Detailed Pestle Analysis Report: Tesco's UK Business Environment

This report provides a Pestle analysis of Tesco, a British multinational retail business operating in the United Kingdom. The analysis examines the macro-environmental factors impacting Tesco, including political, economic, social, technological, legal, and environmental aspects. The political section considers UK legislation, Brexit's market effects, and trade policies. The economic analysis focuses on labor costs, economic growth, and the impact of factors like inflation and recession. The social segment explores consumer buying behavior and cultural influences. Technological advancements and their impact on customer experience are also evaluated. Environmental considerations include Tesco's initiatives for sustainability, and the legal section addresses compliance with employment laws and minimum wage regulations. The report concludes that while legal and political factors may present challenges, a systematic approach will provide long-term stability. The report is based on secondary analysis and data collected from acknowledged sources.

Pestle Analysis

Executive Summary:
In this report provides the evaluation of Pestle Analysis for United Kingdom based
business organisation by considering political, economical, Social, technological, legal and
environmental. By focuses towards secondary analysis as to collect the data from acknowledged
sources.

Table of Contents
MAIN BODY...................................................................................................................................4
Pestle Analysis:...........................................................................................................................4
CONCLUSION................................................................................................................................5
REFERNCES...................................................................................................................................6

MAIN BODY.
Pestle Analysis:
This analysis derives the framework of macro-environmental factors which is assort to
scanning external environment for particular business organisation (Ashmore., 2019). The
purpose of Pestle analysis is when a organisation plan to establish their venture in outside or
foreign region.
In following there is evaluation of Pestle for Tesco company, as its British multinational
retail business in United Kingdom are:
Political: In this factor norms, rules, principles and regulation which is composed by
corporate governance as per guidelines which need to follow by respective company. As the
political situation of United kingdom is stable where Tesco company have to operate their
activities undertaken of UK legislation (Davis and et. al., 2019). Some of factor which impact
through political is Brexit market which depicts about European Union could not able to trade in
United kingdom region, trade policies like foreign exchange, unemployment rate, economic rate,
political instability condition of countries where it operates.
Economical: This part describes about economic performance of country in terms of
growth, productivity etc. For Tesco, it based from United kingdom where labor cost is important
because it create impact towards affect UK supermarket as it having wide range of economic
growth, Fiscal and monetary Policy. Factors which can create impact to Tesco Brexit Market,
recession rate, inflation and others. Tesco must focuses on increasing of borrowing cost in
United Kingdom it would increase prices but reduces chances of profit (Evans and et. al., 2019).
The presence of international market are two main strategies which leads to company for high
succession planning.

Social: It refers about to measure consumer on the basis of their buying behaviour and
opted people for their product through geographical and demographical point of view (Mayes
and et. al., 2018). There is vast traits of people in UK consumer shopping trend that constantly
fluctuates as per changing over time. Tesco can approach or relying on United kingdom
customer through their belief and culture that helps to guide about people's choices.
Technological: There is vast opportunity as well as scope of technology advancement in
United Kingdom, but Tesco has faces huge amount of issues as unfavourable feedbacks,
unsatisfactory experiences from customer. After the presence of technology resources implement
in Tesco supports to bring more customer retention also helping to gaining trust. Some of
beneficial resources which helps to increase store experience for customer.
Environmental: This factor defines about contribution towards society in aspect of
development through companies. As many organisation has faces privilege from government
agencies to address environment issues where they are responsible to address the issues that
brings positive outcomes (Nandonde., 2019). In United Kingdom having own policies relates
with environment there is huge implication of fuel, air diseases which create negative impact to
environment. Tesco takes various initiative to provide betterment towards society for saving
fuels and disposal wastage material to recycle them.
Legal: According to this factor it undertakes key segments where high law charges can
affect the business that performances to accomplish business relative purposes. Tesco has faces
many legal implication as in past few years back, company had taken legal action against their
employer as per age and gender discrimination situation (Ofosu-Boateng and Jiping., 2020). In
this, workers were very disappointed after observed that low pay rates for late night shifts as
well as not bank holiday rates payable. They did not follows employment laws at their
workplace as well as national minimum wage law which is highly considerable in UK based
companies.
CONCLUSION
In above report of Pestle analysation has come to conclude that in United Kingdom based
company need to consider all factors which involve in external environment such as political,
economical. social, technology, legal and environmental. As some of factors can raise issues or

challenges are Legal and Political which need to follows systematically it would provide benefits
for long term stability. And rest other factor are constantly scrutinize effectively.

REFERNCES
Books and Journals
Ashmore, D.L., 2019. Strategic Thinking to Improve Surgical Training in the United
Kingdom. Cureus. 11(5).
Davis and et. al., 2019. Postexposure Prophylaxis With rVSV-ZEBOV Following Exposure to a
Patient With Ebola Virus Disease Relapse in the United Kingdom: An Operational,
Safety, and Immunogenicity Report. Clinical Infectious Diseases.
Evans and et. al., 2019. Arable soil formation and erosion: a hillslope-based cosmogenic nuclide
study in the United Kingdom. Soil. 5(2). pp.253-263.
Mayes and et. al., 2018. Atmospheric CO2 sequestration in iron and steel slag: Consett, County
Durham, United Kingdom. Environmental science & technology. 52(14). pp.7892-7900.
Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence. 38(4). pp.54-61.
Ofosu-Boateng, C.N.R.L. and Jiping, Z., 2020. A Pestle Analysis of Maritime Piracy and
Maritime Security in the Gulf of Guinea. Advances in Social Sciences Research
Journal. 7(1). pp.472-482.
Online
Pestle Analysis for Tesco. 2020 [Online] Available Through:
<https://www.marketingtutor.net/tesco-pestle-analysis/>.