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Title: A Concise Overview of A Tesco PESTLE Analysis 2017

This document provides a concise PESTLE analysis of Tesco for 2017. It summarizes the political, economic, socio-cultural, technological, legal, and environmental factors affecting Tesco's operations. Politically, Tesco aims to offer diverse employment opportunities. Economically, slowdowns in retail can impact Tesco. Socio-culturally, Tesco adapted to demand for organic and diverse products. Technologically, Tesco pioneered loyalty programs and implements new technologies. Legally, Tesco must comply with competition and employment laws. Environmentally, Tesco commits to reducing waste and carbon emissions. The analysis concludes that a PESTLE can reveal insights into a retail giant's business.

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110 views5 pages

Title: A Concise Overview of A Tesco PESTLE Analysis 2017

This document provides a concise PESTLE analysis of Tesco for 2017. It summarizes the political, economic, socio-cultural, technological, legal, and environmental factors affecting Tesco's operations. Politically, Tesco aims to offer diverse employment opportunities. Economically, slowdowns in retail can impact Tesco. Socio-culturally, Tesco adapted to demand for organic and diverse products. Technologically, Tesco pioneered loyalty programs and implements new technologies. Legally, Tesco must comply with competition and employment laws. Environmentally, Tesco commits to reducing waste and carbon emissions. The analysis concludes that a PESTLE can reveal insights into a retail giant's business.

Uploaded by

kristal brown
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Title: A Concise Overview Of A Tesco PESTLE Analysis 2017

Tesco, Britain's largest retail outlet and a major global player, has gone through its fair share of

vicissitudes. From being a rising entity in the global retail market to struggling to cope with other

up & comers and retreating from the US market with massive losses, Tesco has seen it all.

Here is a Tesco PESTLE analysis for the 2017fiscal year that showcases the relevant factors

affecting the company's operations in that year.

A brief introduction

A giant in the global retail sector and the largest retail outlet in the UK, Tesco employs more

than 450000 people across the country. The company is the ninth-largest retailer in the world in

terms of revenues generated and currently the market leader in groceries & retail in the UK. It

has since diversified into several other domains such as clothing, electronics, furniture, financial

services, telecommunications, internet services, etc.

Below is an industry analysis that looks into the Political, Economic, Socio-Cultural,

Technological, Legislative, and Environmental Factors affecting Tesco.


Political Factors

With a globalized chain of stores worldwide, Tesco's operational performance depends on quite a

lot on the market policies where it operates.

For example, the UK government encourages retailing companies to offer a mix of different job

opportunities for the general population. Tesco understands that its operations significantly

impact the different kinds of jobs in the retail and groceries sector, given that it is an inherently

local and labor-intensive sector.

Thus, the company offers employment to a wide variety of demographics, including students,

disabled, and elderly individuals.

Economical Factors

Economic factors are a significant concern for any retailing business as they influence demands,

costs, prices, and profits.

Though these factors are not under the control of the company, their effects are quite profound.

The UK is the largest Tesco market, and any slowdown in the food & retail market can adversely

affect the company.

Socio-Cultural Factors

Customers in the UK are shifting towards the 'one-stop shop' and bulk shopping concepts. Tesco

was one of the first retail corporations to predict this trend and had included numerous non-food

items in its catalog. Furthermore, the company pivoted into different finance and

telecommunications sectors to explore and expand into other territories.


Tesco has adapted according to the changing requirements and demands of the population

regarding prices and products offered. Today, the company is listening to its consumers intently,

introducing a wide range of organic food products as per demands. Specific types of meats and

meat products are now for sale to attend to the needs of a diverse community.

Technological Factors

Tesco was one of the pioneers of the loyalty card system and had revolutionized the UK's retail

landscape. It introduced its 'Clubcard' way back in 1995, which was a significant force behind its

growth and success.

With time, Tesco implemented several other technologies to accelerate and improve its

operations, such as wireless devices, intelligent sales, electronic shelf labeling, self-check-out

routine for customers, radio frequency identification tags, etc.

Online fund transferring methods like an electronic point of sale, electronic fund transfer

systems, digital scanners, and automated procurement, supply chain& inventory management

have augmented Tesco's operations drastically.

Legal Factors

While having a similar influence like that of political factors, legislative and government policies

have a much more profound effect on Tesco's performance.

European Union and UK competition laws prohibit anti-competitive activities such as buying out

or merging. Tesco cannot just buy off its competitors Lidl or Alda. Tesco must also pay the

minimum wagesto its employees and not sell alcohol to underage customers.
Environmental Factors

Companies across the globe are facing enormous pressure to address environmental issues and

their corporate social responsibilities.

Tesco has taken initiatives to reduce waste, cut down consumption of resources, and minimize

environmental damage. The company committed to reducing its carbon footprint by 50% and

removing 1 billion plastic packaging pieces by the end of 2020.

And that rounds up this PESTLE 2017 analysis of Tesco. Hope it was informative enough and

enables one to craft an excellent industry analysis on their own.

Summary: A PESTLE analysis of Tesco can reveal a myriad of exciting information about a

retail giant's working. This article offers an overview of one such research for the convenience of

students and professionals alike.

Author-Bio: Mike Adriens is a business analyst and an economics professor from a reputed

school in Maine. He is also a prolific academic writer with several published case studies,

including an excellent Tesco PESTLE analysis 2017. Get in touch with him via

MyAssignmenthelp.com.

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