Analyzing Tesco's Global Business Environment using PESTEL Framework

This report provides a PESTEL analysis of Tesco's business environment. The introduction emphasizes the importance of analyzing the business environment for organizational performance, especially in a competitive market. The PESTEL framework, encompassing political, economic, social, technological, environmental, and legal factors, is used to assess Tesco's operations. Political stability in the UK, economic factors like interest rates, and social factors like customer preferences are examined. The report also considers technological advancements, environmental sustainability efforts, and legal compliance. The conclusion highlights the value of the PESTEL framework for understanding market threats and opportunities, aiding in strategic planning. The report references several academic sources to support its analysis.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
Critically analysed PESTEL framework in order to improve performance of company. .........3
CONCLUSION...............................................................................................................................4
REFERNCES...................................................................................................................................5

INTRODUCTION
Business environments is essential to analysed top each and every organisation in order
to improve performance of company and productivity. In present context, there is high
competition at market place so organisation developing strategies in order to beat them from its
competitors. Mangers of organisation used various tool to examined business model such as
PESTEL model because there are ample numbers of external factors affects organisation
productivity and profitability (Camillus, 2016). These report is about Tesco which dealing in
wide range of products and services. It includes food items, grocery item and clothing. The paper
consist is PESTEL frame work which essential to analysed in order to achieving organisation
goal and objective of company.
Critically analysed PESTEL framework in order to improve performance of company.
The PESTEL is tool which includes is macro environment or its part of that so
organisation effectively utilised in order to increasing the sales revenues and gaining competitive
advantages. There ample numbers of external factors which are discuss below.
Political-: These factor refers to includes various rules, regulation and guidelines and legislation.
The political condition of United Kingdom is strong and stable so they easily operates business
function. In reference of Tesco, government of UK support them in order regulated those policy
which is favourable in the context of business (Dubey, 2016).
Economic factors-: These factors plays vital role because they refers to interest rates,
inflation rates, GDP, income distribution and so on. In context of organisation, below interest
rates so it is positive impact on business functions in order to increasing profitability of company
as well easily capture market share. The economic condition of UK is strong so these is
favourable for company so increasing sales revenues which brings boost the economy.
Social factors-: These factors refers to values, beliefs, tradition and customer attitude
towards the products and services. Organisation essential to analysed these factors because to
know about market trends, taste and preferences of customer accordingly offered to customers.
In relevance of Tesco, they operates business in another countries so also know about their
culture of particular country on that basis easily fulfil the needs and demands of customers.

Technological factors-: It is factors which refers to organisation used various techniques
to smooth flow of operations. In present context, technology dratsically changes so Tesco
accordingly choose advanced technology which helps to easily manufacturings of products and
services. It involves various kind of innovation such as innovative product and services and
online marketing of goods (Kačerauskas, 2019).
Environmental factors-: These factor is important factor which refers to business
sustainability depends upon these factors because it includes various elements such as climate,
weather, pollution, global warming and many more. In context of organisation, they mostly
utilised biodegradable and recycling of products and services along with these factors
organisation set up in that way they doesn't harm to environment.
Legal factors-: There are various kind of rules and laws which essential to followed
company and organisation adhered to follow because government regulated such laws. In
relevance of Tesco, they effectively adaption all laws such as labour laws , employees contract
law, wages laws, frauds laws and legislatives laws (Hillary, 2017).
CONCLUSION
After the brief analysed of these report, Business environment plays vital role in order to
organisation analysed in that way to know about the competitors strategies and analyse their
weakness and accordingly prepares marketing plan and developing various kind of strategy.
Companies assist environment with help of PESTEL framework so it is easily analysed the
threats and opportunities which are available at market place.

REFERNCES
Books and Journals
Camillus, J.C., 2016. The wicked challenge of the business environment. International Journal
of Business Environment, 8(1), pp.19-31.
Dubey, M., 2016. Developing an agile business excellence model for organizational
sustainability. Global Business and Organizational Excellence, 35(2), pp.60-71.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Kačerauskas, T., 2019. Ethics in business and communication: common ground or
incommensurable
Kasemsap, K., 2016. Advocating electronic business and electronic commerce in the global
marketplace. In E-retailing challenges and opportunities in the global marketplace (pp.
1-24). IGI Global.
Kasemsap, K., 2016. Exploring the roles of entrepreneurship and internationalization in global
business. In International Business: Concepts, Methodologies, Tools, and
Applications (pp. 2140-2170). IGI Global.