Business Report: Analyzing Tesco's Political, Social, and Legal Issues

This report provides an in-depth analysis of Tesco, a multinational retailing company, examining the political, social, and legal factors that influence its business operations. The report begins with an introduction to Tesco's business strategy, highlighting its focus on cost leadership and customer service. It then delves into three key areas: political issues, such as global political instability and government regulations; social issues, including consumer awareness and cultural norms; and legal issues, encompassing health, safety, and consumer rights. Each section explores how these factors impact Tesco's performance and strategic decisions, considering both direct and indirect effects. The report concludes by emphasizing the importance of addressing these issues for strategic planning and competitive advantage. The report provides insights into how Tesco navigates the complexities of the business environment, including its operations in various countries and its responses to changing consumer behaviors and legal frameworks. The report also touches upon the company's efforts in adapting to social demands, such as catering to the demand for organic products and considering social conditions in product development.

Understanding Business

TABLE OF CONTENTS
Understanding Business...................................................................................................................1
INTRODUCTION...........................................................................................................................3
Note1 This should focus on a political or economic issue that you have learned about in class.
.....................................................................................................................................................3
Note2 This should focus on social or environmental, or ethical issue that have learned about in
class..............................................................................................................................................4
Note3 This should focus on a legal or technological issue that you have learned about in class.
.....................................................................................................................................................5
Conclusion.......................................................................................................................................6

INTRODUCTION
Research need and requirements vary with each project. A briefing note is a most powerful tool
of access to leaders to influence their decisions. In this regard, director faces a challenging task.
From the following project, political, social, legal, ethical and technological issues are described.
The project further prepares a series of three briefing notes that consider key issues affecting the
business (Al-Debei and Avison, 2010). And this project also aims to provide an overview of the
issue and consider its likely affect on the business. Tesco is a multinational retailing company. It
is the largest retailer in the UK. This company are facing a variety of challenges as they strive to
find growth and achieve competitively. Tesco also provides finance, insurance and much more.
The business strategy of Tesco can be described as cost leadership with a focus on customer
service. This company takes its research, design, and development efforts very well. And it
believes this is one of the key factors for the success of the competitive environment.
Note1 This should focus on a political or economic issue that you have learned about in class.
Political: Tesco is the world known the brand and this company has developed its business in
almost all developed countries of the world. Tesco has given special emphasis to its clients, and
it has built the relationship with them (Beynon-Davies, 2013). Political issues are one that has to
do with government. The various political issues across the world create different types of
problems for the companies and also in supplying their products to customers. Due to increased
price of raw material, the price of products is also increased that makes it out of reach of the
cost-conscious customers. The political system of UK has undergone a huge transformation. Due
to the implementation of economic reforms, the political factor of UK become effective which
allowed the country to focus on foreign investments (Boons and Lüdeke-Freund, 2013). Tesco is
working in a diversified area, and it has to face changes in rules and regulations in different
countries. In many countries Tesco products are not allowed due to several political reason. Due
to emerging economy, the company has shown its stability including in China and India. The
consumer in the under developing countries can not afford to buy Tesco product because in that
time global regulations are changed, and Tesco have to follow several political changes. While
making any product of an international level the product must have to fulfil the different

international norms. Nowadays rules and regulations are revising continuously (Carroll and
Buchholtz, 2014). A range of political factors can affect the company in both ways i.e. indirect
and direct ways. Many political factors that may affect Tesco include but not limited to political
stability in the country. Since the Tesco operates worldwide, global political factors greatly
influence the performance of business. These include tax rates, rules and employment legislation
(Carroll and Shabana, 2010). Due to ongoing political instability in the world, many
governments encourage retailers to create jobs for the domestic population. For employment
legislations, these organisations support government financially and in their other political
endeavours so that they can get their way in return. Certain political issues can potentially have
negative implications on company's bottom line. Tesco is operating approx fifteen countries all
over the world, so its performance may be influenced by the local government as well as national
government. In many countries, most of the local government encourage the companies to
provide employment for applicants so that local people can be benefited more. The company
followed the legislation, rules and other laws properly in every country where it has stores.
Note2 This should focus on social or environmental, or ethical issue that have learned about in
class.
Social: Nowadays the education level in the developed countries is improved, and customer has
great awareness about the service and quality of the products. Tesco has an international standard
of producing the products and the eco-friendly ingredients are used in all of the product. And
also introduced some financial products, which are used almost all of the developed countries
across the world (Alshamaila, Papagiannidis and Li, 2013). In the UK most of the customer
have great faith over Tesco products, and they always like to buy its products and services with
great confidence. Now it becomes necessary to understand the attitude of target customers.
Social factors relate to the culture aspects and demographic aspects that will affect the demand
for the company's products. Other factors include age, cultural norms, population, income
statistics as well as social conventions and religious beliefs. Social issues play a critical role in
global and international markets, and the business will depend on the research in this area. All
these factors help the Tesco to examine consumer needs and determine what pushes them to
make purchases (Bartolomei and et.al., 2012). This company also works according to the social
demand and culture norms with social responsibility. Because of the variety of social changes,
the consumer in the UK has moved towards bulk shopping, which is due to a variety of social

changes. So that Tesco has increased the variety of non-food items for sale. This type of sale
demanded by customers is mostly influenced by their beliefs, attitudes and norms. In the UK,
consumers are becoming more aware of their health issues, due to this Tesco is adapting many
changes by accommodating the demand for organic products. Demographic change and change
in customer attitudes are the important social issues which can show an effect on an organization
(Beringer, Jonas and Georg Gemünden, 2012). In Tesco, the director must consider social
conditions to recognise whether the product will stand for benefit in the country or not. The rapid
industrialisation of United Kingdom was an issue which impacted localisation of Tesco.
Note3 This should focus on a legal or technological issue that you have learned about in class.
Legal issues are determinants of a legal's performance that directly impacts a company.
These issues include both external and internal sides. There are many laws that affect the
company environment in the UK. So that there are certain rules and regulations that Tesco
maintain for themselves. In any company, legal factors include health, safety, consumer rights
and product safety (Samiee, Chabowski and Hult, 2015). In Tesco, various government
legislations and regulations have a direct impact on the performance. In Uk, Food retailing
commission enforced to use the best pricing for products. So that retailers do not change the
price of products without any notice. Most of the retailers try to change prices on regularly basic
to attract target customers. There are many numbers of laws that directly affect Tesco because the
organisation markets a large number of products and services. This company is also engaged in
other product like credit cards, saving and loans. The financial services Act was recently enacted
in Tesco. The presence of most powerful retailers with established brands creates a threat of
requirements for product differentiation. Because Tesco is primary dominated by few
competitors. The local and national government's policies can offer consumers a price control
(Turner and Zolin, 2012). The list of legal factors that would be considered includes current
legislation and old legislation that may affect the Tesco in areas such as competition, health and
employment. In the UK, there are many regulatory bodies that have been set up to monitor firm's
legislation to all areas of operations, including employee welfare and consumer protection. All
these issues affect the way in which a business functions and have cost implications that need to
be taken into account while formulating business strategy. The key aspects of the employment
legislation affect the decision but in a positive way because every one knows that the rules and
regulations in any place are made to stop the unwanted and unfair situation. The United

Kingdom legal system provides with one of the most important regulatory incentives for
industrial investments among the company for development. The wide variety of incentive
solutions provided by the state government of UK stands for the major attraction for overseas
investors (Wu, 2016). Tesco also has to face the labour laws, and it has to fix the minimum
wages of the worker under the provision of these laws. This company has to follow the foreign
trade rules and regulations while sending its products to another country. Tesco needs to follow
the global rules and regulations to make changes in its working in the international markets.
CONCLUSION
From the above report, it has been observed that all issues are used to examine the current
and future status of the company. And also helps in the strategic planning and gaining the
competitive advantage. All these issues can not be used for the business, but various departments
can also be investigated under this framework. The result of the political issues shows that the
Tesco is politically stable. In Tesco, Microenvironment has covered large place due to its mega
market and vast area. Due to its mega market, feature political, legal and social factors always
mixes in its functionality. It is important for the company to carry out the all the issues in a
proper manner. If all the factors are not being conducted in the proper manner the company shall
not be able to achieve its goal and objective.

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