Tesco External Factors

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Business of the organization is affected by many factors. There are some internal and external factors influencing the business. There are many internal and external factors affecting the business environment. Internal factors are related to the SWOT analysis whereas the PESTLE analysis is used to measure the external factors affecting the business. These factors includes
• Political
• Economical
• Sociological
• Technological
• Legal
• Environmental

JLR has a choice to start a setup in the china; the political situation of china is quite stable, which is a good sign for a business. Political condition of the state has a huge impact on the business environment and performance.
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Every stake holders has its own needs and demands from the organization. Every stakeholder which are directly attached to the company requires the information as it required and his role. These are the persons, groups or other company which have legitimate interest in the company and its functions. These persons or the group directly or indirectly communicate with the company.
Stake holder analysis is done below to understand the needs and demands of the stakeholders.

Companies succeed if their strategies are appropriate for their circumstances they face, feasible in respect of their resources, skills and capabilities and desirable to their important stakeholders-those individuals and groups, both internal and external, who have a stake in the behaviour. or expectations of the organization’s performance and fluencies over the business. They include employees, managers, shareholders, suppliers, customers or clients, trade unions and the communities local and national in which the organisation operates. Companies fail when their strategies are failed to meet the expectations of these stakeholders or produce outcomes which are undesirable to them. So it needs to consider all implications of a shift in strategy, not simply the effect a specific stakeholders
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The foreign policies of China are also very favorable for the foreign investors.

Technological factor:
In technology it is hard to compete with the China in any industry. China is on the top to provide most advance technology equipments to the world at economic prices. So Tesco can have the chance to implement the better and fast technology in the retail supermarket.


There are two main kinds of tools which can be used to evaluate the business plan of the organization. These tools are SWOT analysis and BCG analysis.

The appropriate tools of analyzing the current business plan are to do SWOT analysis and BCG Matrix analysis for Tesco. SWOT analysis is to know what Strength, Weakness, Opportunities and Threats Tesco have in order to run the current business. BCG matrix analysis helps Tesco to develop appropriate strategies for each product.

SWOT Analysis:

• It is one of the retail supermarket giant with more than 5000 stores
• It has good market position and financially strong organization
• It has a history of nearly a century in servicing

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