Global Business Environment Analysis: Tesco, SWOT, and PESTLE Impact

This report provides an executive summary of Tesco's global business environment, focusing on the application of SWOT and PESTLE analyses. It begins with an introduction to the global business environment and presents a SWOT analysis of Tesco, identifying its strengths, weaknesses, opportunities, and threats. The report then explores the impact of SWOT and PESTLE factors on Tesco's business operations, particularly in marketing and research and development (R&D). It examines how these analyses inform strategic decisions and help Tesco navigate the competitive retail landscape. The report concludes by summarizing the key findings and emphasizing the importance of understanding the global business environment for successful business operations. References to relevant literature are also included.

Global Business Environment

Executive Summary
Global business environment is stated in this report. All the factors related to the SWOT
analysis has specified in this report in the proper manner. This report also express about how
SWOT Analysis and PESTLE Analysis impact the business activities related to the major
operations departments of the organization.

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
SWOT Analysis..........................................................................................................................4
Impact of the SWOT and PESTLE factors on Businesses..........................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Global business environment is expressed as an environment in which businesses run all
its operations at a global level. All the factors that influence the operations of the business
organization at a global stage are a pert of global business environment. In this report Tesco is
taking as an organization. Tesco is a UK based retail brand. The company was established in the
year 1919. Headquarter of the Tesco is located in Hertfordshire, England. Jack Cohen was the
founder of the Tesco. In this report SWOT Analysis will be explained. Impact of SWOT and
PESTEL factors in company's operations will also be expressed in this report.
MAIN BODY
SWOT Analysis
SWOT Analysis of Marks and Spencer can be expressed in a following way.
Strength: Tesco is well recognized brand in UK and across the global level. Tesco is well-
known for its high quality retail products that gives a wide range of consumer base to the
organization. Well established consumer base of Tesco has transformed into a huge brand value
over the years (Lohrke, Frownfelter Lohrke and Mazzei, 2018). The product range of Tesco
offers a wide range of quality products that is sufficient to meet all the consumer's requirements
at one place only. To serve the maximum number of consumer's Tesco has established numerous
outlets based on the requirements that made the company's products easy accessible from any
location.. Tesco is well sufficient to cope up with all the requirements of customer's as it offers
all the well recognized brands to all its consumer's.
Weakness: Tesco is well-known business houses across the world apart from that the company
is recognized because of the non trendy products (Chou, Hsu and Yang, 2019). As per the
consumer's experience Tesco offer products that are out fashioned as per the current trends. The
company also has several weak links in the marketing strategies of the company and the bad
marketing policy of the company resulted into plenty of misconceptions in the mind of the
consumer's. The company is also not known for following the new business techniques that
comes out as a high cost strategies that also put a negative effects on company's profitability.
Opportunities: Being a well recognized brand in retail sector the company has the wide range of
business opportunities at a global level. The company can expand its business at all the

untouched area in the global context that will improve the consumer base for the company
immensely. The company is following the policy of expansion from many years but still it can
initiate the expansion process more aggressively that will improve the company's performance in
the retail sector at a global level. Tesco has also the huge opportunities to increase its existing
customer base with a better segmentation process in the established market for the company.
Threats: Retail sector is amongst the most competitive sector across the globe (Madhavaram,
Hunt and Bicen, 2017). Every day new competitors are coming in the market with new and
dynamic business strategies that causes to big threat for the big business houses like Tesco.
Threat for the company is also from the big brands in the retail sector as all the brands are also
expanding the business that improves the competition for the organization.
Impact of the SWOT and PESTLE factors on Businesses
Tesco run all its business operations based on the market research. SWOT Analysis and
PESTEL Analysis is also a part of the market research. The impact of both the analysis on
company's operations can be expressed in a following way.
Marketing: All the factors associated with SWOT and PESTLE Analysis has a deep impact in
making the strategies related to the marketing of the company's products (Kochkina, 2019).
SWOT Analysis completely brief about the company's situation in the retail sector even as
compare to other competitors in the retail market. Analysis on the basis of competition is also a
major part of SWOT Analysis that helps the marketing department of the Tesco to make the most
suitable strategy based on the competition for the company in the market. The company can
overcome the effect of competition and other factors after having an analysis in SWOT. All the
factors associated with PESTLE Analysis give the clear brief to the marketing team of Tesco
related to all the external aspects that could influence company's operations and also impact the
sale of the company. The company can overcome the effect of all such external factors with a
productive marketing campaign.
R&D: Research and Development (R&D) plays a major role in company's operations. Tesco
deals in retail sector and research and development play the very crucial role in the business
operations of the company. Both the analysis PESTLE and SWOT helps the R&D team of Tesco
in getting the proper brief related to the factors that impact the company's operations (PD, 2017).
Such analysis has a huge impact because both the analysis brief completely about the external
factors that are directly associated with the company's operations. R&D team of Tesco can

generate the proper outcome by doing both analysis that can directly put a positive impact on the
company's profitability. R&D team of the company can generate the proper guidance in regard to
the whole retail market and the management of the company can utilize the outcome of the
research and development in making the profitable decisions for the company's operations. All
the factors attached to both the analysis give the complete guidance to the R&D team in
conducting all the operations of the team and guide the company's management about the
company's presence in the retail market.
CONCLUSION
This report conclude in regard to the brief related to the businesses' environment at the
global level. SWOT Analysis of the company has concluded in this report. All the aspects of the
SWOT Analysis has concluded briefly in this report. This report also conclude about the impact
of the SWOT Analysis and the PESTLE analysis in company's operations. The impact of both
the analysis in major departments of the organization has concluded in this report.

REFERENCES
Books and Journals
Chou, P.Y., Hsu, H.C. and Yang, C.C., 2019. The Analysis of Taiwan's Participation in CPTPP
and RCEP: From the Perspective of SWOT. In 6th International Conference on
Management Science and Management Innovation (MSMI 2019). Atlantis Press.
Kochkina, N., 2019. DYNAMICS OF PESTLE FACTORS OF UKRAINIAN MARKET
ENVIRONMENT. Sustainable development under the conditions of European
integration. Part I. p.250.
Lohrke, F.T., Frownfelter Lohrke, C. and Mazzei, M.J., 2018. What Kinds of Opportunities are
We Providing Students? A SWOT Analysis Review with Recommendations.
In Academy of Management Proceedings.(Vol. 2018, No. 1, p. 15303). Briarcliff
Manor, NY 10510. Academy of Management.
Madhavaram, S., Hunt, S.D. and Bicen, P., 2017, May. The FREE (Firm Resources and External
Environment) Framework as an Alternative to SWOT: An Abstract. In Academy of
Marketing Science Annual Conference.(pp. 49-49). Springer, Cham.
PD, J., 2017. PESTLE Analysis–Part A.
Online:
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