Conducting a PESTLE Analysis for Tesco

This report provides a PESTLE analysis of Tesco, focusing on the political, economic, social, technological, legal, and environmental factors affecting its business operation. It discusses the impact of Brexit, tax policies, COVID-19, and the need for environmental sustainability.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY ..................................................................................................................................4
Conduct a PESTLE analysis ..................................................................................................4
CONCLUSION ...............................................................................................................................4
REFERENCE...................................................................................................................................5
APPENDIX .....................................................................................................................................6

INTRODUCTION
PESTLE analysis is a model used by an organisation in order to analyse the key factors
that can affects the operation and function of company. The words PESLE stands for political,
economical, social, legal and environmental (Cherunilam, 2020). The current report is based on
Tesco, in order to understand the macro factors that can affects the business operation. This
report will identify the key drivers of changes for Tesco.
MAIN BODY
Conduct a PESTLE analysis
Political factors- It includes all these factors which are related with government law,
policies, practices, rules and so on (Adekola and Sergi, 2016). Tesco is a British multinational
retailer that operates its business across globally in which there are several political factors such
as Brexit that creates uncertainty for Tesco even though they sustain their stability at
marketplace. Which proves that they are operating their business by considering all political
elements. Additionally the changes in tax policies of US-china trade may become the driven
factor for Tesco.
Economical factors- These factors are the main concerns for chosen firm as these are
related with profit, cost, demand and price of products. So it is important for a company to aware
about any in policies such as revenue enhancement or taxation which could affects the
availability of finance (Hamilton and Webster, 2018). Covid-19 have been certainly effects the
global economy. Through which most of people are switching for cheaper brand and this leaves a
huge impact on operation and profit of Tesco. After the pandemic situation the government will
also helps them by launching some rules and regulation such as each and everyone needs to put
mask on face as well as satanize itself before entering into any store. This will provides a great
help to all consumers and individual of company. And which ultimately helps the nation towards
safety and economy.
CONCLUSION
From above discussed model it can be analysed that it become an essential for a company
to analyse the macro factor for smoothing running of business operation as it helps to higher
authority in strategic decision making process for future.

REFERENCE
Books & Journal
Adekola, A. and Sergi, B. S., 2016. Global business management: A cross-cultural perspective.
Routledge.
Andotra, N. and Gupta, R., 2016. Impact of environmental turbulence on market orientation–
business performance relationship in SSIs. Global Business Review. 17(4). pp.806-820.
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Gupta, A., Gupta, N. and Gupta, M., 2019. British Airways-A SWOT and PESTLE Analysis-
The impact of Europe 2020 policy. NOLEGEIN-Journal of Corporate & Business Laws.
pp.1-11.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.

APPENDIX
Social factor- Due to changes in preferences and trends of consumer, Tesco has offered
branded Halal meat to Muslims for their customers. So it provide opportunity to them for
increasing sales and profitability by attracting ample number of people towards their services.
But the competitive rivalries are also offers the same products as well the viewpoints of
customers which could become a driven factor for them.
Technological factor – The advancement in technologies bring opportunity to all
company along with Tesco but for adopting new innovative technologies required highly skilled
and knowledgeable people can acts as driven factor for Tesco company. Even though they has
benefited greatly from technology advancement as they introduced Clubcard in 1995 which used
by many peoples of UK and other countries.
Legal factor- Changes in government policies and legislation puts a vast impact on
operations of company (Gupta, Gupta and Gupta, 2019). In context of chosen firm they need to
flow all local and international laws for smooth operations. For example the Davis report of UK
and EU competition law prohibits the anti competitive activities by which Tesco cannot merely
merge with other supermarket of their size. Similarly new bill policies or the law related with
safety precaution could become the legal factor that can affects the operation of Tesco in future.
Environmental factor- The UK companies faces enormous pressure from government for
considering environmental issues. This is not only from government but also from those people
who are more concerned towards environment (Andotra and Gupta, 2016). For this Tesco have
to take some initiatives in order to create more sustainable society otherwise it could become the
driven factor for future.