Tesco pestle analysis free essay sample

Political Factors: Tesco is a global brand operating 13 countries outside the UK. Their business diversified in the world. So Tesco’s performance is influenced by the political factors. This includes the legislation, tax rate political stability. In credit crunch situation unemployment is common problem in everywhere. The governments encourage the retailer to create job opportunity for the local people. Tesco gives the opportunity for the people and also the government to reduce the level unemployment. It creates the opportunity from lower-paid, flexible hour, highly skilled, and higher paid which meet the demand form population categories such as student, citizens and disabled person. Economical Factors: Many political changes result in changes in economy. Suppose tax rate or interest is decides by the politician. But their effect on performance In the UK, Tesco could not expand their business. Because of, they have had already expand one third of their business in the UK. We will write a custom essay sample on Tesco pestle analysis or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In credit crunch situation, many people are unemployed. So the effective demand of the product is decreased. This is another type of factor. Though companies still growing outside the UK but they are still depend on the UK business. Hence, Tesco would be affected by the any slowdown in the UK. Social/Cultural Factors: Nowadays, everyone is very busy. Basically the British people who are working. So they have moved to the one-stop service. Tesco provides the food item as well as non food item such as electrical product, clothing, baby product etc and also the finance service. Customer can save their time and energy. Customers are aware of health and the demand of food is changing day by day .For the reason Tesco launch the organic product. Most of the customers are mixed origin. So Tesco try to meet all type of customer demand. The Sociological features analyze that the increase in young professionals. Obviously there is a demand for new trends for the young generation. Demographic changes such as an increase in women worker that leads to reduce the main meal preparation in the UK. This has seen an increase in the meals for one or quick microwaveable meals to make cooking quick and easy. Technological Factor: Technology gives new trends for the Tesco. Tesco is now most leading company only because of internet. The customer and company both are benefited by the new technology. Customer satisfaction rises products are available, easy to online shopping; service can be more personalized by delivering the product through the website www.tesco.com. The company setup the self checkout point which more easily for the customer and convenient for them.Tesco opens the UK’s most energy capable stores. Since 2000, Tesco has spent considerably in progressing energy effectiveness and it has succeeded in dividing the amount of energy its UK stores necessitate for each square foot of room (2006 baselines). The Cheetham Hill store is a major development for Tesco in meeting its long term environmental objective to dramatically reduce its carbon footprint. Environmental Factors There has been increased pressure on many companies and management acknowledges their responsibility to society and takes steps in a way which benefits overall society. As a global business their strategy could to minimize the climate changes. In Tesco, the corporate governance responsibility to becoming zero- carbon business at 2050 and helping the customer to reduce the carbon foot print 50% by 2020. [3] A core tesco value is that they reduce them minimizing their waste which produces every store. Their strategy is to generate waste to energy by reducing, reusing and recycling it. Legislative Factors The performance of tesco is directly affected by government legislation and policy. The food retailing commission suggested setting up banning many current policies such as, demanding payment from supplier and changes the price without notice. The government tries to stop the monopoly controls. Tesco plc is a large food retailer in the UK market that operates 2,200 stores .The company offers financial product and service such as tesco banking, home insurance, dental insurance, car insurance telecoms service as well as electrical appliance, clothing, home appliance. ENVIRONMENTAL CHANGES: Environmental opportunities are only potentials opportunities unless the aorganization can utilize resource to take advantage of them and until the strategic leader decides that it is appropriate to pursue the opportunity. An evaluation of an organisation’s strength and weaknesses in relation to environmental opportunities and threat is generally referred to as a SWOT. A modern environment it is difficult to forecast. Tesco are strategically tackling the environmental changes. The following are showed how tesco might forcast it. Economic changes: The economic changes might be assessed by economic growth, inflation, interest rate. The retailers analyzed that tesco total international sales grew by 12%, opportunities new stores across Asia and enlarged customers’ number in the US. By international market growth the long- term recovery is happening although the pace and strength of economic Tesco provides the travel money where exchange rate 0% commission and over £500 is free delivery and customer get it from 130 stores around the countries. (http://www.tescofinance.com/personal/finance/finance/travelmoney/index.jsp)