BM461 GLOBAL BUSINESS

ENVIRONMENT

Name:
Contents

Main body:...........................................................................................................................................2
SWOT and Pestel analyses and evaluations of the business:............................................................2
SWOT Analysis:..................................................................................................................................2
PESTLE Analysis:...............................................................................................................................4
The identification and evaluation of the influence of the SWOT analysis on the marketing and
financial aspects of a firm are two of the most important tasks in this process..............................5
Marketing.............................................................................................................................................5
Finance-................................................................................................................................................5
Conclusion:..........................................................................................................................................5
References............................................................................................................................................7
Introduction:
The global business environment, which is defined as the integration of the home economy

and environment with the global economy and environment, is one of the most important

characteristics of the global business environment. It is extremely important given the nature

of the current corporate climate, which is dynamic in nature. Many aspects of the corporation

Tesco are discussed in this article. Tesco is based in the United Kingdom and has been in the

retail food business for a very long time, allowing it to obtain a large amount of market share

over that time. The SWOT and Pestel analyses of Tesco are included in this report, as well as

discussions of the impact of these analyses on various other terms such as marketing, human

resource management, operations and finance (Benzaghta, 2021). The impact of these

analyses on various other terms such as research and development are discussed in detail

throughout the report.

Main body:

SWOT and Pestel analyses and evaluations of the business:

SWOT Analysis:

As one of the most important types of analysis closely associated with a company, a SWOT

analysis is one of the most significant because it helps to identify the firm's strengths and

weaknesses as well as opportunities and threats, allowing for any necessary corrections to be

made in accordance with the data acquired. An in-depth examination of Tesco's SWOT

analysis is presented below:

Strengths Weaknesses

 Given that Tesco has been in  A weakness of the company is that it

business for a long period of time, frequently cuts jobs when there are

the company has acquired a no or few buyers available in the

 substantial amount of market share, market. Tesco has been in business

which is one of the corporation's for a long time and has relied on old

most valuable assets. tried and tested approaches, whereas

 Tesco is distinguished from its other competitors have adopted a

competitors who are similarly variety of new approaches, which

dominant in the same market the company does not, which is a

segment by the fact that it offers a major weakness of the company

varied selection of products and (Harger, 2021).

services.  Tesco is a large corporation with a

large number of stores in the United

Kingdom.

Opportunities Threats

 There are numerous opportunities in  Increased competition in the market

the market right now, and Tesco is a significant threat to the company

may be able to take advantage of because of the ease with which firms

them by adopting artificial can enter and exit marketplaces.

intelligence in the marketplace,  Additionally, a security threat

which would boost the company's affects the company, which, because

value in the long run (Nandonde, of its magnitude, can be exceedingly

2019). destructive and risky to the

 Tesco also has the opportunity to organisation in the long run.

form strategic alliances with other

major firms, which may be

incredibly beneficial to the company

 in terms of increasing its sales and

earnings in the future.

PESTLE Analysis:

Several factors, the bulk of which are of external origin, are identified, examined, and

evaluated in this aspect, and Tesco's Pestel analysis has been done in detail below—

Political – This part discusses the consequences of Brexit for legislation and how it will

affect the firm as a result of the uncertainty that has surrounded the referendum.

Economic--In order to trade in essential services, Tesco is subjected to considerable swings

in the exchange rate, which have a detrimental influence on the company's financial

performance.

Social--In response to a movement in fashion and choice, customers' tastes and preferences

are evolving toward products and services that are more environmentally friendly. A

manifestation of this is found in the social component of the company (Radović-Marković,

2019).

Technological--With regard to technological advancements, the usage of upgraded and

newer forms of technology is becoming more prevalent, and the corporation Tesco

manufactures its products using the most up-to-date technology currently available on the

market.

Environmental—It has made tremendous progress in lowering its carbon emissions and

carbon footprints, which has shown to be extremely beneficial to the organisation in the long

run.
Legal-- When it comes to legal considerations, there are rigorous restrictions for the

operation of the company, and this has a negative impact on the Tesco company because it

makes the company's operations more difficult.

The identification and evaluation of the influence of the SWOT analysis on the

marketing and financial aspects of a firm are two of the most important tasks in this

process.

Each of the following areas of a company's marketing and financial operations is discussed in

greater detail below:

Marketing— Marketing has shown to be the most successful strategy for the company over

the long term since it employs a variety of marketing techniques and executes them in a

precise manner, which has resulted in greater profitability and growth for the company. Some

of the approaches that the corporation utilises to market its products and services include

advertisements, billboards, direct marketing, and other marketing techniques. In order to raise

the market value of the organisation, a firm employs practically all of the marketing tactics

available to it.

Finance- The financial health of the company is one of the most essential parts of the

company because it is a company that has been in operation for a long length of time and as a

result has developed a large and loyal client following. A high market value has resulted as a

result, and as a result, the company has favourable financial standing when compared to other

competitors in the same industry. As a result, Furthermore, because of the large market value

of the company, it becomes relatively straightforward for the company to produce additional

firms as and when they are required (Sinha, 2020).

Conclusion:

A worldwide business climate is critical for a firm's global expansion in today's globe. As a

result of the foregoing, it can be concluded that Tesco possesses a plethora of strengths and

opportunities in the market, but also a plethora of vulnerabilities and threats. Additionally,

numerous external factors have an effect on the firm's functioning directly or indirectly, and

so the firm must make the necessary steps to identify and correct any business problems as

soon as feasible. Additionally, a SWOT analysis can be used to determine management and

financial situations, as well as their impact on the organisation.

References:

Benzaghta, M. A. e. a., 2021. SWOT analysis applications: An integrative literature review.".

Journal of Global Business Insights 6.1 .

Harger, S., 2021. Meeting the challenges of sustainability in global supply chains with a

special reference to conflict minerals.. Diss. Hochschule für Angewandte Wissenschaften

Hamburg, .

Nandonde, F. A., 2019. "A PESTLE analysis of international retailing in the East African

Community. Global Business and Organizational Excellence 38.4 .

Radović-Marković, M. A. S. a. S. V., 2019. "Selection of organization models and creation of

competences of the employed people for the sake of competitiveness growth in global

business environment.". International Review 1-2 .

Sinha, R. M. S. a. C. K., 2020. SWOT: Strength, weaknesses, opportunities, and threats for

scaling agile methods in global software development.". Proceedings of the 13th innovations

in software engineering conference on formerly known as India software engineering

conference. .