Tesco plc: Micro and Macro Environment Business Context Report

This report provides a comprehensive analysis of the business context of Tesco plc, a UK-based retail enterprise. It begins with an introduction highlighting the importance of understanding factors influencing business operations. The main body includes a detailed SWOT analysis, evaluating Tesco's strengths (customer satisfaction, skilled workforce, innovation) and weaknesses (incompatible business model, work culture), as well as opportunities (globalization, reduced inflation) and threats (increased competition, Brexit). A PESTEL analysis then examines the macro environment, considering political (Brexit, government policies), economic (inflation, exchange rates), social (demographics, culture), technological (software, tools), environmental (CSR, storage), and legal factors. The report also discusses the importance of individual and organizational management, particularly in addressing cultural, environmental, and economic issues. The conclusion summarizes the key findings, emphasizing the impact of external factors and the importance of effective organizational management for Tesco's continued success. References to academic journals and books support the analysis.

Context of Business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
The business operations that are been carried out within the organisation will impact the sales
and overall operations of the organisation that will lead to rise in profitability of the firm. This
will help in proper assessment of the various factors and elements that can influence the overall
operations of an organisation (Apenko, 2017). The present assessment is presented in context of
the UK based retail enterprise, Tesco plc.
The report will cover the effective planning of the micro and macro environmental
factors that will help in proper assessment of the operations that will help in proper assessment of
operations that will help in identification of the social, cultural, economic and environmental
issues.
MAIN BODY
Micro assessment
SWOT
Strength Weaknesses
 High level of customer satisfaction:
This is the biggest advantage of Tesco
plc as it will help in improving the sales
and overall operations of the
organisation. Besides this, it also
improves the brand equity of the
chosen retail firm.
 Highly skilled work force: The
employees of Tesco are highly
qualified to understand and meet the
customer’s requirements (Phillips-
Wren and et.al.,., 2015). This helps the
enterprise to build a good and effective
relationship with its buyers.
 Good level of innovation: Tesco plc is
known for the high level of innovations
and development of good quality
 Incompatible business model: The
business and growth model of the
organisation is not capable to support
the proper expansion measures that will
impact the sales and overall revenue
generation of the organisation.
 Poor maintenance of the work
culture: The work culture of Tesco is
very competitive and sometimes
employees feel quite exhausted and
frustrated when they are unable to
compete at the work place ( Wirtz and
et.al., 2016).
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products and services. It helps in the
proper assessment of the customer
needs and developing innovative and
superior products as per their needs.
Opportunities Threat
 Globalisation: The expansion of the
business operation of the organisation
on the international level with the
proper planning of the operations of the
international level; will influence the
operations of the organisation in an
effective way and thus will lead the
firm to operate in various foreign
market (Marlow and McAdam, 2015).
 The reduction in inflation rate: The
lower level of the inflation rate and
increasing purchasing power of the
organisation will influence the sales of
the organisation that will help in
carrying out the operations in moist
significant manner. It will help in rise
in productivity of the operations in a
significant manner.
 Increase in competition: Many new
companies are entering in the retail
market with effective range of products.
This will lead the organisation to
refurbish their strategic measures which
are been carried out within the firm.
 Brexit – If brexit happens it will highly
impact on growth and development of
Tesco. Their operations will be
affected.
Macro environment:
PESTEL analysis
Political: The political factors like separation of EU, Brexit, change in government and
its policies, tariff and taxation rates etc are certain political factors that will influence the sales
and carrying out of the operations in an effective way. Tesco plc is required to look after its
effect5ive management in order to improve the performance of the organisation in an effective
way.
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Economic: The post Brexit inflation, taxation, change in currency exchange rates and
labour cost on international level are certain factors that will influence the overall operations of
the organisation (vom Brocke, Zelt and Schmiedel, 2016). Besides this, the GDP rates of the
local and foreign country is also a driving factor that will help in carrying out the operations
which will help Tesco plc to gain out the sustainability in market.
Social: The demographical factors and superior skill level of the operations that will help
in proper planning of the customer population will help Tesco plc to make suitable and
appropriate strategies that will help in meeting the operational needs of the organisation. Besides
this, the cultural factors will also influence the purchasing behaviour of the buyers.
Technological: Suitable software’s and other technical tools can be utilized by Tesco plc
that will impact the proper management of the operations which will impact the sales and
carrying out of the other business activities. This will help Tesco plc to improve their
performance level and make the services more precise and faster for the buyer.
Environmental: The environmental factors will impact the storage and selling of
perishable food items and clothing’s. Besides this, Tesco plc, being a major firm will look after
the CSR policies for welfare of people in countries of its operations.
Legal: Different legal obligations can be carried out that will help in proper assessment of the
operations which will help in proper assessment of the operations which will help in meeting the
business objectives of the organisation (Wirtz and et.al., 2016). This will ensure the smooth
functioning of the retail firm.
Importance of individual and organisational management
The management of organisation needs to be responsible toward society so that any rise
in issue related to culture is resolved. The main reason for which Tesco must behave properly is
as they have to survive for long term. So, any unethical behaviour can result in decrease in
market value. Also, if any environmental issue arises organisation should be able to develop an
approach so that they can sustain for long time and provide pollution free atmosphere. Moreover,
in case of economic issue organisation should resolve it so that people needs are fulfilled.
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CONCLUSION
It can be concluded that Tesco is having a large customer base in UK. They have expanded
their operations in many other countries. Besides this, any change in external factor like Brexit
will highly impact on Tesco growth in negative way. Moreover, organisational management us
useful in managing different business operations.
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REFERENCES
Books and Journals
Apenko, S., 2017. Human resource management of innovative projects in the context of business
strategy. Strategic Management, 22(1), pp.3-6.
Marlow, S. and McAdam, M., 2015. Incubation or induction? Gendered identity work in the
context of technology business incubation. Entrepreneurship Theory and Practice, 39(4),
pp.791-816.
Phillips-Wren, G.E. and et.al.,., 2015. Business Analytics in the Context of Big Data: A
Roadmap for Research. CAIS, 37, p.23.
vom Brocke, J., Zelt, S. and Schmiedel, T., 2016. On the role of context in business process
management. International Journal of Information Management, 36(3), pp.486-495.
Wirtz, B.W. and et.al., 2016. Business models: Origin, development and future research
perspectives. Long range planning, 49(1), pp.36-54.
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