Tesco PLC PESTEL and SWOT Analysis: A Business Report

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BUSINESS AND
BUSINESS
ENVIRONMENT

Tesco PLC

PESTEL Analysis

Political Factors
Organization affected by these external
political environment factors
• Government stability/instability
• Government regulation and deregulation
• Import-export regulation/restrictions
• Size of government budgets
• Competition regulation
• Tax policies
• Trade control

Economic Factors
Economical factors consist various changes in
the organization which are followings:
• Interest rate, Inflation rate and Exchange rate
• Changes in Growth rate,
• Unemployment rates
• Stock market trends
• Economic growth

Social and Cultural
Factors
Social and cultural factor impact the organizational
process in demographic way of the nations
• Attitudes towards customer service
• Birth and Death rates
• Population size and Age distribution
• Lifestyles and per capital income of people is significant
and high
• Cultural norms and values
• Religion and beliefs

Technological Factors
Organization always planning for advancement
of technology but the impact of technical
factors restricted the execution
• Technological change
• Internet infrastructure
• Level of innovation
• Automation and R&D activity
• Access to new technology

Environmental Factors
Tesco PLC make proper analysis about their
products in every segments but Environmental
Factors makes some changes in it.
• Environmental policies
• Support for renewable energy
• Weather and Climate changes
• Attitudes towards green products
• Pressures from Non-government Organization’s

Legal Factors
Organization have to follow all the rules and
regulation formed by the legislations of the
countries.
• Discrimination laws
• Consumer protection laws
• Copyright and patent laws
• Health and safety laws
• Consumer protection laws
• Data protection laws

Aspects of PESTEL
Analysis
• These factors helps to identify the
implementations occur in the competitive market
which helps to make effective decision making
process of the organization.
• Sustainability in the organizational process of
managing operational activities and make the
essential changes are the main motive of this
political factor.
• Consumer protection laws and data protection
laws are plays essential role to become the best
employees organization in this competitive world.

SWOT Analysis

Strengths
Tesco PLC expanded their business rapidly by
the help of these strengths
• Growing number of stores
• Enhances the employment rate
• Efficient supply chain network
• Geographically diversified
• Biggest grocery retailer in the UK