BM461 Global Business Environment: Tesco SWOT & Operational Analysis

This report provides a comprehensive analysis of the global business environment, focusing on the retail giant Tesco. It begins with an introduction that highlights the significance of external and internal factors influencing a business. The report then presents a PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors affecting Tesco. Following this, a detailed SWOT analysis is conducted, identifying Tesco's strengths, weaknesses, opportunities, and threats within the competitive UK retail market. The operational impact analysis explores how key drivers from the SWOT analysis influence two functional areas: marketing and human resource management. The report concludes by summarizing the key findings, emphasizing the importance of strategic analysis in understanding a company's performance and future prospects. References to relevant academic sources are also included.

GLOBAL BUSINESS ENVIRONMENT

Table of Contents
GLOBAL BUSINESS ENVIRONMENT.......................................................................................1
INTRODUCTION...........................................................................................................................3
PESTLE analysis:............................................................................................................................3
SWOT ANALYSIS.........................................................................................................................3
OPERATIONAL IMPACT ANALYSIS........................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................1

INTRODUCTION
The global business environment is the one in which multiple nations across impact the
organisation either externally or internally based on the circumstances. In an organisation the
business is impacted by many circumstances based on the share holders or finances and many
other factors (Sarsby, 2016). The report brings out the PESTLE analysis and SWOT analysis of
the company TESCO. Tesco is one of the largest retailers of the United Kingdom. the SWOT
and the operational analysis of the company are mentioned in this report.
PESTLE analysis:
The PESTLE analysis stands for political, economic, social, technological, legal and
environmental factors of any organisation.
Political: It states that in 2003 Tesco used to pay the government some liabilities but as of now
the firm is not in contact with the government over any maintainance (Weng and Liu, 2018).
Economic: the economy is at present seeing a backdrop since march. Its has lost almost 3.8% of
the shares.
Social: Social issues are the concerns that are related to the consumers. The needs of the people
are recorded and then the company provides them with that.
Technological: the company operates online store with all the products that are made available
on the online stores.
Legal: legal issues refer to the issues pertaining with the licences and the taxation issues. The
company maintains a clear legal authorities.
Environmental: environmental factors impact the trade. The environmental factors are those that
are related to the location and the group of people that Tesco deal with on a regular basis.
SWOT ANALYSIS
The SWOT analysis of any company determines the value of the strengths, weaknesses,
opportunities and threats that are related with the company. For the company Tesco, this being
the largest retailers in the United Kingdom, there is much competition for it to exist. Following is
the SWOT analysis of the company.

Strengths:
Multiple award holder: Tesco is not just known for its fan, it has received immense glory with its
awards that are achieved. One such is the ‘British favourite supermarket’ award. The drink award
and grocers label award were given to this firm like more than 25 times.
Largest private employer: the fame that the company achieved is because of the job opportunities
it creates for the employees around. Its was able to create employment for people more than
550,000 and is now one of the best retailers.
Weaknesses:
Failure in the US and Japan markets: Tesco failed to extend its trade in the US and Japan in the
year 2012 because it failed to export the lot (Rasal, 2020). This made it to step back in the point
of overseas business.
Financial errors: The debit card debt was so high that Tesco experienced a financial downfall.
The sales in the company are open and they are sold and brought about by the own customers.
These are to be carefully analysed in order to win over the back drop.
Opportunities:
Expansion of jack store: the company launched new store in the name of Jack. This is discount
stores and much of the investment must be kept in this since it is emerging exponentially. This is
the better opportunity that the company has with regards to future terms.
Emerging companies: Tesco has been in more than 14 places and its glory is a never ending one
to be considered. There are many companies on the emerging line like that of Tesco but still if
the little details are perfectly carry forwarded then there will be more opportunities.
Threats:
Supermarket competitors: there is more demand for the number of retailers in the United
Kingdom. The emerging super markets are a mere competition for the company.
Economic issues. The government liabilities impose serious threats in the emerging retailers and
then comes the major threat related to the taxation. The company Tesco is in good terms with the
government yet the change in the governments might affect the existing business.
OPERATIONAL IMPACT ANALYSIS
Human resource management:

Human resource management in any company is involve in making finite number of
implementations upon the tasks that are to be performed by the employees. The human resource
management is impacted and will impact many people based on the extremities. The SWOT
analysis of any company will be impacted by the HR management (Nandonde, 2019). This is
because the entire performance of the company some how depends on the factors of the SWOT.
The strengths of the company lie in the management. In Tesco, the management is divided into
different sector stores. Each and every store is allotted with a manager who will be in charge of
the entire operations that are to be performed. These are managed in a way that makes customers
satisfied.
Marketing:
Marketing is one of the most auspicious methods of penetrating into crowd. Marketing speaks
more about the business than many. There are many ways of using marketing tools. Some of
them are the brochures, posters, advertising and social media marketing. These are means that
are adopted by the firm to go into the people. SWOT analysis is impacted by the marketing
purpose. Tesco finds out marketing as one of the basic tools of getting into people. Tesco
consists of various groceries which are beneficial for the house holders. The marketing is done
online using the website in which all the prices and discounts are mentioned. If the marketing is
carried out properly, then that will be a strength else it will turn to be the weakness.
CONCLUSION
This report explains the SWOT and operational analysis of the company Tesco and will highlight
the brief of all the points. The SWOT analysis is the major concern of every company and it
perfectly deals with the structural components of the company. the PESTLE analysis deals with
the factors that are faced by the company and that which operates every now and then. This
report deals with the importance of Tesco as of marketing and HR management.

REFERENCES
Books and journals
Sarsby, 2016. SWOT analysis. Lulu. com.
Weng and Liu, 2018, June. Enterprise Strategy Analysis Based on SWOT Analysis. In 2018
International Conference on Sports, Arts, Education and Management Engineering
(SAEME 2018). Atlantis Press.
Rasal, 2020. SWOT Analysis.
Nandonde, 2019. A PESTLE analysis of international retailing in the East African Community.
Global Business and Organizational Excellence. 38(4). pp.54-61.
Online
SWOT analysis: [ONLINE] Available through: <
https://www.investopedia.com/terms/s/swot.asp>
Operational analysis: [ONLINE] Available through: <
https://www.examples.com/business/operational-analysis.html>
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