Tesco's Business Environment: Examining External Factors with PESTLE

This report provides an overview of Tesco's business environment, utilizing the PESTLE framework to analyze the external factors influencing the company's operations. It identifies Tesco's products and services and examines the political, economic, social, technological, environmental, and legal fact...Read More

Global Business Environment
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EXECUTIVE SUMMARY
In this report, it has been summarised about the background information of Tesco, identifying its
product as well as services. Furthermore, it has been described about the external environment of
organization by using PESTLE framework or tool. However, identifying the importance of
business and also examined threat, opportunities of each and every factors.
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Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
External environment...................................................................................................................4
List of pestle factor......................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Tesco is based on the British multinational groceries and general merchandise retailers with
headquarters in Welwyn garden city, England UK. It is a leading retailer and measured its
overall gross revenue. This company was founded by Jack Cohen in 1919. There are
approximately 4, 50,000 staff members working and their branches located in different countries,
6,800 shops operates. Tesco have provided the groceries items and clothes.
MAIN BODY
External environment
An external environment is basically composed of all different factors which influence that
impact on the overall business operations. It must act or react to keep up its flow of enterprise
operations (Blahová, 2019). Sometimes, it has been broken external environment into different
manner.
List of pestle factor
Pestle analysis of Tesco the brand its enterprise tactics. It also examined the various
external factors which directly impact on the overall business performance.
Political Factor
Tesco’s as home market in UK where political environment is stable though Brexit, but it has
been created a lot of uncertainty. Therefore, it can be identified that Tesco is operating in the
political environment that mostly conducive enterprise.
Threat
 Overall company has been affected by Covid-19, expected that many people’s earning
are likely to go down, many lose their jobs.
 Affected the operations and profitability of Tesco in term of high labour cost, particularly
in UK
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Opportunities
 Capable to respond current and future legislation
 Established marketing policies and procedures.
Economic factor
This type of factor is concerned about Tesco, as they are likely to leverage cost, profit
and price. Tesco should aware about the change in policies such as change in taxation (Shageeva
and et.al., 2017).
Threat
 Instable economic condition or situation
 Spending a lot of money by client.
Opportunities
 Diversification and internationalization policies
 Advertising the value brands
Social Factor
Due to variety of social changes, trends indicate that client in UK have moved towards
one stop shopping. In this way, it is increasing the demand in UK marketplace.
Threat
 Adopting the non-food item and influences
 Instable demand of client
Opportunities
 Changing the social conditioning approach
 Changes in accommodating demand of organic item
Technological Factor
The advancement of technology have developed as new opportunities for TESCO and
introduce as online shopping with facilities better services.
Threat
 Reducing workforce
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 Low employment
Opportunities
 Digital marketing
 Online presence
Environmental Factor
With increasing the pressure on Tesco to identify the environmental issues, needs to be
adopt in business operations. In order to provide the benefits of society or communities.
Threat
 Environmental pressure
 Wealth change
Opportunities
 Minimising waste produced in their stored
 Adopt benefit operation and committed towards reducing carbon food print
Legal Factor
This factor is related to the legislation which directly impact on the performance of TESCO. To
provide policies and reduce the price of client on fuel they can purchase.
Threat
 Spending large amount in grocery store
 Changing government policies
Opportunities
 Promotion offers
 Lowe price or cost of client
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CONCLUSION
From above discussion, it has concluded external environment analysis of “Tesco”
depending on the current perception of business in competitive marketplace. It has been
identified the business performance while identifying that external environmental factors impact
on the organization in term of growth and development. Furthermore, it can identify both threat
and opportunities of Each and every external environmental factors.
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REFERENCES
Book and Journals
Blahová, M., 2019. Recent developments in the global business environment.
Shageeva, F.T. and et.al., 2017, September. Training the achievement-oriented engineers for the
global business environment. In International Conference on Interactive Collaborative
Learning (pp. 343-348). Springer, Cham.
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Appendix
Threat Opportunities
Political People’s earning are likely to
go down.
high labour cost
Brexit
COVid-19
Economic Instable economic
Spending a lot of money
Diversification and
internationalization policies
Advertising the value brands
Social Adopting the non-food item
and influences
Instable demand of client
Changing the social
conditioning approach
Changes in accommodating
demand of organic item
Technological Reducing workforce
Low employment
Online presence
Digital marketing
Legal Spending large amount in
grocery store
Changing government policies
Promotion offers
Lowe price or cost of
client
Environmental Environmental pressure
Wealth change
Minimising waste produced in
their stored
Adopt benefit operation and
committed towards reducing
carbon food print
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