Analysis of External Factors and Recommendations for Tesco

BM461 GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
PESTLE Analysis........................................................................................................................3
Recommendation.........................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Businesses in the market need to understand and analyse the market, both internal and
external factors so that there are going to be effective functioning and decisions which can be
taken by the company. Tesco has been present in the retailing industry from 1919 and is having
more than 6,800 stores in total. The company’s headquarters are in London, United Kingdom.
The report is going to consist of analysis of the external factors and recommendations for the
organization so that they can improve and make plans accordingly which is going to be effective
for a competitive advantage for a long run.
TASK
PESTLE Analysis
Businesses must understand that the external factors are not in the control of the business
but the external factors do control the businesses in the market. It is important for the company to
analyse the market effectively and make sure that they are making the right decisions for the
company which is going to make the organization have higher performance in the market
(Komljenovic, Loiselle and Kumral, 2017). The competition in the retailing industry is
increasing rapidly which is why it is important for the company to make the right planning and
measures in order to be able to achieve the targets and goals which are present in the market and
with the help of Pestle framework Tesco has been able to make the right decisions and planning
which would be discussed in the further report.
 Political factors
There is a stability in the country of United Kingdom making the company has the right
standards accordingly. The policies and laws and legislatures are being followed by the company
making the company have a higher competitive advantage in the market. The foreign trade
policies and trade restrictions is being taken care of by the company so that there is going to be
higher reputation and standards for the organisation (Hudakova and et.al., 2018). Taxation
policies and Labour law is being taken care of by the company so that that is a standard which
the organisation can have for their products and quality making the productivity and operations