Positive and Negative Impacts of PESTLE Environmental Factors on Tesco

Business In Context

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
The positive and negative impacts of the PESTLE environmental factors............................3
Some key challenges faced by organisation...........................................................................6
How organisation is responding to such challenges in relation to its business strategy........7
RECOMMENDATIONS.................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Business refers to the efforts and actions taken by companies to manufacture and sell
their products or services in the market for enhancing their profitability. Business could be
operated by profit making organisation or non-profit companies (Chi and et. al., 2019). There are
various internal and external environmental factors that could influence the schemes and
decisions of companies. For the purpose of this report, Tesco which is a UK based retailer
company and has its headquarter in Welwyn Garden City, England. The report mainly focuses on
positive and negative impacts of environmental factors on the company. The next section covers
some challenges faced by organisation and how it is responding to such challenges in relation to
its business strategy.
MAIN BODY
The positive and negative impacts of the PESTLE environmental factors
PESTLE analysis is a marketing tool used to identify external environmental factors
impacting the strategies and decisions of companies. PESTLE stands for Political, Economic,
Social, Technological, Legal and Environmental factors. It helps management department of a
company with situational information about the direction in which an organisation is going, its
positioning, targets, growth and any risks involved which could decrease its productivity (López
López, 2017). In context of Tesco, the positive and negative impacts of PESTLE environmental
factors are as follows:
Political factors:
Government schemes and laws such as tax policies, trade reforms, political stability and
businesses regulations of a country that influences the working of companies comes under this
factor. In respect to Tesco, as the company operates its business on global level it has to follow
rules and regulations implemented by government of different countries. Political stability of a
country provides better opportunities for company to trade.
Positive impacts: The company keeps a transparent environment in its political actions
and do not engage itself in any governmental activities which might sabotage its consumers and
colleagues.
Negative impacts: Even though the political environment of UK is stable but Brexit has
developed lot of uncertainty for the company like it faces some interruptions to supplies,