Tesco Pestel Analysis

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Introduction This report is aimed at critically analysing the macro business environment affect marketing decision of TESCO, one of the largest food and grocery retailers in the world, operating around 4,331 stores. In order to achieve this aim we will use strategic evaluation tool PESTEL analysis.  TESCO – Company Overview TESCO is a retail company, founded by Jack Cohen in 1919 in East London. Groceries, consumer goods, financial services, telecoms are its products. TESCO is among the largest food retailers in the world with revenue in excess of £54 billion in 2009 and employing over 470,000 people . They operate approximately 4,331 stores in 14 countries around the world. The company operates primarily in the USA, Europe and Asia and their Head Office is based in Hertfordshire, UK. TESCO was founded in 1919 and launched its first store in Edgware, London, UK in 1929; however, over the decades it has evolved to become the market leader within the UK food retail segment. The comparative positioning of TESCO’s market share with respect to other leading players in the market has been illustrated as follows: Fig 1: Share of leading players in UK food retail market  PESTEL analysis The word PESTEL is an abbreviation of * Political * Technological * Economical * Environmental * Social * Legal The PESTEL framework below analyses the dynamic and unpredictable environment in which TESCO operates by identifying the external forces that have the most impact on TESCO’s performance and marketing decisions.  PESTEL ANALYSIS OVER TESCO for PAST and FUTURE as well  Political: • China’s accession to the WTO has promoted a free flow of foreign trades by removing all barriers encouraging Western companies, including TESCO, to make way into the world’s most profitable market encompassing over 1.3 billion people (Straits Times, 2010). In 2009

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