Pestle Analysis of Tesco Uk 2022

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Management

Pestle analysis of Tesco UK
Political factors: Tesco operate in globalised world in addition to UK. Due to this,
performance of Tesco is influenced by the legislative and political conditions. Considering
employment legislation, government put emphasis on retailers to provide varied job
opportunities from lower paid, flexible to higher pay. Due to this, Tesco also employs
different people such as disabled, student, and elderly workers (Lukić and Vojteski-Kljenak,
2017).
Economic factors: Economic factors put great concern on Tesco as they tend to influence the
cost, demand, profit, and price. The most significant economic factor is higher unemployment
level that tends to decrease the demand for goods.
Social factors: from the current trends, it is come to know that British customers mostly
prefer one stop or shopping in bulk. Demographic changes such as increasing female
workers, aging population, as well as decline in preparation of home meal means that retailers
of UK are also giving emphasis on added value service and products.
Technological factors: Due to the increasing technological changes, it is essential for
companies to bring technological innovation time to time. Due to this, British supermarket
has also developed technology that allows the customers to work store, load up their bags,
and go out without waiting for billing. It has started the artificial intelligence powered camera
or sensors that automatically detect what are the things picked by people. This has saved the
time of customers that were wasted in standing queue for billing (Awadari and Kanwal,
2019).
Legal factors: several government rules and regulation put direct impact on Tesco
performance. “Food Retailing Commission” also suggested code of practice in order to ban
most of the practices such as changing agreed prices or demanding payment on the side of
supplier. For implementing the right pricing policy, Tesco tends to offer the price reduction
on the purchasing of fuel. It is based on the amount that person has spent on grocery (Evans
and Mason, 2018).
Environmental factors: it is true that organisations are required to comply themselves with
environmental laws. Government made several rules in order to govern the working of
supermarket. In this regard, Tesco also fined for around £8 million related to safety and