Report: Analysis of Internal and External Factors Affecting TESCO

This report provides an analysis of TESCO, a multinational company, examining both internal and external factors influencing its operations. The report begins with an introduction to internal and external environments and then delves into a SWOT analysis, highlighting TESCO's strengths (multinational presence, diverse product range, cost-minimization strategies, and loyal customer base) and weaknesses (insufficient management, lack of innovation, financial and accounting errors). Opportunities include expansion in the online market and growth in developing markets. Threats include competition and economic factors. The report also considers external factors through a PESTLE analysis, including political, economic, social, technological, legal, and environmental aspects. The political environment, economic factors, and social factors are examined, as well as the impact of technological advancements and legal compliance. The report concludes by summarizing the impacts of these factors, emphasizing both positive and negative influences, and the need for TESCO to address legal issues and embrace technological advancements. The report references several academic journals and books to support its findings.

Internal and External factors

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Internal Factors: ........................................................................................................................3
External Factors: ......................................................................................................................4
Impact of the external factor:......................................................................................................5
REFRENCES...................................................................................................................................7
Books and Journal.......................................................................................................................7

INTRODUCTION
The internal environment advert to the civilisation, associate, effect and component in an
company that has the capabilities to determine the conclusion and judgement of the company,
particularly the action of its human resources. The factors of external are those that determine the
conditions, portion that a company cannot manage the impact of the organization judgement that
is created by the owner or stakeholder of the company. This context describe the impact of the
internal and external factors of the company of TESCO. TESCO is a British internal company
that provide variety of products like grocery, clothes, furniture , shoes and many more. TESCO
company is founded by Jack Cohen in 1919(Rostiana, and Hillah, 2016)
.
TASK 1
Internal Factors:
Internal factors of the company create impacts on the internal sources and environment of
the company like what are the strength of the company, weaknesses, opportunities and threats of
the company that can affect the company in positive manner as well in negative manner. There
is a SWOT analysis of the TESCO company that include strength, weaknesses, opportunities and
threats of the company
Strength: TESCO is a multinational company that provide their products across the globe.
TESCO company cater so many variety to their customer and these are strength of the company
that they have so many outlets and store. TESCO provide low price goods with the fine and
good qualities Therefore these things creates a loyalty of the consumers towards the company
and loyal customer is best strength for the brand. TESCO company is operating with cost
minimisation strategies with potential unit of suppliers, wholesaler. Providers or suppliers is
perform like and main pillar of the company means they means a lot for the organisation.
TESCO has also become much reputed and popular organisation for jobless person because the
company is diversified into many sectors as they have so many outlets and stores so this will
help the unemployed people to work their and earn money(Thamrin, Dewayani, and Fidyah,
2020).

Weaknesses: TESCO company has not much sufficient management because of the company
engagement in several assorted kinds of sectors. The company has much deficiencies of
innovation because of the company operates and perform in many departments and sectors. The
organisation TESCO is also have lack of inaccuracy because of financial and some accounting
errors and faults in the internal surroundings. The profit margin and income is extremely affected
because of increasing debt. As the company is operate on the international level so its so obvious
that they have so many challengers and competitor in the market so because of lack in innovation
and trends so this is very major weaknesses of the company
Opportunities: As the company perform on the multinational level so this platform create high
possibility to develop more opportunities for the company because TESCO provide number of
variety to the customer and now they also perform on the online platform so this will create more
opportunities for the company to attract more customer and create wide customer base for the
company and develop and increase more and much productivity for the company. In the growing
and developing marketing the company is emerging with many companies or brands and to
increase their growth and profit level.
Threats: As TESCO is international company and cater so many varieties to the customers at
very huge level so it is much clear that they have so many rivals and competitive brands in the
market so this will create huge threat for the company because the other company always want to
grab their customers. The national economic also create effects on the companies supply chain
management and the activities of the companies. There are so many external factors also that
create impacts on the company and become threat also(Farooq, Rupp, and Farooq, 2017).
External Factors:
There are some external factors that create a impact on the company. External factors
include the elements that is related and connected with outside environment of the organisation.
This report is going to consider PESTLE analysis for analysing external factors of the company.
PESTLE analysis consider six factors that create impact on the company and that is Political,
economical, Social, Technology,legal and environmental.
Political Factors: Political factors include some policies like tax policies , norms and laws of
different countries. The company TESCO operates globally and so the company have to follow
different rules and norms of the country. Because of its diversified nature, it become more
challenging for the company to put and keep their eyes on the political condition and regulations

of the different nations. The another major problem for the organisation is political stability
because the company have to assure the glassy trade flow in various and different nation.
Economic Factors: The factors of economic are describe about the dynamical regulation of
economy and what are the strategies that is followed by the company to make profits by
identifying the economic conditions. The economic factors consider the growth of economy,,
rising prices rate, transaction rate and much more. The company TESCO trade with a variety f
of goods and for distributing these products the economy factor plays a vital role. It is very
mandatory for the company to analysis and determine these factors so that will not going to
create affect on the revenues and sales generation of the organisation(Shen, Sun, and Wang,
2018).
Social Factors: This factor is also known as socio-culture factors. This factors include the
survey and analysis of the customers feeling and behaviour and action towards the products and
goods of the organisation. The company TESCO understand this needs of their consumers and
move from food models to non food-cum model. The taste and wants of the customers are also
depend on their disposal income and their lifestyle because of all these reason a company moved
themselves towards organic products.
Technological Factors: This factors directly create impact on the customer mind. Technological
factors is much important for the company to grow and attract much customer base because now
a days every customer want more facilities and services and new technologies to use so
according to the survey the company is not applying much techniques and acquire advanced
technologies so this will create impact on the company towards their profitability and making
much loyal and huge customer base.
Legal Factors: This factor describe about legal policies and norms of the company. This factor
involve rights and norms of the company and employees or for their customer. This include some
rights like consumer right, safety and security rights, employees rights and many more. The
modification in the norms of the government will create impact on daily functions of the
company in a both aspect positive as well negative(Salim, and Wahyuni, 2019).
Environmental Factors: TESCO has also makeshift its around 800 goods and because of this
4000 tons of plastic waste has been minimised from the surroundings. TESCO company manage
in marine goods that are authorised and certified.

Impact of the external factor:
There are so many impacts of the external factors towards the company and it can be both
positive and negative. The political environment of TESCO in regard of UK create a good
opportunities for the company and also create better impact because there is political stability in
the environment. As the company is focusing on social factors and the desires of the customer so
it also create positive impact on the company but in the regard of technology factor , this factors
is create some negative impact because as the company is not much aware about advance
technologies. So all over the external environment create better impact on the company and also
assist the company to identify uncertainties and growth(Honey,Newman and Schapiro, 2017).
CONCLUSION
From the above report It has been summarised that there are two types of factors that
create impact on the company in positive and negative manner. The organisation have to solve
some problems that is related to the legal issues and clear their marque name from all the legal
transactions, and come forward as clean. So the audience can believe them again and show their
love towards the company.

REFRENCES
Books and Journal
Rostiana, E. and Hillah, Y.F., 2016. Internal and External Factors Affecting The Size of Paddy
Field Sold.Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan
Pembangunan,17(2), pp.125-135.
Thamrin, W.P., Dewayani, K. and Fidyah, F., 2020. THE INTENTION OF USING CELL
PHONES IN DIGITAL BANKING SERVICE BASE ON EXTERNAL FACTORS
AND INTERNAL FACTORS.International Journal of Research in Counseling and
Education,4(1).
Farooq, O., Rupp, D.E. and Farooq, M., 2017. The multiple pathways through which internal and
external corporate social responsibility influence organizational identification and
multifoci outcomes: The moderating role of cultural and social orientations.Academy of
management journal,60(3), pp.954-985.
Shen, X.L., Li, Y.J., Sun, Y. and Wang, N., 2018. Channel integration quality, perceived fluency
and omnichannel service usage: The moderating roles of internal and external usage
experience.Decision Support Systems,109, pp.61-73.
Honey, C.J., Newman, E.L. and Schapiro, A.C., 2017. Switching between internal and external
modes: a multiscale learning principle.Network Neuroscience,1(4), pp.339-356.
Salim, M.N. and Wahyuni, E.S., 2019. The Effect Of Internal, External Factors On Corporate
Performance And Its Impact On Corporate Values In Indonesia Manufacturing
Companies In The Automotive Sub Sector And Its Components In 2008-
2017.International Journal of Engineering Technologies and Management
Research,6(6), pp.101-115.