Positive and Negative Impacts of Brexit on Tesco: A PESTLE Analysis

International Business

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
The positive and negative impacts of the PESTLE environmental factors on Tesco..................2
Some key challenges faced by Tesco due to Brexit....................................................................4
How Tesco is responding to such challenges in relation to its business strategy........................4
Recommendations........................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
Books and Journal........................................................................................................................7

INTRODUCTION
Brexit refers to an abbreviation which means British exit. This has soon the departure of United
Kingdom from European Union with the help of a contract which has been named as Brexit.
United Kingdom and European Union has decided mutually to end their trade relations which
has a great impact on the business of many countries especially in United Kingdom (Ratten,
2020). There are so many business organizations who are dependent on European Union for their
business workforce and supply chain management. Tesco is an organization in retail industry
which is also impacted due to Brexit in various manner. Tesco is a British grocery and general
merchandise organization who has their headquarters in Welwyn garden city, England, United
Kingdom. The company has their major of the revenues from the market of United Kingdom
which is greatly impacted by the decision of Brexit in United Kingdom. This report is going to
explain about the positive and negative impacts of Brexit on various factors of external
environment of Tesco and also explain about the challenges that has been faced by Tesco due to
Brexit. Apart from this the report also contains the way Tesco has decided to respond to these
challenges with the help of their business strategy.
MAIN BODY
The positive and negative impacts of the PESTLE environmental factors on Tesco
Pestle analysis helps an organization to analyze six different external environmental
factors which have a great impact on the business of Tesco. The positive and negative impacts of
Brexit on various external environmental factors are explained below in relation to Tesco:
Political Factors: Brexit has caused a great political instability in the environment of
United Kingdom which has a great impact on the business of Tesco. The pandemic of covid-19
and Brexit happen simultaneously and United Kingdom which has impacted the business of
Tesco in the country. The political factors includes tax rates stability of the country and acts of
legislation which has completely affected both in positive and negative sense in the country. The
financial instability created by covid-19 has forced government to encourage various retailers so
that they can be able to create job in the domestic population which is the positive impact of
Brexit on the business of United Kingdom as they are able to get less diverse employees whereas