Tesco: Analyzing the Influence of Internal & External Business Factors

This report conducts a comprehensive analysis of the internal and external factors influencing Tesco's business operations. It examines internal elements such as capital resources, human resource management, and infrastructure, highlighting their roles in Tesco's performance. The analysis also covers external factors, including political, legislative, and economic influences, and their impacts on the company's business environment. Furthermore, the report explores Tesco's contributions to the external environment through ethical principles, social responsibilities, and corporate social responsibility (CSR) initiatives, emphasizing the company's commitment to recycling, low carbon emissions, and community programs. The study concludes by underscoring the importance of understanding these factors for maintaining a successful and sustainable business.

Business

INTRODUCTION
An organization has various internal as well as external factors that have effect the organization as well as on the
environment itself. External factors are the circumstantial factors that cannot be controlled by the company on the
contrary part internal factors are the factors that can be controlled and monitored inside the company. This research will
be discussing all the major internal as well as the external factors and their effect on Tesco. Moreover, the way same
factors having impact on the organizational environment also will be included in this report.
External and internal factors effect a specific business
For a successful business, it is compulsory for an organization to have overview of all the internal and external
factor as well as their impact on the business. Once all the positive and negative effects are known, it became
easier to adopt the proper strategy to handle all the situations. Tesco is one of the biggest retailer chain in the UK.
There are lots of factors exist that have a huge impact on the organization, some major factors are defined as :
External factors and their impact on Tesco
Political factors: Political factors plays an important role on the business of organization. It includes all the govt.
policies, country stability, tax rates etc. As Tesco have a huge expansion worldwide, this became compulsory for
Tesco to keep that factor in mind. As the financial instability is ongoing across world, most of the government
focuses upon the job recruitment for the local population. Tesco is creating a lot of employment opportunities, that
have increased the product demand and the diversified workforce at the same time.
Legislative factors: For the smooth business in international as well as the local business, Tesco follows all the
government and the legislative policies. Tesco have to follow all the rules and regulations passed by the UK
legislation, for the better functioning within the country. As an example Food retailing commission have suggested
a practice code favoring the changing prices of the product without notice should ban than to overcome the
practice. Legislative factors significantly play crucial role at Tesco.
Economical: If the company is earning above the threshold, it has to pay the national insurance as well as the tax
upon their gross earning. In every country the tax and NI rates are different, decided by the company (Zinecker
and et. al., 2021). Tesco is facing higher interest rate and the tax rates whereas the consumers are spending less on
the products, company is opting strategies to overcome the factors by providing products on nominal rates to
increase sales.
Technological fators: The technology advancement brings various opportunities for the company (Kiani, A. and
et. al., 2021). Tesco is having numerous impacts such as introduction of the online grocery shopping with home
delivery services, self-service providing check points etc.

Ethical principles are the ethics enables any company to run in a proper and
appropriate way. The company is following all sort of the social
responsibilities and following the EU regulations. The company is involved
in the global social compliance program, that initiates the contribution in
supply chain standard. This platform also intends to improve the working
condition. Tesco is actively supporting Marie curie care center that helps
in terminally ill patients and their families, which shows CSR factors
engagement. As like many more activities are currently conducted by
Tesco for the social
Internal factors and their impact on Tesco
Capital resources: Financial capital are the compulsory funds to
sustain a business within an industry. These resources are required
not only for the tangible goods such as machinery, factories but also
for the intangible as employee training, advertising, marketing,
stakeholders as well (Lee, T.R., and et. al.,, 2021). Tesco is
investing decent amount in the machinery and employee training in
the same time for the efficient production.
Human resource Management: Human resources are one of the
greatest treasure for any company. The skilled and motivated
workers are the biggest assets for a company. Tesco managers have
effective human resources that leads the company towards benefit
and manages positive development in the employees.
Infrastructure: Tesco have one of the best infrastructure among the
other supermarket chains within UK. The Best infrastructure leads
towards the positive environment and motivation within the
employees. Moreover, the better infrastructure indicates the
advancement and growth of the company and grab attention of
customers.
Different ways in which Tesco is affecting the external
environment:
The factors and strategies adopted by an organization also have
impacts upon external environment.
Environmental: This factor focuses upon recycling, low carbon
emission and waste management strategy of a company
(Walenta, 2021). Tesco is switching to low carbon emission and
aiming towards the zero climate target in the UK. The company
is focusing upon the recycling of the products to reduce the
waste production. The company is taking initiates to bring back
all type of soft plastic packages for the recycling process.
Economy: The way organization affect the economy have a huge
impact on the company's brand name as well as the social
reputation. Tesco is providing employment to 423092 employees
across 12 countries within the world (TSCDY, 2021).
Corporate social responsibility (CSR): The factors of corporate
social responsibilities includes the colleagues, communities,
environment, ethical trading, community programs etc. The
reputation and performance of a company can be judged by its
corporate social responsibility strategies (Chijoke-Mgbame,
2021). Tesco is practicing CSR by dealing with new corporate
responsibility towards the society.
Ethical principles are the ethics enables
any company to run in a proper and
appropriate way. The company is
following all sort of the social
responsibilities and following the EU
regulations. The company is involved in
the global social compliance program,
that initiates the contribution in supply
chain standard. This platform also intends
to improve the working condition. Tesco
is actively supporting Marie curie care
center that helps in terminally ill patients
and their families, which shows CSR
factors engagement. As like many more
activities are currently conducted by
Tesco for the social welfare as well as the
development of society.

Conclusion
In this report, the study have been conducted to analyze all the internal as well as the external factors that have impact
upon a business. The way internal factors are affecting Tesco have been discussed in the terms of capital resources,
their management strategies, infrastructures etc. The external factors such as political, legislative or legal also have a
huge impact on the smooth business of the company. At the end the way company contributions to external
environment also have been discussed in this report.
REFERENCES
Books and Journals:
Chijoke-Mgbame, A. M., 2021., Corporate Social Responsibility in the UK. In Current Global Practices of
Corporate Social Responsibility . (pp. 399-417). Springer. Cham.
Kiani, A. and et. al., 2021., Entrepreneurial passion and technological innovation: the mediating effect of
entrepreneurial orientation. Technology Analysis & Strategic Management. pp.1-14.
Lee, T.R., and et. al.,, 2021., A framework of firms' business sustainability endeavours with internal and external
stakeholders through time across oriental and occidental business contexts. Asia Pacific Journal of
Marketing and Logistics.
Walenta, J., 2021., The making of the corporate carbon footprint: the politics behind emission scoping. Journal of
Cultural Economy. pp.1-16.
Zinecker, M. and et. al., 2021., Identifying the impact of external environment on business angel
activity. Economic Research-Ekonomska Istraživanja. pp.1-23.
Online
Tesco: Number of Employees 2006-2021 | TSCDY, 2021. [Online]. Available through
<https://www.macrotrends.net/stocks/charts/TSCDY/tesco/number-of-employees>.