Unit 1 Business and the Business Environment Section 2 (GC01798)

Table of Contents

Unit 1: Business and the Business Environment

Section 2.

2.0 Introduction.

2.2 Macro environment analysis of Tesco.

PESTLE Analysis.

Political Factors.

Economic Factors.

Socio-Cultural Environment

Technological Environment

Legal Factors.

Environmental Factors.

2.3 Explain how strengths and weaknesses interrelate with external macro factors.

2.4 SWOT analysis to Tesco.

2.4.1 Strengths and weaknesses of Tesco and justify how they influence Tesco’s decision making

2.4.2 Explain the interrelationships these (strengths and weaknesses) have with the external factors previously discussed in 2.2.

2.5 Key findings of internal and external analysis of Tesco and critically evaluate how these impact the business objective and decision-making of Tesco.

2.5.1 Key findings of internal and external analysis of Tesco.

2.5.2 Critically evaluate how these impact the business objective and decision-making of Tesco

2.6 Conclusion.

Reference.

2.0 Introduction

Tesco plc is a leading British multinational retailer having over 400,000 employees and services to the millions of customers every week their stores and online (Tesco, 2020). The company was founded in 1919 by Jack Cohen designed as a set of market stalls in Hackney and is headquartered in Welwyn Garden City, Hertfordshire, England, United Kingdom. The market capitalization of Tesco is £28.66 billion by Sept. 2, 2020 (YCHART, 2020). This essay outlines the Macro environment analysis of Tesco and its strengths, weakness interrelates to it. Secondly, the essay discusses the SWOT analysis of Tesco and strengths, weaknesses, key findings, interrelationships. Then it evaluates the impacts of these factors on business.

2.2 Macro environment analysis of Tesco

The macro-environment is the combination of factors and the external environment where the macro factors exist or influence the business (Curtin, 2019). Macro environmental factors cross the areas of the business and impact the whole business from the external environment which includes inflation, spending, employment, gross domestic product (GDP), and monetary and fiscal policy of the business. The PESTLE is the best tool to summarize the macro factors of the business.

PESTLE Analysis

The PESTLE Analysis is a worldwide used business analytical tool which each letter stands for Political, Economic, Socio-cultural, Technological, Legal and Environmental (Tuten, 2019). Tesco plc has several influences macro-environmental factors in its business strategic process:

Political Factors

Tesco plc is emerging their business in a remote country in an effort to the internationalization of their business. Several countries have their own policies and laws related to business process operation including customer services, return policies, home delivery process, mandatory employee benefits, product labeling, and other requirements in retail, anti-trust laws connected to their business (Curtin, 2019). But, the very significant positive effect of the factor the government may be business-friendly and wants to make their national revenue welcoming foreign business.

Economic Factors

The economic factors greatly impact Tesco’s business profits as the people of the existing country faces several economic crises, especially in a recent covid-19 pandemic, overlapped the business as high risk of profitability consistency. As Tuten (2019), the fund’s management and target shareholders are very influential to the contribution to Tesco in the recent worst condition. The positive is the online revenue-making increases during these days.

Socio-Cultural Environment

Tesco leads their business to the wide-ranged culture varied people as a multinational business company. According to Tuten (2019), the traditional values, norms, customs, demands and choices impact the business speed Tesco plc by the customers in Malaysia, had to change the recipe and food ingredients as they are not habituated with the food related to swine and its bi-products. People from different ages can the business development are different of retirement in many countries.

Technological Environment

Present business strategic plans include social media marketing and online sale services, home delivery through an online process. The website of Tesco is designed to increase their sales and company promotion. Technology working for easier business process operations is not confined to computers and IT services. It includes products, techniques, manufacturing processes, etc. with modern applications and machinery (Curtin, 2019).

Legal Factors

Tesco should carefully assess before entering such marketplaces as it can lead to theft of organization’s secrets, data, management strategies, leadership and employee relations etc. sauce thus the overall business competitive edge. The business may apply with government Anti-trust law in the Retail industry, Employment law, Discrimination law, Copyright, patents / Intellectual property law, Consumer protection and e-commerce, Health and safety law, Data Protection Act for their legal issues resolutions (Curtin, 2019).

Environmental Factors

As Curtin (2019), ecological factors are connected with Tesco’s business operations may unexpected suffering to the business causing natural calamities and disasters, weather roughness and people used to taste varied seasons and monsoons that affect the business. Weather, Climate change, Laws regulating environmental pollution etc. are implemented by the business.

2.3 Explain how strengths and weaknesses interrelate with external macro factors

Calicchio (2020) stated that a business faces several strengths and weaknesses during leading the strategic operation profit-making and revenues. Basic strengths involve the stakeholders’ contexts responsibilities and roles. Strengths of the organization can be included as large market share, excellent customer service, Personal relationships with consumers, Strong employee attitudes, High integrity, low-cost manufacturing, Leadership in product innovation, Highly efficiency and so on. All these are interrelated to the macro factors. And Confusing service policies, the insufficient definition of the purchaser for product/market growth, too many stages of reporting in the organizational framework and business, Lack of quantitative targets, Limited product availability, Lack of participation from top-level leaders of the farms in developing a new service etc. can be regarded as the weakness within a business structure. Every business finds its strengths and weakness as its internal environmental factors impact and interrelationship with the macro-environmental factors. The above-mentioned factors are directly and indirectly interrelated to the political, economic, social, technological, legal, and environmental factors (Webster and Hamilton, 2018).

2.4 SWOT analysis to Tesco

2.4.1 Strengths and weaknesses of Tesco and justify how they influence Tesco’s decision making

The SWOT analysis is one of the best tools referring to Strengths, Weaknesses, Opportunities, and Threats and to identify the various strengths and weaknesses within the business procedural actions and developments styles (Calicchio, 2020)………………………………

Business Environment