TESCO's Global Business Environment: Comprehensive PESTEL Analysis

This assignment provides a PESTEL analysis of TESCO, a UK-based international organization, to assess the external factors influencing its performance. It examines political factors such as government regulations and the impact of the pandemic, economic factors including exchange rates and inflation, social factors related to consumer preferences, technological advancements, environmental concerns like carbon footprint reduction, and legal factors such as employment and consumer protection laws. The analysis concludes that while TESCO benefits from a stable political environment and technological innovation, it faces challenges from economic uncertainties, changing consumer needs, and the need to balance cost-cutting measures with maintaining a positive brand image. The report emphasizes the importance of PESTEL analysis as a tool for monitoring and adapting to the external environment to sustain organizational performance.

Global business environment

EXECUTIVE SUMMARY
In this assignment, PESTEL analysis is used as a tool that helps in analysing and monitoring
external factors that influence direct impact on performance level of organisation. In this
assignment, the TESCO is taken as a company. It signifies as an international organisation which
is situated in UK. The organisation provides different variety of goods and services to its
customer in order to satisfy them.

Contents
INTRODUCTION:..........................................................................................................................1
MAIN BODY:.................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
PESTEL analysis is determined as a tool which is used to analyse and monitor external
factors that influence direct impact on performance level of organisation. In this assignment, the
TESCO is taken as a company. It signifies as an international organisation which is situated in
UK. The organisation provides different variety of goods and services to its customer in order to
satisfy them.
MAIN BODY
PESTEL analysis of TESCO
The company adopts PESTEL analysis that is given below:
Political factor considered as an increasing engagement of its government on activity and
function of organisation which includes tax policy, trade policy as well as many more. The
political condition or situation of UK is considered as a stable than it offers opportunity to people
of society. In assistance of this, the Tesco focuses on following all laws and regulation which
assist in implementing various activities and function in an appropriate way. In addition to this
due to increase in the condition of pandemic, there are various types of uncertainty that influence
adverse impact on performance level of company (Akhtar and Sushil, 2018).
Economical factor it involves various types of factors that influence direct affect on
financial performance of nation. This involve exchange rate, growth rate as well as so on. The
manager of TESCO emphasized on enhancing engagement level in order to satisfy its user that
influences positive impact on company. In addition to this, due to reduction in disposable income
of an individual person, the company emphasized on advertisement rather than provide goods
according to the need of its customer. Therefore, the inflation rate is determined as a decline and
it reduces the buying behaviour power of consumer that leads to reducing sales of company.
Social factors determine the elements such as demographic, cultural norms and so on. The
selected company offer superior quality goods and services according to the need of its user that
imposes direct or positive effect on company. In addition to this, due to change or alter in the
wants of its user then it is not easy for organisation to offer them goods as per their need that
influences negative effect on company.
Technological factors it is important for company to use innovative technology in order to
attract ample of its user and sustain them for a longer time period. Hence the chosen organisation
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focuses on implementing innovative technology for offering branded goods to its user. In
assistance to this, due to executing latest technology it adds extra cost to the company that
reduces profit in future time period.
Environmental factor include different factor like climate, weather condition and so on.
The selected organisation emphasized on reducing use of carbon footprint in order to protect
environment. In addition to this, due to increase in uncertainty in context of climatic as well as
weather condition that influences negative effect on company (Bedianashvili, 2016).
Legal factors involve employment law, Consumer Protection law and so on. The
organisation emphasized on follows legislation that assists in accomplishing competitive edge at
Marketplace. In addition to this, the company pay minimum wages to its subordinate or staff
which is mentioned by UK Government imposes negative impact on brand image of
organisation.
CONCLUSION
From given assignment, it has been analysed that PESTEL analysis is determined as a tool
which is used to analyse and monitor external factors that influence direct impact on
performance level of organisation.
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REFERENCES
Books & Journal
Akhtar, M. and Sushil, S., 2018. Strategic performance management system in uncertain
business environment. Business Process Management Journal.
Bedianashvili, G., 2016. The Global Business Environment, European Integration and the
Cultural Potential of Social-economic Development of Georgia. Globalization & Business.
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