Global Business Environment Analysis: PESTEL of Tesco and Key Drivers

This report provides a comprehensive analysis of Tesco's global business environment. It begins with an introduction to the business environment and its impact on a firm's decision-making processes. The core of the report focuses on a PESTEL analysis of Tesco, examining the political, economic, social, technological, environmental, and legal factors influencing the company. The political analysis discusses the impact of Brexit and changes in VAT, while the economic section highlights the UK's GDP and employment. Social factors, including changing customer preferences, and technological advancements, such as online shopping, are also evaluated. Environmental considerations, such as Tesco's commitment to reducing carbon footprints and waste management, are explored. The report then identifies key drivers of change, emphasizing the importance of technological innovation and adapting to customer trends. The conclusion summarizes the dynamic nature of the business environment and the need for strategic planning and coordination within the organization. The report concludes with a list of references.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
PESTEL analysis of Tesco:.........................................................................................................1
Key drivers for change................................................................................................................2
CONCLUSION ...............................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Business Environment consist of both internal and external factors that includes level of
competition, employment, suppliers, customers, technology and so on(Benmamoun and et. al.,
2016). The sum of these factors have a direct impact upon the decision making and macro
environment of a firm and thus it help in management of resources in a dynamic environment.
Tesco is renowned brand in UK which deal with wide range of products such as groceries, home
appliances and many more. This report covers PESTEL analysis that includes political,
economic, social, technological and so on. This report also comprises of key driver of changes in
a dynamic environment.
PESTEL analysis of Tesco:
This provides a framework of ascertaining the forces of external environment by
grabbing the opportunities and combatting threats of a firm. The manager of Tesco use this
analysis to scan the environment that are presented as follows:
Political: UK is considered as the major political strength in the world and it is a multi
party system that comprises of two parties, namely, labour and conservative party(Hamilton, L.
and Webster, P., 2018). The exit of Britain from European Union, namely Brexit has affected the
sales revenue operations of Tesco. There is an increase in Vat from 17.5% to 20% that results
an increase in prices of products.
Economic: UK is regarded as fifth largest country in the world in terms of GDP. The
vote for Brexit has created unimaginable chaos all over the country and thus results in decrease
in unemployment in a respective firm.
Social: This includes various factors such as climate, environment and so on as today,
there are changes in taste and preference of customers. Tesco has also increased the number of
non food items and also provide the experience of one stop shopping to their customers.
Technological: UK is most technologically advanced country in the world. The manager
of Tesco aims to provide introduction of online shopping so as to provide an ease of convenience
to their customers.
Environmental: Tesco has taken various measures to protect the environment as it has
committed to reduce its carbon footprints by 50%(Sommerwerk, N., Wolter, C., Freyhof, J. and
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Tockner, K., 2017). Also, the firm aims to minimise the waste by adopting the strategy of 3R's
such as reduce, reuse and recycle.
Legal: there are severe government policies and regulations that create a major impact on
the performance of a company. The manager of Tesco abides all rules and regulations pertaining
to all the legislations of law so as to maintain efficiency and smooth conduct of operations.
Key drivers for change
Changes are very crucial part of an organisation that as there is changes in technology,
change in trends of customers and so on in a changing environment(Nurmi, J. and Niemelä,
M.S., 2018). The manager of Tesco use advanced and innovative technology with an aim to
deliver fast and efficient services to their customers across the globe. This help to increase the
productivity and efficiency of an organisation and thus ensure success and provide growth
towards the company.
CONCLUSION
From the above information, it can be summarised that the business environment in
which company carry out its operation is regarded as dynamic. It has been analysed that changes
play an important role so as to fulfil the requirements of customers. The manager prepare an
appropriate planning and divide the work among the subordinates in according to their
specialised skills so as to bring proper coordination and cooperation in a workplace.
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REFERENCES
Books and Journals
Benmamoun and et. al., 2016. Gulf Arab E‐Business Environment: Localization Strategy
Insights. Thunderbird International Business Review. 58(5). pp.439-452.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Nurmi, J. and Niemelä, M.S., 2018. November. PESTEL analysis of hacktivism campaign
motivations. In Nordic Conference on Secure IT Systems (pp. 323-335). Springer,
Cham.
Sommerwerk, N., Wolter, C., Freyhof, J. and Tockner, K., 2017. Components and drivers of
change in European freshwater fish faunas. Journal of biogeography. 44(8). pp.1781-
1790.
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