Global Business Environment Analysis: TESCO SWOT and Key Drivers

This report offers a comprehensive analysis of TESCO's global business environment. It begins with an introduction to the global business landscape and then provides a detailed SWOT analysis, outlining TESCO's strengths (large customer base, updated technology), weaknesses (communication issues, less profit), opportunities (market expansion, partnerships), and threats (Brexit, competitors). The report further examines the impact of key drivers within TESCO's functional areas, including marketing (customer relationships, online shopping), HRM (employee selection, productivity), operations (manufacturing, delivery), finance (fund management), and R&D (research and development). The conclusion summarizes the key findings, emphasizing the importance of SWOT analysis and the influence of various factors on different business departments. The report references various books and journals to support its analysis.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
SWOT ANALYSIS OF TESCO............................................................................................3
IMPACT OF KEY DRIVERS IN FIRM'S FUNCTIONAL AREA......................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Global business environment is the environment of the business in which there are
different analysis to regulate the business. Here, the chosen firm is TESCO which is having the
global business which are able to help them in increasing the business for the high productivity
and the profitability (Shafaei 2017).
SWOT ANALYSIS OF TESCO
SWOT is the framework which used to analysis the business which is the compilation of
the company's strength, weaknesses, opportunity and threat. It helps in increasing the full
awareness which is involved in the marketing decision which is going to be discussed further.
STRENGTH
 They are having the one of the largest
market share this leads to retain their
high number of customer base which
are able to achieve the highest profit.
 They are having the long history in UK
which is about 101 years which are bale
to make trust in their customer.
 TESCO is using the updated technology
which is very helpful in incr4easing the
business which can help in attracting
the customer and there are many
benefits due to using such technology
(Chrismastianto 2017).
 TESCO is applying different types of
motivational strategy which is helpful
in developing the loyalty in their
employee, which is helpful in
delivering the high performance along
with good customer relationships to
retain the customer.
WEAKNESSES
 Information delivery system is not
good which creates some miss
communication and which are able to
create many issues which can be related
to either customer or their own
employees.
 There is the weak operating
performance which is one of the big
problem in the business where the
productivity and profitability are
affected.
 Due to providing the low cost product
which gives less profit which is
creating the high cost and less profit
and is not good for business in long
term for expansion.
 Due to not having the market in many
country the Brexit referendum is
decreasing the market also the
investors.

OPPORTUNITY
 TESCO need to expand the market in
other countries which can help in
increasing the business which can help
in creating the high profit.
 TESCO can partnership with other
brands which can help in growth which
is helpful coming with better products
along with services for facilitating
better to their customer.
 They also having the opportunity for
the online store for the shopping, where
the delivery should be within an hour or
in few hours which can create high
customer base along with the high
demand.
THREAT
 When organising any event which is
related with the customer or when there
is the involvement of the customer,
then TESCO need to keep in mind that
it can't offend any customer group
(Bohtan and et. al., 2017).
 Brexit referendum is one of biggest
threat in this present time because due
to this the market share has been down
which can create in reduction of the
customer and can effect the whole
business and there operation.
 Giant supermarket such as Carrefour,
Aldi, Walmart are the some of the main
competitors of TESCO, which are
growing very fast which are having the
ability to take over it or to steel their
customer.
IMPACT OF KEY DRIVERS IN FIRM'S FUNCTIONAL AREA
MARKETING
It refers to creating the awareness in the targeted customer mind which is helpful in
increasing the sales of the products and services. In context to TESCO, having the good
customer relationship along with creating the awareness about different technology which is used
in the business can be useful in the marketing which ultimately increases the sales of the product
and services. Online shopping can be the one of the most required marketing strategy which can
help in increasing the awareness about the brand and also can help in increasing the high sales.
HRM
This is the business function which is most required for any organisation which can be
said that for any business there is need to created the Human Resource Management. In context

to TESCO, their human resource management plays the most important role which is selecting
the best person for the job which is very helpful in productivity. For the expansion of the
company they need to have the best human resource management. They are the one who are
responsible for selecting the best men for the specific job which can help in increasing the
productivity which leads to the high profitability (Alam and et. al., 2018)
OPERATION
This is said to be the procedure where all the brand or companies which accepts for the
proper function of the business. TESCO, is one of the brand which are also needed to run their
business in proper manner. This can be all process within a business which they need to do such
as manufacturing, delivering, transportation etc.
FINANCE
This one is the one which is responsible to run the business in proper manner in which it
refers to the fund which is essential for running any types of operation which are required to do.
It is related to the money in which the all company here, TESCO requires to either increase the
business or to maintain the business in standard which can able to provide the products and
services.
R&D
This is the area in which there is requirement of many funds and time which are able to
find out something new which are able to full fill the customer need and can satisfy them.
TESCO is trying hard for the different research which is one of the best way for the business
expansion. This can help in increasing the business and also the customer base for the
profitability (Reade and et. al., 2019)..
CONCLUSION
From the above discussion, it can be found that there are many types of analysis method
for the business in which SWOT is the one of the important analysis which can help in
increasing the business. There is detailed information which is related to SWOT analysis and
alos there is the key factors which are able to affect the business in different department such as
marketing, research and development, finance, operations etc.

REFERENCES
Books and Journals
Shafaei 2017. Malaysia’s branding as an Islamic tourism hub: An assessment. Geografia-
Malaysian Journal of Society and Space, 11(1).
Chrismastianto 2017. Analisis SWOT implementasi teknologi finansial terhadap kualitas layanan
perbankan di Indonesia. Jurnal Ekonomi dan Bisnis, 20(1), pp.134-136.
Bohtan and et. al., 2017. Supply chain of the Indian public distribution system: a new paradigm.
Journal of Advances in Management Research.
Alam and et. al., 2018. Assessing regional digital competence: Digital futures and strategic
planning implications. Journal of rural studies, 60, pp.60-69.
Reade and et. al., 2019. Unmanaged migration and the role of MNEs in reducing push factors
and promoting peace: A strategic HRM perspective. Journal of International Business
Policy, 2(4), pp.377-396.