BM461 Global Business Environment: Tesco PESTLE Analysis Report

This report presents a PESTLE analysis of Tesco, a multinational firm. The introduction provides a brief overview of Tesco, its founding, and global presence. The PESTLE analysis examines the political factors affecting Tesco, including import duties and tax rates. Economic factors such as labor costs, diversification, and market share are also discussed. The report also explores social factors like changing consumer shopping trends and health concerns. Technological factors, including RFID technology and mobile payment apps, are analyzed. Legal and environmental factors, such as compliance with regulations and Tesco's sustainability efforts, are also included. The conclusion summarizes the key findings of the analysis. The report also includes references to the sources used.

CW1: Global Business
Environment Portfolio Paper.

Table of Contents
INTRODUCTION...........................................................................................................................3
Pestle analysis .................................................................................................................................3
Conclusion .....................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Tesco is a British Multinational firm, situated in England. It is the ninth largest
supermarket within world. It is founded in the year 1919. Currently have 6553 stores. Present
report focuses on the Pestle analysis of Tesco.
Pestle analysis
Political factors
Here the factors includes the global political factors that impacted all the performance of
Tesco. It involves the stability of a nation, tax rates, acts of legislation. The firm is operating
within 12 nations that includes Europe as well as Asia. Such as the import duty that impacted
Tesco due to its imports inventory from outside UK such as East Asia, China. Tax on the large
supermarkets such as tesco Tax was proposed by the UK's local council but the government also
refused it to avoid price hike and also similar can also impact the future in more negative way.
Economic
Labor cost is considered as the one of the crucial factors that can impact the UK supermarkets.
There are also various factors that impact Tesco that is its cost, profits and prices. The firm also
focuses on the enhancing borrow the cost within United Kingdom. The firm also affects the cost
leadership and brand reputation (Techo, 2018). Diversification as well as presence within the
international market are consider as two crucial strategies within the past few years regarding
success of the firm. Tesco also depend on the market of UK with a share of 27.7 % in the UK
grocery market.
Social factors
The shopping trends of the customers are changing continuously over the time. As they have
tough schedules and needs fast delivery as well as also have the flexible good return policy. They
need to one -stop shopping. Tesco is also focuses on the UK consumers as well as understand
and gives the services to meet such kind of issues. The demands for such services and goods are
related to the beliefs of the costumers regarding health. Obesity is a problem within society as
well as consumers are nowadays are more concern on the issues related to health. Firm focuses
on changing behavior of consumers as well as more demands for the organic food.
Technological factors
Tesco used the technology called RFID technology to enhance the introduce experience for the
consumers. As in this technology it can automatically count its count stock . This type of the

information is also helpful for the suppliers of the store. Tesco also developed its online
shopping mobile payment app called PayQwid. As within this app consumers can pay shopping
and for that they can pints that are beneficial for their next shopping as it can provides them
discount.
Legal factors
Firm must conducts its operation as per the Food retailing Commission strict code of practice
and also faced several legal actions regarding the accounting fraud
Environmental
Tesco drivers uses the routes that are fuel efficient and also can collected the unwanted
bags from the consumers and later recycle it (Techo, 2018). Also Tesco is also committed to
uses sources that are renewable and also by 2030 it can generate the 100 % of its electricity and
also needs to minimizes the 50 % carbon footprint by the year 2020.
Conclusion
From the above it had been concluded that global political factor such as tax rates, acts
of legislation Labor cost impact Tesco. Tesco also depend on the market a share of 27.7 %T
Obesity are more concern on the issues related to health Firm focuses demands for the organic
food Tesco used RFID technology to enhance the experience of consumers. It also focused to
reduce the carbon footprint up to 50 %.

REFERENCES
Books and Journals
Techo, V.P., 2018. Marketing in Emerging Markets DBA761: Module 8, Assignment 8.

1