Analyzing Internal and External Factors Affecting Tesco Plc's Business

This report provides an analysis of the internal and external factors affecting Tesco Plc, a British multinational retail company. The report examines the company's strengths, weaknesses, opportunities, and threats (SWOT) and uses PEST analysis to evaluate the impact of political, economic, social, and technological factors on Tesco's operations. It discusses the influence of competitors, social trends, and technological advancements, such as online shopping, on the company's performance. The report highlights how both internal and external factors shape the company's strategies and affect its ability to adapt to market changes, including challenges posed by the COVID-19 crisis and economic instability. References to academic journals and books, such as those by Cui et al. (2019) and Marinović-Matović and Arsić (2020), provide further support to the analysis.

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Internal and external of company have directly impact on
productivity and performance credibility of company so by this there
is working efficiency and effectiveness is done in appropriate
manner. The report is based on Tesco Plc is British multinational
general merchandise and multinational retail store which have its
headquartered in Welwyn Garden City, England. In this report, there
is discuss of impact of internal and external factors which have effect
business. There is also various different ways in which company
have impact on external environment are included.
 Social factors: Due to various social changes, preferences and
trends this will reflects as customer of UK are moving towards
one stop shopping and bulk shopping. So by this Tesco increase
various non-food items which is offer for sale.
 Technological factors: There is innovation of new technology
such as online shopping facility as home delivery and self-
checkout. This will lead as opportunities for Tesco Plc, as
reduction of labour cost.
There are various external factors which are affecting business and are not
in control of company. By considering the external factors which allows
managers for taking suitable adjustments in their marketing plan which
can be adopted in terms of external factors. In context of Tesco Plc as due
to Covid crises, there is use of online sales which leads as growth of
company but contrary to it, there is also disadvantage for company as by
this there must be proper technology are taken by organisation for satisfy
demand and needs of consumers
It has been concluded as there is bunch of factors by which there is
success and growth of business which is from both external and internal
business. There are many factors which have impact on performance and
productivity of company. In addition, there are also some factors which is
considered by company as have impact on external environment.
REFERENCES
Books and Journals
Cui, J., Allan, A. and Lin, D., 2019. SWOT analysis and development
strategies for underground pedestrian systems. Tunnelling and
Underground Space Technology. 87. pp.127-133.
Marinović-Matović, I. and Arsić, L., 2020. Ecological dimension of
PESTEL analysis in small enterprises in the Republic of
Serbia. Recycling and Sustainable Development.13(1). pp.63-
71.
Internal and external factors help firm for design and develop
various strategies which are suitable by working standards which
are in advanced terms in specific time period.
Internal factors: These are defining as factors in business which
can be controlled by company. In terms of Tesco Plc, internal
factors are discussed below:
 Strength: This is considered as internal advantage
which is driving its growth. In terms of Tesco Plc,
there is major strength as after devastating
accounting scandal which leads to loss in 2015, by
this people thought as organisation is now as top of
supermarket chain all over. So by this there is
remarkable recovery which is consider by Tesco.
 Weaknesses: This is defining as issues which holds
company to their back. In terms of respective
organisation, as there are biggest competitors which
are available in market segment such as Asda,
Morrison’s and Sainsbury, so these are known as
Big4. They basically cover almost 66% of market
share, so this is considering as major drawback for
company.
 Opportunities: This factor is considering as leverage which
is leads to progress of company. In terms of Tesco Plc, as
due to Covid crisis supermarket industry leads as important
industries. So by use of online grocery sale this will
considered as growth of company.
 Threats: This factor is considering as drawback for
company. In terms of respective organisation, as present UK
is going by health crisis, economic crisis and political crisis
so these are considering as main rivals which is making a
comeback for Tesco Plc.
External Factors: These factors are not in control of company and
which have direct impact on performance of business. These factors
are analysis by use of PEST analysis:
 Political factors: This factor have great influence on
performance of Tesco. These involves acts of legislations,
tax rates and there is also stability in which company is
operating. As there is financial instability so government
give advice retailer for create job opportunities.
 Economic factors: These factors are considering as
important point in terms of Tesco, as there is leverage cost,
profit, prices and demand. So manager of company has to
consider changes in policies which can be affect accessibility
of finance.
INTERNAL AND EXTERNAL FACTORS
INTRODUCTION IMPACT ON BUSINESS