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Tesco, a famous retailer based on Cheshunt, was influenced by the financial crisis as well because such a crisis is not narrowly hit some countries, it has hit nearly all the countries over the world. Business of Tesco is located on many countries, all of which were seriously crashed in the financial crisis. Therefore, worldwide disaster caused some troubles on Tesco. Currently, Tesco has focused on reflection for the nest year in many aspects to over the tough challenge (Tesco Annual Review, 2008).

3.0 External Environment
3.1 General Introduction
Financial Crisis rooted from the burst-up of Fannie Mae and Fraddie Mac, enlarged with falling down of Lehman Brothers Holdings Inc. and spread to every corner of the world rapidly. How could it affect the world so son and how could it be so powerful to influence the whole world are two significant questions arouse in such affairs.

For the former question, it is because the business nowadays is global business just like a chain which means any part of the economy fails would affect the operation of the whole chain. Financial Crisis is the classic example of such domino effect. Falling down of Fraddie Mac, Fannie Mae and Lehman Brothers led the occurrence of subprime lending crisis and crashed down the economy of U.S.A. Because of inter-commercial between U.K and U.S.A, the financial crisis soon spread from the U.S to the U.K. and with same reason, it diffused to the whole world in such a short period. Economic globalization plays an important role in such diffusion. For the later question, the answer is the high degree of dependence of foreign trade enlarges the force of financial crisis. Financial crisis began with lending crisis which is the basis of many businessmen. Financial companies lent the company to individuals and other companies for consume or operating businesses like the basis of a building. Bankrupt of several magnitude financial companies destroyed the basis of commercial building so that other dependent companies fell down as a consequence.

3.2 Retailing Industry Environment
Retail is one of the largest industries in the world by number of businesses and number of employees. Retails sales in 2008-2009 were driven partly by deep discounting. Retail sales in 2008-2009 were affected by several factors: Sales of both new and existing homes were very slow (Plunkett Research, Ltd., 2010). While homes themselves are not counted in retail sales figures, buyers of these homes are a significant force at retail stores where they purchase furniture, appliances, linens, consumer electronics and garden supplies to fill up their new residences (Plunkett Research, Ltd., 2010). Likewise, builders and remodelers are a strong factor in retail sales, when they purchase supplies, materials, appliances, etc. at retail outlets. The slowdown in building and remodeling led to low levels of sales at home centers.

Another major negative impact was the growing number of homes going into foreclosure as their owners were unable or unwilling to meet monthly payments. Many of these foreclosed homes are part of the subprime mortgage fiasco that is rocking financial markets, where borrowers have poor credit or inadequate income. Also, extremely high unemployment, topping 10% in late 2009, has limited the ability of consumers to spend (Plunkett Research, Ltd., 2010).本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。