Tesco UK: Impact of Political, Economic, Social, and Tech Factors

This report provides a comprehensive analysis of Tesco UK's business environment, examining the impact of various factors on its operations. The report begins with an introduction to business understanding and its relevance, followed by an overview of Tesco UK as a retail company. It then delves into briefing notes that explore the political factors affecting Tesco, such as government policies, taxation, and grants. The analysis continues with an examination of social factors, including cultural shifts, consumer preferences, and the impact of gender and religion on Tesco's business. The report also assesses the influence of technological advancements, including online shopping, self-service options, and the adoption of disruptive technologies. The conclusion summarizes the key findings, highlighting the dynamic nature of Tesco's environment and the interplay of political, social, and technological factors. This report provides a detailed understanding of the challenges and opportunities Tesco faces within its business environment.

UNDERSTANDING
BUSINESS

INTRODUCTION
Business understanding is dealing with a business solution in a way so that it likely to
give a good outcome. It is a combination of internal and external environment which affect the
situation of the business. Business is a strategy which is a system of economic where goods and
services are exchanged for money or other thins. Present report is based on Tesco UK based
retail company operating in clothing, electronics, furniture etc. This report covers the political
and economic issues which affect the operations of Tesco. Further, it also covers the social,
environmental and ethical issues which has a impact on Tesco. At last, this report focus on the
legal or technological issues which affect the business(Davenport and Beck, 2013).
BRIEFING NOTE 1
In order to analyse the political factors which influence the operations of Tesco where the
political environment that is revolves in the nation and they also make the production as per the
laws and legislation which is operating in their own market and in the overseas. As a research
analyst, there is one of the main political factor which is supported by the government in a direct
or indirect way as it also involves the corporation tax, vat and the fiscal policies which are linked
with the taxes. The government of UK adopted a tax measure that affected Tesco as government
increased the VAT with the aim of increase the revenue of government(McNamee, Boer and
Pearson, 2015). Therefore, there is negative impact on the revenue of sales due to the increase in
the rate of value added tax as this is generate by the stated organisation. Loans might be offered
to the stated organisation as they are suffering and not able to spend in order to buy better
products. At the time of recession, the management of Tesco are not doing so well so that they
are not able to spend money on new products so that there is facility provided by government
which helps them to afford the products which they want to buy. However, they do not need to
pay it with interest rate. As normally they do not take loan due to that they are never face the
shortage of money as the stated organisation is considered as a big global company .
Grants is other big thing which is linked with direct support as it considered as the funds
which is provided by one party by trust or from the government department. In order to receive
the grants there is requirement of written application which identify the eligibility of grants of a
company. Tesco also have a charity which is called as charity trust of Tesco and grants affect the

Tesco charity because there are some of the objectives set with international and local scale
also(Bridge and O'Neill, 2012). Through the instability of finance, there is encouragement from
the government in order to develop jobs for people . Tesco plays an important role in order
create the opportunities of employment so that it leads to increases the demand for the products
and diversifies their workforce. The taxation level is changing so that the management of Tesco
pay the taxes which helps in getting services of government to the public. They also focus in
order to enhance skills of people working population including the education and training
schemes. The planning commission is heavily regulated in UK. It helps for identifying the
appropriate laws in order to planning permission and whether any resistance to planning on the
lawful aspect or the local people. At initial stage it assess the success for the store in the
different areas. Thus, these are the political factors which influence the operations of
Tesco(Zikmund and et.al., 2013).
BRIEFING NOTE 2
Being a research analyst, in order to analyse the social factors which can influence the
business of Tesco, the sociological factors are culture, health consciousness and age distribution.
It involves the consideration in order to increase in the immigration for Europeans and
maximisation for professionals in the young generation. There are various changes in the tastes
and preferences in the taste of consumers that is consider by the the stated organisation. For
example, due to the adoption of online shopping of grocery is an approach and to consider issues
of mobility for the elder people. This research helps to manage and says that the people with old
age and their income is high so that they are in favour of the using internet and they consider the
products online. (Schmarzo, 2013). Thus, Tesco has positively responded to the social changes
that occurred in the company. The opinion of the customers changes with the change in the
quality and price of the products of the company, shopping services which are provided to the
customers and competitive moves. This highlights the significance that the corporate strategies
must be responsive to the business environment.
Gender also plays an important role in order to have an effect on the store of Tesco due to
various sections so that they provide all the products for all the different kinds of people. Tesco
is a global company which has the different customers and form various places they visit to get
what they want. As Tesco respect both men and women workers, black/white and able/disable so

that there is no discrimination regarding this(Cavusgil and et.al., 2014). Religion could also
affect the activities of Tesco. It ensure that they do not discriminate various races and religion
because it increases the number of customers. They have to consider all the people will be able
to visit their stores and buy the products. Tesco is a global company and able to adopt all the
types of background and this includes the targeting a different market that is highly educated and
older(Wild, Wild and Han, 2014). To make sure the various techniques of promotion including
the advertisement with the help of different aspects which do not anger people's ethical and
religious viewpoint. This could prove important as it is a global organisation as they have to
adapt and taken into consideration all types of people so that they can promote towards it. Thus,
these are the social factors that influence and which are came out after the research of the
Tesco(Finance and Zwerman, 2015).
BRIEFING NOTE 3
The advancement in the technology have brought different new opportunities for Tesco.
As a research analyst, founded that there are two most distinct opportunity which includes firstly,
to introduce the online shopping and development in the various facilities of the home delivery
of the products and the other is check out the points of self service which is convenient for the
customers. Technology is an important aspect for management of supply chain for Tesco and to
develop the supply chain management so that they have to attain the competitive advantages and
enhance the cost of efficiency. The organisation must be very attentive to the technological
advancement so that it could be the best opportunity for the firm in the area of development.
Mobile technology helped to improve the online shopping facility which gives idea to the people
in selecting the particular product of their own choice.(Schjoedt and et.al., 2013).
Disruptive technologies outcome from the various innovation in technology which is at
initial stage unable to reach the performance for the current technology . Thus, the customers are
adopting the new technologies which overall increase in the performance of the company and it
helps to reaching he new customers. This technology is more convenient for the customers as it
helps in arising the market. Therefore, the technology will appear unattractive to large sell
establishes organisation. In order to enhance the market share opportunity the contrary small
firms will regard a disruptive technology(Abosag and Lee, 2013). Thus, for the purpose of
meeting the various standards of presentation that is expected by the huge market the small

firms utilise the technology. Therefore, it is more valuable to customers for the present
technology and overtime the disruptive technology will increase in the popularity. It affects
negatively on the organisation which do not use the disruptive technological opportunity. Tesco
has invested in the technology such as for the development of website which has in turn increase
its revenue. They also make investment in the online experience as it improved the checking out
system for the convenience of its customers. They also installed the advanced scanners and
barcode readers to guard the store against theft and lifting of store(Bautista-Lazo and Short,
2013). Thus, there are the various technological factors which influence the operations of the
Tesco and provide better facilities to their visiting customers.
CONCLUSION
From the above study, as a research analyst it is concluded that the environment of Tesco
is changing timely as it has various impact of different factors including the political,
sociological and technological impact which involves that political factors such as UK
government and the European union which has a great impact on the activities of Tesco. This
report also includes the sociological factors which includes the cultural, changes in lifestyle of
people and according to that change they determine the situation of the company. At last it also
covers the technological factors like introduction and development of new technologies which
are adopted by the organisation.