TESCO's Business Environment Analysis: PESTLE, SWOT, and Interrelation

This report presents an analysis of TESCO's business environment, focusing on both macro and micro factors. It begins with an introduction to the business environment and its impact on decision-making. The report then delves into a PESTLE analysis, examining the political, economic, social, technological, environmental, and legal factors affecting TESCO. A SWOT analysis is also provided, outlining the company's strengths, weaknesses, opportunities, and threats. The report further explores the interrelation between macro and micro factors and concludes with a summary of the findings. The report also includes references to academic sources to support the analysis.

Business and
Business
Environment

Table of Content
• Introduction
• Macro environmental analysis
• SWOT analysis
• Interrelation between macro and micro factors
• Conclusion
• References

Introduction
Business environment considering two different factors that has an major impact upon
decision making of firm. For successfully running of business activities and operation, it is
important to understand changing surrounding to fulfils requirements of users. The report is
made on TESCO which helps in identifying PESTLE, SWOT and their strength and
weakness on business.

Macro environmental analysis
Political Factors- The positive impact includes rise in profits due to Brexit and on other
side, there is rise in food import prices which leads to negative impact to business.
Economic Factors- The adoption of strategy leads to success of business and Brexit leads
slow down spending capacity of consumers which create worst impact to business.

Cont.…
• Social Factors- The analysis of market to fulfils requirements of consumers in effective
manner. On other side, negative impact is that low down profits due to frequent changes
in consumers trends.

Cont.…
• Technological Factors- TESCO has superfast and automated delivery to reach to final
users where as negative impact is failure to adopt latest and updated technology at
marketplace.

Cont.…
• Environmental Factors- Respective organisation uses shopping app for saving fuel of
drivers and failure to adopt zero waste management for food waste.
• Legal Factors- The following of legal laws leads to conduct business operation and
activities in best possible manner. Negative impact of legal factor is that misleading
issues leads to decline brand value and goodwill.

SWOT analysis
• Strengths- Geographically Diversified
• Weaknesses- Decrease in Operating
• Opportunities- Expanding Jack's Business
• Threats- Economic Crisis and Credit Crunches

Interrelation between macro and micro
factors
• Political Factors
• Strengths- High profit margins
• Weaknesses- Food exports expensive
• Economic Factors
• Strengths- Implementation of strategies lead to success
• Weaknesses- Brexit slowdown power

Cont.…
• Social Factors
• Strengths- Fulfilment of need of consumers
• Weaknesses- Decline in profits
• Technological Factors
• Strengths- Fast online delivery
• Weaknesses- Lack to adopt new technology

Cont.…
• Environmental Factors
• Strengths- Easy use of shopping application
• Weaknesses- Lack of implementing zero waste management
• Legal Factors
• Strengths- Application of legal law and regulation
• Weaknesses- Misleading environmental activities

Conclusion
The report concluded that organisation has to analyse PESTLE to know about external
environment in order to make better decisions. Similarly, SWOT analysis has performed for
knowing about strengths and weaknesses of business along with their relationship.