Tesco's Business Environment Analysis: SWOT and PESTLE Report

This report provides an analysis of Tesco's business environment, utilizing SWOT and PESTLE frameworks. The SWOT analysis identifies Tesco's strengths (high customer satisfaction, skilled workforce, strong dealer community) and weaknesses (underperforming subsidiaries, price wars). The PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors influencing Tesco. The report also explores the interrelation between Tesco's strengths and weaknesses and the macro environment, highlighting how factors like social trends and technological advancements impact the company. It references sources like LearnMarketing.net and MarketingTutor.net to support the analysis, offering a comprehensive overview of Tesco's strategic position within its industry and the external forces that shape its operations. This report is a valuable resource for understanding Tesco's business strategy and its response to external factors.

BUSINESS ENVIRONMENT

Positive and negative impact of macro
environment over business
PESTLE analysis is a framework used by the marketers to analyse and monitor the macro environmental factors
and its impact on the business environment (Umar Farooq PESTLE analysis).
 Political
 Economical
 Social
 Technological
 Legal
 Environmental

Internal and external analysis of the organisation
 SWOT analysis is designed to facilitate a realistic, data- driven look at the strengths and weaknesses of an
organization. It is a technique for assessing the performance, competition, risk and potential of the business (Tesco
SWOT Analysis. 2018). The SWOT analysis of TESCO is as follows:
Strengths: These are the factors in which the organization excels and these factors separate its from its competitors.
Weaknesses: it is a factor which stops the organization in performing to its best level
Opportunities: These are the favorable external forces that gives an organization a competitive advantage
Threats: It refers to those factors which have the potential to harm an organization

Interrelation among the strength and
weaknesses with the macro environment
There is a strong relationship between the strength and weaknesses of the organization with its macro environment.
Strength with macro environment
• High level of customer satisfaction- this can be maintained by properly studying the social factor of
PESTLE analysis because it deals with the psychology of the human and mindset and behavior of the employees.
• TESCO has highly skilled workforce because of time to time successful training and development of the
employees. This strength can be maintained by proper study of technological factor and changes in the technology
and adapting to those changes.
• Strong dealer community- This factor can be maintained and improvised by focusing on the social factor
because it deals with the behavior and the psychology of the dealers.

CONTINUED
Weaknesses with macro environment
• Some of TESCO' s subsidiaries are not operating well and are more
vulnerable to certain external factors. This weakness can be overcome by the proper
analysis of technological and economical factors. It is so because if the closure is due to
the obsolete technology then with help of study of technology it can be overcome.
• Competitive pressures have led to price wars that have eroded some of the
retailers profit margin. This weakness can be overlooked by the thorough study of the
environmental factors.

REFERENCES
 Tesco SWOT Analysis. 2018[Online]. Available through: <https://www.learnmarketing.net/SWOTTesco.html>.
 Umar Farooq PESTLE analysis[Online]. Available through: <https://www.marketingtutor.net/tesco-pestle-analysis/>.

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