Comprehensive Business Report: Tesco PLC's Strategy and Analysis

This business report offers a comprehensive analysis of Tesco PLC, a major retail organization in the UK. It begins with an introduction to the business environment and the company's origins. The report then classifies different types, sizes, and scopes of business organizations, differentiating between public, private, and non-profit sectors, as well as small, medium, and large-sized organizations. It also explores the interconnectedness of various organizational functions, including HR, operations, accounts, and marketing, highlighting their roles and interdependencies. A significant portion of the report is dedicated to SWOT and PESTEL analyses, evaluating Tesco's strengths, weaknesses, opportunities, and threats, along with political, economic, social, technological, environmental, and legal factors influencing its operations. Finally, the report examines the influence of globalization on Tesco's organizational strategy and decision-making, providing insights into the company's adaptation to the global market. The report concludes with a summary of key findings and references used.

Business Report

Contents
INTRODUCTION...........................................................................................................................3
Different Type, Size and Scope of business organizations..........................................................3
Inter Connection Between the Organizational Functions............................................................5
SWOT and PESTEL Analysis.....................................................................................................6
Influence of globalization on organizational strategy and decision making...............................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is considered as all the internal and external factors that are
associated with the business organization and can affect the business operations of the
organization in the target market. This is important for the business organization to consider all
these internal and external factors in order to keep policies and process of the company
accordingly in order to generate maximum profit from the business operations. This report is
about Tesco PLC which is one of the largest retail sector organization in UK (Uhl and Gollenia,
2016). Tesco PLC was established in year 1919 by Jack Cohan in Hackney, London United
Kingdom. Detailed classification of types, scope and sizes of organization will be presented in
the report. The impact of external environment will be studied to get better information about
local and international market conditions. Impact of the globalization process will be analysed
for the business operations of Tesco PLC in local in international market.
Different Type, Size and Scope of business organizations
On the basis of owner ship organization can be classifies in three different categories.
These three categories are public sector organization, private sector organization and non
profitable organization. This categorization is on the basis of owner ship and operations of the
organization.
Private Sector Organization
Private sector organization ate main part of the countries economy. This type of
organization are run by individual person or private companies. The main target of the private
sector organization is to earn profit by providing products and services to the customers. Scope
of private sector organization are mainly based on the business ideas that are based solution of
the problems that are faced by people (Maunder, 2019). Large private sector organization are
generally traded publically. All the operations and product specifications are designed and
produced by the organization there is no role of government in this process. IN the Economy of
UK there is large contribution of private sector organization. There are many example of the
organizations that are considered as private sector organization. For example Tesco PLC is a
private sector organization which is traded as public sector organization Tesco was established
by Jack Cohan in year 1919. Tesco is currently operating on 6800 locations around the world.

Public Sector Organization
Public sector organization are mainly considered as companies and organizations that are
owned or run by the government or teams that are designed and funded by the government. This
organizations are completely different from the private sector organization. Scope of these
organization is different from the private sector companies. Main aim of the private sector
organization is to earn profit and aim of public sector organization is to provide services to the
citizens of the country. This is objective of these organizations is to provide best quality services
to the people for minimum charges against (Buil, Catalán and Martínez, 2016). Mainly health
care facilities are considered in this categories. For example NHS is one of the most famous
public sector organization in UK and Entire Europe which is provide health care related services
to the people.
Non Profitable Organization
Non profitable organizations are different from public sector organization and private
sector organization. This is not the objective of organization to earn profit by providing services
to the people. Instead of earning money these type of organization donate resources and money
to other people in order to make their survival more easier and keep them safe and out of danger.
These type of organizations receives donations from various other organizations. Fund that is
received by organization is used for social and community work (North and Kumta, 2018). Red
Cross Society can be considered as one of the most famous non profitable organization that is
operating on global diverse area.
Size of Organizations
On the basis of size business organizations can be classified in different categories. Some
of main categories of the business organization are Small, Medium size and Large Size
organization. Mainly the classification of the organization is based on the number of employees
in organization and Turnover of the company. This criteria is used by the organization to
categorised them in these three different categories.
Small Business Organization- Small business organization is considered as the company that
have not more 50 employees (Gummesson, 2017). The organizations whose turnover is less per
year. This type of organizations are considered as small size organization. These organizations

are based on new and innovative ideas of individual person. This ideas help the entrepreneur to
start new business on small level.
Medium Size Organization- medium size organizations are the organization in which not more
than 250 employees work. These organization are known as medium size organization. This type
of business organization are run or managed by individual person or group of two or more
people.
Large Size Organization
Large Size organizations are the organization that are consists of ore than 250 employee
and there is no upper limit for these type of organization. Number of the large size organization
is less in world by it controls the large part of the economy of the nation. Large size organization
provide employment to large number of people.
Tesco PLC is considered as large size retail sector organization. it works on 6800
locations around the world.
Inter Connection Between the Organizational Functions
There are different functional departments are there in an business organization. These
functional department in organization are formed by company administration to achieve high
performance standard in organization. In Tesco PLC main functional department are- Human
Resource Department, Production Department, Manufacturing Department, Marketing
Department, Operation Department and Technical Department. All these departments are
important for the high effective functioning of organization in market place. All these
departments are interconnected to each other by mutual operations. Each one of the department
of the company are interrelated to each other (Lin, Tsai and Mahatma, 2017). This is important
for the organization to effectively understand the relationship between these departments of the
organization in order to develop better business strategy in organization to improve the
performance of the organization in target market.
HR Department
HR department of the company manages all business strategy and work force of the organization
in effective manner (Linton and Solomon, 2017). This is responsibility of the HR department to

offer better working condition to the employees to generate maximum profit out of them in order
to improve the profir of the organization in the market place. For example HR department
perform recruitment, training and development for all the department of the organization.
Operation Department
Operation department of organization work on the manufacturing line of company. this
department coordinate with marketing, sales and HR department to maintain level of production
in production line.
Account Department
Accounts department manages all the financial of the organization and coordinate with
other department to collect information about budget making process and in return offer them
capital to run their operation in effective manner.
Marketing Department
This department is one of the most important department of organization. Main operation of this
department is to communicate with other department in order to meet their informational
requirement regarding market place through market research (Nisula and Pekkola, 2018). Other
department provides resources and information to improve the marketing activity of marketing
department in market place. This is how all the department are connected to each other to run the
organization in effective manner. By this cooperative and coordinated operation organization can
generate maximum profit from the market place.
SWOT and PESTEL Analysis
SWOT analysis – It is a business analysis procedure that ensures that goals and objectives for a
business are clearly described and all the factors that are related to the organization are clearly
identified. SWOT analysis includes four areas such as Strengths, weaknesses, opportunities and
threats.
Strengths
Strengths are factor that identifies the attributes in the organization. The main strength of
the Tesco that it is the first supermarket and largest grocery retailer in the United Kingdom
(Hamilton and Webster., 2018). Tesco has higher revenue and sales turnover as compared to

other chains of supermarkets. It has leading market share and also geographically diversified
with more than 6800 supermarket stores in fourteen countries. The other strength is Tesco deals
with diversified product range such as clothing, mobile phones business, home-ware items,
telecom and financial services etc. and obtained many global awards.
Weaknesses
Tesco’s major weakness is that they failed in their operations in the US and Japan. It
charged with fines due to false company misrepresentation of profit and accounting declaration
is major weakness of Tesco’s company. The share price of organization also fall greater than 9
percent due to decrease in operating profit and it’s worst performance of company (Prajogo.,
2016). The organization’s store and grocery outlet are not performing well in many countries so
it is other main weakness of Tesco Company.
Opportunities
Tesco’s company include many opportunity its expanding Jack’s business and it is new
discount store which is significantly growing in the market. This company developing strategic
partnership with the repeated organizations can offer excellent opportunity of Tesco. Tesco’s
company can avail many opportunity by upgrading and growing its inline shopping business and
provide home delivery services.
Threats
Tesco’s company was accused of many misleading customers with the fake farm
marketing foods produces and brand names under the fake name of Woodside firms. Tesco ahs
major threat competition with supermarket giants and economics crisis and credit crunches.
PESTEL analysis
The PESTEL analysis of Tesco’s aims to explore some of political, economic, social,
technological, environmental and legal factor is affect organization.
Political factor
Tesco’s has many political factor affected and it is include tax rate, political instability,
unemployment rate and impending legislation. This organization is home market is the UK

where political environment is stable and it is lot of uncertainty in market (Deasy and et.al.,
2016). It has proved the capable to respond to the future and current legislation and it is adjust its
company and marketing policy.
Economics factor
Economic factor is important factor for Tesco’s organization and its affect UL
supermarkets. It is many other factor affect such as price, profit and cost and the organization
should focus on the expanding the borrowing cost in UK. This factor include high labor cost is
affect Tesco’s company.
Social factor
Tesco’s is focus on UK customer and it is [provide the services to consumer meet this
issue in market. The demand of services and goods is another issue of consumer beliefs and it is
more concern about their health. Tesco’s organization must consider demand for organic food
and changing behavior of customer in organization (Veselovsky and et.al., 2017).
Technological factor
Technological factor has great role in Tesco’s organization and it is advancement of new
technology of Tesco’s to regain the all customers trust. In organization self-service points
provide the customer convenience and help the customer decrees cost in market. Technology
factor has important role in organization. It is introduced new technology such as RFID to
increase in-store experience for all customers and this technology is helpful for all supplier of
store.
Environmental factor
Company in the UK has affected much environmental issue and this pressure is not from
the governments only but also the public who are concerned about the environment (Gaganis,
Pasiouras and Voulgari., 2019). Tesco encourage its all customers to shop at tesco.com. It is
committed to use renewable source and it is affect many environmental factor.
Legal factor

Tesco’s has impact on legislation and government policy. Company also faced much
legal action for misleading and accounting fraud the investor it is main legal factor for Tesco’s
organization. It is also include that Tesco was fined in the past for misleading customers.
Influence of globalization on organizational strategy and decision making
Globalization has lead to expand competition in market under Tesco organization. It
business can affect globalization impact on decision making process and goals to incorporate
under many influence of company. It is main concept and its affect the economy. Society and
business life. Taxco’s company has impact on globalization and did is profound impact I the
decision making processes of mangers responsible for complex decision of organization. The
composition of all global group and their impact on the decision making process is explored to
define the supports the global manger so it is min influence of globalization of strategy and
decision making (Gavurova and et.al., 2017). It is also impact on efficiency aw well as
effectiveness of market in globalization decision making process. It is use of new technology has
greater impact on globalization on decision making and to explore new opportunity in market.
Organizational strategy and decision making process has great impact on organization and it is
consider many factor is relates to globalization. Strategic planning is essential for organization to
consider decision process of Tesco’s organization and making decisions according to the
planning of company.
Globalization is main impact of organization strategy and decision making process of
Tesco’s organization. It is a process of integration of economics, political and social factor into a
global network and this factor affect the organization decision making process and strategy. It is
effective decision making process is essential for organizational and it plays a vital role for all
organization to globally expand the market. Global environment has increased complexity of
making decision of organization. It can removal the barriers to trade and to increase the
integration of production process has main impact on globalization on organizational strategy
and decision making process. Globalization has expanded access the information and transfer of
beliefs and cultural values of organization. This are important for all organization factor affect
the all decision making process of Tesco’s organization (Akhmetshin and et.al., 2017).
Globalization influence strategy and decision making has created the needs to utilize
international diversification as strategic option, change leadership style and decrease

international trade barriers of organization. This effect the increased the complexity of decision
making and strategy implementation and formulation. This are important part of globalization on
strategy and decision making process so many factor affect the organization strategy and
decision making process of Tesco’s organization.
CONCLUSION
From the above report, it is concluded that the business environment plays a crucial role in the
organization. It includes various internal and external factors that directly or indirectly affect the
business operations. It affects the functions of employees, workers, customers and management
department. An organizational structure also influences by the many political, social, economic,
technological, environmental and legal factors. The all functions on the organizational structure
are interconnected with each other. Functional activity in the organization affects the other
functions adversely or diversely. Globalization plays a major role in increasing competition
related to the technology, products, fast production, price and cost etc. Globalization affects the
strategy and decision making due to the manner it has developed the requirement to change
leadership style, decrease global trade barriers, utilize global diversification as a effective and
strategic option. It also enhanced complexity in formulation of strategy and decision making. It
also assists in establishment of international supply chain with many inter-firm supplies or value
chain.

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