Business environment report Essay Example | Topics and Well Written Essays - 2000 words - 3

Business environment report - Essay Example In addition, the company also offers financial and online services across Asia, North America, and Europe. Based on the revenue, it is the third largest retailer in the world behind Carrefour and Wal-Mart, which is the largest. In terms of profit, it surpasses Carrefour to rank only behind Wal-mart. In the UK, its biggest competitors are ASDA and Sainsbury. Tesco’s philosophy is embedded in their desire to expand and grow as is shown by their strategy. Tesco has a consistent and well-established growth strategy that has allowed them to strengthen their core business in the UK, as well as drive their expansion to other markets (Tesco Plc, 2013: p1). This paper will seek to discuss the business environment of Tesco. The business environment analysis will include the micro-economic analysis because it directly impacts the management of the company. A macro-environment analysis will also be essential because it impacts the decisions taken by the management, which will include a PE ST analysis, SWOT analysis, and Porter’s five forces analysis. The paper will also compare Tesco’s financial ratios with those of its biggest UK rival, Sainsbury in order to determine its financial environment and performance. With regards to Tesco’s financial status, the analysis will be made for the period between 2009 and 2011. Finally, the paper will make recommendations as to how Tesco can adapt to the current business environment. Tesco’s Business Environment Analysis Micro Environment factors For Tesco, customers are one of the most important factors of the business. Tesco as an organization gives their customers increased benefits to keep them happy, for example, giving them the best quality and variety of products (Jones et al, 2012: p884). Tesco ensures that they are able to meet the demands of their consumers in an environment where competition is ever increasing, whereas also meeting the expectations of the wider market. Another factor is mate rials, which is important because production and sales at Tesco are directly related to materials. If the material is easily available, the production and sales will increase. Tesco ensures this by storing their material in easily accessible warehouses. Employees are another important micro-environmental factor. Tesco ensures that they have the best staff for them to offer better service to the consumer. Satisfaction of the employees helps to improve the quality of their service and improves their competitiveness (Elearn, 2013: p11). Suppliers are important to Tesco in order to offer competitive service to their customers. Having and maintaining efficient supply chains improves their ability to get orders delivered on time. Getting the material delivered on time has various advantages and it is essential for Tesco to maintain a good supplier-user relationship (Elearn, 2013: p12). The shareholders are an important micro-environmental factor, as well. Great organizations require good relations with their shareholders in order to increase their growth. Tesco gives substantial dividends to their shareholders, whereas also allowing their employees and suppliers to buy company shares. This gives added satisfaction to their suppliers and employees, improving their productivity. Media gives Tesco the ability to achieve top sales and, as such, it is an important micro-environmental factor. It is important to get information on new products and services, as well as