Positive and negative impacts of PESTLE on a business - Desklib

Business in context

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................4
Positive and negative impacts of PESTLE on a business...........................................................4
TASK 2............................................................................................................................................6
Key challenges faced by a business entity using PESTLE analysis...........................................6
TASK 3............................................................................................................................................7
Business strategy for future of the organisation..........................................................................7
CONCLUSION ...............................................................................................................................9
Recommendations .........................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business is considered as an economic activity which is helpful in generation of several
opportunities for the owner. The main purpose of establishing business at the marketplace is to
earn profit and to satisfy customers (Corallo, 2020). It is essential for an owner to try to expand
the business and deal with different challenges in the market in order to increase revenue and
growth. In this report a brief analysis of PESTLE factors is performed after the impact caused by
Brexit. This report also contains negative and positive influence caused by various PESTLE
factors after Brexit. In this report the key challenges faced by a business organisation after Brexit
are explained. This report contains a brief overview of business strategy for the safe business
practices and also contains recommendations for the business to gain market growth. In this
report example of Tesco company is taken into consideration to better understand environmental
perspectives and dimensions. Tesco is a multinational retail company which was established in
the year 1919 and is headquartered Welwyn Garden city, United Kingdom.

TASK 1
Positive and negative impacts of PESTLE on a business
In the era of stiff competition it is important for a company to perform PESTLE analysis
for better understanding factors that impact a business organisation. In the macro environment of
United Kingdom after the Brexit there are many different there are several impacts on operations
of Tesco. The PESTLE analysis of Tesco is mentioned below along with various negative and
positive impacts:
 Political factors- The political factors are related to rules and regulations which are
formulated by government. After the Brexit the political rules and regulations are
changed in the country. Earlier United Kingdom used to follow the rules and regulations
which are formulated by the European Union (Feller, 2017). In recent times the whole
country follows rules and regulations which are formulated by UK government to handle
country activities. The business organisations faced various challenges as the culture
changed after the Brexit. Brexit may take several years and require the use of thousands
of people to exit from Great Britain successfully. When the vote was cast and the
decision made, politicians were put in an awkward placement.
Positive impacts- There are several positive impacts by United Kingdom's government like new
trade policies, Introduction of new business laws, development of business organisations and
development of economic activities.
Negative impacts- In political factors there are various negative impacts like adoption of new
culture business as there is resistance to change.
 Economic factors- The economic factors are considered as major factors which have a
main impact on GDP and national income of United Kingdom. Economic factors mainly
related to monetary policy which is formulated by the country. In last year retail sales
were up during the summer in United Kingdom. Meanwhile the credit card sales were on
the rise which mainly boosted the economy (Glebovskiy, 2019). Interests rate and
currency value were shaky, prompting international businesses to be impacted negatively.
Positive impacts- Main positive impact of economic factors on the business is reduction of
inflation in the country which is indirectly related to development of business organisation.