TESCO's Business Environment Analysis and Expansion Strategy Report

This report analyzes TESCO's potential business expansion, focusing on its entry into the Portugal market. It begins with an introduction to TESCO, outlining its business model and current operations, followed by an overview of FDI opportunities and employee motivation strategies. The report then delves into background information on TESCO, including its organizational structure, vision, mission, and objectives. The core of the report examines the business environment using PESTLE analysis, covering political, economic, social, technological, environmental, and legal factors influencing TESCO's operations. Finally, it applies Porter's Five Forces to assess competitive dynamics and inform strategic decision-making. The report aims to provide a comprehensive understanding of TESCO's potential for growth and the challenges it may face in the global market, particularly in Portugal.

Business
Organisations and
Environments in a
Global Context

Table of Contents
INTRODUCTION...........................................................................................................................1
Introduction of TESCO ...................................................................................................................1
Background information on the business environment ..................................................................4
Business analytical approach and basic information on the organizational environment...........4
Analysis of the business opportunity refers using porter's 5 forces or demand and supply........6
CONCLUSION................................................................................................................................8
REFERENCE...................................................................................................................................9
1

INTRODUCTION
Business organisation and environments in the global context is the affect and affected
environment beyond the boundaries of global rules and regulation. In the domestic market
customer have no changes in there demand but in the global marker customer have new demand
and organisation meed new requirement and changes. Global environment improve company
employee communication, changes of technology. The TESCO company want to expand there
business in the PORTUGAL country(Quinlan and et.al., 2019). The TESCO is British company
that provide there customer British multinational groceries services. The company work in the
seven country. The company provide there customer daily using service. Report will be highlight
TESCO company scenario, its opportunities in FDI, and company employee motivation. It also
defines Background information of the business organisation size ownership and current
international operation. In the report we analyse company criteria throw the PESTLE method.
Introduction of TESCO
1. I choose TESCO company for expand business in PORTUGAL country. TESCO is
the British multinational company. The company provide groceries and general merchandise
retailer services. The company is public Limited company. The company work for the providing
the best customer services. The company makes business for the providing better services and
productivity.
2. FDI opportunities for TESCO company: THE TESCO company use equally owned
joint venture. The company have planned expansion after expand business in PORTUGAL. So
the company TESCO use equally owned method. That will be define the company have equally
divided company ownership according to jointures. The company have to work for the foreign
direct investment. The FDI impact on the Wages rate, labour skill, taxes rate and transport and
infrastructure. The FDI help company also to develop size of company, potential growth of the
company. The FDI improve country exchange rate(Hillary., 2017).
3. Motivation of the TESCO company is define the company and employee make a good
environment for improve company productivity and profitably. When company motive for there
work that time the company work effectively and improve employee skill. The company and
employee also work for the company development. The company TESCO give motivation thre
employee y for the making better work environment,. Some time the company have to give there

employee training, conferences and other activity for the company development. The company
have to give there employee for the motivation promotion, transfer and give other attractive
offeree so the employee work good and give better result,.when employee are motive tin the
organisation that time the company also motive for the work(Apăvăloaie., 2014).
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The company TESCO employee motivation the company will provide performance app
resale, intensive and make some activity. Some time the company for the employee motivation
company give task in the team and individual, the company also make new strategy and planning
for. the company employee development. Company management think when employees are
motive for there work that time the company have to easy for achieve company objective and
goal. TESCO is a public company that company for the employee development and customer
development. The company consider how to develop employee skill and ability. The motivation
is the best for the employee development when employees are motive in the work environment
that will be make better working opportunities and improve employee ability(Kolk., 2016).
Background information of TASCO company
Type TESCO is a public company
Number of
employees
476000 (2017)
opinion about the
organisation
Company work for the employee development. The company financial condition
is good. The company TESCO generate more revenue and develop company
operate income(Sekaran and Bougie., 2016). The company work business more
than 7 country. Now company expand there business PORTUGAL. The
company have condition is good so the company have to expand there business.
vision The company TESCO vision is interrelated all businesses and operate there
business at reach level(Prajogo, D.I., 2016). TESCO want to achieve company
objective and goal.
Mission The company TESCO mission is the providing the best facility, services and
product of there customer. The company make strategy and polices for the
development and making better services.
objective TESCO objective is the leading retail supermarket to provide customer services.
The company provides good quality services, product and felicity. The company
provide there customer product on lower and cheaper cost at there competitor.
Structure The company TESCO legal structure is the
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 regional manager
◦ store manager
 food trading manger
 fresh food section
 ambient food section manager
◦ Non food trading manager
 electrical section manager
 clothing section manager
 personal manger
▪ personal assistant
Current international operation: the current international translation of the company economic
resources will be define company employee skill, company economic condition, purpose of the
international services and company production services that will be show company will be work
for develop company employment improve company employee ability. the international
operation will be define company will be work for the increase company productivity and
profitably(Wetherly., 2014). The company makes international relation between the counters for
the imperative company technology and develop employee working condition when employee
work for the company development. When company employee and company will be develop
there productivity and working ability that time the company employee and company condition
also improve. The current international operation will be define company synergy and company
polices(Deasy and et.al., 2016). When company polices will be work properly in the working
environment that time the company also improve revenue. So that will help company to
influence there employee for the company development. the company make plan for improve
current international operation for the company development.
Background information on the business environment
Business analytical approach and basic information on the organizational environment
There are macro environment of the company, that is analysis tool create for the business
strategy. The macro environment factor have change the strategy but these will not have direct
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impact on the TESCO company, they can direct impact another retailers in the retail market.
TESCO company will fight and face with other competitors forces in the macro environment.
They can high growth and more than profitable earned.
There are using pestle methods for analytical approaches. There including factors like; political
factor, economic factor, social factor, technological factor, environmental factor legal
factor(Deasy, S. and et.al., 2016).
 Political factor
TESCO company is retailing company, so it is operates worldwide. The political factor is
influence the performance of the business. These are including taxes, duties, laws, rates,
government rules and regulations operates and stability of the country. There are may
governments makes plan to retailers to provides jobs for the local population. TESCO company
will plan for Portugal country so they will create opportunities for their employees. They want to
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increasing demands for their products and services so they can turn into good growth(Prajogo.,
2016. ).
 Economic factor
Economic factor id most important point of refer for the TESCO company. They are popular
leverage costs of price, demand, profits. The organization should be changes in the taxation and
another factor so that is effect on their economic strategy and their finance terms. It is most
important of the increasing business in the international country. TESCO company will depend
on the UK market because they are aware of their market. It is 30% around share in the market.
They can increase incomes so that will decrease the inflation because high inflation from
customers demands very low and down. TESCO company should have focus on good
advertising and value brands then they can use more than luxurious items. The major reason for
high inflation from low demands so business growth is decrease.
 Social factor
There are most of the trends available in UK market. TESCO company will provide non-
food products for sale. The customers are very influence for their offers of trends. So they can
increase demands for goods and services. The customers are change constantly because they are
aware their health problems and issues. So TESCO should have changes their products, they can
provide organic products for customers demand accordingly(Hillary., 2017.). Company will
provide ads for customers so they can attract for their products and services. TESCO company
ads through on internet website, so customers are collect all information and identification from
internet like; face book, Instagram, twitter etc. social factor is positive and good impact on the
business environment.
 Technological factor
Technology factor provides good facilities for TESCO company and their customers. It has
brought many new opportunities and developments for the business. There are most of person
using online shopping with good and better facilities for their destination delivery. They can use
internet for online shopping and self checkout. Tecso should be use self checkout points because
it is given convenience and interaction for the customers. Technology factor helps for reduced
labour costs. So TESCO company will invest amount on the efficiency work projects to
completed. Technology help to reduce long term objectives ad carbon footprint. So company will
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decide use to technology factor for their business because it is very best and it is good effect the
business environment in the Portugal country(Quinlan and et.al., 2019.).
 Environmental factor
TESCO is clearly promised to reducing global warming, carbon footprint sustainability by 70%.
They should have minimum waste produced in their business. They can increase social convey in
customers. And increasing temperature for the good climente and environment. They can make a
plan for good and clean environment. So the company will growth on build up.
 Legal factor
Legal factor in government policies and duties or laws directly impact on the performance of the
business. TESCO company should have changing price for government rules and legislation
accordingly. Nowadays many practices are ban so they can change rates without government
notice and demanding from vendors. TESCO will provide customers rates reduction and offers
on their buying, according to the price spent on their company. So they can start operating
business in the Portugal country.
Analysis of the business opportunity refers using porter's 5 forces or demand and supply
There are analysis is most of important ways to clarify threats to their organization, what
actions will affect Their business. It is very difficult to bottom line their business planning of the
future. TESCO company using porters 5 forces for analytical approaches. There are competitive
forces and overall firm structure understanding for using porter forces. So they can help decision
making for their effective strategy plan.
 Bargaining power of supplier
There are this force use for analysis how much power TESCO company supplier, and
how to control over all rates, prices, so they will turn in decrease and lower profits their
company. The suppliers want to business got it good and better position in the market. They have
more power to growth on the company(Apăvăloaie., 2014.). They can use new idea and
knowledge for business are better and great position of vendors.
 Bargaining power of customers
This porter force of the power is fully interacted of customer and their impact on price and
quality. Customers should have use many powers for bargaining their products and services. So
suppliers are down price for their customers because they can easily switch from TESCO
company's products or services, they will go another company. TESCO company will decrease
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the growth. Or customers are needs to fully satisfaction for their minimum price on the products
and services. The bargaining ng power of buyers is down so the company will use strong brands
and will very enjoys. In case of where goods and services can differentiation and the leaving cost
is very decrease and the customers will easily and quickly switch from their items and brand to
another place. Customers are attracted and interact
 Threat of new entrants
This force of easy and very critical. The company will consider how to use for competitors. They
can being examined to join competitors to market area in the firm. It is very easy for competitors,
they can take risk of the company's market share being examined. There are many barriers
involves to advantages, accurately costs, economic scale and good recognised brands. TESCO
company will use large costs of moneys are needed for advertising branding and making product
demand(Kolk., 2016. ). However, the company should have good performance for enter market
in the future.
 Threat of substitute products
There are informed to switching the costs in the market because substitute products and services
available in the market. The threats of substitutes in how to compare to TESCO company and
their price and quality. There are many competitors available in the market(Sekaran and Bougie.,
2016.). They can same products use for the customers demands accordingly in the global market.
They should have created a plan how much of benefits and earning their competitors. The
customers demand increasing for company's performance apparel. Substitute products and
services use for various technology to resolve the similar economic requires. e.g. automobiles,
smartphones, trains, beer, wine, fish, etc.
 Competitive rivalry
There are examines how to interest on the competition presently in the market area's. And look
which competitors are number of existing, and what they can do. Rivalry competition is very
high but it is compare in few business. They can use for TESCO company so their products and
services selling for equal price. TESCO company can high growing when buyers can easily leave
to a competitors products and services for some and little cost. The company will rivalry
competition for advertising, price wars and which will hurt a company's bottom line. There are
more than competitors in the market, they are very capable and smart. They can be given offers
same products and services, can reduce TESCO attractiveness(Wetherly., 2014. ).
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CONCLUSION
The report analysed about different factors which can affect TESCO. It included pestle
analysis where the political, environmental, social, technological, legal and economic factors
affect the TESCO marketing strategy. Also, we studied about the porters five forces model in the
context of TESCO. It is involved porter five forces analytical approaches where the bargaining
of the suppliers, bargaining of the customers, competitive rivalry, treats of new entrants and
treats of substitutes products.
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REFERENCE
Books and journal
Apăvăloaie, E.I., 2014. The impact of the internet on the business environment. Procedia
Economics and finance. 15. pp.951-958.
Deasy, S. and et.al., 2016. Controlling use of a business environment on a mobile device. U.S.
Patent 9,247,042.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business.51(1).
pp.23-34.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics.171.
pp.241-249.
Quinlan, C., Babin, B., Carr, J. and Griffin, M., 2019. Business research methods. South Western
Cengage.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Wetherly, P., 2014. The business environment: themes and issues in a globalizing world. Oxford
University Press.