Tesco: Consultant Report on Macro Environment and Competitor Issues

This project analyzes the challenges faced by Tesco, a leading UK retail company, by examining its macro-environment and competitive landscape. The analysis utilizes PESTLE framework to identify issues related to political stability, economic factors (interest and inflation rates), social factors (customer preferences), technological advancements, environmental concerns, and legal regulations. The project also assesses competitive issues, focusing on product quality, profit margins, and technological advancements compared to competitors like Asda. The conclusion highlights that while political and economic factors are generally favorable, social, technological, environmental, and legal factors, along with competitive pressures, pose significant challenges for Tesco. The assignment includes references using the Harvard referencing system.

Macro Environment ISSUE

Pestle
Political Factor: Factor which relates to the degree of government
intervenes in the economy or a certain industry. This factor used to
not create any big issue for the Tesco as there is a political stability
in United Kingdom and government of UK also used to support
privatization in the country.
Economic Factor: Factor related to certain economy's performance.
This factor also do not create any big issue for the Tesco as Interest
rate in the UK is low which help the company in getting the
adequate fund at demand. Inflation rate is also at a positive side for
Tesco to operate in UK. Issue which is related to recruitment of
skilled employee as due to high number of SMEs unemployment
rate is to low in UK.
Social Factor: Factor which are related to the demographic
characteristics, norms, customs and values of the population. This
factor used to create the issue of customer preference for the Tesco
as the customer preference used to change on regular basis which
tempt the company to change the operation accordingly.

Pestle
Technological Factor: These factors pertain to innovations in
technology that may affect the operations of the industry and the
market favourably or unfavourably. This factor used to create the
variety of the issue for the organization as organization has to
change the technology in the market to be competitive which
eventually creates the situation of finance requirement.
Environmental Factor: This factor include the aspect which are
really hard to predict such as weather, climate, environmental
offsets and climate change. This factor has created many issue or
can be said as challenges for the Tesco as due to the unexpected
whether and climate many times there is a scarcity of raw material
in the organization.
Legal Factor: All the organization has to follow the different rules
and regulation to operate the business. This factor has created the
challenges related to the efficiency of the business as it consumes
a good amount of time for the Tesco to get a permission for the
different operation of the business.

SUM UP OF MACRO-ENVIRONMENTAL ISSUE
After going through the analysis it can be interpreted that the Political and Economical environmental does not
used to create any issue in the organization. At the same time Social, Technological, Environmental and legal
factor used to create a variety of the issue for the TESCO.

COMPETITOR ISSUE
Quality of the Product: It is the biggest issue which is faced by the
Tesco as it has been analysed that the quality of the product which
has been offered by the competitor Asda is much better than Tesco.
The biggest reason for the same is that Tesco used to look at the
variety of the product which need to be offered to the consumer as
compare to the Asda which looks at selling only some product in the
organization but of good quality.
Profit Margin: As Tesco is the leading retail company in the UK and to
maintain the leading position organization always sells the product at
lower rate as compare to the Asda which help them in attracting new
customer toward the company but at the same time creates the
problem of reducing profit margin of the organization.
Technology Advancement: It is the another issue which is faced by
Tesco as in the rapidly changing environment as it getting tougher for
the Tesco to change the technology on the regular basis to attract the
eye of the customer toward the company. This eventually creates the
issue of Finance requirement.

SUM UP OF COMPETITOR ISSUE
After going through the analysis it can be interpreted
that Tesco has to face the variety of the issue related
to the competition the biggest reason behind the
same is to maintain leading position in the market.

REFERENCES
Fozer, D. and et.al., 2017. Life cycle, PESTLE and multi-
criteria decision analysis of CCS process alternatives.
Journal of cleaner production. 147. pp.75-85.
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.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Achinas, S.and et.al., 2019. A PESTLE Analysis of Biofuels
Energy Industry in Europe. Sustainability. 11(21). p.5981.
Christodoulou, A. and Cullinane, K., 2019. Identifying the
Main Opportunities and Challenges from the
Implementation of a Port Energy Management System: A
SWOT/PESTLE Analysis. Sustainability. 11(21),.p.6046.
Barik, B. and Kumar, S., 2018. Macro Environment of
Indian Life Insurance Business: A PESTLE Analysis.
Bimaquest. 18(3).
Islam, F. R. and Mamun, K. A., 2017. Possibilities and
challenges of implementing renewable energy in the light
of PESTLE & SWOT analyses for island countries. In Smart
Energy Grid Design for Island Countries (pp. 1-19).
Springer, Cham.
Kirzner, I.M., 2015. Competition and entrepreneurship.
University of Chicago press.
Mead, M., 2018. Cooperation and competition among
primitive peoples. Routledge.
Hobolt, S.B. and De Vries, C.E., 2015. Issue
entrepreneurship and multiparty competition.
Comparative Political Studies. 48(9). pp.1159-1185.