Comprehensive PESTLE Analysis of Tesco's External Environment Factors

This report provides a PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis of Tesco, examining the external factors influencing its business operations. The analysis explores how political stability, import duties, inflation, recession, currency fluctuations, and employment opportunities impact Tesco's performance. It also assesses the influence of consumer behavior, including the demand for specific products like halal meat, and the impact of technological advancements such as the implementation of Clubcards and self-service checkout points. The report further investigates the effects of government policies, minimum wage laws, and regulations regarding alcohol sales. Finally, it considers Tesco's commitment to sustainability, its initiatives to reduce plastic packaging, and the overall impact of environmental factors on its brand image and customer relations. The analysis draws upon various sources, including academic journals and online resources to provide a comprehensive overview of Tesco's external environment.

Pestle analysis external environment

Table of Contents
Overview................................................................................................................................2
REFERENCES...........................................................................................................................4

Overview
The study is based upon the Tesco which is deal at international level and report will
provide the impact of external factor upon business performance by using Pestle analysis.
Pestle analysis of Tesco
Political factor: This factor deals with political stability of a country and due to
ongoing financial instability in the wold, government also promote the retailers in order to
create a job for domestic population (Perera, 2017). Moreover, Tesco also deal at
international level and that is why the import duty on goods affect Tesco because it import
some inventory from outside of the firm.
Economic factor: Inflation, recession and fluctuation in the currency rate affect the
business performance. Such that company should be aware of many changes in order to deal
with such changes. Also, during inflation company should develop a policy and offer the
product at low rate so that it will not cause any negative impact upon business. As company
have different store at global level and that is why, it offer range of employment opportunities
to increase economy.
Social factor: The factor deal with the change of perception of people with market
and to meet the same, company should take an initiative and offer the range of product to
their customers (Pestle analysis of Tesco, 2020). For example, due to high demand, Tesco
sells the branded halal meat to Muslim customers and this in turn affect the brand image as
well as financial performance of the company in positive manner.
Technological factor: In the emerging market, company should implement advance
techniques in their business which in turn improve the operations. On the other side, using
effective marketing strategy within a business will help the company to attract range of
customers. Such that it introduce Clubcard which is a biggest success of a company’s brand
image. On the other side, its self-service checkout points also help the customers to reduce
the cost and increase the market opportunity for the firm. Therefore, it creates positive impact
upon the business.
Legal Factor: Changes in the government policies and legislation also affect the
business directly and that is why, it is necessary for the firm to comply all the necessary laws
in order to smooth the operations. Further, quoted firm comply with the minimum wages act
in which it offer minimum pay to employees in order to maintain the positive working

environment (Rastogi and Trivedi, 2016). Also, company cannot sell the alcohol to underage
consumer which shows that it comply the necessary laws and regulations. Hence, adhering to
laws and policies will assist the company to run its business in smooth way.
Environment Factor: Tesco comply with sustainability law and that is why, it make
sure that it make sure that its product do not cause any negative impact upon the business and
this in turn attract the customers towards it. Also, company takes a number of initiatives in
order to protect the environment such that avoid usage of plastic packaging materials by the
end of 2020 which in turn cause positive impact upon customers.

REFERENCES
Books and Journals
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Rastogi, N.I.T.A.N.K. and Trivedi, M.K., 2016. PESTLE technique–a tool to identify
external risks in construction projects. International Research Journal of Engineering
and Technology (IRJET). 3(1). pp.384-388.
Online
Pestle analysis of Tesco. 2020. [Online]. Available through:
<https://pestleanalysis.com/pestle-analysis-tesco/>.