Comprehensive Analysis of TESCO's Global Business Environment

This report provides an executive summary and PESTLE analysis of TESCO, a major global retailer. It explores political factors like Brexit's impact on food prices and labor supply, economic factors including employment rates and diversification, and social factors such as changing consumer shopping habits and store closures. Technological advancements like customer loyalty cards and the rise of online shopping are also considered. The report further examines environmental factors, focusing on the demand for recycled materials and zero-waste initiatives, and legal factors like the introduction of a sugar tax and restrictions on advertising. The conclusion highlights the importance of these factors in understanding TESCO's strengths and weaknesses. The report also includes references to relevant academic sources.

Global business
environment

EXECUTIVE SUMMARY
TESCO is one of the largest retailer of the world and the TESCO is earning better profit per share
and the dividend paid to shareholders have also increased and also the better quality product and
services makes this organization a successful leader in the world and also maintaining its position in
the market and the tough competition from the other marketers gives the better advantage to the
company to analyse the performance deeply using ratio analysis.
Table of Contents
INTRODUCTION................................................................................................................................3
CONCLUSION....................................................................................................................................4
REFERENCES.....................................................................................................................................4

INTRODUCTION
Every organization requires the better environment and working culture to run the business
for the long run in the future. TESCO is one of the largest and famous retailers across UK. This file
includes the theory applied on the organization i.e., TESCO and the PESTLE analysis is helpful in
analysing the company in depth and the several factors such as political, economical, social,
technological, environmental and legal factors are applied on this organization and these factors
deeply analyse the strong and weak points of TESCO.
PESTLE analysis of TESCO
 Political Factor
TESCO is one of the famous retailer of the world but there are several companies which may affect
the company's productivity i.e., Brexit and one of the effect of Brexit is that it has created the effect
of food prices and the food prices are regularly increasing and also the deviation of the pound
sterling and the affect of the Brexit is that it made the food import more expensive for the food
retailers and the UK supermarket like TESCO are forced to search for expensive food in UK as
compare to EU countries especially for core grocery items and also having dramatic price
increasing from pre to post Brexit deflection and this affect the labour supply because Brexit is
giving better pay which may affect the production of TESCO (Doh, Luthans and Slocum., 2016).
 Economical Factor
As the economy of UK is increasing, so it is also increasing the employment ratio and also the large
size of finance resources of TESCO is the biggest benefit of this organization and also the
diversification into different products such as mobile phones, insurance, petrol, credit card and
banking and this diversification has also increases the employment ratio of this organization and as
the lowest price discounted, Aldi and Lidl get the better benefits from the decline of Brexit
economic fallout. The growth and the inflation rate of TESCO is regularly decreasing so this results
in decrease in economy by 3.0% and also the loss in the market share in all out price war
(Salvatore., 2015).
 Social Factor
TESCO is the biggest organization in the world but every organization always affected by the social
factor and TESCO has confirmed that the about 9,000 jobs are at risk and also 90 stores has been
closed and the reason behind closing the stores are decreasing in the demand and also the shopping
style of people are changing regularly and the online shopping craze is increasing day by day which
reduces the economy of the company and this is the only reason of closing several stores and not
able to give the competition to other companies (Hamilton and Webster., 2018).
 Technological factor
As the time is changing day by day, technologies are also becoming advance and TESCO has also

launched customer loyalty card and TESCO club-card which gave the better hike to this
organization and also beneficial for the organization to expand in other countries and the Shopping
malls are now taking shapes into apps and the voice control shopping is the main centre of
attraction for the consumers (Brannen, Piekkari and Tietze., 2017).
 Environmental factor
As the awareness is increasing day by day, customers are regularly going towards recycled material
and a new environmental trend facing the food retail industries and the customers demand zero
wastage materials and in response, zero waste supermarkets have already started opening in the UK.
Food. Love in Totnes, Devon and At The Clean Kilo, Birmingham (Doh, McGuire and Ozaki.,
2015).
 Legal factor
A new sugar tax introduced by the UK government and it aims to reduce the sugar contents by 20%
and this will impact on future and growth of the company and also the new rule of banning the
advertisement for high fat food, sugar and salt will affect the market and their promotional efforts
(Tallman, Luo and Buckley., 2018).
CONCLUSION
This file concluded about the TESCO and theory applied on the organization i.e., TESCO
and the PESTLE analysis is helpful in analysing the company in depth and the several factors such
as political, economical, social, technological, environmental and legal factors are applied on this
organization and these factors deeply analyse the strong and weak points of TESCO.
REFERENCES
Books and journals
Doh, J.P., Luthans, F. and Slocum, J., 2016. The world of global business 1965–2015: Perspectives
on the 50th anniversary issue of the Journal of World Business: Introduction to the special

issue.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Doh, J., McGuire, S. and Ozaki, T., 2015. The Journal of World Business Special Issue: Global
governance and international nonmarket strategies: Introduction to the special
issue. Journal of World Business, 50(2), pp.256-261.
Tallman, S., Luo, Y. and Buckley, P.J., 2018. Business models in global competition. Global
Strategy Journal, 8(4), pp.517-535.
Brannen, M.Y., Piekkari, R. and Tietze, S., 2017. The multifaceted role of language in international
business: Unpacking the forms, functions and features of a critical challenge to MNC
theory and performance. In Language in international business (pp. 139-162). Palgrave
Macmillan, Cham.
Salvatore, D., 2015. Managerial economics in a global economy. OUP Catalogue.