Business Report: Analyzing Tesco's Internal and External Environment

This report provides an analysis of Tesco's business operations, focusing on the interplay of internal and external environmental factors. The analysis explores the impact of political, economic, social, technological, environmental, and legal factors on Tesco's performance. Internal factors such as leadership, company culture, and business governance are also examined. The report highlights Tesco's market share, employee base, and corporate governance, emphasizing the importance of adapting to external pressures and managing internal dynamics. It examines how Tesco navigates challenges like economic downturns, government regulations, and changing consumer habits, offering insights into effective business practices. The report concludes by underscoring the significance of considering both internal and external factors for successful business operations and to avoid disruptions.

BUSINESS IN PRACTICE
Introduction
The dynamic and contemporary business environment has leveraged a
huge impact on the business and its performance. However, the
external factors are unpredictable and the company has the little
control over these factors due to their uncertain nature. But, internal
factors are also vulnerable for the company as these can be both
reactive and proactive.
External environmental factors
Political: Tesco operates more than the 12 countries which consist the
maximum market share in the Asia and the Europe region.
Economic: Economy of the various nations were being brutally
affected due to COVID-19 outbreak which creates ill effect on the
average consumption limit of the people.
Social: Money management habits change over time. People have
complex plans and want the same date and fast delivery with a strong
return policy.
Technology: A few years ago Tesco was facing problems such as poor customer experience and physical embarrassment.
Environmental: There were are numerous companies are under tremendous pressure from government agencies to deal
with environmental issues.
Legal: In the area of business law, do not underestimate the important areas in which legal changes may affect the
performance of your business to achieve your goals.
Internal environmental factors
Leadership: It is the ability of the management of an organization to make effective decisions and to encourage others to
provide better performance.
Company Culture: This is considered to be the persistent values, beliefs and practices that make an organization your
own and guide its processes. At TESCO, corporate culture is considered an integral part of the organization's operations
due to the following:
• Vision: A clear culture begins with a vision statement. This helps control TESCO prices and deliver on purpose. This
objective therefore provides guidance for all decisions made by TESCO staff.
• Prices: TESCO prices are the cornerstone of their feature. TESCO clearly defines the standards of all employees and
looks at how the organization works for customers and professional standards.

BUSINESS IN PRACTICE
• Practices: Prices mean nothing if they are not included in the
organization's policy.
• People: TESCO, without its people would not have succeeded in
creating a culture that is compatible with anyone who shares its
values or who has the interest and ability to achieve those values.
Business governance: This is how the rules, practices and ways in
which an organization is managed and regulated.
Market share of Tesco: Tesco have the huge market share of the
supermarket chain in the UK. This is only because of the brand
reputation and credibility which they earned for a years.
Employees: Employees consider to be vital factor a company success.
Tesco have more than 66000 worker working in nearly 12 country
around the world. But still company was being experiencing high staff
ratio.
How Tesco impact its context external environment
• There were much pressure on the Tesco from the government to provide employment opportunity in the country this
happen just after the implication of the Brexit act.
• After the brutally affected by the COVID-19 average spent level of the people falls down and this adversely impact
the business of Tesco.
• The cases of the obesity and the anemia is growing now a days in UK and people lifestyle is also affected by these
diseases.
• New machinery and technology were being introduced within the company.
• Due to extreme pressure by the government and other parties to lower down the carbon footprint as the supermarket
are the major party for the carbon footprint in the UK.
Conclusion
Therefore, from the carried out study it has found that business should analyzed their internal and external environmental
factors for an effective business practices and to avoid any business function disruption. Report has pointed out that a
business organization have little or no control over the external environmental factors as they are harder to predict.
Further, report also discussed the internal environmental factors which are subject to the corporate governance,
leadership style, employee retention and the company vision and finance.
References:
Bhatti, S.H., and et. al., 2021. Internal and external antecedents of open innovation adoption in IT organisations: insights
from an emerging market. Journal of Knowledge Management.
GRANDIN, T., 2020. 14 The Effect of Economic Factors on. Improving Animal Welfare: A Practical Approach, p.300.