Tesco's Internal and External Environments: A Comprehensive Report

This report provides a comprehensive analysis of Tesco's internal and external business environments, examining the factors that influence the organization's operations. The internal factors discussed include human resources, finance, technology, and corporate culture, highlighting their impact on Tesco's goals and vision. The report also explores Tesco's commitment to environmental sustainability through initiatives like reducing carbon emissions and adopting a zero-waste policy. Furthermore, the analysis delves into external factors such as political, economic, social, technological, legal, and environmental elements, including the impact of Brexit, changing consumer preferences, the COVID-19 pandemic, and various regulations. The report concludes by emphasizing Tesco's efforts to adapt to these challenges and contribute positively to the economy and society.

TESCO EXTERNAL AND INTERNAL ENVIRONMENT
INTRODUCTION
The report will comprehensively evaluate the internal factors like human resources, finance
and technology etc. which affects the operations of the organization. Further, various external
factors like technological, political, social etc. which affects the organization's operations will
be explained. At last the impact of organization on the external business environment will be
brought to light this will surface various value points Tesco has delivered over the years just
by continuing the business operations (Alanzi, 2018). Here organization taken is Tesco plc
which is a retailer based in United Kingdom. It has also its operations globally. It operates via
stores which are present multi nationally in different size formats and products. Tesco also
provides various banking and insurance solutions.
External factors impacting the organization.
Tesco is a retailing company which is often affected by the external factors which exist
outside of the organization and impacts the working of the organization. The external factors
of the business environment are not under the control of the organization. These are various
factors like technological, political, social, economic, legal and environmental. Political
factors like tax rates prevailing in the county and recent political step Brexit has affected the
business operations as, Tesco has its operations in other parts of the Europe where Brexit has
levied tariffs and trade barriers (Bilińska-Reformat and et.al., 2018). Social factors like
customer's taste, preference and lifestyle changes affects the business model of Tesco. The
recent shift in customer's lifestyle regarding healthy and conscious eating habits where Tesco
had to come up with a new healthy product line. Further the economic factors like covid-19,
inflation and unemployment affects the business of Tesco plc as due to covid-19 Tesco
changed its focus by shifting it on online mode of operations. Pandemic has brought the
unemployment which has made the spending capacity of the consumer really weaken and this
has affected the revenues of the company in the short term. Also, due to high inflation rate the
cost of supplies has risen leading to the rise in prices of the final goods. Technological factors
also affect the organization as the online business model of the organization requires strong
cyber security of the database of the customers to prevent any cyber-attacks. Regarding the
environmental factors Tesco is constantly trying to reduce the carbon emission as it has
committed earlier and zero waste model has also been adapted by the company (Cooke and
et.al., 2021). The legal factors like various regulation established by the employment
regulation, labour laws, food standards are needed to be taken care of by the company to have
smooth operations in business.
Internal factors impacting the organization
There are various internal factors in an organization which impacts the working of
the organization. Factors which exist inside the organization and company has
somewhat control over these factors. Such factors are such as the plans, policies,
employees, finance, technology adapted, corporate culture. Employees are the
most valued resource of the Tesco plc. Having best staff on board that knows the
goals and vision of the company and helps in fulfilling the same. Employees are
the one who ensures the achievement of organizational goals (Delgado, 2018).
Therefore, employees have strong impact on the working of the organization.
Another important aspect is finance; Tesco is a retail giant which has funds
allocated to different department based on the requirement. This is a vital aspect to
allocate the funds according to the vision of each department. In the world of rapid
technological changes, it is important to have the best optimum technology on
board which enhances the profitability of the company. As maintaining strong
database via technological tools, has made the business better. And the kind of
technology that company uses for the operation affects the organization. Corporate
culture should be strong and effective where employees feel creative, comfortable
and are aware of the code of conducts. At Tesco the collaborative culture has been
established which has improved the working of the organization. Such
collaborative working environment has brought the efficiency in the working of
the environment. Therefore, all these factors together influence the working of the
business (Tikhonov and Zelentsova, 2021).
Tesco's impact on external environment
Tesco is the largest retailer in the United Kingdom having large product
portfolio. Company is constantly working towards the goals which has positive
outcome on the external factors of the environment. Tesco provides employment
to many people every year and has 345000 employees working on board. This
way it is contributing towards the economy of the country. Further Tesco's
commitment to reduce its carbon emission to zero by 2030 and adaptation of the
zero waste policy has contributed towards the environment and the nature. This
shows that company is constantly working to make the world better (Salim and
et.al., 2019). It takes care of the consumers when it comes to the health and
lifestyle as it has developed healthy product line which provides healthy lifestyle
to the customers. Tesco believes in the customer is the king. Also, company is
constantly abiding by the various laws it falls under such as labour laws, food
standards, taxations etc. constantly paying its contribution in terms of tax and
funds to the authorities to ensure the development of the country. Tesco has over
the years developed products and has become a platform where consumer from
every income group can have access to the quality food products. Tesco
dedicates its numerous sources towards the charity for the betterment of the
society. As it understands the importance of the giving back to the society.
CONCLUSION
The report has undertaken various factors of the external business environment
such as political, technological, economic, social, environmental and legal which
impacts the working of the company. Also, the internal business environment
factors which affect the business has been discussed. The organization taken for
the purpose is Tesco which is a retailer in UK and has numerous products under
the portfolio. It is known for the value for many products. Further report has
mentioned the impact of Tesco on external environment.
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Delgado, M., 2018. Firms in context: Internal and external drivers of success. In
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