Global Business Environment: Impact on Tesco's Business Functions

This report analyzes the global business environment, focusing on Tesco as a case study. It begins with an introduction highlighting the significance of the global business environment and its impact on organizational structures. A SWOT analysis is presented to identify Tesco's strengths, weaknesses, opportunities, and threats within the global market. The report then explores the impact of the business environment on specific business functions, including marketing and human resource management (HRM). The marketing section discusses how external and internal factors influence marketing strategies, while the HRM section examines how the environment affects personnel management and productivity. The report concludes by emphasizing the importance of understanding the global business environment for effective decision-making and achieving organizational goals. References to relevant books and journals are also provided.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
MAIN BODY...........................................................................................................................................3
SWOT analysis...................................................................................................................................3
Impact of business environment on business function.....................................................................4
Marketing..........................................................................................................................................4
HRM..................................................................................................................................................5
CONCLUSION.........................................................................................................................................6
REFERENCES..........................................................................................................................................7
Books & Journal:................................................................................................................................7

INTRODUCTION
In organisation, global business environment plays vital role because there external
and internal forces affects the business and structure at deep level. It is essential to focus on
such elements which slow down the growth of business and overall development. Tesco, a
leading supermarket which deals in variety of products and headquartered in UK. Due to
changing of industrial sector across the globe, it is becoming difficult to maintain uniformity
in business. This report includes impact of SWOT Analysis and their effects on
organisational functional areas. Managing global business environment is crucial because it
enhances the economy status of country through international trade.
MAIN BODY
SWOT analysis
It is tool which is used by organisation to determine and identify the factors which
affects it internally. In relation with Tesco, they are the global leader and it is not easy to do
international trade in proper manner. Through this framework, it becomes possible to deal
with challenges and issues which are being faced by firm in trade. Thus, this tool has been
discussed below-
Strengths Weakness
 Tesco deals in variety of products
such as groceries, apparels, etc. With
it’s diversify interest by converting
themselves into food retail to non-
food retail has benefited them at
higher level. This also leads to larger
market share growth. Because of
dispersed of their departments and
stores in different countries.
 Strength is that they are able with
their extension of product range they
are able to deal with substitutes and
alternatives of their product easily in
market (Tallman, 2018).
 Further they do also have loyal
customers because of which their base
is strong in the market and this also
 Profitability of Tesco is affected at
depth because of high debt from
financial institutions. This makes it
difficult for them to acquire resources
for their production.
 Then, there are many stores of Tesco
which are not performing properly
due to which their profit margin is
decreasing at rapid level (Kasemsap,
2018).
 Also, ethical issues are faced by
Tesco such as child labour, giving
less than minimum wage etc. This has
affected the marketing of their
product at larger level.
 Tesco rely on their vendors for their
raw materials of the product. This

results in increase of goodwill in
market at wider level.
means that they have to pay to them
sometimes the cost is high if
resources are rare.
Opportunity Threats
 Entity is able to expand their business
at various locations with new stores
and new products. This means that
with larger profit they have the
opportunity to enhance their business
at global level.
 Also, company can go for joint
venture through which it becomes
easier to run the business in smooth
manner (Mehta, 2019). Tesco can
also use be in the strategic alliance
with other brands which is beneficial
for their business functions as well as
operation.
 In 2017, Tesco faced much legal
threat because of using fake farm
brand name and marketing products
under wood-side farms.
 Impact of Brexit has also being
considered as threat for Tesco
because of which firm has lost many
opportunities.
 With rise in competition, selected
brand is competing with big brands
such as Walmart with Asda,
Carrefour etc. are targeting Tesco get
their business down by merging up
rivals or other competitors.
The above table depicts that Tesco is affected by business environment and needs to
be aware about market situations so that goodwill of corporation do not get affected.
Impact of business environment on business function
Marketing
Business environment has deep impact on business function because of which slow
down their activities in market. Business function such as marketing is different in every
organisation and accordingly decisions are taken. In relevance with chosen entity, their
marketing strategies as well as tactics are affected by external as well as internal environment
of business (Adekola, 2016).They perform their marketing functions by considering and
consulting with everyone individual in enterprise. This means that when using this function it
is essential to examine the components which are important in marketing. Through this,
policy and procedures are being carried out effectively. This also addresses the ethical issue
which is solved by proper decision making. Marketing is broader as level as wider concept
which is to be understood properly.

HRM
Another business function is HRM which is also known as human resource which get
also affected by business environment. In this, their main role is to plan, organise, monitoring
activities in management. Human Resource Management department of firm is directly
connected with personnel within the enterprise. Thus, in relevance with Tesco HRM
department assist them to identify and determine their strength as well as weakness so that
decisions are taken accordingly. This is necessary as they are responsible for productivity &
decreasing performance level of business. (Kiseľáková, 2019).
So, the above stated matter states that it is important to manage business functions so
that goals as well as objectives are achieved properly. This can be done by considering
business environment and taking effective measures so that problems do not arise in near
future (Phadermrod, 2019).

CONCLUSION
After a brief analysis of above report, it is concluded that global business environment
is essential to do the business at international level. This helps many organisations to run their
functions as well as operations in smooth manner. To analyse the business environment
factors in organisation, SWOT Analysis has been discussed briefly. It helps entity to take
decisions effectively. Without business functions it is not possible for any enterprise to
achieve goals within a period of time. So, marketing & human resource department functions
are important part of enterprise which are to be carried out in appropriate manner. Hence, it is
essential to make ensure that everything is being carried out appropriately.

REFERENCES
Books & Journal:
Kasemsap, 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.
Tallman, 2018. Business models in global competition. Global Strategy Journal, 8(4),
pp.517-535.
Adekola, 2016. Global business management: A cross-cultural perspective. Routledge.
Mehta, 2019. Global business: Virtual workplaces and collaborations. International Journal
of Business, Humanities and Technology, 9, pp.1-9.
Kiseľáková, 2019. Competitiveness and Its Impact on Sustainability, Business Environment,
and Human Development of EU (28) Countries in terms of Global Multi-Criteria
Indices.Sustainability,11(12), p.3365.
Phadermrod, 2019. Importance-performance analysis based SWOT analysis. International
Journal of Information Management,44, pp.194-203.
Miles, 2019. SWOT Analysis of Four Espoused Business School Goals. In The Purpose of
the Business School (pp. 117-134). Palgrave Pivot, Cham.
Lubis, 2019. Analysis of Restaurant Business Strategy in Developing Business using SWOT
Analysis.
Dalton, 2019. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats). In Great Big
Agile(pp. 249-252). Apress, Berkeley, CA.
Macchi, 2020. Analysing the support of sustainability in the manufacturing strategy through a
multiple perspective of different business functions. Journal of Cleaner Production,
p.120771.

Shukla, 2019. Managing customer relations in a modern business environment: Towards an
ecosystem-based sustainable CRM model. Journal of Relationship Marketing, 18(1),
pp.17-33.