PESTEL Factors Affecting Tesco PLC

PESTEL FACTORS
AFFECTING TESCO PLC

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Organisational business environment is total sum of internal and external factors. These
two factors influencing on business to work together. Some of the external factors are beyond of
control. They are divided in political, economical, social, technological, environmental, legal.
This report is based on TESCO a British multinational groceries company, founded in 1919 by
Jack Cohen. It is first appeared in 1924 after purchased from Cohen. This retailing company is a
second largest retailer company which considering revenues. It also provides finance, insurance,
hardware services. The main purpose of this assignment is to analysis external factors that effects
came on dynamic and unpredictable environment. By identifying these factors their impact came
on company performances.
MAIN BODY
PESTEL analysis is a frame work to identify it in dynamic and unpredictable
environment. This identification lies on TESCO performances and evaluation tool used for
critical analysing business environment.1. Political: Government plays a vital role in influencing performance of Tesco. Their
involvement is made in a form of trade control, health and safety law, tax rates, stability
of country, new legislation. Managers of an organisation reduces risk and losses in which
they are related with changes. Their direct and indirect support includes fiscal policy
which are linked with taxes provided to company. Business organisation is dealing with
spending money on buying new and better products from that they can issue loan from
government according to their affordable price . However , they make a great effect with
an interest rate. Changes in government intensively impact on policies, culture, stability
of items, maintaining law and order etc. Competitive market sufficiently changes by
shifting demands and cost of production. The investment made by company requires
increases in taxes or borrowings. Policies impact came on interest rates, rising in cost of
borrowings in business community. Tesco leading with lower interest rates, in which they
attract on increasing production. Fair and effective regulations are made in promoting
business growth.
1