The economic aspect of an organisation can be illustrated by the economic environment by investigating the business cycle such as growth, inflation, employment and international trade. The management system of Tesco has great concern about the economic environment as it is very significant to influence the entire process of the cost of the product, demand, profit and price of the product. The economic arrangement creates a great impact on the suitable allocation of the respective resources as per the suitability of the corporation. Tesco is the UK’s largest and most resourceful supermarket chain corporation on a global market. Tesco is an international brand, which can be easily understood by its expansion on the global platform.
These factors include population growth, age distribution, health awareness, occupational attitudes and so forth. These factors are particularly important because they have a direct impact on how the company understands customers and what drives them. Technological factors : How quickly the technology landscape changes and how it affects the way we market our products. Technological factors affect marketing and management in three distinct ways: New ways to produce goods and services New ways to distribute goods and services New ways to connect with target markets Environmental factors These factors have become important because of the increasing scarcity of raw materials, pollution targets, and business as a moral and sustainable company. These are just some of the issues facing the company.
Internal market factors refer to variables within the organization that affect the internal business environment and ultimately affect the functioning and success of the organization. The essential key success for companies is to control the internal and external factors of the market. The company has the potential to control internal factors that arise within the company. Commonly, company management, employee strength and financial stability are part of internal factors. The company 's organization, leadership, structure, Internet connection and system error are very important for a stable business environment.
Tesco’s way of Human Resource Planning is based around many issues relating to the organisation; such as to increase profits, to improve the service they provide and to become more competitive and grow their market share in the retailing industry. Internal planning factors mean things going on inside the organisation which will impact on the human resource requirements in terms of numbers and skills required. An example of an internal factor would be organisational needs. Organisations are constantly changing and their human resources need to be able to adapt. The demand for products will affect the number of employees needed in certain roles.
Domestic talent programs may be considered to be global in the sense that candidate pools are becoming increasingly diverse and multilingual. It seems that the demand for cross - cultural talent assessment has reached a tipping point in domestic staffing operations. The globalization of business, increasing diversity within labour markets, and the continued quest for talent combine to heighten the need for cross - cultural talent acquisition and management programs. The term “culture” can be defined in different ways, we use it here to represent the broad set of customs, conventions, language, and beliefs that are predominant in a region. Global talent assessment program or a domestic program are faced with the challenge of ensuring business
External Analysis: Microenvironment Introduction The two major competitive factors controlling the external environment are the Macro and the Micro environments. While the Macro deals with the PESTLE affects, the Micro environment deals with the current structure of the industry and the effect of the roles played by the giants of the industry. Figure A-1 The Microenvironment includes the effect of rivalry, suppliers, buyers, distributors and the general public towards the strategy formulation by the company. These factors are a big game changer towards the success and failure of a particular organization. These factors can be further evaluated using the widely used industry analysis approach, Porter’s Five Forces Model.
In fact, a proper understanding of these factors helps organizations to identify potential business opportunities and threats in the international market (Baines et al., 2011). Huawei, being a multinational company is affected by the external business environment. As such the impact of the external business environment factors on Huawei’s marketing strategy are explained by the PESTEL Model as follows: 1. Political Factors Political factors include laws and legislations which are of great importance due to the fact that they enclose many aspects of a company policy. Through regulatory bodies, the government implements policies that affect businesses in various ways (Vrontis and Pavlou, 2008).
The Economic factors are determinants of an economy’s performance that directly impacts a company. These factors include inflation rates, interest rates, exchange rates and economic growth. These affect how businesses operate and make decisions. The economic climate in the country is of major concern to every company as it has impacts on the business and consumer spending. For example, the exchange rates can affect the costs of the supply and price of imported goods and exporting goods in an economy.
High-experienced immigration incorporates to the economy which in turn might raise the rate of innovation in the U.S. industries. The third system is by changing sales costs. Immigration expands the international conveyance of data, which might transform the cost of conducting business abroad for U.S. companies alongside with the cost to foreign companies of performing business in the United States. It is worth mentioning that a theoretical pattern that integrates each of these systems into a worldwide common symmetry setting was outlined (Hanson
Political environment includes laws, government agencies, and pressure group that influence and limit various organizations and individuals in a given society. Economic environment consists of economic factors that affect consumer purchasing power and spending patterns. Social factors include the demographic and cultural aspects of the external macro environment. In which demography is the study of human population in terms of size, density, location, age, gender, race, occupation, and other statistics; cutural environment consist of institution of other forces that affect society’s basic values, perceptions, preferences, and behaviors. Therefore, these factors have an impact on customer’s needs and size of potential markets.