Tesco's Strategic Analysis: Global Business Environment and SWOT

This report provides a comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Tesco, a leading retail giant, within the context of the global business environment. The analysis identifies Tesco's internal strengths, such as price control and strong customer loyalty, and we...Read More

Global Business Environment

Executive summary
Global business environment is that area where the organisation work for achieve its goals
and objectives by maximizing the profit. This report consists of the swot analysis of Tesco
where it identifies different strength weakness opportunities and threats of the organisation,
Major threat because of political reasons that has been survived by the Tesco. The human
resources management marketing function key factors which help company in smooth
functioning by combining the strength and weakness of the organisation.

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
SWOT analysis...........................................................................................................................3
SWOT analysis of Tesco........................................................................................................3
Key drivers can impact firm’s functional areas.........................................................................4
Human resources management...............................................................................................5
Marketing function.................................................................................................................5
CONCLUSION..........................................................................................................................5
REFERENCES...........................................................................................................................6
Books and journals.................................................................................................................6

INTRODUCTION
Global business environment is that environment where firm have to deals with
number of functions which are related to business activity. It is the market place where
factors influencing business are included and they have to deal by firm accordingly. This
includes political, social and many more factors which have to be deal by firm with
identification of its strengths and weakness. In this report is based on Tesco, a leading retail
super giant. In this report swot analysis of firm will be discussed and impact of this will also
be focused on HRM and marketing function (Doh, Luthans and Slocum, 2016).
MAIN BODY
SWOT analysis
It is the framework which is used by manager for identification of internal factors
which have impact on firm profitability and important for survival in dynamic business
environment (Lasserre, 2017).
SWOT analysis of Tesco
It is the analysis s of strengths, weakness, opportunities and treats of Tesco while
working in business environment where firm is performing its operations for earning profits.
Strengths Weakness
 Price control is the best power which
Tesco possess as its main strength.
Customer of firm is so dedicate and
relative to firm that they can pay good
prices to firm product, this is because
economic factors of firm are strong,
people in UK have more purchasing
power.
 Technology is also a good strength of
Tesco this is because firm is using
higher technological updates in its
software and functioning. For
 Sometime cultural factors impact on
firm and can leads to failure for firms
operations. This can be seen as Tesco
have failed to run its operations in US
and Japan because of cultural
difference and lack of cultural
infrastructure in its operation in these
nations. This always acts as weakness
of firm.
 Legal factors are also acted as
weakness for Tesco. This is because,
in recent time firm there are number

example, Tesco is using self-checkout
system in its billing counters so that
customer can get maximum benefit
out of it.
 Good transportation system is that
strength of Tesco which help firm in
interacting with customer by
providing maximum satisfaction to
them.
of factors which given rise to legal
liability of firm. Which have
impacted negatively on firm profits
and will lead to decrease its
operational profits also, so all there
act as weakness of firm.
Opportunities Threats
 Tesco have golden opportunity to
expand its business operations in
global world because of economic
factors there is trend of globalising in
business word where number of
company wants to collaborate with
big brands like Tesco. This can also
help it in managing its operating in
other country by overcoming its
weakness with increase profits.
 Political factors can act as major
threat to Tesco, this is because firm is
operating with high cost and there
some political unrest likes Brexit
which can impact adversely on firm
cost and profit. Here there are full
chances for changing in government
policies which can impact differently
on firm. So this confusion situation is
acting as threat to company liker
Tesco.
The above mentioned analysis states that Tesco have number of strengths and weakness
which i can use for increasing its productivity and profitability within the time limits but it
have to be careful about the treat and use its opportunity wisely for getting maximum benefits
out of it.
Key drivers can impact firm’s functional areas
There are various functional areas where firm’s strength and opportunities will impact
and can lead to success and failure of that particular area. For Tesco there are two functional
areas where there is more impact of this, the both are illustrated below:

Human resources management
HRM have great impact of firm strengths and weakness as it includes the human
resources of firm which are the most important part of firm because they help firm in work on
its operational with their skills and abilities. Firm strengths like good pricing policy and
effective management is in hands of human resources, they also help firm in execution of
plans which top level management form by keeping in mind the SWOT analysis of firm. It
also coordinate between all departments by fulfilling there needs of human resources with the
help of recruitment and selection. Swot analysis of Tesco help human resource department in
recruiting the persons which are capable of handling the threats and weakness of firm and can
minimise their impact from firm (Kasemsap, 2018).
Marketing function
Marketing is that function which deals with promotion of firm’s product by
establishing relationship between customer and firm’s product with the help of tools on
marketing. In Tesco, This is highly impacted with SWOT analyse as marketing function have
to make strategies according to strengths of firm that which strength can be used to minimise
the treat of firm. For example, Tesco want to promote its products than marketing department
have to keep those drawbacks which firm made in US and Japan and have to considers all
things in promotion of products and get maximum benefit without wastage of resources
(Keegan, 2017).
CONCLUSION
It can be concluded from above mentioned report that swot analysis is important
framework for study the internal environment of firm and take decision according to it. In this
function firm have to manage its key function area for getting maximum benefits of there and
use resources wisely. SWOT is based on pestle analysis but the key difference between both
is that pestle is scanning external factor and Swot is internal factors scanning.

REFERENCES
Books and journals
Kasemsap, K., 2018. Mastering business process management and business intelligence in
global business. In Global Business Expansion: Concepts, Methodologies, Tools,
and Applications (pp. 76-96). IGI Global.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Doh, J.P., Luthans, F. and Slocum, J., 2016. The world of global business 1965–2015:
Perspectives on the 50th anniversary issue of the Journal of World Business:
Introduction to the special issue.
Keegan, W.J., 2017. Global marketing management. Pearson India.
APPENDIX
 Brief introduction of topic: Global business environment is that environment where
firm have to deals with number of functions which are related to business activity. It
is the market place where factors influencing business are included and they have to
deal by firm accordingly.
 Table of swot analysis: contain strength weakness, opportunity and treats of
organization Tesco. Which are related to pestle of organtional
 Key drivers can impact firm’s functional areas
A. Human resources management
B. Marketing function