Tesco Plc: Analysis of the Global Business Environment (PESTLE)

This report presents a PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis of Tesco Plc, a leading global retailer. The report examines how various factors within the external environment impact Tesco's operations. The political section discusses political instability and the impact of Brexit. Economic factors like changes in tax policies and consumer spending are analyzed. The social aspect looks at consumer trends and Tesco's adaptation to them, including the introduction of organic products. Technological advancements, such as online ordering and delivery, are also discussed. Furthermore, the environmental section addresses Tesco's efforts to reduce its carbon footprint and its commitment to corporate social responsibility. Finally, the legal section covers the company's adherence to relevant laws and regulations, including those concerning equal pay and minimum wage. The report concludes by summarizing Tesco's strategic responses to these factors and its efforts to maintain its market leadership.

Global
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................1

INTRODUCTION
PESTLE analysis is the abbreviation for Political, Economical, Sociocultural,
Technological and legal forces that helps in analysing the changes in the business Environment.
It helps company to spot opportunities and give warning about the threats.
Tesco Plc is the leading global British Merchandiser which started its business with grocery
market and now is dealing with various product line such as internet service, petrol, electronics,
books, clothing, financial services and many others. Company is also listed on London Stock
Exchange.
MAIN BODY
Tesco PESTLE Analysis -
P – Political Factor – Tesco has its operations in various countries across the world and in
different countries have different political issues. Political Instability, Unemployment, taxes are
the factors which impacts the Tesco's business. The best example is the Brexit effect on the c
E- Economical Factor – Economic Factors are the main concern of for Tesco. Any change in tax
policies in UK by could affect the accessibility of finance (Adamyk, 2019). The major market in
UK, Tesco has developed its business globally but due to decline in disposable of households
Tesco has shift its focus from luxury goods to consumer goods.
S – Social Factor – Changes in trends also impacts the business but Tesco keeps the track on its
Customers habits and how much they are influenced by the current trend. Tesco in Uk by
analysing this came up with the organic products for the first time in UK Market. Company also
offered the one stop shop and bulk shopping to its customers which also benefited and increased
its customer base.
T – Technological Factor – Tesco uses the advance technology and it brought new opportunities
for the company. Company launched its app through which customers can order online and for
the initial period it gave free delivery services to gain more customers in online market.
E – Environmental Factor – With the increased pressure from public and government, as the
company is using society's resources, it has to give something back in return. Tesco took
initiative to reduce carbon footprints. To contribute and follow CSR towards country, it has
decided to remove one billion plastic bags from the country.
L- Legal Factor – Changes in government policies and legislations impact the Company
performance (Perera, 2017). Tesco follows all the rules, regulations related to law of UK and the

international market in order to run its operations smoothly and successfully. There are certain
laws regarding equal pay, minimum wage that Tesco abide by. Tesco specially take care of these
factors because it has been in controversy and that impacted its image.
CONCLUSION
In the report above, various factors are analysed that impacts the Tesco's business in UK
and how Tesco takes various initiative and keep tracks in order to be the market leader in UK. It
provides various benefits to its customers and take measures that can give it competitive
advantage.

REFERENCES
Books and journals
Adamyk, K., 2019. PESTLE Analysis on Tesco PLC.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
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