This assessment will cover following questions:
- Global business environment is the challenges and the opportunities at global market place that business face. Obtain information and interpret that information for an analysis of a TESCO PLC business environment.
- Global business environment makes major impact on business working. Generate the impact of government on the structure and operation of a in the context of TESCO PLC.
- Explain an understanding of the impact of changes in the business environment on business organisation and its activity.
Global business environment is mainly associated with uncontrollable and exogenous factors of an international market that have influence on decision making and other capabilities and operations of an organization (Stanković and Novaković, 2019). This part of assignment is based on TESCO plc which is a leading and well known British multinational retailer having its headquarter in England, UK. This assignment consists a SWOT analysis together with impact of key drivers on functional areas of a firm.
SWOT analysis is basically a matrix that provide information regarding the internal strengths and weakness of an organisation that makes it able to grab the opportunity and reduce the negative consequences of threat. TESCO is among one of the leading retailer which deals in groceries, F&F Clothing, and other associated items across various regions of world that includes UK, Europe, Asia, Ireland, Hungary, Thailand, etc (Andresen and Bergdolt, 2019). Following is the SWOT analysis of TESCO organization reflecting its internal capabilities and weakness together with the existing business opportunity and threats:
Related services: Assignment help
· The biggest strength of TESCO is long standing history in UK which is the reason behind having a credibility and loyalty among customers and accounts for 28.1% of total market share of UK which makes it a leading retailer across the UK (Tesco SWOT Analysis 2019, 2019).
· Strong and wide range of Product portfolio especially in top driving sectors that includes groceries, clothing, electronics, furniture etc. enhance its capabilities.
· TESCO is also among one of the largest and most profitable supermarkets of world and also having a strong financial positions which is reflected through its listing on London Stock exchange and FTSE index.
· Beside this, use of superior technology like RFID – enabled barcode system and other new and advance packaging techniques provide a unique and differentiated position in business market together with enhancement in customers experience.
· Apart from this, the effective marketing strategy together with efficient online operations are also a strength of TESCO plc.
· Failed operations and business project in US and Japanese market thus, have to close many stores and faced a lot of loss in these markets.
· After the Brexit referendum the TESCO is facing a worst performance that has lead to reduction in its operating profit by 9% after 2018.
· Brexit issues has also lead to a decline in share price of TESCO which are at below peak in October 2019.
· Maximum amount of spendings are made in markets of UK and Europe which hinder performance of TESCO at other developing market thus, have limited presence in emerging counties as compared with other competitors.
· TESCO can go for further diversification in its product and strategies and have an opportunity of expansion of operations in many other sector like TESCO Bank (Özcan, 2019).
· TESCO is having an opportunity to grow its business and enhanced its position as a low cost rival thus, has announced the introduction of a Jacks a low cost rival to Aldi and Lidl.
· TESCO can purse international market expansion strategy to improve its global presence and expand into oversea market through having effective online business and transaction together with more better marketing and promotional strategy with the help of digital and social media.
· Its brand image get damaged due to many commercial income scandal, financial frauds and infringement controversies which has created a threat on loyalty on customers.
· After the Brexit issue a high level of currency fluctuation is seen and the value of pound is also diminishing which is causing a threat for profit margin of TESCO.
· Global economic environment and insatiably in business environment is cresting a threat on overall business operations and demand of products of TESCO.
Impact of key drivers of business environment on firms functional areas
The hey drivers of business environment includes various factors associated with political, economical, social, technological, legal and many other factors that create significant effects on functional units and operations of an organisation (Gawin and Marcinkowski, 2019). Following impacts are created by key factors of business environment on functional areas of TESCO:
This functional area of TESCO is associated with the recruitment and procurement of talented and skilled employees for the performing various tasks and jobs within the organisation (Rao, 2019). It has been that the, Brexit issue is affecting labour supply and has created a high level of employees turnover thus negatively affecting the operations of TESCO. Therefore to meet theses consequences and to retain its talented employees some effective HRM strategies should be adopted by TESCO. Beside this, increasing competition and chaining technology has also impacted the HRM policies of TESCO and more emphasis is provided to training and timely development programmes for employees to enhance their performance and sharpen their skills to face the competition and also makes adoption of new technology relative more easy.
Marketing function of TESCO is having a responsibility of developing effective relation with customers together with better understanding of business environment and ongoing changes so that effective promotional strategy can be made to create an awareness about the product and brand in the target market with the aim of enhancing its customer base and global presence (Stanković and Novaković, 2019). The various existing opportunity in the market to have an expansion in emerging market of world has lead to an impact on marketing function of TESCO and effective policies and strategies are needed to have better interaction with its customers at global level. Changes in Technology has created an impact and has enhanced the opportunity for marketing function of TESCO through facilitating use of social media, like Facebook, Instagram, twitter and other digital technology like online websites and digital advertisement to have better promotion of its product at developing and emerging markets. Effective marketing strategy also reduce the threat of high level of competition and yield a better market position for TESCO across the world.students also read about: Business Environment of McDonald
On the basis of above assignment it can be concluded that use of SWOT analysis is made to evaluate and analysis the internal capabilities, strengths and weakness together with knowledge about opportunity and threat. It has been also summarised that various key factors of a business environment exert significant affect on functional areas of an organisation.
- Andresen, M. and Bergdolt, F., 2019. Individual and job-related antecedents of a global mindset: An analysis of international business travelers’ characteristics and experiences abroad. The International Journal of Human Resource Management, pp.1-33.
- Gawin, B. and Marcinkowski, B., 2019. Making IT global–what facility management brings to the table?. Information Technology for Development. 25(1). pp.151-169.
- Özcan, A., 2019. The Role of Human Resource Accounting in the Business Environment. In Global Perspectives on Human Capital-Intensive Firms (pp. 99-120). IGI Global.
- Rao, I., 2019. Competing values in Asian business: evidence from India and Dubai. Journal of Asia Business Studies. 13(1). pp.97-107.
- Stanković, J. and Novaković, I., 2019. Impact of Local Self-Government Institutions on Creating a Business-Friendly Environment: Multi-Criteria Analysis. In Socio-Economic Development: Concepts, Methodologies, Tools, and Applications (pp. 1466-1488). IGI Global.