Sample Assignment on Contemporary Business Environment (GC01762)
Table of Contents
1.0 Introduction.
2.0 Overview of the Organization.
3.0 The key elements of the internal environment of organizations and the interaction with the external environment
3.1 Internal environment factors.
3.2 External environment factors.
3.3 Market economy functions and the role of government
3.4 The economic environment of the United Kingdom For Tesco Plc.
3.5 The countries benefit from trade with each other
3.6 The growing impact of the European Union on Tesco.
4.0 PESTEL and SWOT analysis of Tesco.
4.1 Pestle analysis of Tesco.
4.2 SWOT analysis of Tesco.
- Conclusion.
- References.
1.0 Introduction
Gupta (2016) stated that in the case of business organizations; it is a very common issue that they have faced with several internal and external factors of the environment. It is also required to identify and maintain these environmental factors to acquire competitive advantages from the market. According to Campbell (2015), the culture and environment of an organization also affect the behavior of the organization. Normally business environments can be categorized under economic and non-economic environments. Firstly, the economic system, policies and conditions are included in the economic classification and natural, demographic, technological, legal, political, and social environments are included in the non-economic types (Campbell, 2015).
The natural environment also affects the business functions and performance in a significant way. This report is prepared for understanding the business environment in the United Kingdom, especially for Tesco PLC. Tesco PLC is a retail shop in the UK that headquarters is situated at Welwyn Garden City, United Kingdom. (Tesco PLC, 2020). This report consists of the explanation of factors of the internal environment with the connection of the external environment of Tesco. Then this report identifies the economic functions and the government’s role to develop the economic condition in the UK. After that; the paper includes the examination of the economic environment of the UK that affects the operating activities of Tesco. Then; the benefits of international trade of a business firm are also included in this report including Tesco. Finally; the PESTLE and SWOT analysis of Tesco are made in the report to identify the position of Tesco in both external and internal situations.
2.0 Overview of the Organization
This paper is made by selecting a British firm named Tesco plc. Tesco PLC is a retail shop in the UK that headquarters is situated at Welwyn Garden City, United Kingdom. In terms of gross revenue; the position of this firm is third around the world. In terms of net revenue; this firm has got 9th position around the world. The CEO of this company is Dave Lewis (Tesco PLC, 2020). The main products of this firm are offered in its Supermarket, Hypermarket, Superstore and Convenience shop. The recent information shows that there are 6,800 shops around the UK, Ireland, India, Malaysia, Thailand, Czech Republic, Slovak Republic, Hungary, and Poland (Tesco PLC, 2020). In 2019; the Revenue, Operating income and Net income were £63,911 million, £2,206 million and £1,320 million respectively (Tesco Annual report, 2019). There are 450,000 employees are working directly with this firm all over the world.
3.0 The key elements of the internal environment of organizations and the interaction with the external environment
3.1 Internal environment factors
According to Nipun (2016), the internal environment refers to the inside factors that directly connect with the firms’ operating activities and success. Every business organization needs to control the internal environment tools that help to manage the external factors. If a firm fails to manage the internal environment factors; it is quite impossible to manage external environment factors (Gupta, 2016). The internal environment can be managed through better tools and techniques. The following figure represents the internal environment of a business firm including Tesco Plc:
The first internal factor is Value System. It includes the regulatory frameworks including culture, climate, the pattern of the functions, and management norms of the organization (Nipun, 2016). It is very important for the business firm to manage the value system for creating a better organizational culture within the firm. Then; secondly the Vision, Mission and Objectives are considered as internal environment factors (Nipun, 2016). Campbell, D. (2015) stated that business organizations need to develop a vision and mission that distributes to the other bodies of the firm for attaining.
Thirdly the organizational structure represents the communication pattern among various departments to gain the objectives. It can be matrix structure, functional structure, divisional structure, bureaucratic structure, etc. Then the corporate culture includes the values, beliefs and attitudes of the employees of the organization. After that human resource is also regarded as the most important element of the internal business environment (Campbell, 2015). They are the ultimate party who are responsible for the success or failure of a firm.
3.2 External environment factors
According to Gupta (2016), the external environment refers to the outside factors that influence the organization’s ability to gain its goals effectively and efficiently. The below figure represents the external environment of the business firm:
Gupta (2016) stated that the economic environment indicates the issues concerned with consumer purchasing power. It consists of business cycles, inflation, unemployment, interest rates, and income. The changes in economic factors bring a negative impact on the business operation (Gupta, 2016). The technological factors consist of new technologies that help to produce good quality products. Technology has a tremendous effect on lifestyles, consumption patterns, and the economy. Wilson (2016) stated that the Legal environment includes the regulation and legislation that must be maintained by the business firm. The government can impose tariffs, quotas, and deregulation for controlling the functions of international business organizations that affect negatively the operating activities of global businesses like Tesco. The Social factors include the cultural values, expectations, preferences, and behaviors of the customers in the market (Wilson, 2016)…………………………………
Full Documents Click Download Button
You may also like
Professional Discussion Individual Presentation Paper (GC01809)
BMS412 Business Environment Assignment with Morrisons (GC01808)
