Business Environment Encompasses All the Following Factors

Business environment encompasses all the following factors

Customers; customers are key to the success of a retailer such as Tesco this is because they buy the products that the supermarket sells and without this they would not make any money. Although the customers almost need them more than the supermarket needs them because of convenience of having everything that they need under one roof.

Competitors; these are the other companies that are in the same type of business as the one in question very often selling the same products, when there are big companies that do this they try and outdo each other

, stakeholders, suppliers, industry trends, regulations, other government activities, social and economic factors and technological developments.

Operating in a globalized environment with stores around the globe Tesco's performance is highly influenced by the political and legislative conditions of these countries, including the European Union. This affects them because they have to follow different laws in all of the different countries making some processes hard, an example of this is the selling of wines and spirits for example in the UK it is against the law to sell an under 18 year old alcohol where in some European countries the age limit is 16. This means that the type of training that the staff are put through will have to change for each country.

Economic factors are of concern to Tesco, because they are likely to influence demand, costs, prices and profits. One of the most influential factors on the economy is high unemployment levels, which decreases the effective demand for many goods, adversely affecting the demand required to produce such goods, and is expected to contribute greater amounts to Tesco's profits over the next few years, the company is still highly dependent on the UK market. Hence, Tesco would be badly affected by any slowdown in the UK food market and are exposed to market concentration risks.

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These economic factors are largely outside the control of the company, but their effects on performance and the marketing mix can be profound. Although international business is still growing

The external research has found that Tesco's profits have fell for the first time in 20 years this is due to a number of reasons, firstly the UK trading profits have fell by 1% this could be due to the recession that is currently taking place here, this will affect Tesco because people are not freely spending their money due to how expensive products are because they will want to save their money to spend on necessity's people will still spend their money on Tesco's food products but may cut down on their other services such as Travel and Insurance this is because they can either find a better deal somewhere else or will find a