Pest Analysis Of Tesco

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Profile Tesco is one of Britain’s leading food retailers and has 586 stores though out Great Britain. From 1992 Tesco has grown greatly and has increased its market share from 10.4% to 15.2%. This increase in customers has also given Tesco a large amount of profit. Tesco has 164,500 shareholders. Tesco’s profit is about 505 million pounds after the tax has been deducted; about 50%of this is then distributed to the shareholders as dividends. The rest roughly 250 million pounds is held back for investment in stores and improving services for the customers. The average shareholder holds between one and one thousand shares, but also a large amount of shares are held by banks, pension funds and building societies. Tesco’s share prices have risen since February 1997 when it was 349p to 586p on the 21st April 1998. The shares have peaked a high price of 603p. With this growth Tesco’s is now the largest super market chain in the U.K. Tesco now controls just over 30% of the grocery market in the UK, approximate to the combined market share of its closest rivals, Asda and Sainsbury's. In 2007, the supermarket chain announced over £2.55 billion in profits. Originally specialising in food, it has diversified into areas such as discount clothes, consumer electronics, consumer financial services, selling and renting DVDs, compact discs and music downloads, Internet service, consumer telecoms, consumer health insurance, consumer dental plans and budget software. It is now entering into the housing market, with a self-advertising website called Tesco Property Market. Political Environment The environment comprises of laws, government agencies and pressure groups that influence and limit Tesco PLC. − with the increase in market concentration in recent years the UK’s leading grocery retailers have come increasingly under the scrutiny of the Office of Fair

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