BUSINESS STUDIES

Business studies

Business studies

Introduction

The report presented below discusses the business analysis of the company name, Tesco. In according to conduct business analysis of the company, there are several factors which need to be considered. To analyze a business, the foremost requirement is to analyze the internal behavior and the external behavior of the company. The internal evaluation is known as the SWOT analysis and the external analysis is presented in the Pest Analysis of the company.

Tesco

Tesco PLC is one the leading grocery and food retailers in the World. The company operates in 12 countries across North America, Asia and Europe. The headquarters is located at in Hertfordshire. The company employs around 492,500 people. The company operates through store formats in retailing business ranging from small retail stores to large hypermarkets.

PEST Analysis

The PEST analysis is a strategic tool used to analyze the macro-external environment in which a company operates. The PEST factors play an important role in the opportunities for value creation strategy. However they are usually beyond the control of the company and should normally be regarded as threats or opportunities.

Political Condition

The political condition has a direct effect on TESCO. This is because; lack of political stability means riots and miss happenings in the state. This is not in the favor of TESCO. During riots, the company has a threat of getting their outlets being damaged and destroyed. Apart from this, the political instability will also be affecting the sales of TESCO as les consumers will be willing to purchase goods from the market.

Economic Situation

The economic situation also has a direct impact on the company. As we all know the sales of Tesco is dependent on the purchasing power of the consumers. In an economic recession, where the purchasing power of the consumer have reduced, less people will be buying products thus resulting in low sales for TESCO. Year 2010 saw economic recovery at a slow rate of 1.6%. The recovery continued till 2011. The economic recovery presents new growth potential for food and grocery industry and Tesco is in good financial condition to take advantage of economic expansion.

Social Landscape

One major challenge in social landscape is the efficient provision of public services. On one hand, the country is facing fiscal expenditure challenges, and on the other hand it is necessary to provide adequate social welfare services. Another social challenge is aging population in Britain. In order to tackle this situation, government implemented managed migration policy. Managed migration may pose some issues for companies at migrated people provide source of low skilled workforce. There are little challenges for Tesco on social scale (McTaggart 2006, pp.8).



Technological Situation

Technological landscape in the UK is very competitive. The most useful technology for Tesco is the growth in the usage of websites and online purchasing. The company has taken advantage of this technological trend and delivered products through their official website, www.tesco.com.

SWOT

SWOT-analysis - a method of strategic planning is used to estimate the factors and phenomena that affect the project or ...