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Impact of Operational Activities on Performance- Tesco Company

University: Imperial College London

  • Unit No: 6
  • Level: Undergraduate/College
  • Pages: 6 / Words 1406
  • Paper Type: Assignment
  • Course Code: BMP3004
  • Downloads: 564
Question :

This assessment will cover following questions:

  • Tesco is the multinational retail industry in the United Kingdom. Identify the operational activities that are carried out by the Tesco organisation and how it impact the performance of the organisation.
  • Analyse the internal and external factors which affects the global business environment.
  • How government influences the operational structure of the organisation.
Answer :
Organization Selected : Tesco Company


Global business environment encompasses the role of internal and external factors based on which an organisation need to utilises their resources and capabilities in order to make the viable decision. As the existence of uncontrollable and unavoidable factors can hamper the business operations so the better classification of market condition helps to maintain the favourable conditions. To better define the global environment topic Tesco company has been selected which is the multinational retailer and has strong chain of physical store. They deals in wide varieties of the necessity products, grocery item, electronics, furniture and so on. This report cover topic like preparation of Pestle and SWOT analysis. Based on which the impact on diverse functional area like Marketing and Human resource management are covered in the report.

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SWOT Analysis

SWOT analysis is the internal framework that can assist Tesco company to anticipate its strength and weakness based on which it can gain core competency. Further, it helps to exploit the untapped or uncovered opportunity by mitigating the chances of threat gained from the existence of competitive rivalry.


  • Tesco has the strong position in terms of retail store because it has successfully build the competitive position by offering viable and excellent shopping experience to customer where they can find wide varieties of alternative under one roof.
  • The advantage of the economies of scale helps the company to offer high discounts on the commodities. Further, the result of high footfall helps the manager to invest in latest technology to build better serving experience.
  • It maintain the strong relation with its supplier that assist company to maintain the adequate reserve of inventories and possible gain quality product at reasonable prices.


  • Optimum presence of company in the digital media act as an opportunity because the dependence on the e-commercial and  online shopping sites are constantly increasing. So in the upcoming duration the customer will remain more keen to explore such sites and leverage the advantage of home delivery of items (Tukundane and et.al., 2015).
  • Further, the company can focus to widespread their operations in the developing market because there exist numerous opportunity in terms to establish the image and access the advantage to gain additional revenue.


  • To overcome the competitive pressure the company need to indulge into the price wars that erode the expected amount of profit margin.
  • Other then UK, there are certain outlets that are  not equally contributing in terms to mange the profitability. So the inadequate investment in market research can further disturb the success of company in terms of portfolio investment (Odeh,  Warwick and Garcia, 2015).


  • Changing economic condition such as recession or inflation threaten the profitability as well as market share of company because it affect the buying pattern of consumer.
  • Strong existence of both domestic and global rivalries affect the market operations and network of company because Tesco needs to implement the strategy to wipe out its the competitive pressure.
  • Constant change in the food prices again affect the expected revenue generation because the disposable income of consumer is constant.

Henceforth, with the application of SWOT analysis, it aid Tesco to determine its capability and also to identify the weakness which impact over its overall performance. Along with this, SWOT analysis also enable Tesco to implement best strategic decision which lead them to gain competitive advantage and also top create positive response among targeted audience in an amended mode.

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Impact of key drivers on Tesco functional areas

Every organisation are categorised into different functional unit and each of them are differ from each other in aspect of responsibilities, function and roles. However, all these functional areas of establishment are empowered to achieve common goal in an effective and expeditious manner. In regard of Tesco, the industry where it operates its business service is highly competitive and challenging which directly impact over is potentiality in placing the brand in an aggressive and competent position among competitor (Aguilera and Crespi,   2016). On the basis of above explained content, it has been identified some internals and external factors of business environment  that influences Tesco's working culture and also over the contribution of each functional unit towards an attainment of sustainable growth are explained below:

Marketing: Under this business function of organisation , it is concern with promoting the company's product and services as well as driving firm to provide increased level of customer satisfaction in an improved manner. However, with the introduction of Brexit within UK it effected negatively over  firm's overall productivity ratio as it entirely modified the Tesco's existing policies or procedures. Due to which, Tesco faced an issue in  import or export goods, maintaining fair practices in advertising the product, targetting suitable population for the consumption of product and many more. However, being a global presence Tesco can make use of different traditional and online marketing method such as direct selling, billboards, socila media platfiorms, it enable Tesco to improve the overall sales performance in an impressive and innovative style (Tameme, Hadi  and Hameed, 2015).   

HRM: In this functional area of company, it is relate with hiring suitable candidates and placing them in a right  position as per their interest or capability. However, to this context, Tesco faced a lack of manpower with the implication of Brexit inside UK as major number of population are migrating from UK. Due to which it impact organisation capability to earn maximum level of profit margin ratio within prescribed time duration. On the other hand, the employment rate of UK is high which can benefit Tesco to retain its existing employees and also in capturing the attention of large number of new manpower towards the brand in an improved manner. With the help of such initiation, it lead Tesco to gain competitive advantage inside UK industry and also can enlarge market division in a positive way without any hindrances.

Students also like to read about: Strategic Challenges Faced by Shell Company in Global Environment

From the preceding discussed content, it has been signified that Tesco has several capabilities and weakness which empower organisation to deal with all current or emerging market competition  in an amended mode (Cadle, Paul and Turner, 2014).    

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It has been summarised from the above explained report that every establishment has threat from internal and external business environment that effect organisation potentiality to accomplish its pre determined goal in an improved manner. Along with this, with the application of PESTLE and SWOT analysis, it assist company to identify its strength in order to take corrective course of action with an aim of acquiring best position inside industry as well as to attain sustainability among rivalries in an amended manner.   


  • Aguilera, R. V. and Crespi, R., 2016. Global corporate governance: On the relevance of firms’ ownership structure. Journal of World Business. 51(1). pp.50-57.
  • Cadle, J., Paul, D. and Turner, P., 2014. Business analysis techniques. ChartereOdeh, M., Warwick, K. and Garcia A., 2015.Tukundane, C and et.al., 2015.d Institute for IT.
  • Dilek, S. and Keskingöz, H., 2016. SWOT Analysis of Safranbolu City in Terms of Tourism. International Journal of Research in Business and Social Science (2147-4478). 5(1). pp.54-64.
  • Kremer, P. D. and Symmons, M. A., 2015. Mass timber construction as an alternative to concrete and steel in the Australia building industry: a PESTEL evaluation of the potential. International Wood Products Journal. 6(3). pp.138-147.
  • Ng, E. S. and Bloemraad, I., 2015. A SWOT analysis of multiculturalism in Canada, Europe, Mauritius, and South Korea.
  • Odeh, M., Warwick, K. and Garcia A., 2015. The impacts of cloud computing adoption at Higher Education institutions: a SWOT analysis. International Journal of Computer Applications. 127(4). pp.15-21.
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