Pest Analysis Tesco

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TESCO
1. Introduction
Tesco is one of the world’s largest food retailer which deals in retailing services and other associated activities right now operating in UK, third largest retailer in the world in terms of profits and second largest retailer in the world in terms of revenue. (Data monitor, 2013) It has over 2400 stores operating worldwide in 13 different countries. Known as retailing giant Tesco PLC employs over 530000 employees who serve tens of millions of customers every week to serve them regarding their basic needs (Tesco, 2014) Even after being a retailing giant Tesco has also not escaped the wrath of the economic crisis prevailing in UK and has seen few of its toughest years. Year 2013 saw first time in 20 years that there was
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It helps us know broad overview of the atmosphere in which company operates. (Kuvilahiti,2012)
a. Political factors: As Tesco is operating in over 13 countries so theworkings of the company are very much affected by government policies, rules and regulations prevailing in one particular country. Often in many countries Tesco is faced with the legislations to provide jobs to all sets of population and Tesco specifically employe young students as they are young, provide high quality work and less salary and are loyal to their work. Current economic slowdown has resulted in closing of few Tesco stores in European Union.

b. Economic Factors: This is one of the major sections where Tesco is most ill-affected at current juncture of its growth as crisis has led Tesco to follow retrenchment policy which can hamper satisfaction among employees and they don’t feel motivated. Also the economic slump has had a direct impact on demands of consumers who want to curtail back on their expenditures which is affecting Tesco very badly. Economic factors badly influence demand, prices, costs and profits for a firm. Tesco has no control over these economic factors but the slowdown has resulted in Tesco being exposed to market concentration
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