Global Business Environment: PESTLE and SWOT Analysis of Tesco Plc

This report provides a detailed analysis of the global business environment, focusing on the PESTLE and SWOT analysis of Tesco Plc. It discusses the political, economic, social, technological, environmental, legal, and cultural factors affecting Tesco's operations. The report also examines the impact of key drivers on marketing and HR management.

Global business environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PESTLE Analysis for Tesco Plc.............................................................................................3
SWOT Analysis for Tesco Plc...............................................................................................5
Impact of key drivers upon Marketing and HR Management................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment is contingent in nature which creates so many difficulties towards
organisations operated at global level. It may bring existence of organisation into danger thus it
is important for management to analyse the factors of business environment and identify
company’s capabilities so as to deal with them in more effective and efficient manner (Bessière
and et. al., 2019). For this, PESTLE model is much effective to use as it provides details about
the complexity of business environment. Along with this, conducting SWOT Analysis is also
important for an organisation to identify its own strengths and weaknesses. The present
assignment report is based on Tesco which is a UK based organisation operated at global level.
The report discusses the PESTLE and SWOT Analysis along with their impacts on different
functions such as HR, Marketing etc.
MAIN BODY
PESTLE Analysis for Tesco Plc
Political factors
Tesco operates its business under political influence. These factors include emphasis of
government and political parties on the functioning of the business. The Government has stable
political parties which helps the Tesco for smooth functioning without any interruptions.
Various aids also been available to the Tesco by Government for its operations. Developed
countries like UK, US has well developed system of cyber-security for protecting the data of a
company. Talking about the labour laws there is a efficient protection of employees in
developed countries, but they cost much to the company as there is scarce availability of cheap
labour in developed countries (Hariandja and et. al., 2017).
Economic factors
Tesco’s performance and its revenue mainly depends on the situation of the economies in
which it operates its online and offline businesses. For example, in UK, Tesco has a higher
degree of revenue and profits as people in UK has high disposable income due to high salaries
but on the hand, in China, the scenario is vice-a-versa due to economic crisis people have very
low disposable income.

Social factors
Social trends play a major role in the growth of retail industry. From past few years, retail
industry has been boosted. With the increased use of smartphones and interconnectivity people
are more attracted towards social media which influence the retail business also. Also with the
availability of financial resources, businesses of Tesco have been uplifted. Talking about the
millennials they are major customers as they usually prefer to grocery and get their products
delivered to their doorstep so that they can utilize this time in productive purposes. Population
size of a country also affects the sales of a company as larger the population, larger the
opportunities for sales.
Technological Factors
Technological advancement has also plays a vital role in developing the retail industry.
Only through efficient technology retail business are accessible by the customers for searching
and buying. Apart from smartphones for accessing, artificial intelligence also affects this
business as it makes the products more attractive and helps the customers to decide on purchase
of a product.
Environmental factors
Sustainability is the major concern for companies like Tesco. Tesco has invested much on
areas like packaging, waste reduction and energy consumption for the safety of the
environment. Tesco also engages its customers in various CSR (Corporate Social
Responsibility) Activities for increased emphasis on the environmental safety (Moro Visconti,
2016).
Legal factors:
Legal compliance are really essential for the functioning of any business. Tesco has a
separate legal team to deal with various issues like employment laws, consumer challenges etc.
Tesco emphasize on this efficiently as the companies knows that mistake in legal compliance
leads to high penalty and charges.
Cultural factors
These factors also influence the business as in a country, there is a variety of people
who are belong to various cultures. Each culture of people has its own choice of clothing and

unique festivals which affects the sales of a company as per the products being sold. Therefore,
retail companies should ensure the availability of products for various culture of people.
SWOT Analysis for Tesco Plc
Strength: -
 Tesco won many awards for the retail marketing, customer services and so many.
 It is one of the largest manufacturer of the telescope and most profitable and trustable
company for its product.
 This company has the strong financial position in the market and have so many
properties which shows economic stability.
 Tesco is very old and trustable company in UK with high credibility and assurance for
long run in future.
Weaknesses: -
 Tesco finance profit are having highly impact in credit crisis and its struggling to
comeback.
 Tesco is only focusing on the telescopic product where as it can achieve success in other
competitive market also (Perera, 2017).
 So basically Tesco performing well in its own country but couldn't succeed in other part
of the world.
Opportunities: -
 Company has opportunity to grow in other fields of work and start making relationships
with local market to more contact with consumer behaviour
 There is more opportunities to interact with other brands and produce more products for
the consumer in the market.
Threats: -
 The government policies are always threat to the business growth and expansion the
market.
 Economic and credit crisis are there for the company threat for its share and
profitability.
 Reducing sales in the competitive area with loss of loyal customer is there in the
business world.

 Income of the consumer highly effect the company's production as well as growth
and development.
Impact of key drivers upon Marketing and HR Management
Marketing Department
The marketing department is one of the main department of any organisation. The
marketing department plans out all the activities related to promotion of product lines to
different markets. The Marketing department consist of planning creatives, budget creator and
coordination with many other departments. The marketing department of Tesco is very huge as
it one of multinational companies. This department is an asset to the company. The company
plans strategically aligned marketing programmes to target the minds of consumers and hold an
impeccable attraction point of their marketing programmes. The company's department has
created its own benchmark for crafting such campaigns. The company has build on online
engagement also to stay ahead in competition. The company has been using aggressive
marketing to attract the consumers. The department does the proper research before launching
their any campaign. The company's department is also held responsible additionally for adding
new leads.
Human Resource Department
The Human resource department make the workforce of any organisation. The HR
department is held responsible for allocation, procuring, utilizing and developing the human
assets of organisation. This department is largely responsible for creating coordination and
satisfaction among all employees. This department is the reason of success behind the
organisation. The employees are the assets which make the building block of company success.
The HR department of Tesco is largely a pool of talented and skilled employees. The company
also keenly focus on training and satisfaction of their employees. The Tesco provides with all
the assistance the employees need for their development. The Tesco focuses on keeping its
employees highly satisfied and motivated (Sarsby, 2016).

CONCLUSION
It has been concluded from the above report that every organisation can get success into
competitive market only if their management are able to analyse complexities of business
environment and it can be possible through using PESTLE and SWOT Analysis. Apart from
this, it is also important for the management to analyse the impact of key drives of business
environment upon different business functions so that future actions can be taken for further
improvement.

REFERENCES
Books and journals
Bessière, D. and et. al., 2019. A vision of re-distributed manufacturing for the UK’s consumer
goods industry. Production Planning & Control, 30(7), pp.555-567.
Hariandja, B.K., and et. al., 2017. Business Strategy and Company Analysis of Indonesia Data
Business Unit.
Moro Visconti, R., 2016. Healthcare public-private partnerships in Italy: assessing risk sharing
and governance issues with PESTLE and SWOT analysis. Corporate Ownership and
Control, 13(4).
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Sarsby, A., 2016. SWOT analysis. Lulu. com.