Name: Carolina Ferreira M3 & D2 Unit 1
M3 Assess the effects of the business environment on a given business.
D2 Evaluate the extent to which the business environment affects a given business, using a variety
of situational analysis techniques.
1 Introduction
Tesco’s core purpose and values is to always keep their customers happy and keep having them back
and by bringing with them new customers so that they can keep gaining and increasing their
numbers in their customers.
2 Findings
Using PESTLE situational analysis, I was able to identify that the political factor has the following
impact on Tesco as when the UK went through Brexit there was a less portion of products that Tesco
would sell as everything was imported from the EU. This would influence their internal stakeholders
because as their internal stakeholders are their managers, employees and the owners of Tesco.
Which would affect their day-to-day activities by not having a lot of products to sell they wouldn’t be
able to work and they wouldn’t be able to bring in profit into Tesco. It would then have the following
impact on their external stakeholders as their stakeholders are the customers and suppliers, there
would be less customers coming into Tesco as there is less products in Tesco and there won’t be any
suppliers coming into Tesco as the product that they bring into Tesco isn’t coming in to the country
as most of the products that Tesco sells is imported form the EU. Therefore, affecting their long-term
aspirations because they want to stay the leading retail supermarket. Which would have an
influence on their chances of success (aims and objectives) because as there isn’t any product to sell
there won’t be any revenue income or any profit made.
Using PESTLE situational analysis, I was able to identify that the economical factor has the following
impact on Tesco as when the world went on lockdown due to covid, there was no importing nor any
selling, so Tesco didn’t make any profit. This would influence their internal stakeholders because as
their internal stakeholders are their managers, employees and the owners of Tesco, they need to
have customers in the store so that they can sell and make any sort of profit. Which would affect
their day-to-day activities as it’s impossible for Tesco to make profits if they don’t sell many products
and they can’t work. It would then have the following impact on their external stakeholders as their
stakeholders are the customers and suppliers, there isn't any customers coming into Tesco as there
is less products in Tesco to sell due to having a worldwide lockdown, as there aren't any available
suppliers there won't be any incoming products. The result would be a negative impact on their
long-term goals (aims and objectives) as they desire to remain the leading retail supermarket. Since
there is no product to sell, there will be no revenue or profits. However, this paragraph isn’t as
efficient as the first one since Tesco could survived without any profit for 6 months. This paragraph,
isn’t as significant as the political paragraph, as Tesco can’t do anything with the laws that already
exist and are already set in stone but in this social paragraph, Tesco can p
Using the 5 C’s situational analysis, I was able to identify that the customers have the following
impact on Tesco as they need people to come into the supermarket as they need to keep making
profit, so they need to have their remaining and loyal customers to bring in new people to but their
products and this helps them to make more sales. This would influence their internal stakeholders
because as their internal stakeholders are their managers, employees and the owners of Tesco, due
to the increase in sales the profit will increase leading them internal stakeholders to get bonuses and
gifts which will encourage them to do more work and be more efficient in their job and friendly with
customers to give best customer service. It would then have the following impact on their external
stakeholders as they will be more likely to shop at Tesco due to the customer service and they will
M3 Assess the effects of the business environment on a given business.
D2 Evaluate the extent to which the business environment affects a given business, using a variety
of situational analysis techniques.
1 Introduction
Tesco’s core purpose and values is to always keep their customers happy and keep having them back
and by bringing with them new customers so that they can keep gaining and increasing their
numbers in their customers.
2 Findings
Using PESTLE situational analysis, I was able to identify that the political factor has the following
impact on Tesco as when the UK went through Brexit there was a less portion of products that Tesco
would sell as everything was imported from the EU. This would influence their internal stakeholders
because as their internal stakeholders are their managers, employees and the owners of Tesco.
Which would affect their day-to-day activities by not having a lot of products to sell they wouldn’t be
able to work and they wouldn’t be able to bring in profit into Tesco. It would then have the following
impact on their external stakeholders as their stakeholders are the customers and suppliers, there
would be less customers coming into Tesco as there is less products in Tesco and there won’t be any
suppliers coming into Tesco as the product that they bring into Tesco isn’t coming in to the country
as most of the products that Tesco sells is imported form the EU. Therefore, affecting their long-term
aspirations because they want to stay the leading retail supermarket. Which would have an
influence on their chances of success (aims and objectives) because as there isn’t any product to sell
there won’t be any revenue income or any profit made.
Using PESTLE situational analysis, I was able to identify that the economical factor has the following
impact on Tesco as when the world went on lockdown due to covid, there was no importing nor any
selling, so Tesco didn’t make any profit. This would influence their internal stakeholders because as
their internal stakeholders are their managers, employees and the owners of Tesco, they need to
have customers in the store so that they can sell and make any sort of profit. Which would affect
their day-to-day activities as it’s impossible for Tesco to make profits if they don’t sell many products
and they can’t work. It would then have the following impact on their external stakeholders as their
stakeholders are the customers and suppliers, there isn't any customers coming into Tesco as there
is less products in Tesco to sell due to having a worldwide lockdown, as there aren't any available
suppliers there won't be any incoming products. The result would be a negative impact on their
long-term goals (aims and objectives) as they desire to remain the leading retail supermarket. Since
there is no product to sell, there will be no revenue or profits. However, this paragraph isn’t as
efficient as the first one since Tesco could survived without any profit for 6 months. This paragraph,
isn’t as significant as the political paragraph, as Tesco can’t do anything with the laws that already
exist and are already set in stone but in this social paragraph, Tesco can p
Using the 5 C’s situational analysis, I was able to identify that the customers have the following
impact on Tesco as they need people to come into the supermarket as they need to keep making
profit, so they need to have their remaining and loyal customers to bring in new people to but their
products and this helps them to make more sales. This would influence their internal stakeholders
because as their internal stakeholders are their managers, employees and the owners of Tesco, due
to the increase in sales the profit will increase leading them internal stakeholders to get bonuses and
gifts which will encourage them to do more work and be more efficient in their job and friendly with
customers to give best customer service. It would then have the following impact on their external
stakeholders as they will be more likely to shop at Tesco due to the customer service and they will
