure. In the
end of this report has been concluded impact of change on business environment.
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REFERANCFESS
Books and journal
Albugar, M., 2017. IMPACT OF GOVERNMENT POLICY ON INTERNATIONAL
BUSINESS. Economic and Social Development: Book of Proceedings. pp.480-484.
Gupta, R., 2018. The impact of government expenditure on economic growth in Nepal. Available
at SSRN 3099218.
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