Global Business Environment


The global business environment refers to the environment in various nations along with factors exogenous to the host surroundings of an organization that mainly impact the decision making on resource used and capabilities. The report is based on considering a SWOT analysis and also examines the ways through which main key drivers can directly impact two functions of TESCO that includes Marketing and Finance.

SWOT analysis

It is that method that is used to assesses and evaluates four factors of the business operation. SWOT analysis stands for strength, weakness, opportunity, and threats. This is a simple and easy tool that can help in minimizing the risk and problems arising in business functions. In below, swot analysis of Tesco is described:

Strength: Tesco is the leading grocery retail store and it is one of the most famous supermarkets in the UK. This has the biggest sales and income as compared to other grocery supermarket stores (Brenner, 2018). The market share of Tesco is around 27% and it is currently becoming the most popular retail market in Ireland. There are approximately 6800 stores in 14 nations and they have established stores in different countries such as North America, Europe and so more. Tesco uses the best technology and latest equipment which helps them in developing business growth and success in the overall UK market area.

Weaknesses: The main weakness of Tesco is that the company has failed to export business operations in Japan. In 2017, Tesco was charged with fees due to the false accounting announcement and falsification of income. Tesco is the major price leader in the United Kingdom marketplace; the low-cost strategy can lead to reduces income margins. The company face issue of finance-related in which they do not properly manage the accounting systems (Doh, et. al., 2016). Besides this, Tesco does not carry out accurate market research before entering in the new market place.

Opportunities: Tesco can expand their business operations and stores in different emerging countries where it can easily gain a high amount of profitability and revenue by attracting a large number of customers. An organization can avail the main opportunity by updating and growing its online shopping business operations and home delivery facilities (Groşanu, et. al., 2015). Tesco can also formulate strategic partnerships along with reputed firms that can provide excellent chances for growth and gain success. It will allow Tesco to provides a large number of goods and attract desired buyers as well.

Threats: The main threats which are faced by Tesco that is the high level of competition in the market and are creating risk in increasing the income of the firm. The major rivals are Wal-Mart, ALDI, ASDA, and many more that are generate huge risks (Oh, et. al., 2017).

Two functions of the firm

Tesco performs work in different functional areas such as marketing, operations, R&D, finance, and HRM that can impact the key drivers of pestle analysis. The marketing functional area can have an impact on the key drivers like social, political, and environmental drivers as per their connection in the marketing terms of the company and its promotional strategies for the providing of products and services for the customers. The marketing is based on the social aspects as the society is the major customers of the company which can be impacted due to the effects of the political and environmental factors of the products and services (Peng, 2018). The marketing function of the company is involved in the promotion and publicizing of the products and services in front of the society which is impacted by the effect of the products on the environment and other factors of the society. The products and services need to be compromising with the key drivers like social, environmental, and political factors which can impact the firms’ marketing functional area and the growth and development of the company can be restricted. These are very important key drivers that are effortful for the improvement and impact on the distribution of the products and services of the company. The key drivers need to be involved in the whole process of marketing for the Tesco Company as they can impact the functioning of marketing for the products and services of the company which is important for the growth and development of the company.
The finance functional area is can have the impact from the technological, and economic key drivers as the financial situation of the company can be destabilized due to the impact of the change in technologies used in the company such as electronic payment methods or electronic/ biometric attendance systems can increase the costs of the financial status of the company (Tallman, et. al., 2018). The economic key drivers are very important and impactful for the financial functioning of the Tesco Company as the products and services economic conditions increase the finance of the overall company which is very impactful for the company. The economic and technological key drivers impact on the overall performance factor of the company in which the financial functional area will be targeted due to the increase in the applied costs for the production of products and services for the customers of the firm and usage of enhanced and advanced technology in the firm’s various functional areas such as the payment processes and research development process of the firm. The Tesco Company can have the various impact on the finance functional area in which the factors like technology and economic key driver plays an important role for the enhancement of the products and services for the customers in all over the world with a high level of demands (Tirawatnapong, et. al., 2018). The Tesco Company has various impacts on the variety of functional areas by the key drivers of the pestle analysis. The products and services demand will be increased in the market as per the increased technological usage by the firm.


Based on the above-described report, it is concluded that Swot analysis helps in identifying internal risk which may create negative influences on the business operations. Along with this, two firm functions have been selected and these are related to the identified key drivers.


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