Tesco's Environment: Analyzing Business with PESTLE and SWOT Analysis

This report provides an analysis of Tesco and its business environment, utilizing both PESTLE and SWOT frameworks. The PESTLE analysis examines political, economic, social, and technological factors influencing Tesco's performance, including tax rates, economic policies, changing consumer preferences, and technological advancements. The SWOT analysis identifies Tesco's strengths, such as its leading market share and efficient supply chain, weaknesses like decreasing operating profit and financial errors, opportunities in emerging markets and online shopping, and threats from increasing competition and economic crises. The report also discusses the company's impact on the external environment, including job creation, provision of quality products, and adaptation to market situations. The conclusion emphasizes the importance of internal and external analysis for strategic planning and decision-making in organizations like Tesco.

Tesco and its environment
INTRODUCTION
Tesco is a public limited company
founded in the year 1919.
Number of location is 7005 shops.
Number of employees is 423092.
Revenue - £64.760 billion
Providing good quality products
to people and unique products
INTERNAL ANALYSIS - SWOT ANALYSIS
Swot analysis help in identifying strength, weakness, opportunity and threat of an organisation. Managers can make better plans which help in making good products to attract
customers. This helps in generating more revenue and increase sales of company (GURL, 2017). It is essential to identify weakness of an organisation so that improvements
can be made.
Strength
Leading market share in the
country
Growing number of stores
Superior technology usage
Efficient supply chain network
It has diversified market
Product range is good
Weakness
Decrease in operating profit
Financial errors
Low cost strategy
Fraud trial
Poor operational
performance
Opportunity
Emerging market
Joint ventures or partnership
Online shopping
Strategic alliance with other
brands
Expand business in other
countries
Threat
Increasing competition
within supermarket
Controversy
Economic crisis
Credit crunches
EXTERNAL ANALYSIS- PESTLE ANALYSIS
Political factor- global political factor influence
performance of Tesco company. It includes, tax rates,
stability of country, act of legislation, trade restriction,
tariff barriers. Tesco is creating employment
opportunities which increases demand for its product.
Economic factor- it includes leverage cost, demand,
profit and prices. Tesco company has to be aware of
changes in policies like, tax policy, interest rate or any
other policy which affect performance of organisation.
Social factor- Tesco has increased number of food items
for sale, this increase demand of product and more
customers are attracted. Customers are becoming aware
of health and they want healthy food products
(Christodoulou and Cullinane, 2019). So, Tesco company
should make healthy food products to satisfy needs of
customers.
Technological factor- technology is changing rapidly and
it is the responsibility of managers to apply new
technology so that needs of customers can be satisfied.
Nowadays, online shopping facility with home delivery
service is provided by companies.
How company impact external
environment
Managers of Tesco company is
making plans or strategies which is
beneficial for their growth and development
and satisfy need of customers. Home
delivery services, Job opportunities, Good
quality products are provided to customers,
Provide healthy and safe products. Company
is identifying market situation and make
plans accordingly. This helps in attracting
more people and profit can be earned.
CONCLUSION
From the above discussion it can be
concluded that, internal and external analysis
should be done because it helps in
determining market situation. Swot analysis
help in identifying strength, weakness,
opportunity and threat of an organisation.
Pestle analysis include, political, economic,
social, technological, legal and
environmental factor which affect
performance of organisation. Further, impact
of company on external environment has
been described.