Report on Tesco PLC: Analysis of Internal and External Environments

This report provides an analysis of the internal and external factors influencing Tesco PLC, a British multinational groceries and general merchandise retailer. The external analysis covers political, economic, social, technological, environmental, and legal factors, highlighting their impact on Tesco's operations and performance. Specifically, the report discusses how global political events, economic fluctuations, social trends, technological advancements, environmental pressures, and legal legislation affect the company. The internal analysis focuses on Tesco's value system, organizational structure, human resources, and physical and technological capabilities, emphasizing their role in shaping the company's strategic decisions and competitive strength. Furthermore, the report explores how Tesco impacts the external environment through job creation, internationalization, diversification, and energy efficiency initiatives. The report references books and journals to support its analysis and conclusions.

INTERNAL FACTORS
Value System
The ethical believes, culture and morale of the organization
and its operations are the factors which are considered to be
the one which influenced by the decisions of the business
organization.
Organizational Structure
The structure of the Tesco is the factor that influences its
practices in multinational operations which is important and
effective for being implemented as the narrow objective of
profit maximization.
Human Resource
The management of the employees in Tesco is also very
important aspect for the organization that would help the
business in the generating new and important factor for the
internal environment of the firm..
Physical resources and technological capabilities
The physical resources of the business which are related to
the plant and equipment capabilities of the firm it is
important for the organization to determine the competitive
strength.
growth.
EXTERNAL FACTORS
Following are the external factors which impacts Tesco,
Political factors
As this company operates worldwide all the global
political events and factors gave a great influence on the
performance of Tesco.
Economic factors
These factors are the most concerning for Tesco as they
are the most likely to fluctuate the costs, demand, profit
and prices.
Social factors
The variety of the social changes, trends indicate the
customers in the UK to have to move towards the trends
that are affected due to the increase of number of non-
food items that are offered for sale.
Technological factors
Development of new technology in the business can be
the factor that is able to bring new opportunities for
Tesco.
Environmental factors
The increase in the pressure on the companies for
addressing environmental issues that is helpful for the
business to adopt new ways of operations which would
help the business benefit the society.
Legal factors
The laws of the legislation are known to be the factors
which directly impact the performance of Tesco.
Different ways of impacting the external environment
Different ways of impacting the external environment
The ways in which Tesco is able to impact the external environment
are,
•Tesco has been playing major role in UK for creating employment
opportunities for the individuals in the country. This is also the factor
which is essential for increasing the demand of the products and
diversify the workforce. Hence, being able to provide the employees
financial stability influences the government of the different market
in which Tesco operates.
•The internationalization and diversification of the Tesco are the two
key strategies with the help of which company is able to pursue in its
success in the economic factor. Due to the decline in the disposable
income the levels and household incomes Tesco has been focusing
on being a value brand rather than being a company with luxurious
items.
•The impact the of the society on the growth of the significant
amount of energy efficiency project planed by this organization has
been able to influence the decision-making of the long term objective
of the business. Apart from this Tesco has been known for the
becoming more concerned about the health issues for which it has
taken some approaches of changing some food.•
REFERENCES
Books and Journals
Nakazi, F., and et.al., 2019. Exploring retailer marketing
strategies for value added bean products in Kenya.
International Food and Agribusiness Management Review.
22(5). pp.675-687.
Rosnizam, M.R.A.B.,and et.al.,2020. Market opportunities
and challenges: A case study of Tesco. Journal of the
Community Development in Asia (JCDA). 3(2). pp.18-27.
Russo, G., and et.al., 2019. The Influence of Retailer
Choices on Consumer Behaviors and Sales Productivity.
In Predicting Trends and Building Strategies for
Consumer Engagement in Retail Environments (pp. 133-
151). IGI Global.
INTRODUCTION
Tesco Plc is a British multinational groceries and
general merchandise retailer that is headquartered in
Welwyn Garden City, England. This organization is
the third largest retailer in the world with the
measurement of the gross revenue and the 9th largest
in terms of the total revenue. This is a supermarket
chain that has its operations in different parts of the
world.