Unit 1 D2 Essay

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Unit 1 D2 I. Introduction In this report I will be highlighting various components of one of my selected organisations (Tesco) by using PESTLE analysis, their impact on both the organisation (Tesco) and their stakeholders, and what Tesco has done or is doing to keep their stakeholders happy. PESTLE analysis can either benefit or negatively affect a business, either way it is always up to a business to decide the manner in which they deal with these situations and this normally determines whether the company succeeds. This report will uncover just how Tesco (PLC) has dealt with these external business factors. II. PESTLE analysis Political Political factors can often be confused with legal factors but whilst they are indeed similar they are still different. Whilst politics have a large part to play in laws, the main difference is that political factors include elections, parliament and so on as different parties can often adjust laws to improve them (seal off loopholes) and These political factors have a big impact on Tesco as some parties could change laws depending on their values that might affect the running of Tesco. Economic Economic factors would only apply to Tesco in countries in which it trades. Most of these economic factors change depending on the country as the each country’s economic activities throughout the country such as the Increase or decrease in inflation (the rate at which prices are going up), recession - a significant decline in activity across the economy, lasting longer than a few months, GDP (Gross domestic product), interest rates - high interest rates are good for people saving but bad for people taking out and paying back loans such as mortgages as it costs more but it has not changed for 3 years and taxes such as corporate, income etc. All these individual factors influence any decision a business makes (Tesco). For example a
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