PESTEL of Tesco

Global Business
Environment
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Contents
PESTEL of Tesco............................................................................................................................3
REFERENCES................................................................................................................................5
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PESTEL of Tesco
Tesco is a British owned brand with supermarket chain in retail industry across the world
(Bhagra and Sharma, 2018). PESTLE is a macro environment tool which analyse the TESCO's
external market. Its various factors are uncontrollable in nature which influence the performance
of a company.
Political factors:
Political factor of a company influences the business operations drastically. It includes tax rates,
bank rates, interest rates, change in the government, instability of political relations with other
countries.
 Opportunity: Due to instability in the political relations of a country, government
provides subsidies to large companies to generate employment opportunities to local
residents. This has created an opportunity to enhance the demand of its product and
employment opportunities. This has resulted in diversified employees.
 Threat: the tax on large supermarkets known as “Tesco Tax” was proposed by the
council but UK government refused this initiative mainly to avoid price hike. These types
of initiatives can affect the profit of Tesco negatively.
Economical factors:
Tesco pays their maximum attention towards economic practices that may assist them in
sustaining effectively in the competitive market.
 Opportunity: Due to increasing labour cost, in UK and Ireland, Tesco earn millions of
pounds in each and every year. This creates opportunity for company to increase its
profit.
 Threat: Due to this coronavirus pandemic everyone earning are likely to go down, as
well as many people lose their occupations. This may impact directly upon Tesco. .
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