TESCO PESTEL Analysis

This report analyzes the PESTEL factors affecting TESCO and discusses the key drivers of change within the company.

global business environment

Table of Content
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
PESTEL Analysis........................................................................................................................3
Conclusion ......................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
There are some external environmental factors which are also the key drivers of the
change withing the organization and it is necessary for the company to understand those factors,
so they can take competitive advantages.
This report will cover the case study of TESCO company which is top retailer company I
UK and having huge reputation in UK market.
MAIN BODY
PESTEL Analysis
Political Factor
Political factors like Brexit memorandum put the huge impact on the TESCO business
because this company used to bring their Raw material from the EU countries (Modabbernia,
Velthorst and Reichenberg., 2017). This is also an key factor of change because it affects o the
companies product pricing and their suppliers and quality of the raw material as well from the
Brexit.
Economical
Technological factors like employment rate in UK is deceased and people are searching
for the job and it becomes positive factor for the TESCO company because people will be
ready to work with the lower salaries. Economic factors are also the key driver of the change
because some changes in the economy like increase in demand or inflation can affect the
companies strategies and company need new strategies, so they can take competitive advantages.
Social
Trend among the customers change with the times and it becomes the key driver of the
change because people started demand for the new fashion products like in clothing trends
used to change they have to provide the product which can fulfill their demand, so they have to
developed new designs.
Technological
TESCO has the huge advantages of the technology and this is also an key drive of
technology because company need to upgrade their technology, so they can stay in the
competition, and they will able to take competitive advantages (Zischg And et.al., 2018).
Technology make their operations at the workplace more smooth and it is essential to follow
the new trends, so they can stay in the market.

Environmental
It is necessary for the TESCO to give their contribution toward the environmental
because it can help them to caret good image among the customers and it can also become the
key driver of change because change in climate can affect the demand like TESCO also sells
clothes, so they have to change their clothes as pr the change in environment like during the
summer summers clothes and during the winter , wither clothes which can help to warm our
body.
Legal
legal factors like Change in Tax rates I the UK can affect the profitability of the company
because it will increase the prices of the product and hey will not able to add value for their
customers. This is also and factor of the changes because government charge the different
interest from the TESCO company and when they take the loan they have to pay more interest.
Conclusion
As per the report has been analyzed the factors which affect the TESCO company and
also discuss the key driers which are responsible for the change within company.

REFERENCES
Books and journal
Modabbernia, A., Velthorst, E. and Reichenberg, A., 2017. Environmental risk factors for
autism: an evidence-based review of systematic reviews and meta-analyses. Molecular
autism.8(1). p.13.
Zischg, A.P. And et.al., 2018. Flood risk (d) evolution: Disentangling key drivers of flood risk
change with a retro-model experiment. Science of the total environment.639. pp.195-207.