Comprehensive Report: TESCO's External Environment and PESTEL Analysis

This report provides a PESTEL analysis of TESCO's external environment, examining key factors that influence its business activities. The analysis covers political, economic, social, technological, environmental, and legal aspects. Political factors include political stability and tax rates, while economic factors encompass inflation and exchange rates. Social factors highlight changing consumer demands, particularly the shift towards health foods. Technological advancements and environmental concerns, such as carbon footprint reduction, are also considered. The report concludes that TESCO should focus on social factors and monitor all external environmental elements to maintain effective market performance. Desklib offers a wealth of similar solved assignments and past papers for students.

External Environment
Research and Analysis
Portfolio

Executive summary
Business environment is comprises of the several external factors which influence the
business activities, in this report TESCO PESTEL analysis is done for the analysis of key
drivers of changes in organisation management.

Table of Contents
REFERENCES.........................................................................................................................4

INTRODUCTION
External environment of the business is comprises of different factors which impact
the business and in context to which organisation have to change their management style
and strategies (Prescott and Panaretou, 2017). The key factors of the external environment
are political, social, economical, environmental, legal, technological and competitive,
demographic. PESTEL analysis is the key tool of external environment analysis helps to
evaluated the changing factors of organisation operating market. TESCO is the British
multinational company of the groceries and general merchandise retailer. TESCO
headquarters in Welwyn Garden City, England. In this report brief evaluation of the TESCO
external environment is done by the aid of PESTEL analysis.
MAIN BODY
PESTEL analysis
This is one of the most essential tool, helps the business organisation to analyse the
changing environmental factors for managing their sustainability through appropriate
changes.
Political- This is the key external factor of the environment involving the political
stabilities and changing polices. In context to the TESCO key political factor which is
influencing the performance is political stability of the country where it operate and tax
rates, legislation. Government support to the global business is political advantage for the
company, where as Brixit is disadvantage in some place by increasing the charges of EU
exchanges.
Economical- This involves the Inflation, demand and supply, exchange rate. In
context to the TESCO it has been identified that there is the higher demand of the products
in the market in context to which they have to manage the effective supply.
Social- This is one of the key factor, involves the customers interest, needs, culture
and preferences. In context to the TESCO, due to the impact of COVID people are changing
the food related demands switching to the health food, TESCO is now in response of this
driver focusing on organic food products (Wroe, 2018).
Technological- This is involving the continuous changes in the techniques and
equipments of the business function and operation tools. There is the continuous growth in
the innovative technology of work and task management, which make the business process

more easier and time effective. For example TESCO has implemented the heat sensing
technology to make their function more efficient and now they they invested on the
techniques of reducing carbon foot printing (Halbmayr-Jech, 2020).
Environmental- This is basically involving the legal restriction of environment
protection and trends of the environment protection. TESCO manage this factor influence
by increasing their customers conscience to reduce waste and they also work on reduction of
carbon foot printing.
Legal- This is involving the several rules and regulation which have to be followed
by the TESCO. Changes in the regulation like zoning laws, civil rights laws, health and
safety low etc., derive changes in the TESCO organisation management. Food Retailing
Commission standers are practices within the selected organisation and it also assure the
people heath and safety within organisation (López López, 2017).
CONCLUSION/RECOMMENDATION
From the above study it has been concluded that the key drivers of changes in the
TESCO management or other organisation management system changes are social,
economical, environmental, technological, political and legal as all these factors are
associated with customers satisfaction and organisation sustainability. TESCO should focus
on the key external factors like social factor to grow effectively and they have to monitor
the changes in all external environment factor to manage their effective performance in the
market.

REFERENCES
Books and Journals
Prescott, T.A. and Panaretou, B., 2017. A mini HIP HOP assay uncovers a central role for
copper and zinc in the antifungal mode of action of allicin. Journal of agricultural
and food chemistry, 65(18), pp.3659-3664.
Wroe, A., 2018. The Economist Style Guide. Profile Books.
López López, N., 2017. Different ways to assure the continuity of the business.
Halbmayr-Jech, E., Kittl, R., Weinmann, P., Schulz, C., Kowalik, A., Sygmund, C. and
Brunelle, S., 2020. Determination of Lactose in Lactose-Free and Low-Lactose Milk, Milk
Products, and Products Containing Dairy Ingredients by the LactoSens® R
Amperometry Method: First Action 2020.01. Journal of AOAC International,
103(6), pp.1534-1546.