Tesco's Global Business Environment: PESTLE Analysis & Change Drivers

This report provides a PESTLE analysis of Tesco, a British groceries retailer, examining the political, economic, social, technological, legal, and environmental factors influencing its operations. It identifies key drivers of change, such as technological advancements and environmental concerns, and how Tesco is adapting to these factors. The analysis considers the impact of Brexit, the COVID-19 pandemic, and changing consumer preferences on the company's strategies and future direction. The report concludes that while external factors pose threats, Tesco's adoption of new technologies and commitment to environmental welfare can enhance its revenue and customer base. Desklib offers similar reports and study resources for students.

Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
PESLTE on Tesco:......................................................................................................................3
Drivers of change:.......................................................................................................................4
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Business Environment refers to the all external and internal factors which influence the
functioning of businesses in a long term perspective and it helps in making a proper strategies in
order to eliminate threats and improve better decision making (Manjunath, Baghel and Kumar,
2020). The following report is based on Tesco, is a British groceries retailer having its
headquarters in Welwyn Garden City, England. It was Founded in 1919. The following report
will cover PESTLE analysis on Tesco and key driver of change.
TASK
PESLTE on Tesco:
It is a framework which helps in evaluating factors like political, economic, sociological, legal
and environmental which influence the companies from external environment. Results of this
analysis helps organisations in making strategies which assists in decision making.
Below are mentioned external factors of Tesco:
 Political Factor- Government and their policies which can influence the impact of
operations of any business or organisation such as, tax policies, trade restriction, reform
etc. In case of Tesco, after implementation of Brexit, it is affecting the operations of the
organisation and on to their profitability as it has negative impact on the company.
 Economic Factor – This factor has a major impact on the growth and operations of the
company for a long term. Factors like inflation, interest rate, economic growth etc can
impact the economic growth of any organisation. In context to Tesco, pandemic Covid –
19 affected company very badly as because of it their sales declined globally (Chavez,
and Sharma, 2018).
 Social Factor- This factor is influenced by attitude anf behaviour of consumers in
relation to their choices. In case of Tesco, company is majorly dealing in unhealthy food
and now a days social traits are shifting toward organic and healthy products. So because
of this firm can lost its customer base.
 Technological Factor- This factor refers to adapting latest tech, automation which helps
organisations in saving cost and time. In terms of Tesco, company is using various

technologies like E-commerce, digital payments, self checkout in order to increase their
sales and enhance customer base.
 Legal Factor- Laws which can affect the operations and growth of the businesses like
environment, consumer safety, employ welfare etc. In relation to Tesco, company was
penalised of 12 million Euros, for a fraud case against them.
 Environment Factor- Ecological factors which can affect the business and its working
for long term like pollution, lack of natural resource and raw material etc. In case of
Tesco, company has started many initiatives and one of them was Remove , Reuse and
Recycle plan for a sustainable society and environment.
Drivers of change:
 Technological Factor- Earlier company was selling their products on physical stores but
now firm is using technologies which has helped them selling their products online to
gain more market reach.
 Environment Factor- In order to safety of environment company has eliminated using
plastic bags instead they are using paper bags (Palanivel, Pracejus and Victor, 2020).
CONCLUSION
From the above report, it is concluded that there are many factor like political, economical and
social which are affecting company negatively and can also a threat to the company but
company's drivers of change on adapting latest technologies and working on environment
welfare can help them in getting more revenues and client base.

REFERENCES
Chavez, R. and Sharma, M., 2018. Profitability and environmental friendliness of a closed-loop
supply chain for PET components: A case study of the Mexican automobile market.
Resources, Conservation and Recycling, 135, pp.172-189.
Manjunath, S.V., Baghel, R.S. and Kumar, M., 2020. Antagonistic and synergistic analysis of
antibiotic adsorption on Prosopis juliflora activated carbon in multicomponent systems.
Chemical Engineering Journal, 381, p.122713.
Palanivel, T.M., Pracejus, B. and Victor, R., 2020. Phytoremediation potential of castor (Ricinus
communis L.) in the soils of the abandoned copper mine in Northern Oman:
implications for arid regions. Environmental Science and Pollution Research, 27(14),
pp.17359-17369.