In this task, I will describe the impact of international factors on Tesco in
reference to the given case studies.
Businesses can be affected by international factors such as political,
economic, social, technological, legal… Thereby it is of vital importance
that Tesco understands these factors while developing business strategies
in order to operate effectively, given that it is a global business and
operates in more than 12 countries worldwide.
Moreover, in addition to having to deal with potential competitors, Tesco
could also face challenges in the external environment. For instance, to
begin with, changes in government through elections can significantly
influence the operation of a business and its strategies as it could mean
that new rules and regulations would be introduced and implemented.
Also, companies operating in the European Union would have to adopt the
rules which are set by the EU and this can affect the spending power of
potential consumers and influence sales levels. Therefore, a vital
international factors that can affect Tesco is the stability of the political
environment and government policies regarding the economy. Political
uncertainty can lead to a fall in investment and affect Tesco’s decision to
expand or venture further.
Economic factors such as the rate of economic growth can also affect
Tesco as it will influence the level of demands for its goods and services.
As such, aspects involving changes in the global economy could have both
its pros and cons for businesses. For example, a rise in the standard of
living would in turn lead to an increase in demand of consumers’ wants,
which thus increases Tesco’s opportunity to make profit. In other words, a
rise in case of a rise in demand on behalf of consumers, prices of products
will also rise as a consequence.
On the other hand, a decline in demand would alternatively cause prices
to fall and therefore Tesco and other businesses would have to develop
business strategies to manage processes while keeping these possible
fluctuations in mind. Other factors include variations in wage levels,
interest rates and the rate of inflation. For instance, if the interest levels
are low, then consumers would also be borrowing more from banks and as
a result, they will be able to afford more and satisfy both their needs and
wants. Therefore, this might be the appropriate time for Tesco and other
profit-making businesses to take risks, expand, and increase their
productivity.
Changes in social structures can also affect businesses as they will have
to adapt their business activities accordingly in order to meet expected
standards. Being a global business, Tesco would have to ensure that its
reference to the given case studies.
Businesses can be affected by international factors such as political,
economic, social, technological, legal… Thereby it is of vital importance
that Tesco understands these factors while developing business strategies
in order to operate effectively, given that it is a global business and
operates in more than 12 countries worldwide.
Moreover, in addition to having to deal with potential competitors, Tesco
could also face challenges in the external environment. For instance, to
begin with, changes in government through elections can significantly
influence the operation of a business and its strategies as it could mean
that new rules and regulations would be introduced and implemented.
Also, companies operating in the European Union would have to adopt the
rules which are set by the EU and this can affect the spending power of
potential consumers and influence sales levels. Therefore, a vital
international factors that can affect Tesco is the stability of the political
environment and government policies regarding the economy. Political
uncertainty can lead to a fall in investment and affect Tesco’s decision to
expand or venture further.
Economic factors such as the rate of economic growth can also affect
Tesco as it will influence the level of demands for its goods and services.
As such, aspects involving changes in the global economy could have both
its pros and cons for businesses. For example, a rise in the standard of
living would in turn lead to an increase in demand of consumers’ wants,
which thus increases Tesco’s opportunity to make profit. In other words, a
rise in case of a rise in demand on behalf of consumers, prices of products
will also rise as a consequence.
On the other hand, a decline in demand would alternatively cause prices
to fall and therefore Tesco and other businesses would have to develop
business strategies to manage processes while keeping these possible
fluctuations in mind. Other factors include variations in wage levels,
interest rates and the rate of inflation. For instance, if the interest levels
are low, then consumers would also be borrowing more from banks and as
a result, they will be able to afford more and satisfy both their needs and
wants. Therefore, this might be the appropriate time for Tesco and other
profit-making businesses to take risks, expand, and increase their
productivity.
Changes in social structures can also affect businesses as they will have
to adapt their business activities accordingly in order to meet expected
standards. Being a global business, Tesco would have to ensure that its
