Tesco's Business Strategies: Minimizing External Environment Impact

This report examines the strategies employed by Tesco to mitigate the impact of external environmental factors on its business operations. It highlights various approaches, including Corporate Social Responsibility (CSR) activities to improve brand image and customer relations, the adoption of advanced technologies for efficient communication and operations, and the offering of diverse products at competitive prices to meet customer demands and manage economic fluctuations. The report also analyzes Tesco's internal factors, such as its hierarchical organizational structure and democratic leadership style, which contribute to its ability to adapt to market changes and maintain a strong competitive position. The analysis considers the influence of external factors such as customer demand, competition, and economic conditions, providing insights into how Tesco navigates these challenges to ensure business sustainability and growth.

Ways that help a business to minimize the impact of external environment
There are many ways used by the Tesco in order to minimize the impact of external environment within
business. Such that CSR activities: Tesco is involved in many CSR activities which assist company to
improve the overall performance of a company. With the help of this, company make sure that it
provide services for the welfare of a company and this in turn improve brand image (Zellweger, 2017).

Business in Practice
Introduction
The present poster is based upon Tesco which is one
of the renowned firm in retail industry. The study will
help to identify different external and internal factors
and ways which impact on the external environment.
Presenting internal and external factor
Internal factors:
Leadership: It plays an important role in the success of a firm because having an
effective leadership leads a business towards further level of success (Kulakov and et.al.,
2019). In Tesco, Leadership opt democratic leadership style that assist to creates positive
environment and motivate employees.
Communication: Successful organizations thrive to
robust communication practice where team and team
leaders communicate freely and make strategies to
improve the same. Similarly, in the context of Tesco,
it uses written as well as verbal form of
communication in order to generate the best
outcomes.
Organizational structure: Tesco follows
Hierarchical organization structure which entails
that all the defined roles and responsibilities are
delegate within each one (Spitsin and et.al., 2018).
Through this, company is able to meet the defined
goals and improve the brand image as well.
External factors:
Customer demand: There is a continuous fluctuation within a demand of
customers and it might affect the business performance, if company is
not able to meet the defined aim (Shatzkin and Riger, 2019). However,
Tesco ensure that it offer the best variety of products to meet the demand
of customers.
Competition: One of the most affecting factor that
affect business. But, competition brings
innovation and better customer service which in
turn helps to stay ahead in competition. For the
downside, if company is not prepared to accept
the change, then it affect adversely (Bock and
George, 2017).
Economic factor: Fluctuation in the external
factor will directly affect the price of
products and minimize the consumption rate
of customers. Therefore, there is a need to
manage such factors which in turn causes
positive impact upon business.
Advance technologies: Tesco also uses effective advance technologies
in order to meet the demand of customers and cope up with external
factor (competition). For example, by using Machine learning within a
business will help a company to analyze the need of customers and also
improve business operations to sustain within competition.
Offering innovative products: In order to stay ahead in the
competition, it is examined that Tesco offer range of products at
discount rates which helps to improve the sales. Also, to cope
up within economic environment, Tesco offer product at low
price so that customer will invest within products that assist to
maintain the cash flows.
Conclusion
Through the above, it can be concluded that Tesco must analyze the positive
and negative factors within business. So that it will assist them to improve the
performance and develop strategies to improve the working performance of a
company effectually.
REFERENCES
Books and Journals
Bock, A. J. and George, G., 2017. The Business Model Book: Design, build and adapt business ideas that drive business growth. Pearson UK.
Kulakov, F. and et.al., 2019. Remote Control of Space Robots Change-Adaptive in its External Environment. International Journal of Online
& Biomedical Engineering. 15(7).
Shatzkin, M. and Riger, R.P., 2019. The Book Business: What Everyone Needs to Know®. Oxford University Press.
Spitsin, V. and et.al., 2018. Development of innovative industries in Russia under unfavourable external environment. Equilibrium. Quarterly
Journal of Economics and Economic Policy. 13(3). pp.467- 485.
Zellweger, T., 2017. Managing the family business: Theory and practice. Edward Elgar Publishing.
Custom
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demand
Econo
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External
factors
COmpeti
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Leadership
Organizational structre
Communication