Tesco: Analysing Internal & External Factors in Business - BMP3002

This report provides an internal and external analysis of Tesco, focusing on the impact of the business on its external environment. It examines political, economic, social, and technological factors, both internal and external, that influence Tesco's operations. Internal factors discussed include organizational culture and employee dedication, while external factors cover the impact of government policies, economic events like Brexit, societal acceptance of products, and technological advancements. The report concludes that a thorough analysis of both internal and external factors is crucial for the smooth functioning and sustainability of the business, highlighting the importance of adapting to the ever-changing business landscape.

Introduction
The present report covers an internal & external
analysis of TESCO along with an impact of business
on the external environment. The main motive of this
poster is to demonstrate the understanding about the
international and external factors of the organisation.
Tesco and its environment
External factors
The external environment is a composition of various
outside forces that are uncontrollable in nature. The
external factors are:
Political: For TESCO the political environment is always
favourable as the government supports business through
encouraging it as the company provides higher
employment opportunities to the economy.
Economical: Due to the happening of Brexit, there is a
great negative impact upon the businesses as well as on
the economy due to which TESCO has experienced a
negative impact upon the business (Franco, 2021).
Social: The organisation TESCO is offering those food
items which are highly accepted by society people due to
which they are able to have a favourable reaction from
the society and enjoys its position.
Technological: TESCO being a multinational retailer
always adopts latest technology in its operation due to
which it is able to sustain in market and stay in
competition with rival firms.
Internal factors
The internal factors for TESCO are:
Organisational culture: The organisational
culture of TESCO is highly structured and is
properly managed by its CEO due to which
each employee's are having a clear idea for
their responsibilities.
Employee's: The employee's of TESCO are
highly dedicated to their work and carries a
positive attitude with the help of which they are
able to achieve their objectives effectively
(Ghotge and et. al., 2020).
References
Fatricia, R.S., 2017. STRATEGIC ANALYSIS OF TESCO SUPERMARKET. Jurnal Manajemen Terapan
dan Keuangan. 6(2). pp.69-86.
Franco, S., 2021. The influence of the external and internal environments of multinational enterprises on the
sustainability commitment of their subsidiaries: A cluster analysis. Journal of Cleaner Production, 297,
p.126654.
Organization impacts external environment
The impact of TESCO upon external factors are::
Political: TESCO is a business which operates at
large level and pays higher taxes to the government.
If the company generates less revenue so this will
lead to the reduction in government's treasury.
Economical: TESCO employee's huge amount of
labour which has a great impact upon the
development of economy and their lifestyle.
Social: TESCO has a power to influence the market
demand from its offerings such as in large variety
and in every retail sector (Samusenko, Plaskova and
Prodanova, 2020).
Technological: TESCO can impact the technological
environment through investing more funds in its
acquisition.
Impact of internal and external factors
Conclusion
From the above report it can be concluded that
a proper analysis of external and internal factors
is very important for a smooth functioning of a
business. The external environment comprises
of factors that has a force from outside the
company and internal includes within the
organisation.