Business Environment Analysis of Tesco: PEST and Porter's 5 Forces

This report provides an analysis of Tesco's business environment using the PEST (Political, Economic, Social, and Technological) framework and Porter's Five Forces model. The PEST analysis examines macro-environmental factors such as taxation policies, international trade policies, and employment regulations that impact Tesco's operations. The Porter's Five Forces model assesses the competitive intensity of the industry, considering factors like the threat of new entrants, bargaining power of suppliers and buyers, the threat of substitute products or services, and competitive rivalry. The report references academic sources to support its analysis, offering insights into the external forces shaping Tesco's business strategies and profitability. Desklib provides access to this report and many other solved assignments for students.

BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
 Introduction
 PEST Analysis
 Porters Fiver Force Model
 References

INTRODUCTION
Customers, rivals, shareholders, supplier, industry trends,
legislation, other government activities, social and economic
variables, and technical changes are all examples of elements that
affect a company's operations. All these elements are liable to
improve the direct impact on business environment of the
company.

PEST ANALYSIS
The macro environmental theoretical framework is useful for generalizing
the organization's external environmental circumstances. Tesco Company
is largest organization in UK. In order to take improve profitability,
company need to utilize PEST analysis. It is a study to better understand
the company's external environmental circumstances.

PEST ANALYSIS

PEST ANALYSIS
Political factors - Various variables are engaged in this factor, including
taxation policies, international trade policies, trade laws and regulations,
and employment. In order to deal with political factors, Tesco broadens
the scope and maintains political stability, allowing those businesses to
escape political upheaval.

PORTERS FIVE FORCE
MODEL
Michael E. Porter published the five forces model in 1979, which is a
fundamental concept in competitive forces. It would swiftly become
the standard method for evaluating the forces that drive productive
capacity. The following are the details of this model in the context of
Tesco -

PORTERS FIVE FORCE
MODEL
 New entrants – New entrants, or the possibility (and likelihood) of new
competitors joining a sector and increasing competition, is the first of
Porter's Five Forces we'll look at. The chances of admission are usually
dictated by the entry obstacles. If they are low and require little effort,
time, or money, rivals will most likely rush in. Tesco is well establishing
organization so force of new entries is less.

REFERENCES
 Jelassi, T. and Martínez-López, F.J., 2020. External Analysis: The Impact of the
Internet on the Macro-environment and on the Industry Structure of e-Business
Companies. In Strategies for e-Business (pp. 49-95).Springer, Cham.
 Jida, L.I.U., Ning, K.A.N.G., Shi, A.N. and Qiang, M.A.I., 2020. Evolutionary
game analysis on fire supervision model of two random selections and one
information publicity. China Safety Science Journal, 30(12), p.133.
 Kong, D., Yang, X., Liu, C. and Yang, W., 2020. Business strategy and firm
efforts on environmental protection: Evidence from China. Business Strategy
and the Environment, 29(2), pp.445-464.

Thank You