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Business environment - Essay Example

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Business environment

TESCO is an international grocery based industry that is based in the United Kingdom. It has various expansions such as garden centres, personal finance systems, telecoms and selling fuel.
LE-PEST C analysis is an abbreviation of legal, environmental, political, economical, social, technological and competitive analysis. The paper will mainly focus on the analysing how Tesco is influenced by the LE-PEST C external factors to find out how it manages to be competitive and open more branches world wide. Tesco has proved that it is ready to ensure that its customers receive the best services and acquire the products they need at the right time and place. It is also interested in making super profits that will enable its shareholders to benefit in earning higher dividends every year. In addition, it ensures that it follows the current human resource strategies that allow its employees to develop their careers thus improving their performance within the organisation. Over the years, Tesco has maximised in building a very strong relationship with its suppliers to ensure that they do not have problems of delivery. Tesco is characterised by having very many stores world wide and thus has employed very many people as compared to other grocery stores. This is due to its expansion and diversification of offering services to its customers (Nash, 2006, pp. 23-56).

Legal factors
In every economy there has to be a government that makes up laws that definitely affect the way an entity sets its way of business. The legal entity is concerned in setting marketing standards like prices, distribution strategies of particular goods, how to treat employees and sometimes where to set up a market or an enterprise. The legal sector can either reduce or increase the competitive nature of a company. The British government has set strict rules on how different entities can deal with food and drinks products which highly affects the Tesco supermarket. The laws that have been set affect the packaging and labelling of the products. This is so because the products are perishable and they are consumed by very many people thus a small mistake in packaging and labelling can lead to numerous deaths which are against the objectives of the government; to protect the general public. It is right for the goods to be packaged well to avoid contamination and moreover, the labelling will allow the consumer to know the expiring date of a product, the ingredients of a product and if it is a counterfeit good or an original good. The laws have made the production costs to increase thus the price of the products have to increase. It has posed a great challenge to Tesco as it had to increase the retail prices thus threatened consumers to look for other options. Moreover, the banking sector of Tesco has been able to deal with the strict government laws made to protect the general public from being exploited by the banks. Royal bank of Scotland had a joint venture with the Tesco Personal Finance system thus it has enabled the Tesco company to deal with the strict banking laws as the have a half-half share. The share in costs makes Tesco to half the burden thus enable it to make more profit and to be stable. This has seen the company making a profit of 130 million in February 2007. By making such profits, the Tesco Company is expected to have bought the Royal Bank of Scotland (Nash, ...Show more

Summary

For any company to succeed in attaining its objectives and goals, it is very important for it to have information on the internal and external factors that affect its achievements. These will enable the company to be aware of the immediate changes like technology and thus be ready to face the problems…
Author : marcdibbert
Business environment Essay essay example
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