Exam (elaborations)
Unit 1 Exploring Business Assignment 2
- Institution
- PEARSON (PEARSON)
Unit 1 - Exploring Business Assignment 2 Unit 1 - Exploring Business Assignment 2
[Show more]
Content preview
lOMoARcPSD|11450120Unit 1: Exploring Business - Assignment 2
Understanding Business (University of Greenwich)
StuDocu is not sponsored or endorsed by any college or university
Downloaded by DJ poppy paps (blackstonepoppymusic@gmail.com)
, lOMoARcPSD|11450120
Unit 1: Exploring Business- Assignment 2
Learning Aim:
C: Explore the environment in which businesses operate
D: Examine business markets
Assessment Title: The Effects of the Environment on a Business
operate
C.P4 – Discuss the Internal, External and Competitive Environment on a Given Business .
I will research a Public Limited Company; I will examine and address the internal external and
competitive environment. I will include a study that discusses these environmental factors in a
company and how the company reacts.
Tesco PLC
Tesco is a PLC Limited Public Company and is the leading brand in the grocery chain
supermarket and merchandising. It is in 12 countries such as Ireland and Thailand.
The company was founded in 1919. The business grew massively and had over 100 shops
throughout the country within the next decade.
Tesco currently has a £ 14.3bn market capitalization as of 2019. Tesco PLC is the 26th largest
corporation, the 77th largest corporation in terms of its sales and the 632nd largest in the
world.
External Environment
External environment has multiple factors on companies and does have a impact. PESTLE
Analysis is used to determine when and why they will succeed
• Political: for example. Tax policies, restrictions on trade, tariffs
• Economic: for example. Economy, interest rates, economic growth, rate of inflation
• Social: for example. Age distribution, language, education, demographic patterns
1
Downloaded by DJ poppy paps (blackstonepoppymusic@gmail.com)
, lOMoARcPSD|11450120
• Technological: e.g. Research and development, the advancement of engineering
• Legal: e.g. Health and safety, laws, regulations for consumers
• Environment: e.g. Recycling, laws, environmental protection, waste
Political
Tesco has highly influenced political and legislative circumstances set on its Quality in its
globalised environment with stores around the world.
Tax Plan was introduced by the government in the UK which had an impact on Tesco. The
Thailand government increased the VAT from 17.5% to 20%. This increased Tesco’s Cost of
sales and affected Tesco a lot. This led to a decrease in revenue and profits for Tesco.
UK Government introduces Fat Tax which effected Tesco. The Fat Tax was introduced to
lower obesity on certain products. However, Tesco did introduce Healthy Food Section
afterwards in the late 2014
Economic
Economic factors do have concern to Tesco PLC, as these are to influence the following:
Product
Cost Demand for Goods
Employment
Pricing Overall
Profits
The economic factors are not in the control of the company and can have unfavorable
effects. However, even if Tesco is predicted to grow bigger and bigger in the UK Food market
any downturn on the food will have Tesco to be affected by it.
Tesco is without a doubt growing significantly. There is an increasing rate of unemployment
with economic recession. Due to this, many people have minimum wages or even access to
disposable income. Hence why Tesco is offering food at lower price at lower quality which
ends up decreasing company's overall profits. the decrease in the workforce is ultimately
hurting the profits and lowering the numbers of dividends that shareholders receive.
Social
Demographic always changes such as ageing population and reduction in home cooking
made United Kingdom retailers concentrate on products and services which contained
added value
Tesco introduced online shopping to focus on elderly and people with mobility issue. Tesco
has gotten very successful doing this.
Social changes have therefore led to trends that have indicated that UK customers having
move forward to bulk shopping or one-time grocery shopping. Therefore, this has led Tesco
put an increase in non-food items in sale in stores as well as the online store platform.
2
Downloaded by DJ poppy paps (blackstonepoppymusic@gmail.com)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller MrsBusiness. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £17.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
52510 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now