This study material provides an analysis of the macro environment and competitor issues faced by Tesco. It discusses the political, economic, social, technological, environmental, and legal factors affecting the company. The study also highlights the challenges faced by Tesco in maintaining its leading position in the market.
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MACRO ENVIRONMENT AND COMPETITOR ANALYSIS Technological Factor:These factors pertain to innovations in technology thatmayaffecttheoperationsoftheindustryandthemarket favourably or unfavourably. This factor used to create the variety of the issue for the organization as organization has to change the technology in the market to be competitive which eventually creates the situation of finance requirement. Environmental Factor:This factor include the aspect which are really hard to predict such as weather, climate, environmental offsets and climate change. This factor has created many issue or can be said as challenges for the Tesco as due to the unexpected whether and climate many times there is a scarcity of raw material in the organization. Legal Factor: All the organization has to follow the different rules and regulationtooperatethebusiness.Thisfactorhascreatedthe challenges related to the efficiency of the business as it consumes a good amount of time for the Tesco to get a permission for the different operation of the business. c COMPETITOR ISSUE Quality of the Product:It is the biggest issue which is faced by the Tesco as it has been analysed that the quality of the product which has been offered by the competitor Asda is much better than Tesco. The biggest reason for the same is that Tesco used to look at the variety of the product which need to be offered to the consumer as compare to the Asda which looks at selling only some product in the organization but of good quality. Profit Margin:As Tesco is the leading retail company in the UK and to maintain the leading position organization always sells the product at lower rate as compare to the Asda which help them in attracting new customer toward the company but at the same time creates the problem of reducing profit margin of the organization. Technology Advancement:It is the another issue which is faced by Tesco as in the rapidly changing environment as it getting tougher for the Tesco to change the technology on the regular basis to attract the eye of the customer toward the company. This eventually creates the issue of Finance requirement. SUM UP of ISSUE After going through the analysis it can be interpreted that the Political and Economicalenvironmentaldoesnotusedtocreateanyissueinthe organization. At the same time Social, Technological, Environmental and legal factor used to create a variety of the issue for the TESCO. After going through the analysis it can be interpreted that Tesco has to face the variety of the issue related to the competition the biggest reason behind the same is to maintain leading position in the market. Macro Environment ISSUE PoliticalFactor:Factor which relates to thedegreeof government intervenes in the economy or a certain industry. This factor used to not create any big issue for the Tesco as there is a political stability in United Kingdom and government of UK also used to support privatization in the country. Economic Factor: Factor related to certain economy's performance. This factor also do not create any big issue for the Tesco as Interest rate in the UK is low which help the company in getting the adequate fund at demand. Inflation rate is also at a positive side for Tesco to operate in UK. Issue which is related to recruitment of skilled employee as due to high number of SMEs unemployment rate is to low in UK. SocialFactor:Factorwhicharerelatedtothedemographic characteristics, norms, customs and values of the population. This factor used to create the issue of customer preference for the Tesco as the customer preference used to change on regular basis which tempt the company to change the operation accordingly. REFERENCES Fozer, D. and et.al., 2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS process alternatives.Journal of cleaner production.147. pp.75-85. Rastogi, N. I. T. A. N. K. and Trivedi, M. K., 2016. PESTLE technique–a tool to identify external risks in construction projects.International Research Journal of Engineering and Technology (IRJET).3(1). pp.384-388. Perera, R., 2017.The PESTLE analysis. Nerdynaut. Barik, B. and Kumar, S., 2018. Macro Environment of Indian Life Insurance Business: A PESTLE Analysis.Bimaquest.18(3). Islam, F. R. and Mamun, K. A., 2017. Possibilities and challenges of implementing renewable energy in the light of PESTLE & SWOT analyses for island countries. InSmart Energy Grid Design for Island Countries(pp. 1-19). Springer, Cham. Kirzner, I.M., 2015.Competition and entrepreneurship. University of Chicago press. Mead, M., 2018.Cooperation and competition among primitive peoples. Routledge. Hobolt, S.B. and De Vries, C.E., 2015. Issue entrepreneurship and multiparty competition.Comparative Political Studies.48(9). pp.1159-1185.