PESTLE Analysis of Tesco PLC

This report provides a PESTLE analysis of Tesco PLC, a multinational food retailing organization. It explores the political, economic, social, technological, environmental, and legal factors that impact Tesco's decision-making process and operations. The analysis highlights the importance of understanding the external environment for sustainable growth and success.

Global Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PESTLE Analysis........................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Over the years, it is mandatory for every single organisation to analyse the external
environment, because then only they they can take right decisions to sustain within the market
for a longer period of time (Rosnizam and et. al., 2020). Some of the crucial external factors like
political, legal, demographic, social, economic, global, technological and more carries different
range of impacts on organisations. The company that has been taken into consideration is
TESCO PLC, where its decision making process is getting weaken to adopt the changes in
today's market just like their competitors are doing. In present context, to resolve the issues
PESTLE Analysis of TESCO PLC has been conducted under this report.
MAIN BODY
PESTLE Analysis
Tesco is a multinational food retailing organisation that headquartered in United
Kingdom and has its store in around 12 nations in all over the globe. PESTLE analysis of the
Tesco will be explained as below:
Political factors: Company operates worldwide, political factors mainly effects on the
performance of Tesco. These cover, acts of legislation, tax rates, the stability of the nation it
operates in. because of ongoing financial instability within the globe, many governments
promote retailers to develop jobs or employment for the domestic population. This helps
company in increasing of demand of its product and also in improving of brand image.
Economic factors: These factors are the major point of interest for Tesco because they
are highly likely to leverage costs, profits, demand and prices. Thus, the organisation must be
aware of any type of changes within its policies. Changes in the taxation will impact on the
accessibility of the finance. This also has direct impact on the business operations of the Tesco.
Social factors: This factor is mainly related with the market trends and customer
preferences about the products or services. For this, Tesco has maximised the number of non-
food products offered for sales. This helps company in attraction of large number of the
customers that results in higher sales (Perera, 2017).
Technological factors: This is another factor that assist Tesco in development of its
growth and success in marketplace. There is requirement for development as well as introduction
of online shopping with services for home delivery. There is also requirement for providing self-

service checkout points to customers that results in reduced labor costs. Therefore, this factor
will also support business organisation in improvement of its productivity.
Environmental factors: This factor is related with the employment issues. In case of
Tesco, They clearly committed to decreasing its carbon footprint by around 50% by 2020.
Company also reducing the waste produced within their stores through maximising social
conscience within customers (Shtal and et. al., 2018).
Legal factors: Company follow all rules and regulation systematically that support Tesco
in operating of its business functions and operations at different nation in successful manner
(PESTLE Analysis for Tesco discusses its Business Environment, 2014).
CONCLUSION
With the help of above report it can be concluded that there are various outer components
that are seriously influencing capacities and tasks in Tesco. It is needed by Tesco to ensure that
they are ceaselessly investigating all the outer elements that may contrarily influence them, and
make systems to manage them.

REFERENCES
Books and Journals
Rosnizam, M.R.A.B., Kee, D.M.H., Akhir, M.E.H.B.M., Shahqira, M., Yusoff, M.A.H.B.M.,
Budiman, R.S. and Alajmi, A.M., 2020. Market Opportunities and Challenges: A Case
Study of Tesco. Journal of the community development in Asia, 3(2), pp.18-27.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Shtal, T., Buriak, M., Ukubassova, G., Amirbekuly, Y., Toiboldinova, Z. and Tlegen, T., 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/>.