Global Business Environment: Tesco PESTLE Analysis and Brexit Impact

This report provides an executive summary and in-depth PESTLE analysis of Tesco, a major UK organization. It examines the impact of political, economic, social, technological, legal, and environmental factors on Tesco's business operations. The analysis includes a specific focus on the impact of Brexit on the company, exploring changes in import-export rates, tax rates, labor availability, and consumer behavior. The report also highlights Tesco's responses to technological advancements, environmental policies, and employment laws. The conclusion summarizes the key findings, offering insights into how these factors influence Tesco's overall business strategy and performance. The report is supported by references to academic journals and books.

Global Business
Environment

Executive Summary
In this study has been summaries the PESTLE analysis of United Kingdom organization.
In this study has been concluded all the political, economical, social, technological, legal and
environmental factors as per Tesco organization. With the help of this study has been understood
the Pestle analysis and also understand the impact of Brexit on EU and Tesco.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
PESTLE analysis of Tesco..........................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Global business environment means some factors which are controllable and
uncontrollable but impact the business. In this study will conclude the Pestle analysis of Tesco.
MAIN BODY
PESTLE analysis of Tesco
Political Factors
Brexit is new policy of EU countries, and it will affect the Tesco sourcing its products.
Just because of Brexit all the rules, laws and regulation will change in the European Union and
that will affect the business of Tesco because all the policies like import- export rate, tax rate,
interest rate will be change (Rastogi and Trivedi, 2016). Brexit is also responsible for shortage of
workers and labour in United Kingdom, because just of Brexit labour are migrating from UK and
it is affect the Tesco business because without labour and worker Tesco production will goes
down.
Economic Factors
In United Kingdom, employment rate is high which means in the UK many people have
job and work to perform. That is beneficial for the Tesco because people have employment they
are able to invest in the Tesco products and services, and they are also able to purchase products
at hight price (Walsh, Bhagavatheeswaran and Roma, 2019). Which is enhanced the profit of
Tesco and also manage the economy of country. The falling price of pounds will impacted the
Tesco cost sourcing of products, just because of falling pounds, Tesco import and export policy,
also it will affect the business of company because people are not invest in company products.
Social Factors
Change in the shopping behaviour of United Kingdom people are become the major
reason for the shut down the very out let of Tesco (Fozer and et.al., 2017). Because people are
not show that much interest in company products and services. Also, the big reason behind this
people of UK are like to buy products and services online.
Technological Factors
The technology which is implemented in the Tesco is the “Self Check out” . According to
this technique, company implemented this system in 2003 because busy schedule of workers,
with the help of this technology customer can directly purchase their products and also pay from

the technique's (Widya Yudha, Tjahjono and Kolios, 2018). Club Card is the new technology of
Tesco, it is type of app from which customers buy their products, earn money and rewards.
Environment Factors
Tesco also participate in environmental policy for contributing in betterment of society
and environment. For this company plan is to target to help make property goods approachable
and affordable for all. Tesco all the raw material comes from natural environment. Company
focus on three major factors which are Improve, Transform and Advocate (Aithal, 2017). Those
factors are focus on the environment activity of company, by using this factors company
participate in environment activities and show their contributing towards the climate and
environment.
Legal Factors
Employment Law: The employment law of Tesco is focusing upon the respect of human rights
and provide them various opportunities and chances to grow in the business (Kolios, Read and
Ioannou, 2016). The employment law of Tesco will include working hours, health and safety of
employees, anti- discrimination law etc. Company also provide safety and security to their
employees.
CONCLUSION
From the bases of above study it has been concluded that how political, economical,
environment, legal, technological and social factor impact Tesco business.

REFERENCES
Books and Journals
Aithal, P.S., 2017. Company Analysis–The Beginning Step for Scholarly Research. International
Journal of Case Studies in Business, IT and Education (IJCSBE). 1(1). pp.1-18.
Fozer, D and et.al., 2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS
process alternatives. Journal of cleaner production. 147. pp.75-85.
Kolios, A., Read, G. and Ioannou, A., 2016. Application of multi-criteria decision-making to risk
prioritisation in tidal energy developments. International Journal of Sustainable Energy.
35(1). pp.59-74.
Rastogi, N.I.T.A.N.K. and Trivedi, M.K., 2016. PESTLE technique–a tool to identify external
risks in construction projects. International Research Journal of Engineering and
Technology (IRJET). 3(1). pp.384-388.
Walsh, K., Bhagavatheeswaran, L. and Roma, E., 2019. E-learning in healthcare professional
education: an analysis of political, economic, social, technological, legal and
environmental (PESTLE) factors. MedEdPublish. 8.
Widya Yudha, S., Tjahjono, B. and Kolios, A., 2018. A PESTLE policy mapping and
stakeholder analysis of Indonesia’s fossil fuel energy industry. Energies. 11(5). p.1272.

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