Macro Environmental Analysis of TESCO through PESTLE Analysis

Unit 1: Business and
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
P4. Macro environmental analysis of the company through the application of PESTLE
Analysis..................................................................................................................................3
P5. Internal and external analysis of Marks & Spencer and BBC..........................................6
P6. Strengths and weaknesses interrelated with macro environmental factors......................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment can be defined as the accumulation of laws, community, systems,
regulations and other forces which may or may not be under the control of a company. It is
important for an enterprise to constantly take into account the internal and external factors of
business environment to make sure that it does not face any adversity (Schaltegger, Hansen and
Lüdeke-Freund, 2016). The following report is conducted upon TESCO which is the leading
British retail corporation engaged in provision of wide array of offerings. It holds the maximum
market share within the grocery retail sector of United Kingdom. The project consists of
PESTLE analysis displaying the negative and positive aspects. Further, SWOT analysis is
included in the report. Lastly, the interrelationship of internal and external factors is given.
P4. Macro environmental analysis of the company through the application of PESTLE Analysis
Political Factors: This factor of pestle analysis examines the extent to which government
has influence upon specific industry or economy. In this factors like fiscal policies, new tax duty,
tax policies, trade regulations are included that have significant impact upon business
environment. In this it is essential for organisation to perform their business operations by taking
advantage of government stability. It has been identified that UK is listed in the list of one of the
most successful nation in terms of application of law, government effectiveness, and control of
corruption, regulatory quality through which organisation can effectively develop their business
strategies in order to operate their functioning in the nation by gaining more effectiveness.
Positive- Most important positive factor of political analysis is that, government of
United Kingdom is proactive and stable. Along with this comparatively to other countries United
Kingdom is fair and offer different type of advantages to organisation with taxation relief.
Negative- Due to certain conditions that are prevailing in European Union like, brexit
United Kingdom political environment is affected in number of ways. This can further impact
upon smooth operations of entity and lead it towards low revenue generation capability.
Economical Factors: Economic factor is essential element of pestle analysis, it has been
evaluated that economic stability of United Kingdom is very effective and as per to the World
Bank 2018 data UK marked itself in fifth largest economy in world by nominal GDP
(Schaltegger, Hansen and Lüdeke-Freund, 2016). With having strong economic position this
country offer different type of economic advantages to companies, effective foreign exchange