Pestle Analysis of Tesco

Pestle Analysis of
Tesco

Contents
INTRODUCTION:..........................................................................................................................1
MAIN BODY:.................................................................................................................................1
CONCLUSION................................................................................................................................3

INTRODUCTION:
PESTLE analysis is defined as a tool which is used to analyse as well as monitor macro-
environmental factors which impact on performance of an organisation (López López, 2017). In
the present report, TESCO is chosen as a base company. It is a multinational retailer which was
founed in year 1919 and its head office is located in England, UK. The report will cover pestle
analysis of respective organisation along key drivers of change.
MAIN BODY:
PESTLE analysis of TESCO:
Political factors: It is defined as interference of government on business activities and
include factors such as tax policy, trade policy and many more.
 Political stability or instability: It is analysed that the economy of UK is politically stable
that develop job opportunities for domestic people.
 Environmental laws: Because of pandemic situation that is Brexit, many uncertainties
were developed that impact negatively on the performance of company.
 Future legislations: It is determine that TESCO follow all the laws and legislations and is
able to respond to future legislations that assist in implementing activities in a systematic
manner.
Economic factors: It involve factors which impact on financial performance of region and
country. This factors are exchange rates, growth rate, inflation rate and so on.
 Taxation: The higher authorities of TESCO is more concern towards demand, leverage
cost, profits that impact positively on finance of company.
 Disposable income: Due to decrease in disposable income, respective organisation is
emphasis on advertising of brand instead of luxurious items.
 Inflation rate: It is determine that after Brexit, inflation rate is declined and decline the
buying power of customers which leads to decline in sales and profitability level of
TESCO.
Social factors: It consist of factors such as demographic characteristics, age distribution,
cultural norms and so on.
 Health consciousness: The people of UK are more concerned towards their health and for
this company is bringing organic product for customers (Hamilton and Webster, 2018).
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