Tesco: Macro-Environmental Factors in the Global Economy Report

This report analyzes the macro environment in the global economy, focusing on key issues like technological, political, and socio-cultural factors. It uses Tesco as a case study, examining how these factors impact the company's operations and strategies. The report emphasizes the importance of adapting to changes in the macro environment for business success and explores ways to overcome challenges related to these global factors. It concludes that understanding and responding to the macro environment is crucial for any firm's development, highlighting the interconnectedness of various environmental elements and their influence on business strategies. Desklib provides a platform for students to access similar solved assignments and study resources.

Macro Environment
in the Global
Economy
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Contents
Macro Environment in the Global Economy...................................................................................1
Contents...........................................................................................................................................2
BACKGROUND.............................................................................................................................3
METHODOLOGY..........................................................................................................................3
KEY ISSUES...................................................................................................................................3
Global Macro-Environmental Factors Critical Discussion Point....................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
Books and journals......................................................................................................................6
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BACKGROUND
Macro environment means an external environment of a business in which it includes nature and
physical forces, technological, social and cultural forces. Global environment contains
international interaction of a company in which it has no control and contains a set of factors that
is not controlled by a firm which affects its development. The chosen company for this report is
Tesco which is founded in 1919 by Jack Cohen at England, UK. It is a multinational grocery,
merchandise retailer and a market leader of groceries in UK. This file covers key issues of macro
environmental factors and ways to overcome these factors (Kuscu, 2019).
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METHODOLOGY
This research is related to the issues faced by the global economy in macro environment in which
qualitative research is chosen which is a method of doing market research that focuses on getting
the data from the collection of existing texts. The data and information for this is gathered by
using secondary data sources which includes various books, blogs and articles which are made
available through libraries, websites to increase the overall effectiveness and efficiency of the
research.
KEY ISSUES
 Technological
 Political
 Socio-cultural
Global Macro-Environmental Factors Critical Discussion Point Technological: This factor has a direct or indirect influence on the industry or business as
a bit improvement in the technology will definitely impact the organisation. Success of
Tesco depends on technological factor only as this plays a positive role in the
development of any organisation. As this factor is essential and can have a big impact on
how the selected organisation is running. Tesco has also used technology as a positive
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factor in terms of sales which is directly impacting the development of business to reach
more customers via its mobile applications. In this aspect, Tesco has more opportunities
in growing its business (Kanger and Schot, 2019). Political: In this factor, market develops according to the political environment in
different areas. This means that every firm needs to be up to date with all the forces, laws,
rules and regulations made by the government in order to make right decisions. In context
to Tesco, factors like copyright, employment, discrimination etc. dealing with all these
risks by following these strategies likes local equity and debt, development assistance and
insurance (Palley, 2020). Socio-cultural: This factor refers to the forces within the cultures and societies that affect
the thoughts, feelings and behaviours. In case of Tesco, successful and effective social
and cultural management for team members in a company are constantly interacting with
each other and make their bonds with each other.
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CONCLUSION
It is concluded from the above report that macro environment is an enormous unpredictable and
thus it is uncontrollable by the organisation. Success of any firm depends on the capability to
adjust and respond to the changes in the macro environment. Various issues that affect global
factors of macro environment like technological, political, socio-cultural etc. of an organisation
are overcome by using various ways which creates the bond between all the members which
brings the development in the development of business.
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REFERENCES
Books and journals
Kuscu, A., 2019. Green Marketing and Branding: Combining Micro and Macro Perspectives to
Achieve a Circular Economy. In The Circular Economy and Its Implications on
Sustainability and the Green Supply Chain (pp. 213-229). IGI Global.
Kanger, L. and Schot, J., 2019. Deep transitions: Theorizing the long-term patterns of socio-
technical change. Environmental Innovation and Societal Transitions, 32, pp.7-21.
Palley, T., 2020. What's wrong with Modern Money Theory: macro and political economic
restraints on deficit-financed fiscal policy. Review of Keynesian Economics, 8(4),
pp.472-493.
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