SWOT and PESTLE Analysis: Evaluating Tesco PLC's Business Environment

This report provides a comprehensive analysis of Tesco PLC's business environment using SWOT and PESTLE frameworks. The SWOT analysis identifies Tesco's strengths, weaknesses, opportunities, and threats, highlighting its strong product portfolio and market presence alongside inventory management issues and slow technology adoption. The PESTLE analysis examines political, economic, social, and technological factors influencing Tesco's operations. The report concludes that a complex business environment affects organizations positively and negatively, emphasizing the importance of strategic analysis for informed decision-making. Desklib offers students access to similar business case studies and solved assignments for further learning.

Business and Business
Environment

Cover Content
Introduction
SWOT analysis
PESTLE analysis
Conclusion
References

Introduction
Internal and external factors hugely influences the
business activities of an organisation either in negative
or positive manner. For this, the management of
chosen company Tesco Plc is required to conduct
SWOT as well as PESTLE analysis through which
they can analyse each influencing factors along with
their impact on business operations.

Overview of the TESCO
Tesco Plc has various strengths as well as
opportunities to achieve future growth which can
be possible only through eliminating weaknesses
and threats. In the present market analysis, it has
been identified that the company has strong
product portfolio due to having variety of
products to their customers.

SWOT analysis of Tesco plc
STRENGTH WEAKNESSES
Company has a strong product
port folio because it provide a
large variety of products to their
customers.
The company has a huge market
presence and company is known
as the largest supermarket chain
across the world.
Company has efficient cash
reserves which makes its strong
financial position in the
marketplace.
They have skilled workforce due
to which they
provide huge satisfaction to their
customers
There is no maintenance of
inventory due to which their
competitors gave tough
competition to them in
marketplace.
Profitability and contribution ratio
is below the industry average.
Company has not invested in
adoption of new technologies
which will be harmful for their
brand image in future.

Continue...
Opportunities THREATS
Lower inflation rate in
European countries can
provide an opportunity for
expansion of business.
Company have to adopt new
technologies through which
they can get competitive
advantage in marketplace
The shipping prices are also
decreasing which can down
the prices of Tesco's
product. Hence, company
can get profitability from
this in near future.
The new laws of liabilities in
various countries can
reduce the profitability of
organisation.
Company is not focusing on
introducing innovative
products in marketplace
which can move their loyal
customers towards their
rivals.
Company has not adopted
online platforms to sell its
all products which can
reduce their customer base
in various countries.

Influence of SWOT analysis
in decision-making process:
Conducting SWOT analysis enable Tesco Plc to
identify their weak areas where they need to make
improvement and also recognise threats and
opportunities which can bring them ahead from
their rivals.

External factors
 Political environment
 Economical environment
 Social environment

Conclusion
It has been concluded from the above project report
that Business environment includes full of
complexities which can affect adversely or
positively to every type of organisation.

References
Aithal, P. S., 2016. Study on ABCD analysis
technique for business models, business
strategies, operating concepts & business
systems. Browser Download This Paper.
Cuervo‐Cazurra, A., 2011. Global strategy and
global business environment: the direct and
indirect influences of the home country on a
firm's global strategy. Global Strategy
Journal.1(3‐4). pp.382-386.

Thank-You