University Report: Global Business Environment - Tesco PESTLE Analysis

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This report provides a detailed PESTLE analysis of Tesco plc within the context of the global business environment. The introduction defines the global business environment and its influence on decision-making, followed by a focus on Tesco. The main body of the report applies the PESTLE framework, examining political, economic, social, technological, environmental, and legal factors impacting Tesco's operations and strategic decisions. Each factor is analyzed, considering its potential effects on the company, such as government policies, economic conditions, social trends, technological advancements, environmental concerns, and legal regulations. The conclusion summarizes the insights gained from the PESTLE analysis, emphasizing the identification of opportunities and threats that can improve business activities, profitability, and revenue. The report uses references to support the analysis.
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Global Business
Environment
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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5
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INTRODUCTION
Global business environment is the environment which is in different sovereign countries,
with factors that exogenous to home environment of an organisation (Duca and Gherghina,
2018). It influence on decision making process and use of resources and capabilities. Company
which is taken is Tesco plc and this report covers PESTLE analysis of a company.
MAIN BODY
PESTLE analysis
Global business environment is a environment which is related with various sovereign
countries and factors that could affect a business environment. There are certain factors which
could affect the business environment of Tesco. This can be analysed by using PESTLE analysis.
PESTLE analysis is the analysis which is conducted by a manger or a company owner (Lewis
and et.al., 2017). This is done for analysis externals environment factors which can affect a
business environment and its functions and operations. It is discussed below:
Political factors: As a retailing company, Tesco has to operate in worldwide to expand
its branch and substitutions. Political factors includes tax rates and acts of legislation etc. Due to
this ongoing coronavirus pandemic, company is getting low profits. For that many of the
governments are encouraging companies to create job opportunities for local people. As Tesco
has played a part in creating employment in the country and also creates job opportunity. By this
government is allowing its branches to expand. So if government is happy then it may have an
opportunity for a company.
Economical factors: Factors like cost, demand and profits and prices can affect a
company. As Tesco needs to be aware about the taxation policies and other factors which can
affect the business environment (Kasemsap, 2020).
Social factors: Factors like social changes and changes in beliefs and attitude are
influenced by social changes, for that company has increased number of food items which are
offered for sale. This can create opportunity for company to attract customers.
Technological factors: Advance use of technology brings opportunity to Tesco. Because
using online marketing and online shopping material company has increased lot of customers in
Lockdown.
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Environmental factors: Factors like change in customer taste and preferences can affect
the business. This can reduce number of customers. Tesco has minimises the waste production in
their stores and this has increased in social customer. This creates opportunity for them to attract
customer towards health environment and recycling products and services (Le, Ling and Yau,
2018).
Legal factors: Government policies and rules which are to be followed by company to
expand their business in global market is necessary. As this may create an opportunity for a
company. But at the time of covid government are stopping new entrances in the market,. This
creates threat for a company.
CONCLUSION
From the above report it s concluded that company is creating extranet analysis which
helps them in identifying their opportunities ad threats and results in improving in their business
activities. This will helps them in increasing their profitability and revenues.
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REFERENCES
Books and Journals
Duca, I. and Gherghina, R., 2018. CSR Initiatives: An Opportunity for the Business
Environment. In Ethics and Decision-Making for Sustainable Business Practices (pp.
187-202). IGI Global.
Kasemsap, K., 2020. The role of strategic outsourcing in global business. In Foreign Direct
Investments: Concepts, Methodologies, Tools, and Applications (pp. 236-268). IGI
Global.
Le, Q., Ling, T. and Yau, J., 2018. Do international cocurricular activities have an impact on
cultivating a global mindset in business school students?. Journal of Teaching in
International Business, 29(1), pp.62-75.
Lewis, H and et.al., 2017. Design+ environment: a global guide to designing greener goods.
Routledge.
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