Exploring business activity

Exploring business activity

Exploring business activity
D1

Evaluate how these external factors will influence all the business activities of one of your chosen organisations. What was the impact on business strategy, the business structure, and stakeholders? What was the major impact on the business and why? What future changes would you recommend the business to make in response to these external factors and why?

The business I have chosen to look at is Tesco; the UK’S biggest supermarket.

Environment

Tesco have now stored wind turbines in some stores around the UK; one in Flintshire supermarket Wales. This is a sign that gives evidence Tesco are acting environmentally in helping reduce their carbon footprint; it has announced that by 2020 it wants to reduce it by 50%. This would have an influence because customers would see this help act on climate change.

Economic
With the economy being as it is at present, Tesco are fortunate that they have not been as badly affected as some retailers by the recession. Tesco have branded themselves as selling to everyone and therefore offer a range of products and services from value to finest prices thus appealing to all segments of the market. Even with this recession going on around the world Tesco still is making profits and customers seem to spend money on Tesco because of their price value and goods and services quality.

Competition

This factor is very important because Tesco have to be aware and keep ahead of competitors. Tesco have benefited from this factor because they have kept ahead of competitors and there is a continuing number of new customers and existing customers shopping at the organisation. Tesco has a big reputation and backing of customers and councils that they managed to beat off complaints from competitors to stop the organisation building new stores.

The club card system was a great invention that it was so successful that the organisations competitors such as Sainsbury’s, Iceland all copied it...