Global Business Environment Report: PESTLE Analysis for Tesco

This report presents a PESTLE analysis of Tesco, a multinational retailing company operating globally. The introduction defines the global business environment and the use of PESTLE analysis to understand external factors influencing a company's operations. The report examines political factors such as government regulations and stability; economic factors like tax rates, inflation, and exchange rates; social factors including consumer trends and health concerns; technological advancements impacting customer experience; legal aspects such as compliance with industry practices; and environmental considerations related to sustainability. The analysis concludes that PESTLE analysis is crucial for identifying factors that affect global operations, helping companies like Tesco adapt and operate efficiently in diverse markets. The report references academic sources to support its findings.

Global Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
PESTLE analysis.........................................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Global business environment refers to the environment of the sovereign countries which
have uncontrollable international and local interactions to influence the working of the company.
In order to see the affect of the global environment on the companies, PESTLE analysis is used.
It is the tool which analysis the factors which influence the company from outside (Shageeva and
et. al., 2017). The organisation chosen for this report is Tesco which is a multinational retailing
company dealing in food and groceries. Its headquarter is in UK. This report shall cover the
PESTLE analysis of the organisation in order to see its impact on global environment.
TASK 1
PESTLE analysis
PESTLE analysis is the tool which helps the company to analysis its key factors which
may affect its working. The PESTLE analysis of TESCO will help the organisation in finding out
its key drivers of change that may influence its operations. The following are factors of PESTLE
analysis of Tesco-
 Political- This factor refers to the influence of government and its rules on the working
of the company. Since Tesco has a global business so political factors may affect its
performance which may include laws of different countries, tax rates, stability of
government, etc. In case any country faces instability, it may force the company to create
employment opportunities for domestic workers. In addition to this, it may also effect to
bring increase in demand of the products which Tesco is offering.
 Economic- It refers to the factors which may create an impact on the economic condition
of the company. These includes changes in policies like tax, inflation, rate of wages, etc.
Tesco may get affected by the price, cost and profit. Any increase in cost and price may
affect the profit of the company and result in reducing its brand value (Policy, 2018).
Another factor is in-fluctuation in foreign exchange rates that may affect the profit of the
company.
 Social- These include the factors relating to culture, health, population, etc. Tesco may
get affected from the change in trends of the consumers because shopping trends usually
changes. Obesity is another issue that make affect its fast food line as people are
becoming more health conscious.

 Technological- These include emerging role of technology which affect the working of
the company. Tesco have faced major problems in dealing with the customers but as and
when it has advanced its technology, this gave opportunities to the company to regain
customer loyalty. The use of RFID technology has increased the customer's in store
experience.
 Legal- It includes factors like change in laws relating to business. Tesco faces major
problems when any policy or law changes. For instance, Tesco was bound to follow the
practice of Food Retailing Commission to conduct its operations which has affected its
performance (Bedianashvili, 2016).
 Environmental- It refers to the environmental issues that company faces. Tesco faces
pressure from the government to address its environmental issues. It has made changes
in its working by preventing the use of plastic bags and must encourage people to shop
online to save fuel.
CONCLUSION
From the above report it is concluded that PESTLE analysis helps the companies in
identifying their factors which may affect its global operations. Every factor has led to change in
the company to work smoothly and efficiently. Hence the use of PESTLE analysis has helped the
company in overcoming its barrier to operate globally.

REFERENCES
Books and Journals
Bedianashvili, G., 2016. The Global Business Environment, European Integration and the
Cultural Potential of Social-economic Development of Georgia. Globalization &
Business.
Policy, P., 2018. What is pestle analysis.
Shageeva and et. al., 2017, September. Training the achievement-oriented engineers for the
global business environment. In International Conference on Interactive Collaborative
Learning (pp. 343-348). Springer, Cham.