Environmental Audit - Report Example

Download file to see previous pages The global recession from 2007 to 2009 has a substantial impact on the overall retail industry across the world. The external environment determines the outlook of the industry and hence it is very important to analyze the external environment in order to formulate an appropriate strategy for the organization. The macro-economic environment is evaluated using the PESTEL analysis that identifies key drivers that influence the company’s strategic decisions. The internal business environment is analyzed on the basis of the availability of resources that influence productivity, delivery, and service. The objective of the assignment is to reveal the influence of both internal and external business environments on the company’s current and future strategies (TESCO, 2013, pp.3-9).
The company chosen for study is Tesco Plc which is the biggest multinational general merchandise and grocery retailer in the United Kingdom. The company operates in over 2,315 stores globally with over 1,875 stores in the UK. It also has a significant presence in North America, Asia, and Europe. The total revenue of the company for the year ending 2013 was over £ 64.8 billion while net income after taxes was over £ 120 million. Tesco PLC was founded by Jack Cohen in 1919 as a group of market stalls. The company is listed on the London Stock Exchange and has over 6350 stores globally. It is also a constituent of the FTSE 100 Index. The company is headquartered in Chestnut, Hertfordshire of England (TESCO, 2013, pp.3-16).
The company has huge geographical diversification into areas like clothing, furniture, electronics, financial services, retailing of books, internet services, software, music downloads, DVD rental, and so on. Tesco Stores Ltd is a subsidiary of Tesco PLC in the United Kingdom. The company offers a wide range of personal finance services both offline and online.
The global recession from 2007 to 2009 has a substantial impact on the overall retail industry across the world. During the year 2012, retail growth was only 1.2% and it was the third-lowest in the history retail industry of the UK in the last 40 years. Thus, the macro-economy significantly influences organizations’ strategy by influencing the surroundings of the industry. The external environment determines the outlook of the industry and hence it is very important to analyze the external environment in order to formulate an appropriate strategy for the organization (TESCO, 2013, pp.8-9). ...Download file to see next pagesRead More