Pestle Analysis of TESCO Plc : Assignment

PESTLE ANALYSIS OF
TESCO

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
1 Structure of TESCO PLC........................................................................................................3
2 Effects of external environmental factors on Tesco Plc...........................................................5
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
PESTLE analysis is a tool which used to know about external factors that affect a
business directly or indirectly. An organisation can not avoid these factor it can only minimise
the impact by taking precautionary actions. Organisation avail deeper understanding about
environment. PESTLE help in taking strategic and tactical decision both. TESCO PLC is the one
the largest grocery retailer company in the world. Present study will conduct PESTLE of TESCO
PLC. Study will enhance the deeper knowledge of businesses environment which affect the
decision making of organisation. It will also analyse the way TESCO handle its external
environment to minimise the risk.
TASK
1 Structure of TESCO PLC
TESCO PLC obtain hierarchical organisational structure. Its corporate governance structure
consist 10 board of directors. Chairman manage effectiveness of board. He insures interest of all

stakeholder while making policy also communicate benefit and interest of all stakeholder and
shareholder attached with decision taken by board. Chief executive are responsible for planning
and making action plans aligns with organisational goal. He is responsible to find new
opportunities, making strategies, team building, provide updates to stakeholder regarding
performance of strategic decision and policy adopted by board of members. Non executive
directors helps executive in making policies. Senior independent direct help organisation to solve
issues relate to shareholders. SID is authorised to access the performance and effectiveness of
chairman and give appraisal to him. TESCO PLC has five committees to maintain governance
functions as audit committee, nomination committee, disclosure committee, corporate social
committee and remuneration committee. Regional manager is next higher authority of store
manager. Different department manager comes under the store manager (Hartmann. and
Schwieger, 2016)
TESCO PLC has huge human capital and wide span of business function. To isure good
governance practice in organisation it has five governance committees which handle issue
relation to business function. Remuneration committee deals with arrangement of remuneration
to senior employees of organisation. It defines pension plan to executive also monitor their
performance. Remuneration committee ensure that Fair and unbiased remuneration must be
given to them. Nomination committee seek for most suitable candidate must be placed in board
of direct position. Nomination committee also help in getting the best CEO for their organisation.
Disclosure committee check that all the information which must be given to all stakeholders are
timely provide to them. These committee check accuracy and fairness of information. Its prtact