PESTLE Analysis of Global Business Environment

Global Business Environment

Table of Contents
Introduction......................................................................................................................................3
PESTLE analysis..........................................................................................................................3
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

Introduction
Business environment is changing constantly at global level. It is made with different
factors which can be related to external and internal environment. These elements are modified
with the change in the external conditions. In addition to this, external factors has a major impact
on functioning of the business entity. It is important for the companies to assess the external
environment and prepare suitable strategies accordingly (Friesendorf and Uedelhoven, 2021). In
the present report TESCO is taken into consideration. It is a renowned supermarket company of
UK. The study will cover PESTLE analysis and the key drivers of changes which should notice
by the management for understanding the future direction of the firm.
PESTLE analysis
It is a model that is applied in order to understand the dynamics of the external
environment. This framework helps in understanding the impact of external elements on
business. It allows managers to prepare suitable strategies in order to face future conditions in an
efficient manner. It is a crucial model which is applied in the field of business environment. It is
related with the outside environment that cannot be controlled by managers (Gheibi and et. al.,
2018). However, the model makes a company enable to prepare suitable strategies in order to
deal with external environment effectively. It is a strategic analytical framework that is utilized
in order to provide an organisation with crucial information on various external factors that affect
the operations of an organisation. It assist in perceiving vital angles into business environment
that can hinder business functioning. In context to TESCO, higher management use PESTEL
analysis to gather deeper understanding of their current business environment and achieve cost
effectiveness within their organisation. Moreover, it enables them in exploiting their potential
opportunities. The various factors of PESTEL analysis are elaborated below:
Political Factors: These factors relate to various government policies, taxes, and rules
and regulations that impact the overall functioning of an organization (Ricci and et. al., 2021). In
context to TESCO, various government policies can aid their business in expanding their
business. Moreover, government rules and regulations set a quality standard for products and
services minimizing the risk of new entry. Although this factor has affected their business