PESTLE Analysis of Tesco Company

This article provides a PESTLE analysis of Tesco Company, examining the political, economic, social, technological, environmental, and legal factors that influence its business environment.

BM461 Global Business Environment
cw1 portfolio

TABLE OF CONTENTS
MAIN BODY...................................................................................................................................1
PESTLE analysis.........................................................................................................................1
REFERENCES................................................................................................................................3

MAIN BODY
Tesco Company is the British multinational groceries and is also a merchandise retailer
company. This is a public limited company and was founded in the year 1919 by the Jack Cohen.
This retail company is headquartered within Welwyn Garden City, Hertfordshire, England. This
is one of the third largest retailer company in the world in terms of gross revenues. It has
business all across the globe in Asia and Europe. It is the market leader in United Kingdom.
PESTLE analysis
Political factor: The factors which includes political factor mainly comprises of
government rules and legislations, tax rates, foreign trade policies, political instability, labour
law, trade restrictions, fiscal policy, etc. are considered to be as one of the major factor which
results in influencing the operations of the Tesco company (Shtal and et.al., 2018). Brexit has
imposed greater difficulty on the business operations.
Economic factor: This is one of the major factor which largely influence the prices,
demand, cost and profits of the Tesco Company. The high degree of unemployment leads to
decrease in the demand of the goods and services offered by the company.
Social factor: Change in the preference and buying behaviour of the customers is one of
the major social factor which adversely influence the operations of the Tesco Company (PESTLE
Analysis for Tesco discusses its Business Environment, 2014). The belief and attitude of the
consumers is different which is also one of the major issue faced by the Tesco Company.
Technological factor: The technology has been getting advanced at a greater scale which
in turn leads to high degree of expense and cost to the company. Engaging and complying with
the advanced technology helps in improving the business operations and regaining the trust of
the customers. Engaging with the RFID technologies is useful in increasing the in – store
experience for the customers.
Environmental factor: As per the current environmental condition, it is of utmost
relevance importance to effectively comply with the environmental laws and legislations to
effectively address the issues associated with the environment (Gheibi and et.al., 2018). Tesco
also mainly focuses on effectively reducing the carbon footprint and also increases the social
conscience within the customers. Tesco Company has full social responsibility towards the
environment to work for the welfare of the society.
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Legal factor: Government policies and the legislations tends to directly influence the
working and performance of the organization. Tesco Company has been established in various
countries which makes it difficult for the company to understand the legal laws of the country.
The Tesco Company must work in an ethical and reliable manner (Rastogi and Trivedi, 2016).
The company must comply with the consumer protection laws, anti- trust law, discrimination law
and employment law, etc. which helps in improving the business performance and productivity.
From the conducted study it has been summarized that, global business environment and the
factors associated with it must be address on time to improve business performance and leads to
greater efficiency.
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REFERENCES
Books and Journals
Gheibi, M and et.al., 2018. Controlling air pollution in a city: A perspective from SOAR‐
PESTLE analysis. Integrated environmental assessment and management. 14(4). pp.480-488.
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.
Shtal, T and et.al., 2018. Methods of analysis of the external environment of business activities.
Online
PESTLE Analysis for Tesco discusses its Business Environment. 2014. [ONLINE]. Available
through< https://pestleanalysis.com/pestle-analysis-tesco/>
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