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    Identify Internal Business Environment Factors - Tesco

    University: Bloomsbury Institute london

    • Unit No: 6
    • Level: High school
    • Pages: 10 / Words 2523
    • Paper Type: Essay
    • Course Code: LSBM103
    • Downloads: 310
    Question :

    This assessment will cover the following questions:

    • Generate micro and macro environmental influences that affect the working of the Tesco organization.
    • Identify and explain strategic tools in the evaluation of the internal business environment.
    • Tesco is a supermarket selling food and daily use items. Reflect on the theory of how forces in the microenvironment shape business performance.
    Answer :


    Business environment is the system which I integrated with many business environmental factors which help the business organization to increase its efficiency and provide the quality of the business organization. All the internal and external factors are combined to form, the business environment so that they can ensure the efficiency of the business organization. The analysis of these factors help the business environment to expand its operations and increase its productivity effectively. The business environment consists of different activities which will also help the organization to provide a healthy relationship with the economy and also grow the economy rapidly. The business environment top determines the effective business functions to archive the objectives of the business organization and gain the market share to grow the business more effectively. This report has a bride study about the internal and external factors of Tesco plc. The report has an analysis of what are the various factors which will help the company to increase its efficiency and become more successful in the market.

    Value Chain Analysis of Tesco

    Tesco analyzed the importance to increase the efficiency of the business by analyzing the value of each and every activity which the company is operating which will help the company to segment the issues and problems and also solve them effectively (Prajogo, 2016). The value chain analysis is adopted in the company as it helped the company to understand the quality of each stage and also increase its efficiency which will contribute in the overall growth of the company. This will help Tesco to create the competitive analysis of the competitors to increase the market share (Hillary, 2017).

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    Primary Activities

    1. Inbound Logistics- Tesco have a very complex inbound logistics system and also need to understand all the factors In these activities to provide proper resources and achieve the efficiency in the operations. Tesco have adopted the Large economy of Scale as it creates huge value for their products and services. Tesco reinvest the profits in the logistics to increase the production scale size of the logistics (Teece, 2016). The company have to innovate the logistics to provide enough space to trans[port the goods to different place and decrease the cost.
    2. Operations- Tesco also have focused on the operation of the company like retail, manufacturing units of goods as the company is retail giant and also need to improve the quality of their products to attract more customers to the company. Banking is all the segmented operation which the company have to focus on in order to evaluate the efficiency of the company and provide with the better quality of the company.
    3. Outbound Logistics- Tesco have to focus on the delivery of the goods and the services I the such a way that it will decrease the cost of the products. The company have also introduced many fast delivery option to the customers and also at very less process which attract the customers and also helped to provide the products directly from the company so that company can provide their services to the customers and increase the satisfaction of them (Cepel and et.al., 2018).
    4. Marketing and sales- Marketing is the very important aspect of the company as it focuses on the customer satisfaction ad also help the customers to provide the product value by communicating it to the customers in a very innovative way by which the customer are willing to pay the prises and also develop the desire to purchase the products from the stores.
    5. Service- Tesco have developed the strategy to provide the after sales services to the customers as it also help the company to increase the customer retention and customer loyalty in the company (Lee, 2017). The company also adopted many leadership strategies and management styles which helped the company to maintain the services quality and also increase the satisfaction of the customers. This helped the company to achieve the efficiency and attain the objectives to increase the profitability and improve the goodwill in the market.

    You Can Also More About the: Value Chain Analysis for McDonald's

    Secondary Activities

    1. Firm Infrastructure- Tesco have the infrastructural design which helped the company to maintain its efficiency and also manage all the employees to become more potential I the company. The infrastructure also help the company to attain the quality and financial aspects of the company (Dolan, Conduit and Fahy, 2015).
    2. Human Resource Management- The Human resources are the very important aspect of the company as the Retail stores need to have the human resources to interact and also help them provide the better knowledge about the products and services that will also help the company to increase the sales ad also make the customers loyal to the company. The human resources management of Tesco also involvement the effective training and selection of the employees which have the potential to be the company.
    3. Technology Development- Tesco also have to increase the ability to analyse the new technology in the market as it helps the company operation to decrease the cost and increase the profitability of the company. The technology development will also help the company to increase the customer attraction as the new technology also help the customers to increase the satisfaction level (Hamilton and Webster, 2018).
    4. Procurement- it is the very essential factor of the company as the procurement is the purchases of the goods and services of the company which can help the company top decrease the cost and also increase the quality of products.

    Internal Environment Analysis of Tesco

    Tesco have determined and adopted an analysis tool by which it can understand all the internal factors which provide growth to the company and it can also help the company to motivate the employees to work in the company and increase their performance to achieve the objectives and maintain the position of the company in the market (Althouse, Allan and Hartt, 2016). The internal analysis of the company will also help the company to provide a better understanding of the resources of the company so that they can increase the efficiency of the resources by adopting new strategies and implementing effective techniques as the internal factor of the company can be controlled by the company and it can also be change to improve the outcome according to the will of the company.


    1. Tesco have a strong network of the retail stores in UK which help the company to achieve the objectives as the company have a high goodwill and brand name in the market (Ledgerwood, 2017).
    2. The company also have the highest share of the market as the company have increased its techniques and strategies which attracted many customers and it is now the leader of the market with more than 25% shares of market coverage.
    3. The company have established its stores in very effective locations which can attract their maximum customers and also increase the sales of the company. Tesco also have the effective strategies which will increase the satisfaction of the customers and make the loyal to the company t increase the sales of the company and become more efficient by gathering information from the customers to improve the quality of the products and services.
    4. The company also have product differentiation in the market so that they can attract all segments of the customers at various price ranges which are suitable for the income level of the customers (Holotiuk and Beimborn, 2017).
    5. Tesco also have the effective supply chain delivery system which help to provide products and services to the customers so that they can increase the efficiency of the company and make them more effective in receiving the products more sooner.


    1. Inefficient to analysis the new markets and also very poor forecasting techniques as the company have incurred huge loses investing in the new market to establish its base ad increase the sales of the retail stores.
    2. The employees of the company are also not having ethical values as the company have also convicted of an accounting scandal in the past as it the employee were not true with their work and by which the company have to suffer and also pay the penalties and huge amount's they have forged the original values (Ruël and Wolters, 2016).
    3. The company is also not efficient in providing the customer loyalty and after services as many customers switched the company as the Tesco do not fulfill the promises as they have done to the customers.


    1. The company have the opportunity to increase its business by opening new brand and also increasing the customers need and wants to buy those products and services. The company have also established a new store which provide discount to the customers.
    2. The company ls have the opportunity to establish the online store which will increase the customer's satisfaction as the new trends are the customers are mostly busy with work and o nit prefer to go tut but the products so the company can provide the products at their doorstep and also increase the satisfaction of the customers (Abdullahi and Zainol, 2016).
    3. Tesco have the opportunity to develop anew market with the existing products as the retail stores have the demand in the Asian markets so the company have the effectively design the products so that they can make the use of all the factors to increase the quality of the products and services in the new market.


    1. The company also have the threat to lose the efficiency and trust of the customers as the products can hurt the sentiments of the customers which can also decrease the sales of the company and impact the revenue generation of the company very adversely (Chukhray and Mrykhina, 2018).
    2. Brexit can also impact the growth of the company as after the Brexit the market will be unstable and all the customers will be confused and all the investors hill withdraw the investments from the company.
    3. The competitors in the market can also increase the threat of the company as the new rival also have the innovative ideas which can attract the customers and also decrease the efficiency of Tesco.


    From the Value chain analysis of Tesco I have learned that it is very important for there company to increase its productivity and as I have understood it also helps the company to deliver to products and services by fulfilling the gaps of the company. The value chain analysis a have helped me to analyze the important factors of the company like internal and external factors as these factors are very much responsible to form a business environment of the company (Escaleras and Chiang, 2017). I also learned that value chain analysis help the company to increase the value of each and every function of the company by evaluating them separately and also making the effective strategies which will help the company to maintain the quality of the company. This also help them to make my in understanding that it can help the customers to like the company as the company will make the strategies which are based on the customers needs and behavioral patterns as this will also help the company to increase the sales of the products and services. The internal and external analysis of the company showed me the factors which can help the company to increase the efficiency to by formulating and implementing the strategies which are related to the wants and needs of the customers, as I have learned that Tesco have focused on the customers value creation and satisfaction of the customer (Komljenovic, Loiselle and Kumral, 2017).


    This report had a brief information about the value chain analysis of Tesco plc as it had increased the profits and sales with the help of this analysis. This had provided an information to the company about all the operations which are done by the company and also set the effective standard to increase the performance of all stages which were the analysis. Tesco as a retail giant had to evaluate the internal factors which helped the company to improve the internal efficiency and formulate the better output of to achieve the objectives of the company and increase the profitability.

    Students Also Look For More Samples From the Business and Business Environment Category 


    Books and Journals

    Abdullahi, A.I. and Zainol, F.A., 2016. The impact of socio-cultural business environment on entrepreneurial intention: A conceptual approach. International Journal of Academic Research in Business and Social Sciences. 6(2). pp.80-94.

    Althouse, N., Allan, L.A. and Hartt, C.M., 2016. The Future of Business. Nelson Education.

    Cepel, M and et.al., 2018. Business environment quality index in the SME segment. Journal of Competitiveness. 10(2). p.21.

    Chukhray, N.I. and Mrykhina, O.B., 2018. Theoretical and methodological basis for technology transfer from universities to the business environment. Problems and Perspectives in Management. 16(1). p.399.

    Dolan, R., Conduit, J. and Fahy, J., 2015. Social media engagement: A construct of positively and negatively valenced engagement behaviours. In Customer Engagement(pp. 120-141). Routledge.

    Escaleras, M. and Chiang, E.P., 2017. Fiscal decentralization and institutional quality on the business environment. Economics Letters. 159. pp.161-163.

    Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University Press.

    Hillary, R., 2017. Small and medium-sized enterprises and the environment: business imperatives. Routledge.

    Holotiuk, F. and Beimborn, D., 2017. Critical success factors of digital business strategy.

    Ledgerwood, G., 2017. Greening the boardroom: Corporate governance and business sustainability. Routledge.

    Lee, I. ed., 2017. The Internet of Things in the Modern Business Environment. IGI Global.

    Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in delivering business performance. International Journal of Production Economics. 171. pp.241-249.

    Ruël, H.J. and Wolters, T., 2016. Business diplomacy. The SAGE handbook of diplomacy.

    Teece, D.J., 2016. Business ecosystem. The Palgrave Encyclopedia of Strategic Management, pp.1-4.

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