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Unit 1- Business and Business Environment

Introduction - Business and Business Environment

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This particular study includes a detailed description of the business and the business environment of TESCO and NSPCC. Basically, this research study will provide valuable information which will include the PESTLE analysis and SWOT analysis of TESCO and NSPCC. Finally, it will provide a detailed comparison of the two companies that are being discussed here in brief.

PESTLE Analysis


Political Factors - TESCO is currently facing some political problems in the countries it functions currently. The more stable the political environment stays the better it is for TESCO to carry out trade. However, the most recent problems that TESCO is facing is to function in Brexit. Currently, Brexit has introduced new regulations that might affect sales by increasing or decreasing them. Another political problem that TESCO faces is functioning in China (Khan, Çera and Nétek, 2019). This is because currently, China is in a trade war with the United States. Therefore, political stability is a need for the smooth function of TESCO in various countries.

Positive Impact - Due to the political outbreaks in the various countries, TESCO will be able to stop their services in those particular countries and they will be able to concentrate on the other countries where they have a greater amount of sales.

Negative Impact - However, the negative impact of closing the services in politically unstable countries would lead to lesser availability of retail products in those countries. Eventually, those countries will face higher demand for retail products and eventually the product prices will be increased which would not be something very advantageous for the economy of those countries.

Economic Factors - TESCO also has to keep an eye on the taxation policies so that they stay legal in the market and work for their own profitability. On the other hand, the most destructive economic factor that may come into existence is the economic changes in the United Kingdom (Möller, Nenonen and Storbacka, 2020). A huge per cent of the retail market originates from the UK therefore, any types of economic changes in the UK might force TESCO to change the function of the company and the cost to change the function of the company would be massive. Therefore, it can be concluded that TESCO has a handful of economic factors that affect its functioning.

Positive Impact–The economic changes might be helpful for TESCO. This is because, modifying the company will have a possibility of removing any types of internal issues that exists in the company.

Negative Impact-The change of the company would be beneficial but the modification of the company will need a huge sum of expense and spending such an amount at an instance is a difficulty for TESCO.

Social Factors - Due to the existence of Social trends and bulk buying of the customers, TESCO has now decided to transform its working model from food products to Food cum non-food products. They have initiated the start of selling food and non-food products as well. The demand for a product arises due to the social influence or the societal influence of a particular customer (Belás et al., 2019). Therefore, the sale of retail goods is dependent on social factors to some extent. Moreover, the choice of the products of the customers may also depend on the culture where the consumer has lived their lives. Therefore, to avoid such types of changes in sales, TESCO needs to analyse and work in accordance with the societal influence and change in culture.

Positive Impact - The social factor has helped these retail companies to establish their online facilities. Social Media and its trends have made it possible to happen because it has influenced people to shop online.

Negative Impact - The social factor has affected the demand for the products. People are demanding more products as they are buying both in online and offline mode therefore, a pressure of more production is always present in the workers’ minds which may affect product quality.

Technological Factors - TESCO should not neglect the technological factors that would affect their product sales. TESCO should try to keep itself updated with the different technological factors that can potentially affect their sales. Technology in today’s world has brought the feature of electronic shopping which is eventually beneficial for the company (Gaganis, Pasiouras and Voulgari, 2019). Online shopping and social media promotions all fall under the category of the technological factors that affect the product sales of TESCO. TESCO should now prioritize transforming its shopping facilities in the online mode because 43 per cent of its customers have been purchasing products through the online method.

Positive Impact - The positive impact has been that the introduction of technology will help in increasing the quality of the products that are produced by the workers.

Negative Impact - The negative impact is that, the introduction of technology has decreased the performance levels of the workers as the workers do not have sufficient knowledge so that they can work in accordance with the technology that is to be used.

Legal Factors - The different changes that are made by the government directly affect the operations of the company (Cepel, 2019). Therefore, to eliminate the problems from the legal factors, TESCO should always try to respect and follow the local trading laws and the international trading laws as well. This will eventually help them to stay as a competitive retail company internationally.

Positive Impact - This will be beneficial for the workers because the changes in the laws of the government will favour the workers and there is a possibility that the workers get their wages increased.

Negative Impact - If anyhow the laws of the government are broken by TESCO then they will be in big trouble and their trading extensions to the other companies can be restricted.

Environmental Factors - TESCO has been adopted many different strategies that will help them in improving the environment around them and also create a more sustainable society than ever which will be beneficial for the function themselves (Fabuš, 2017). Moreover, to create a maximum positive impact on the environment, TESCO has introduced the strategy of reusing, recycling and removing in its product processing. This has eventually assisted them in creating a more sustainable society.

Positive Impact - These factors will assist the improvement of the environment and will also create room for a better sustainable society.

Negative Impact - If TESCO fails to implement their re-use, recycle and remove strategy then they will not be able to create a better environment around them and more sustainable society.


Political Factors - The government which is power affects the NSPCC to some extent. The government’s taxation laws decide whether the tax deductions are for everyone or not (Hrechyshkina and Samakhavets, 2019). The government decides whether they want to reduce or retract the federal funding which plays a huge role in the survival of the NSPCC. Therefore, if the funding is reduced, the NSPCC need to adjust themselves and find means to survive.

Positive Impact - If the government decides to retract the federal funding then it helps the NSPCC as they have a sufficient amount of funding. Therefore, the NSPCC is able to work without any problems.

Negative Impact - If the government decides to reduce the federal funding, then it is a disadvantage for the NSPCC to survive as they do not get a sufficient amount of funding to survive. Therefore, they need to adjust themselves according to their budget.

Economic Factors - The economy generally plays its role in influencing NSPCC. Donations are the catalyst for the smooth running of NSPCC. Therefore, the economic factors that affect the charities are the downfall of the economy (Calabrese et al, 2018). If the economy is in a good shape people tend to help others and donate funds to NSPCC however, if the economy is in a bad shape. People do not get interested to help others and prioritize their own survival.

Positive Impact - If the economy stays in a good shape then with the donations made by the people, the NSPCC can work smoothly and can even develop themselves as much as they can. This is because, when the economy is in a good shape people try to donate and help others as much as they can.

Negative Impact - If the economy is in a bad shape, it is disastrous for the NSPCC. This is because they do not get many donations and they do not get access to sufficient funds so that they can function smoothly.

Social Factors - NSPCC impact society a lot. The NSPCC tends to help children who are in dire need of care and do not have any family to live with (Akhmetshin et al., 2017). Therefore, NSPCC plays as a role model to others and they motivate people to help others. Eventually, this makes people donate to NSPCC.

Positive Impact - The presence of NSPCC help people by bringing them goods and different resources so that they can move forward into their lives. Society gets motivated to help others with charity being a role model for them.

Negative Impact - With fewer donations from society, the charities do not get funds to run properly. This eventually creates a negative environment as people do not get to see more of the NSPCC and they do not get motivated.

Technological Factors - Technology has been helping the NSPCC to reach a greater audience for showcasing their good work for the better future of the children (Gavurova et al., 2017). However, the inability of the NSPCC to work in accordance with the technology has stopped them to handle information. Therefore, the introduction of the technology can help them in analysing to discover new potential issues that children are facing currently.

Positive Impact - Technology will help the NSPCC to reach a greater audience and showcase their good work. This will eventually help them to get more donations for their good work. Additionally, technology can also be used for discovering new issues that the children face currently.

Negative Impact - However, NSPCC and many other charities are not much specialised in working with technology. Therefore, they often fail to achieve their targets which they can achieve by using technology.

Legal Factors - Due to the government laws, any leakage of internal marketing information or any sorts of presentations would lead to copyright or trademark infringement issues (?rešnar and Jevšenak, 2019). Moreover, due to the legal factors, the representative of the NSPCC needs to be mindful of their words they speak in front of the audiences as well.

Positive Impact - If the internal marketing information or any presentations are not leaked then the laws of the government are beneficial because the theft of the data of NSPCC will be prevented.

Negative Impact - The leakage of information related to marketing and other presentations creates a situation where copyright issues and trademark infringement arises.

Environmental Factors - The NSPCC and some other charities also keep their interest in saving the environment as well (Komljenovic, Loiselle and Kumral, 2017). They take initiatives for improving the situation of the environment. They tend to improve the situation of the wildlife and the vegetation around them.

Positive Impact - The initiatives that can be taken by NSPCC will be beneficial for the environment which comprises the wildlife and the vegetation around them. This will be a positive impact on the environment as a whole.

Negative Impact - NSPCC may not be able to play its part in improving the environment because of insufficient funds. People not donating to them will be a negative factor because it will question NSPCC’s survival.

SWOT Analysis



Strength -TESCO’s market share, financial turnaround and strong performance during the pandemic have been its strengths. According to a survey, TESCO has recorded a growth of around 10 per cent in three months during the pandemic.

Strength - NSPCC acquires its strength from the different funding and the internal donations they get. NSPCC also gets donations from external sources as well which eventually means its smooth flow in functioning efficiently.

Weakness - TESCO’s leadership change recently has affected its performance to some extent (Hrechyshkina and Samakhavets, 2019). Moreover, their shortage of products also added to their woes. Finally, the mismanagement of their inventory has cost them a lot as they had to pay a huge amount of fine for displaying products that were expired.

Weakness - The only weakness of the NSPCC is that they do not have a constant source of funds. The donations made to them are the only way they acquire funds for their smooth function for the betterment of the children. The NSPCC, therefore, needs to look into the matter and should try to fix the problem and find a constant source of strong funding for their charity.

Opportunities - TESCO has got to know about their opportunity to continue their sales despite the existence of the pandemic. TESCO has been recording its sales over the online shopping method. This has been a great opportunity for the retail company as they have found their opportunity to continue reaching better heights.

Opportunities - NSPCC has also found its opportunity to develop. The non-profit organisation has found its way to reach a greater audience by the means of technology (Lee, 2017). The social media platforms have helped them to showcase their good work to a greater audience by broadcasting them. Therefore, this has been an excellent opportunity for them to develop as well.

Threat - The political instability at Brexit will eventually be a threat to TESCO, as they will not be able to continue its services because the political factors at Brexit will affect 80 per cent of the supply chain of the imported food that is sold in the retail markets in Brexit. 

Threat - The NSPCC has only one threat to itself. If the economy is in a bad shape, then the NSPCC will be getting a lesser amount of donations (Hamilton and Webster, 2018). This is because the poor condition of the economy will create a situation where people will prioritize their own survival and the people will lose interest in donating to other non-profit organisations like NSPCC.

Comparison of TESCO and NSPCC

TESCO is basically a retail company that has its headquarters established in the United Kingdom. Moreover, it is a multinational retail marketing company that functions internationally (Kozubikova et al., 2019). On the other hand, NSPCC stands for National Society for the Prevention of Cruelty to Children. This non-profit organisation has been existing since 1884 and the aim of this charity is to remove and help to reduce the cruelty that exists against the children who are in need of help. TESCO acquires its strength from its market share and its financial turnaround (?lusarczyk and UL HAQUE, 2019). On the other hand, NSPCC acquires its strengths from the different donations made to the and also by gathering a constant source of strong funding. However, both of these ventures are inferior to their respective weaknesses. TESCO had to pay a fine due to the mismanagement of its inventory and its change in leadership. On the other hand, not being able to secure a constant source of strong funding NSPCC has been struggling to some extent (You et al., 2019). TESCO is a threat to the on-going political instability. However, NSPCC is not in such a scenario. Despite not being affected by the political instability, NSPCC is affected by the decision that is made on the federal funding.


This particular study has provided a detailed description of the business and the business environment of TESCO and NSPCC which looks after the children. This study also includes a PESTLE analysis of TESCO and NSPCC. In addition to this, this study also provides a SWOT analysis of TESCO and NSPCC. It gives a brief description of the economic, political, legal, social and environmental factors that affect these organisations. The SWOT analysis also provides valuable information about the Strengths of these organisations, their weaknesses, opportunities and threats as well.


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