UNIT 1 BUSINESS ENVIRONMENT

Unit 1 Business Environment



Unit 1 Business Environment

Task 1.1

Tesco is the world's largest corporation and many people are familiar with their business and service. This corporation offers everything a person needs at a discounted price. This company is based in Arkansas town and it is known as the largest provider of employment in United States. Political economy deals with studying the buying, selling, production and distribution and its relation with government laws. It also deals with distribution of wealth and national income. Political economy reveals the conditions and causes of the origin, evolution and change of forms of social production. Tesco global casts a shadow over the lives of hundreds of millions of people entering a supermarket or not. Working with 405 000 million in sales last fiscal year. Tesco focuses on reducing costs, that their actions influence our landscape, work, income distribution, consumption patterns, transport and communication, politics and culture, and organization of industries from retail to manufacturing, from California to China (Sarah, 2011). The paper discusses various employment and other problems created in the economy affecting it in a negative way. The paper also highlights various weak points of Tesco. The paper also focuses how Tesco is destroying competitor's businesses and abusing employees and labor in other countries (Tesco, 2012).

Task 1.2

Their focus on providing world class quality to its customers along with offering the most economical prices makes them a world leader in the market. When customers know that they will get the best possible price along with high class quality products, they would not go anywhere else. The nature of Tesco's products has been standardized. Many world Class Organizations are selling their products through Tesco. There is an attraction for Multinational Organizations as well (Thompson, 2010).

Task 1.3

When it started operations, it was the first company to offer its customers all products under one roof. The focus of Tesco has been to provide its customers with world class quality at the lowest price. Sustaining the competitive advantage is a vital factor for Organizations. Tesco based its competitive advantage on offering low price to its customers (Tesco, 2012).

When we look at the competition, it becomes notable that Tesco has been able to satisfy its customers on a regular basis. Their focus on felicitating the customer has reaped beneficial results. Tesco has based its processes to felicitate the customers. The main factor for any customer is the affordability factor. Tesco offers economical prices in order to attract and retain its loyal customers.

Task 2.1

There has been growing competition between Tesco and Amazon in E-Commerce. Their competition has been taking the nature of intense competition. Suppliers are beginning to realize that the competition between Tesco and Amazon has been growing at a rapid pace.

As far as growth is concerned until recently, Amazon has been the winner. Tesco realizes the threat posed by Amazon in the packaged goods, that's why it has looked to deal with it defensively. Since Amazon has been adopting an aggressive strategy, ...