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Unit 1; features contributing to the success of contrasting business
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Features contributing to the success of contrasting businesses. Distinction
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IntroductionIn this report I will be focusing on a large UK business that often trades in the EU. I’ll be
researching the environments in which my chosen business operates in. Two of the many
environments I will be reporting about are the external environment which includes political
and economic effects on the business, the second environment is internal environment and
including corporate culture and corporate social reasonability.
Furthermore, my chosen business is Tesco, a Public Limited Company, it is the leading brand
in the grocery chain supermarket and merchandising with being the market leader for the
recent years. The company was founded by John Edwards in 1919, the first Tesco store
opened in 1031, John’s business grew massively, and had over 100 shops throughout the
country within the next decade. In 2019, Tesco has a £14.3bn market capitalisation which
made Tesco PLC the 26th largest corporation, the 77th largest corporation in the terms of its
sales and the 632nd largest in the world.
P4: Discuss the internal, external and competitive environment on a
given organisation.
Internal Environment
The internal environment is a part of the business environment that is made up of
numerous elements found inside the organisation that can influence or be influenced by the
organization's choices, activities, and decisions. Climate, culture, machines/equipment, work
and work processes, members, management, and management approaches are all part of it.
In several other terms, the internal environment refers to the culture, people, events, and
elements that have the power to affect an organization's decisions, particularly its human
resource behaviour. All those who are directly or indirectly associated to the organisation,
such as the owner, shareholders, managing director, board of directors, employees, and so
on, are referred to as members.
A question often asked is how a business can control its internal environment, and the
answer is quite simple with these factors a business such as Tesco can control so it can
create the desired culture. Tesco can do this by creating a good reputation, that attracts
customers which then leads to an increase in revenue, by doing this Tesco increases its
profits. Also, Tesco can also control its internal environment by making Tesco a fun and safe
environment to work in. Through doing this Tesco can attract customers as customer prefer
to shop at a company that is kind to its staff as well as, respecting and helping its employees
during difficult times such as Covid-19 pandemic. Last and most important factor is to create
loyal staff, so Tesco can keep a low number of staff turnover as well as, saving money due to
less money being spent on training its new employees. All these factors can help Tesco to
control its internal environment.
,Corporate culture
Firstly, corporate culture is the attitudes and practices that determine how a company's
employees and management interact and handle outside commercial dealings are referred
to as corporate culture. Corporate culture is frequently suggested rather than explicitly
defined, and it emerges organically over time as a result of the cumulative characteristics of
the individuals the firm hires. The dress code, business hours, and office setup all reflect a
company's culture. It’s important for businesses to have corporate culture as employees
care about company culture because their needs and values are aligned with those of their
employers. Staff will be more productive and create stronger relationships with coworkers if
they work in a company where the culture is a good fit.
One of the many advantages of a company like Tesco to provide a clearly defined,
successful, inclusive corporate culture is that the company has an enhanced ability to attract
top talent as when it comes to attracting and hiring the top job candidates, first impressions
are crucial. According to 78 percent of candidates, the hiring process reveals how a
company regards its employees. They are also attracted to workplaces that have clearly
defined values and a strong sense of purpose. Employee ratings on websites like LinkedIn
are one way for jobseekers to find out if potential employers offer this type of environment
these days. Candidates will notice if your company culture is not conducive to showing
employees that they are valued, and vice versa.
Another clear advantage of Tesco to provide a clearly defined, successful, inclusive
corporate culture is that creates a more desirable company image, as even in the digital era,
the power of word-of-mouth should never be underestimated. Your employees' social
circles have expanded beyond their "real-life" networks to include their online groups. As
previously stated, Glassdoor allows anyone interested in working for your company to
browse evaluations from current and former employees. The impact of a company's image
isn't limited to that. Online review platforms such as LinkedIn, Facebook, Google, Yelp, and
others are also used by stakeholders and customers to measure their interest in doing
business with firms. Employees are more likely to speak favorably about your organisation if
your corporate culture is robust.
Corporate culture for Tesco
A large part of internal environment is corporate culture therefore, how does Tesco a
international company focus on its corporate culture. In the center of Tesco attention, it
highlights that no other company focuses on trying hard for customer like Tesco. As a
company it is focused on understanding people customers, employees, and communities
and what important to them, and then attempting to improve those things. It's about
listening to people and communicating with them using all of the resources at its disposal
from Clubcard data to social media and then acting to satisfy their needs by adapting and
innovating.
In addition to this, Tesco focuses on its corporate culture by creating an atmosphere of
everyone treating anyone who has an interest in the business with keeping in mind of
treating others the way that you want to be treated. It understands that building a culture
, of trust and respect for our coworkers is critical to Tesco's success. Colleagues who feel
recognized and appreciated, who have the potential to advance, and who are supported in
their growth as they progress through their careers in the company, are more likely to go
above and beyond for consumers.
Corporate Social Responsibility
Moving on to corporate social responsibility is is a self-regulatory business model that
enables a firm to be socially responsible to itself, its stakeholders, and the general public.
Companies can be aware of their impact on all parts of society. Including economic, social,
and environmental, by exercising corporate social responsibility, also known as corporate
citizenship.
Corporate Social Responsibility for Tesco
Therefore, Tesco offers back to the community through the ‘Tesco community grants. What
the Tesco community grant does is support local good causes that focus on helping children
and families throughout the community. It does this by, helping local schools that need food
for an children’s breakfast club. Or another way that Tesco grants support the community
by giving grants to a voluntary organisation that works with families to run an holiday clubs.
With over 36,000 community projects that Tesco have supported that all focus around
helping to fight hunger, tackle mental health, supporting young people as well as hosting
community events and more. Tesco have an third party to manages and administer the
funding that is given out across the whole UK, also the company who works with Tesco on
its community grants has been working with Greenspace Scotland to support successful
projects in Scotland.
In addition to this, in 2020 and even now Tesco have been supporting communities through
Covid-19 pandemic with a £30 million package of support. In April Tesco had announced a
£30 million package of support for communities dealing with COVID-19 in April 2020. It has
been contributing an additional £15 millions of food to community organisations and food
banks, building on its five-year partnership with FareShare and the Trussell Trust. This is in
addition to the £3 million Tesco already provide each month by redistributing surplus food.
Since 2012, Tesco have donated over 50 million meals to charitable organisations. Through
the first round of donations from its re-designed Bags of Help grants initiative, and its are
supporting the British Red Cross in its critical work, as well as that Tesco have assisting over
4,000 organisations that work with some of society's most disadvantaged people. During
times like this Tesco have partner with SalutetheNHS.org, contributing all of the food for
one million meal boxes for NHS frontline employees.
Furthermore, Tesco have been getting involved in environmental issues over the recent
years. Recently the biggest step Tesco have taken is that it has joined the World Wildlife
Fund with a four-year partnership, to address one of the biggest causes of wildlife loss
which is the global food system. Tesco and WWF have published a plan called the little helps
plan, that was published a year ago, Tesco have created commitments to its customers, the
communities that its serves and the environment. Throughout its partnership Tesco will be
focusing on three key areas; that are helping customers to eat more sustainably and
restoring nature in food production and eliminating food waste.
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