Impact of External Environmental Factors on Tesco PLC and its Corporate Social Responsibilities

Context of business

Table of Content.
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Impact of external environmental factors on Tesco PLC using PESTEL analysis.....................1
Recommend a suitable leadership style that will help to achieve the effective business
objectives.....................................................................................................................................3
Critically comment on their Corporate Social Responsibilities..................................................5
Effects of Brexit and COVID-19 pandemic in 2020/2022 on Tesco PLC and how the business
addressed the situation.................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
A context of business comprises effective understanding of the component that can make
impact on business from various perspectives, involving the decisions that are being made.
Business environment generally refers to an internal and external component which can
influence the operational functioning of the business. It is essential for the organization to be
aware of such elements to improve the suitable activities as well as the strategies as per the
situation (Middleton, 2018). In the report, the chosen organization is Tesco PLC which is a
British multinational grocery as well as general merchandise retailer headquartered in the
Welwyn Garden City, England. Tesco PLC was the third largest retailer within the world that is
measured by the gross revenues and the ninth-largest in the world generally measured by the
revenues. The report will cover PESTEL analysis of the respective organization. Moreover, there
is a comparison within various leadership style types and how it can help in enhancing the
organizational effectiveness. Furthermore, there is also a discussion about the corporate social
responsibilities mainly linked with the Tesco PLC organization.
MAIN BODY
Impact of external environmental factors on Tesco PLC using PESTEL analysis.
The external environmental factors that make influence on Tesco PLC organization is well
explained by PESTEL analysis that include components like Political, Environmental, Social,
Technological, Economical and Legal factors.
Political element: The organization is mainly functions within the 12 countries consisting
Europe and Asia. It is generally exposed towards various political elements which can influence
the functioning of Tesco PLC. The elements include current and impending legislations, Tax
rates, unemployment rates, political instability, economic conditions of the country and many
more (Asadpourian, Rahimian and Gholamrezai, 2020). The organization has always keep the
good advantages via the free trade. In this, these such free trade facilities can help and allow to
import the foreign products for having the sales in the stores at a low price than earlier it is
because it is generally imported within the Abroad.
Economic element: A Tesco PLC comprises a variety of products as well as the economic
components can play a crucial role within the consumption of such broad array of the products.
The organization generally required to have a keen eye for any of the economic alterations which
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generally occur within the countries, which it functions in, since these such are the components
which will influence its sales, profits, revenue and distribution as well. The organization must be
aware several taxation policies, to influence the same, for its own profit (Aithal and Aithal,
2019). Any of the alterations within the policies in the United Kingdom can lead towards the
major alteration while delivering the company’s model and extra cost linked the restructuring of
the organization may be enormous. The organization should also keep in view that the product
pricing will impact the sale. In case of the economy is under the pressure, or any inflation occurs,
the daily need products should be priced respectively.
Social element: In this, due to having a distinctive social alteration, the trends generally
depict that the clients within the UK generally have moved to the bulk shopping and one-stop
shopping. However, A Tesco PLC has enhanced the ratio of non-food products offered for sale.
In addition, the specific type of goods and services usually demanded by the customer is highly
impacted by their beliefs and attitude which, in turn, are highly impacted by the social
conditioning. It is because, clients are generally becoming more aware about their well-being
problems, and due to this their methods towards the food is altering constantly. The organization
is adopting such alterations by simply accommodating the demand for the organic products
(ERGASHEV and Ravshanov, 2021).
Technological element: The development within technology generally have brought
several new opportunities for the Tesco PLC. In this, the two of the most distinct ones can
involve, firstly, the advancement and introduction of the online shopping including facilities
towards home delivery. Secondly, the self-service check-out points typically have given with
convenience as well as ease for the clients, that in turn have low labor costing. Moreover, Tesco
PLC has also invested a specific amount on the energy efficiency projects in order to fulfil its
long term objectives so that carbon footprints can be reduced. Tesco PLC has effectively
managed to shift the significant trends of the shopping towards online one, with including 43%
of its shoppers today, people shopping from the online websites and getting their products and
goods home delivered (Barykin and et. al., 2021).
Environmental element: In the PESTEL analysis of Tesco PLC, the specific environmental
factors are influencing its business and are as mentioned below:
The organization has undertaken several steps to aid enhance the surrounding environment
as well as produce a more sustainable community as well. Currently, Tesco PLC has launched its
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