Pestle Analysis of Tesco

This report focuses on the Pestle analysis of Tesco, highlighting the external factors that influence its business and strategies to minimize their impact.

External Environment
Research and Analysis
Portfolio Paper 1

TABLE OF CONTENT
Introduction.................................................................................................................................................3
Pestle analysis of Tesco...........................................................................................................................3
Conclusion...............................................................................................................................................4

Introduction
Present Report focuses on the Pestle analysis of Tesco that describes about several
external factors that influence its business as well as highlight that Analysis highlights the
different extrinsic scenarios which impact the business of the brand.PESTLE analysis is a
framework which is imperative for companies such as Tesco, as it helps to understand market
dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL
analysis.
Pestle analysis of Tesco
Political Factor- From all over the world the retailing firm operates all over the world, global
political factors impact the Tesco’s performance. These involve acts of legislation, tax rates as
well as stability of the nation it operates in (Vashchenko, 2017). A Tesco also plays a crucial
role within creating opportunities as it turn enhance the demands for its diversifies and products
its employees. Issues that has impacted Tesco within the US- China trade war. The firm have
been battling in order to gain a proper sale as tempering of markets through trade wars between
two nations have intense that regulations associated to the retail with America and China will
impacts the profitability of the firm.
Economic factors – These are the factors that are considered as the main point for the Tesco as
they are likely to leverage profit, price, costs and demands. Thus the firm must be aware
regarding any changes within the polices. For example such as changes within Taxation or
several other factors that can impacts the finance accessibility. It is also considered as crucial in
order to mention the business which is growing internationally, the firm is quite relied on the
market of UD. Diversification as well as internationalization the firm is considered as two key
strategies pursued through firm as well as major reason. Thus because of decline within
household incomes and disposable income levels. Tesco is also considered as most of them it
highlights to advertising regarding brands instead the more luxurious items
Social Factor- Because of social changes, trends indicate the consumers within the United
Kingdom have moved to one stop shopping and bulk shopping. Tesco has planned out in order to
facilitates such requirements. The firm also switched towards the major food goods to a non food
model (Boersma, 2020 ). The goods that are demanded through its several consumers, relied on

the social impacts or societal impacts. The product may be also relied on several cultural factors
where people has lived all of their life.
Technological- Within the new age within technology, firms have collected themselves with all
the changes that can be taken place. In order to mention a recent trend , Tesco has been
experimenting with several aspects of retailing as well as achieved various amount of success.
The social media promotions and online shopping are all consider as a part of impacting the
consumer through giving several technical benefits (Jeong and Ko, 2016). The firm has also
managed in order to shift the shopping trends to the online one around 44% of its shoppers today
as online shopping from the site as well as getting their products at home delivery. Also there is
recent announcement through Tesco in order to create new technology which is cashier less
billing which is considered as an update that will revolutionize the way through retail shopping
can be undertaken. It will also aids consumers to get rid from long queues as well as aids them in
order to save time alongside Hassle free billing.
Legal factors- The change within the policies of government can directly impact the firm’s
operations. It requires to follow both the global and local market laws so that consistent with
smooth operations. Such as Food retailing commission has also focuses on several rules as well
as regulations that requires to follow through all the members within retail segment. Within the
year 2016, there were around several allegations that are focused on Tesco, that focuses on
gender and age that prevailed within work culture (Upadhyaya. and Kakkad, 2019). For a Fraud
case firm has also been under the purview of media, in addition to this legal settlement of $13
million was an outcome. Also update is the firm being sued for unequal pay among women and
men working within the firm. These legalities must be considered as well as followed to maintain
its reputation. Once the
Conclusion
From the above it had been concluded that there are several external factors which
impacts on business such as political, legal and many more. These factors needs to be identified
so that strategies are developed to minimizes its impacts on business operations.

REFERNCES
Books and Journal
Boersma, E.M., 2020. A research portfolio analysis of the collaborative research networks of
public-private partnerships for neglected tropical diseases (Master's thesis).
Jeong, H.J. and Ko, Y., 2016. Configuring an alliance portfolio for eco-friendly innovation in the
car industry: Hyundai and Toyota. Journal of Open Innovation: Technology, Market, and
Complexity, 2(1), p.24.
Upadhyaya, S. and Kakkad, A., 2019. A Review on Data Analytics in Supply Chain
Management using Forecasting and Product Portfolio techniques.
Vashchenko, M., 2017. An external perspective on CSR: What matters and what does
not?. Business Ethics: A European Review, 26(4), pp.396-412.