PESTLE and SWOT Analysis of TESCO

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INTRODUCTION
Business in Context
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Methods of analysis of the external environment of business
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Vlados, C., 2019. On a correlative and evolutionary SWOT
analysis. Journal of Strategy and Management.
Political factor: It is one of the factor of PESTLE analysis that is the political
factor which states in context of TESCO such as there is a negative and bad
impact of Brexit and prolonged uncertainty and moreover, there is foreign
direct investment restrictions as well due to the strict political factor.
Therefore, political factor is considered as a threat for TESCO (Nandonde,
2019). Economical factor: It is an another factor of PESTLE analysis that is the
economical factor which states in context of TESCO such as there are high
fluctuations in global exchange rates which results in uncertainty for the firm
to operate and moreover, there are higher wages and pensions which impacts
retail margins in a drastic manner. Therefore, economical factor is considered
as a threat for TESCO. Social factor: It is also one of the factor of PESTLE
analysis that is the social factor which states in context of TESCO such as there
is a good popularity of social media in retail sector for better marketing and
earning revenues in the industry along with the increments of single person
households has increased the visits in supermarkets on a daily basis.
Therefore, social factor is considered as an opportunity for TESCO
(Christodoulou and Cullinane, 2019). Technological factor: It is also an
another factor of PESTLE analysis that is the technological factor which states
in context of TESCO such as there is a popularity of RFID technology and
internet of things in retail to enhance the customer servicing and operational
optimization. Moreover, increasing popularity of mobile payments. Therefore,
technological factor is considered as an opportunity for TESCO. Legal factor: It
is one of the factor of PESTLE analysis that is the legal factor which states in
context of TESCO such as there are stringent rules in terms of data security
and privacy and moreover issues regarding intellectual property laws and also
the copyright problems. Therefore, legal factor is considered as a threat for
TESCO (Shtal, Buriak, Ukubassova and Tlegen, 2018). Environmental factor: It
is an another factor of PESTLE analysis that is the environmental factor which
states in context of TESCO such as there is reducing dependency on plastic and
initiatives for sustainable sourcing along with the commitment to addressing
the environmental challenges. Therefore, environmental factor is considered
as an opportunity for TESCO. Ethical factor: It is also one of the factor of
PESTLE analysis that is the ethical factor which states in context of TESCO such
as TESCO scored ethical consumer’s best rating for its supply chain
management when it viewed the documents like “our approach to human
rights dated 11/4/19”, “modern slavery statement 2018/19” and supplier code
References
Organization chosen here is the TESCO, which
is one of the leading international supermarket company
headquartered in United Kingdom and established in
1919. it provides products and services of retail such as
home accessories and electronics along with the food
and many more, it also provides the services like credit
card services and load services as well. The following
discussion is based in the context of TESCO in which
the external and internal environment of the company is
discussed in the form of political factor and economical
factor along with the social factor and technological
factor which is followed by the legal factor and
environmental factor. Also the strengths and weaknesses
along with the opportunities and threats with proper
findings and conclusion.
SWOT Analysis
It is concluded that business management in context of
external and internal environment is an important concept to
learn and study so its application can be applied in the real
world organizations. Therefore, it is important and essential to
analyse and examine the external factors of the company in the
form of PESTLE analysis which includes the political,
economic, social, technological, legal and environmental
factors. It is necessary and significant to determine and gain the
knowledge about internal factors in the form of SWOT analysis
which includes strength, weaknesses, opportunities and threats
of the company. Hence, this poster covers all such information
in order to better understand the conception of business
management in context of external and internal environment.
Conclusion
Strengths: Strengths of TESCO includes that the company is having the
consistently strong financial performance since last 3 years. They focus on the key
acquisitions and strategic alliances along with the technology as a differentiator.
Moreover, the company is also involved the innovation in ranges of the product
and customer servicing as well. Weaknesses: Weaknesses of TESCO includes that
the company is facing the cutting in jobs and cutting in cost as well and thereby
suffering in their productivity enhancement. There are also the frequent
controversies undermining the brand which is directly affecting the image and
reputation of the firm. Moreover, company is also facing the cutting down of
overseas operations (Vlados, 2019). Opportunities: Opportunities of TESCO
includes that the company can grab the opportunity in multichannel retailing due
to the increasing popularity of it. Company can introduce the artificial intelligence
in the organization for better customer experiencing and expansion at next level.
They can also innovate the consumer engagement with the help of augmented
reality. Moreover, company must find the solution of merging with Booker in
order to bring new opportunities for growth. Threats: Threats of TESCO includes
that the company is facing the large increasing of competition in the retail sector
and thereby losing the competitive advantages as well. There is a rapid change in
expectations of the customers and therefore, unable to meet the demands.
Moreover, cyber security threats are having the threat of drastic level and needs
to overcome on an immediate basis (Namugenyi, Nimmagadda and Reiners,
2019).
PESTLE Analysis
References