This assessment comprises of 1000-word, with individual paper’s that will contribute towards your final portfolio of 2 papers.
LO1: Analyse and evaluate information relevant to an analysis of a firms business environment.
LO2: Discuss the impact of government on the structure and operation of a business organisation.
LO3: Generate an understanding of the impact of changes in the business environment on business organisation and activity.
Complete the following paper for your portfolio using CW1 and feedback received from the lecturer:
Paper 2 (CW2): This paper will include a SWOT analysis, as well as examine the ways in which these key drivers can influence upon TWO of the firms functional areas such; HRM, Finance, Marketing, Operations, and R&D which is mainly based on the key drivers identified in CW1 and its PESTLE analysis.
Part 01: Prepare SWOT analysis for your selected organisation.
Part 02: Analyse how SWOT and PESTEL factors which are key drivers enable in influencing TWO of the firms functional areas such as HRM, Operations, Finance, Marketing and R&D.
Structure of report:
- Title page
- Table of contents
- Brief Introduction
Part 01: Prepare SWOT analysis for your chosen company.
Strengths will include things which involves what is particularly by an organization in a well manner or even involves the way which distinguishes it from the competitors.
Determine the strength of your selected company. For example, the company has strong brand image, etc.
Weaknesses involves improvement which are required to be done in organisation.
Sorts of practices which are not be done by a company.
You can lay your focus on company’s people, systems, resources, and procedures to evaluate the weaknesses.
Discuss the weaknesses of your chosen company; for instance, lack of competent employees, etc.
Opportunities are chances which are provided for something positive to happen.
They generally arise from situations outside the organisation.
Determine the opportunities for your selected company.
Example: opportunity to expand the businesses in another market such as new region, etc.
Threats involves anything that can negatively affect a business from the outside.
Analyse the threat for your chosen company.
Example of threat may include new regulation, etc.
Part 02 Key Drivers: How the Factors impact the Functional areas of chosen company.
Explain how the factors identified in CW1 (PESTEL Analysis) would affect two functional areas (such as HRM, Marketing, Operations, Finance and R&D of the company.
Examine how the result of the SWOT analysis would influence two functional areas (such as Marketing, HRM, Operations, Finance and R&D) of the company.
Choose only TWO from the following list:
Marketing: How marketing can convey positive image and CSR activities of the company as more and more people are concern about the environmental damage/ if one of the strengths identified in SWOT is company’s strong brand image, how the marketing department can help in managing the brand to promote other products, etc.
Human Resource Management: Iif the lack of employee motivation is one of the weaknesses identify your chosen organization, determine the role of HR in this situation.
Research and Development:
References; Harvard system
Global business environment is affected by various factor which have both positive and negative impacts on the organisation operating internationally. In marketplace, many tools and frameworks are introduced by researcher to analyse the impact of external business environment such as PESTLE and SWOT. In this report SWOT analysis of TESCO is performed also, the influence SWOT and PESTLE have over functional units are considered.
SWOT analysis of TESCO
SWOT analysis is a framework is used by marketers or marketing managers on behalf of company in order to learn about the strong and weakening elements of organisation. SWOT analysis is made of four factors, out of which two are internal and other are external. These components are as follows:
- Strength refers to those areas in which organisation excels and these strengths of company makes it unique and separates it from other competitors. In other words, strengths are those areas and elements which enables entity to attain competitive advantage (Hamilton and Webster, 2018).
- Weaknesses of any company are the sections in which it lacks and affects its performance. The weaknesses of every company becomes a barrier in their path of achieving all predetermined goals and success.
- Opportunities are the new chances entity have to enhance their practices and operations by effectively make use of those opportunities and gaining advantages in marketplace. These are the favourable external factors which help company to grow and provides competitive advantage.
- Threats are those external factors which exist within companies external environment and imposes potential harm over company. These threats have to be measured earlier and actions have to be taken for mitigating its effects before they prove to be harmful for the entity.
· TESCO is the biggest employer in UK, creating new job opportunities for locals of area in which the company have their stores (Schandl and et. al., 2018).
· The company has several stores and operating in different countries. TESCO has huge market share and serves to worldwide customers.
· Lack of market research leads to failure of operations in certain market, which affected the business overall performance.
· TESCO uses low cost strategy which is affecting it business, although company is price leader still its profit margins are getting affected due to low cost strategy.
· Most effective opportunity every company have is making strategic alliance with other organisations. TESCO can use this opportunity to enter new market.
· Another opportunity which exist for TESCO is to increase and upgrading its online shopping services and also, introducing home delivery services.
· The competition is increasing regularly in retail industry which possesses great threat on market position of TESCO (Epstein, 2018).
· TESCO was accused of fake brand image and marketing of its food products, which leads company towards several legal threats.
Evaluation of impacts SWOT and PESTLE factors holds over functional units of TESCO
TESCO is a retail organisation having large operations and in order to run business effectively tasks are divided into various departments. These functional units have their unique roles and responsibilities but their actions are affected by external and internal factors which are associated by the company. Influences SWOT and PESTLE factors have over functional units are discussed below:
Impacts of SWOT analysis on functional units of TESCO
Human resource management- One of the biggest strength of TESCO is the employment opportunities it generates for people. TESCO has large operations, nearly 7000 stores in the whole world through these they generate huge job opportunities for local people. This will impacts the HRM unit of company, fresh talent will enter the firm with their new and unique talents (Yuesti and et. al., 2018). Also, HR managers have to increase their actions for motivating staff as different individuals are involved in company having separate personalities. They have conduct training and development actions regularly for introducing new appointees to company and updating knowledge of existing employees.
Research and Development- TESCO is operating in number of locations and in very different markets who are separate from one another. The research and development task becomes more complicated here they have to conduct thorough research of markets in which company is planning to expand their operations. The research and development department lacks in performing their tasks effectively which is becoming a weakness of TESCO and company operations are getting affected due to it. By conducting SWOT analysis this weakness of research and development department is highlighted and TESCO now taking measure to mitigate its impacts.
Impacts of PESTLE analysis on functional units of TESCO
Marketing- The company is operating in several market of different countries, in which they follow separate cultures, beliefs and values. The taste and preferences of population differs and varies from one another with changing geographical areas. The marketing team job is to promote the offering of company and develop its brand image. Marketing department have to take measure and conduct market research in order to make effective marketing plan for specific geographical area. For researching marketplace, gaining knowledge about its motivating and attractive factors PESTLE frameworks helps the management and enables them to make appropriate plans by which they can present TESCO correctly in front of population.
Operations- TESCO is operating in around 12 countries having almost 7000 stores and each store is in diversified location (Cepel and et. al., 2018). By conducting PESTLE analysis the company can gain knowledge about the legal and economical condition of the country which enables them to make their operations accordingly. These operations which company develops for smooth running of their store will be in accordance with the rules and regulation imposed by the government for staying sway from any kind of legal fee and penalties.
The above report is based on the effects SWOT and PESTLE analysis have over the business operating on global level or in international waters. The SWOT tool enables company to know all the areas in which company lacks and excel and by whom they can attain competitive advantage in marketplace. Functional units of organisations gains better knowledge of their marketplace and development understanding of performing their tasks effectively and efficiently in order to attain organisational goals and objectives.
Books and Journals
Cepel, M. and et. al., 2018. Business environment quality index in the SME segment. Journal of Competitiveness. 10(2). p.21.
Epstein, M. J., 2018. Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Routledge.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University Press.
Schandl, H. and et. al., 2018. Global material flows and resource productivity: forty years of evidence. Journal of Industrial Ecology. 22(4). pp.827-838.
Yuesti, A. and et. al., 2018. Challenges of Bali Economic Export Development in Changing Global Environment. International Journal of Contemporary Research and Review. 9(01).