Tesco's Business Environment: Analyzing Internal & External Factors

This essay provides an analysis of Tesco, focusing on the internal and external factors that influence its profitability and performance in the marketplace. It examines political, economic, social, technological, legal, and environmental factors impacting Tesco's operations across different countries. The analysis includes Tesco's strengths, such as its brand image and strategic partnerships (like with Amazon Go), and weaknesses, including controversies affecting its reputation. Opportunities like forming strategic alliances and threats like heavy competition are also discussed. The essay highlights Tesco's focus on recycling and reducing plastic use to improve its environmental impact. Desklib provides access to similar solved assignments and study tools for students.

Introduction
Internal and External Factors play an important role in influencing
the profitability and performance of business in marketplace. These
factors directly or indirectly affect the growth and functionality of
organisation. External environment generally include the factors
that occurs outside the business and are not controllable
Tesco and its Internal and External Factors
External Environment
Political Factors: Tesco operates their business in many counties due
to which they have to follow the protocols and regulation of the
country in which they are operating.
Economical Factors:Economic factors also influence the profitability
and growth of business, it is necessary for Tesco to focus on the
economic changes that occur in the countries.
Social Factors: People generally buy everything in one go according
to the latest trend and fashion.
Technological Factors: In business, the usage of technology is
rapidly increasing, it is necessary for Tesco to implement latest
technology that offers better customer experience.
Legal Factors: Tesco operates their business in different countries
which have different government rules and regulation.
Environmental Factors: Tesco is focusing on recycling plan which
includes remove, reuse, recycle and reduce the plastic due to which
they can decrease the non-recyclable plastic.
How the company impact its
context External Environment
There are various ways on which business can impact on
external environment. Tesco has faced many challenges
which running the business in effective and smooth manner.
They get affected by the US-China trade war which
influences their profitability and performance in
marketplace. Brexit has also created a great impact on the
sale due to the new regulation and way of working in UK.
The Company also pair up with Amazon Go in order to
develop new technology with cashier less billing.
Internal Factors
Strength: The strength of Tesco is its brand image and reputation
which they gained in Marketplace.
Weakness: The weakness of Tesco is that they get indulge in
various controversies due to which it hurts the image and
reputation of brand.
Opportunities: The opportunity which must be grabbed by Tesco
is forming strategic alliance with other brand as it improves the
performance and growth of business.
Threats: The threat which can be faced by Tesco is heavy
competition from supplier sides as it is important for company to
maintain positive and healthy relations with them.
References
Pounder, J., 2017. Enterprise risk management in an aged
care organisation. Governance Directions. 69(9). pp.532-
534.
Obholzer, A., 2018. The leader, the unconscious, and the
management of the organisation. In The systems
psychodynamics of organizations (pp. 197-216). Routledge.