BM461 Global Business Environment: SWOT & Operational Impact - Tesco

This report provides a comprehensive SWOT analysis of Tesco, a British multinational retailer, evaluating its internal strengths and weaknesses, as well as external opportunities and threats. The analysis identifies key internal factors such as Tesco's large market share and efficient supply chain, alongside weaknesses like low operational profits and past financial errors. Opportunities include expansion into emerging markets and online shopping, while threats encompass economic crises and competition. Furthermore, the report analyzes the operational impacts of these factors on two key functional areas: marketing and human resources. For marketing, it discusses strategies to leverage strengths, capitalize on opportunities, and mitigate threats, while also addressing weaknesses in marketing and sales. Similarly, for human resources, the report examines strategies to strengthen the department, take advantage of opportunities, and reduce negative impacts, ultimately aiming to enhance Tesco's competitive positioning in the global business environment. Desklib provides access to this and many other solved assignments.

SWOT analysis

Table of Contents
INTRODUCTION...........................................................................................................................3
Part-1 ...............................................................................................................................................3
Internal environment...................................................................................................................3
Competencies and capabilities....................................................................................................3
Definition of SWOT analysis......................................................................................................4
Part-2 ...............................................................................................................................................5
Operational impacts analysis ......................................................................................................5
Human resource department.......................................................................................................6
REFERENCES................................................................................................................................8
Appendix: ........................................................................................................................................9

INTRODUCTION
Internal environment is defined as the essential component of business environment that
includes various elements that are presented inside organisation that impacts business
performance, activities and decision-making process. There are various factors such as climate,
organisational working process, vision, mission and objectives and management practices. These
factors are in the control of organisation but influence business strategies as well as other
organisational decisions. In this report chosen organisation is Tesco which is British
multinational retaining organisation founded in 1919 by Jack Cohen and headquarter situated in
Hertfordshire, England, UK. Respective organisation provides its products and services to
employees through opening 7,005 shops. In this report SWOT analysis of Tesco and operational
impact analysis of two different functions areas of organisation such as marketing and human
resource are covered in this project report.
Part-1
Internal environment
Internal business environment is referred as the environment that includes various factors
such as human resources, physical resources, value system of organisation, business structure,
objectives and mission that impacts business activities and decision-making process of
organisation (Khaba and Bhar, 2017). Tesco evaluates various internal factors and develop
organisational strategies accordingly that facilitates organisation to attain business goals and
objectives efficiently.
Competencies and capabilities
Define distinctive competencies and distinctive capabilities: Distinctive competencies
are the factors that differentiate business from other competitors. There are various factors such
as marketing, human resource, customer relationship and technologies that provides various
competitive advantages to organisation. On the other hand, effectiveness of resources that
provides advantages to organisation than other competitors are defined as the distinctive
capabilities. Tesco has efficient human resources and latest technology that enables it to attain
determined goals and objectives with efficiency and maintain effective positioning.

Definition of SWOT analysis
Define SWOT analysis: SWOT analysis is defined as the strategic framework that is
adopted by the organisation to evaluate business competitive position as well as develop
effective strategic planning. In the framework of SWOT analysis assess various internal as well
as external factors or organisational current and future potentials. Tesco conducts SWOT
analysis to identify organisational strengths, weakness, opportunities and threats which facilitates
organisation is to develop awareness of factors and include them in business decisions to gain
competitive advantages. SWOT analysis facilitates organisation to leverage strengths and
opportunities for the purpose of overcoming threats and weaknesses.
What S stands for W. O. T. represents: The concept of SWOT is stands for Strengths,
Weakness, Opportunities and Threats. It is the effective tool and technique that includes four
aspects of business and used to develop business policies and strategies.
Strengths and Weakness apply to internal environment: Internal business environment
contains various strengths and weakness that impacts business performance. Strengths of Tesco
is that it is the largest grocery store in Britain and have efficient networks of suppliers.
Respective organisation covers higher market share in UK and contains financial stability
(Harris, 2018). It adopts innovative technologies and provides variety of products and diversify
market that strengthen its positioning in market. Apart from that, financial errors, less operational
profits, low cost techniques and weak as well as ineffective working performance that weakened
business positioning in market then other competitors.
Opportunities and Threats apply to external environment: In external business various
opportunities and threats are included that impacts business positioning and effectiveness than
other competitors. There are various opportunities such as Tesco is expending its operations in
new emerging markets such as turkey, Indonesia and south Korea. Organisation provides online
shopping facilities to customers and alliance with other brands through joint venturing (Barrow,
2016). On the other hand, various national economic crisis, competitors that are dealing in
supermarket and Brixit deal that impacts on organisational performance.
Importance of SWOT:
SWOT analysis facilitates organisation to analyse its current business performance and
its positioning in market place. Tesco conduct SWOT analysis to identify various internal and
external factors and develop policies and strategic plans that help to meet desirable objectives in

changing business environment. Proper analysation facilitates organisation to take appropriate
actions in dynamic market and improve weakness as well as overcome threats through develop
effective policies.
Part-2
Operational impacts analysis
Marketing department:
1) Functions and importance of marketing: Marketing is defined as the activity that is
undertaken by the organisation for the purpose of promoting and selling organisational products
and services to customers for satisfying their needs and demands through conducting market
research and advertising. There are various functions are included in marketing such as conduct
marketing research, develop products according to customers demand, establish effective prices
and promote it in market. It is important for enhancing organisational sales and customers.
2) Strategies from strengths: As organisation has effective brand image and higher
market share. Tesco conduct proper market research and use promotional as well as
advertisement activities to strengthen organisation positioning in market (Dilek, S., 2018).
Marketing plays important role in enhancing organisation market share and attract potential
customers.
3) Marketing strengths to take advantages of opportunities: Tesco use its marketing
strengths to attain various market opportunities. Organisation conducts various social media
advertisements and market research to understand marketing trends and conditioning than
develop proper strategies that provides various competitive advantages to organisation than other
competitors. Marketing plays important role in spreading brand awareness in market.
4) Marketing affected by the negative threats in environment: Marketing activities of
organisation is affected by the negative threats in environment, respective organisation develops
various strategies and planning to understand these factors properly and develop strategies to
reduce them in efficient manner.
5) Explain weakness of Marketing and Sales: Ineffective advertisement and marketing
campaigns affect organisational sales and its brand recognition in market. It the weaknesses of
marketing that it impacts organisational profitability ratio and market share. Tesco develop
proper marketing strategies to reduce weakness and gain competitive advantages in market.

6) Strength in marketing to reduce negative impact of Threats: Respective organisation
use the marketing strengths through conduct effective and attracting advertisement and
promotions that help business to reduce negative impacts. Through marketing research
organisation get information about market and create effective business policies that facilitates to
overcome future threats efficiently.
Human resource department
1) functions and importance of HR department: Human resource department is defined
as the functional department of organisation that conducts various operations such as finding
suitable employees, screen them, recruiting and selecting appropriate candidates, provide proper
training, maintain effective relationship with employees, evaluate their performance and provides
rewards to enhance their performance. It is important for managing employees and leading them
towards attaining defined goals and objectives.
2) Explain the strategies from the strength: For the purpose of strengthen human
resource department of organisation use its strengths (Jordan-Makely, 2019). As organisation
has effective brand image that attracts suitable candidates towards organisation that enhances
organisational overall efficiency. Teaco develops various strategies for recruitment, selection and
provide training to employees that provides competitive advantages to organisation.
3)Strength in HR to take advantage of opportunities: Tesco utilise its strengths in HR
for gaining market opportunities to gaining competitive advantages. Respective organisation
develop various strategies for recruitment and development as well as provide training to its
employees so they can perform in efficient manner and contribute in attaining business goals and
objectives.
4) Strengths in HR to reduce negative impact of threats in environment: Respective
organisation use strengths of HR in order to reduce negative impacts on environment (Yang,
Wang, and Kang, 2018). Tesco adopts friendly procedure and corporate social responsibility
aspects in organisation that reduce negative impacts on organisation.
5) Reduce weakness in HR and take advantage of opportunities: Tesco reduces various
weaknesses of HR through implementing effective policies and strategies. Through taking
effective decisions organisation can recruit effective employees who are able to achieve
organisational goals and objectives properly.

6) Weakness in HR to reduce negative impact of Threats: As organisation has threat
from various competitors who directly impacts on organisational performance and functionality.
Tesco provides proper training and development programmes to employees so they can perform
in well defined manner and provides competitive advantages to organisation.

REFERENCES
Books and Journals
Barrow, P., 2016. Revision of the ICH guideline on detection of toxicity to reproduction for
medicinal products: SWOT analysis. Reproductive Toxicology, 64, pp.57-63.
Dilek, S., 2018. Virtual reality or just reality? A SWOT analysis of the tourism industry. Journal
of Tourismology, 4(1), pp.67-74.
Harris, S.Y., 2018. SWOT analysis of Jamaican academic libraries in higher education. Library
Management.
Jordan-Makely, C., 2019. Libraries as bureaucracies: a SWOT analysis. Library Management.
Khaba, S. and Bhar, C., 2017. Quantifying SWOT analysis for the Indian coal mining industry
using Fuzzy DEMATEL. Benchmarking: An International Journal.
Yang, D., Wang, X. and Kang, J., 2018, March. SWOT Analysis of the Development of Green
Energy Industry in China: Taking solar energy industry as an example. In 2018 2nd
International Conference on Green Energy and Applications (ICGEA) (pp. 103-107).
IEEE.

Appendix:
Internal/external factors Strengths
1. Biggest grocery
retaining organisation
is UK.
2. Leading market share.
3. Geographically
diversification
4. Higher number of
stores
5. Diversify market and
products
6. Adopt latest
technology
7. Efficient supply chain
networks
8. Effective and skilled
employees
Weaknesses
1. Low operating profit
2. Financial error
3. Low-cost strategy
4. Poor operational
performance
5. Accounting scandal
6. Failed operations in US
and Japan
7. Shortage of resources
8. Food safety issues
Opportunities
1. Online shopping
2. Emerging market
3. Joint venture
4. Strategic alliance
5. Higher unemployment
rates
6. AI and machinery
learning
7. Expansion of Jack's
store
8. technological
Strengths-Opportunities:
 Diversified products
leads towards the
enhancement of market
 Opt latest technology
to promote AI
technology
 Hire skilled employees
to reduce
unemployment rates
Weaknesses-Opportunities:
 shortage of resources
move towards the joint
venture
 Failed operations move
towards the strategic
alliances

advancement
9. market growth
10. international expansion
Threats
1. Brixit laws
2. Economic crisis
3. Competition
4. Controversy
5. Covid-19 pandemic
6. Inflation
7. Financial downturn
8. Decrease in disposable
income
9. More affluent stores
European market
10. Raising in wages rate
Strengths-Threats:
 High number of stores
leads to increase
competition in market.
 Latest technology
impact the disposable
income.
Weakness-threats:
 Accounting scandals
tends to impact the
financial downturn
 Food safety issues
bring the brand image
at the stake and move
company towards the
Controversy.