Tesco Pestle Factors and How It Affects Tesco Essay

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Tesco AO1 Part B PESTLE stands for “Political, Economic, Sociological, Technological, Legal and Environmental” factors. I am going to explain how each of these factors affects Tesco as a business. Firstly I am going to explain how political effects Tesco as a business. Monitoring, understanding and adapting to the political environment is essential for any business, because political change affects every business, some of the factors are 1. Stability of the government 2. Government type (dictatorship, democratic, monarchy, etc) 3. Economic policy of the government 4. Trade policy 5. Diplomatic events in surrounding countries. The following link is evidence of how Tesco is affected by political change http://www.telegraph.co.uk/finance/budget/8394379/Budget-2011-George-Osborne-set-for-8bn-windfall-from-bounce-in-tax-revenues-and-public-spending-cuts.html# This report explains how the government in 2011 decided to make spending cuts; this would reduce things like benefits and the link also describes how a decision to raise tax was made. These two factors of the report effect Tesco massively as a business because this means people have less money to spend due to cutting benefits and raising tax so Tesco would have to reduce sale prices, and try to reduce general costs because tax rising will affect them also, but would still have to keep employees paid at the same wage as it would be unfair to lower wages. Tesco have to make changes concerning themselves and customers as a business not their employees. Economic This link shows how the cost of healthy living has risen, so it cost more to make a meal than it would to buy the same readymade, but unhealthy version. This makes it cheaper to live with unhealthy diet, this is a negative concern for the public as this is not the ethical way of living. http://www.bbc.co.uk/news/business-10998011

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