This report provides an analysis of Tesco's business environment, examining both internal and external factors that influence its performance. The introduction highlights the impact of these factors, differentiating between internal elements like finance, staffing, and technology, and external factors including political, social, economic, environmental, legal, and technological considerations. The report explores how Tesco is affected by its context, particularly concerning tax rates, economic needs, and environmental impact, and the importance of adhering to UK government regulations. The conclusion emphasizes the necessity for Tesco to strategically plan objectives, considering external factors to maintain growth and profitability in the competitive market.