BM461 - Tesco PESTEL Analysis: Key Drivers in Global Business

This report provides a PESTEL analysis of Tesco within its global business environment, examining political, economic, social, technological, legal, and environmental factors affecting the company. It identifies key drivers of change influencing Tesco's operations, including political instability post-Brexit, economic impacts from COVID-19, shifting social preferences towards online shopping, technological advancements in retail, evolving legal regulations, and increasing environmental concerns regarding plastic waste. The analysis highlights Tesco's efforts to adapt to these changes, such as enhancing its online delivery services and developing sustainable packaging solutions. Desklib offers a wealth of similar solved assignments and study resources to aid students in their academic pursuits.

Global Business
Environment

Macro environment analysis:
External environment analysis is based on analysing the different factors that may affect the
functioning of organisation. There are many different scenarios that can possess an impact on the
overall functioning of business organisations. Presently there is an analysis of retail sector
industry that is Tesco in context of various factors affecting its present functioning.
Political factors: Tesco is having its headquarters in United Kingdom and their operating
across various countries. It is one of the largest retail brands in the world and has to follow
regulations to ensure safety and compliance of the products (Vincent, Alihodzic and Gale,
2021). The brexit scenario has led to political instability that is affecting information of new
regulations that may increase or decrease the same in coming time period.
Economic factors: Tesco encompasses a range of products and economic factors that are
affecting the present functioning of business. There are many factors that include revenue
distribution profit the organisation must be aware of taxation policies that has changed in UK
recently. The present covid-19 virus has also affected the reduction in personal disposable
income of people which has led to more focus on necessity products.
Social factors: there are some of the social preferences of the people that have changed
recently. It includes the societal and social influences that have lead to changing culture. The
present covid-19 virus has led to people focusing on more online purchasing of products (Pollock
and Edwards, 2019). There has been a complete shift towards development of online delivery
facilities and Tesco is working to enhance their supply chain management process.
Technological factors: there are many technological trends that are affecting the present
scenario of retail sector. Tesco is experimenting with different aspects of retaining and has
achieved some success in endeavour (Sasaki and et.al., 2018). This brand has managed to shift
the trends of shopping online with large segment of customers who are willing to get the
products delivered at safety and security of their home in the covid-19 pandemic situation. There
is also creation of new technology revolution analyse the way retail shopping is undertaken.
Legal factors: there are been changes in government policies that is affecting directly the
operations of organisation. It includes food retailing commission focusing on lying down of

regulations and rules that have to be followed by all members of the retail segment. In 2016 there
have been certain applications in post on Tesco based on gender bias and age that is prevailing in
the work culture. Further, in the covid-19 situation there have been many legal regulations that
have to legally adopt by all the retail sector organisations.
Environment factors: there are some of the environmental factors that are part of external
environment and have to be considered in order to manage the present operations in Tesco. The
organisation has undertaken initiatives to manage all the non recyclable plastic so that they are
able to explore new opportunities that can help in using the residual plastic. Tesco is also
working towards development of a closed loop system to reduce the amount of wastage that is
accumulated in landfills (Laverty and et.al., 2018). Organisation has changed their products and
helps in reducing plastic waste that is hard to recycle.

REFERENCES
Books and Journals
Laverty and et.al., 2018. Macro-environmental factors and physical activity in 28 European
Union countries. The European Journal of Public Health, 28(2), pp.300-302.
Sasaki and et.al., 2018. Synthesis and photoluminescence properties of a novel Sr2Al6O11:
Mn4+ red phosphor prepared with a B2O3 flux. Journal of Luminescence, 194, pp.446-
451.
Vincent, A., Alihodzic, S. and Gale, S., 2021. Risk Management in Elections: A Guide for
Electoral Management Bodies. International Institute for Democracy and Electoral
Assistance (International IDEA).
Pollock III, P.H. and Edwards, B.C., 2019. The essentials of political analysis. Cq Press.