Importance of PESTEL Analysis for Organisations

Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Task 1 ..............................................................................................................................................3
Discussion about the organisational structure of TESCO. .........................................................3
Task 2 ..............................................................................................................................................5
Evaluate the importance of carrying out PESTEL analysis for an organisation.........................5
Task 3 ..............................................................................................................................................7
Use the PESTEL framework to analyse the external environment of your chosen company....7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
books and journals ....................................................................................................................10

INTRODUCTION
Their is continues development in retail industry because of changes in business
environment. It can be define as the surrounding business organisation which is directly related
to function of firm in an area where it want to sale or currently selling in its products. TESCO
will be the chosen organisation in this report where it is trading in retail industry. Food and
clothing products are major focused products of organisation. In front of this report there is
discussion about the overview of TESCO and its organisational structure. In middle of this
report, importance of PESTEL will be discussed where organisation has to identify various factor
which will help firm in managing it performance. Ending of this report is consist of PESTEL
analysis of retail industry where organisation is trading (Perera, 2017).
MAIN BODY
Task 1
Discussion about the organisational structure of TESCO.
Summary of TESCO
TESCO is a retail multinational organisation which was founded by Jack Cohen in 1919
as a group of market stalls. TESCO is trading in retail sector where it is selling its product to
various kind of customers as well as sellers. It is currently operating more the 7000 stores all
over the world where its major operations are in UK, Australia and Asia. The period of 1950-60
is golden period for TESCO where major changes related to product and marketing was done by
organisation. This help organisation in achieving success as well as increasing market share. This
is directly related to firms production and help firm in using diversification strategy (Rastogi and
Trivedi, 2016). TESCO is biggest retailer for current time where organization is serving its
product to various customer in market. Company is also going to lunch its product in electronic
market where it will provide quality products. TESCO is increasing its operation by the use of
diversification strategy from year 1990, company now operating in areas like books, clothing,
electronic, furniture, and many more which help company in survival and increasing its capacity
to perform in various sectors.
Organizational structure of TESCO
This is important for TESCO to use proper structure in organisation. As this will help it
in managing its operation and also facilitate smoothness in different functional of organisation to