Pestle is an analytical
strategy used by the organisation to estimate external environment
for the business. Specifically, Tesco PESTEL analysis involves an
evaluation of political, economic, social, technological,
environmental and legal factors affecting the retail chain.
– Tesco is suppling their products in 14
courtiers all over the world, this performance can be affected by the
local legislative and political conditions. Employment laws stated by
local government must be followed to avoid legal steeplechases. Most
of the time governments cheer the organizations to afford employment
for local candidates so the local people can be benefited more. All
type of jobs like low-paid, highly flexible, more skilled,
highly-paid and local based jobs are available in
stores like Tesco. Tesco employee different groups of people like
students, elderly workers and disabled people for less labour rates.
Tesco follow the employment legislation and other laws properly in
every country where it provides their products.
market share because almost
half of Brits people shop at Aldi and Lidl.
Social Factors- The
demographic changes and change in customer behaviours, attitudes are
the important social factors which can make effect on business. As
Tesco is a food business
it must examine the customers constantly, because nowadays every
customer prefer healthy and tasty food items. Tesco
understood the new social changes and included non-food items in
their sales list, thus it attracted more number of customers in the
the benefits of a mixed-age workforce, and their research showed that
older employees are more loyal. They were one of the first business
to encourage positively the employment of the 50+ age group.
benefit as number of over-50s
staff reaches record level. Tesco reveals Britain’s first
They provide more to
attract customer from ethnic minorities. For example, during Ramadan
they change the time of store duties in order to let the staff the
time to pray, and let the staff use of the training room as a quiet
space for their purpose. They try to represents the stores to look
flexible leave so that staff can take time off for the Indian
festival of Diwali or Eid for the Muslim. During Diwali, staff
organised celebrations in store, wore traditional dress, and brought
in home-cooked food to share with the colleagues in the canteen. We
are increasingly looking at language needs in our stores, for
example, the most requested language is the south Asian ones which
are – Hindi, Urdu, Bangladeshi and obviously English.
Asda, Sainsbury’s and
Tesco all sell
halal meat from ‘live kill’
animals that have not been stunned.
Women role in society:
The Diversity Advisory
Group found that we need to increase:
female store managers
and senior team members;
store managers and
senior team members from ethnic groups;
45-54 year-old store
managers and senior team members;
To increase the proportion
of women, ethnic groups and older staff in these positions to achieve
them with training, give them external language tapes for staff
training, improving communication to success, and also conducting
research to identify long-term solutions.
They goal is to be
family-friendly employer, they try to give to the employees who are
also mothers the most good employment terms possible. Tesco also
offer family-friendly shift patterns, maternity leave for all, paid
paternity leave, equal training and development opportunities for
part-time workers, and a career break scheme. Their employees have
also work flexi-time, shift exchange, work from home or work
part-time. They also offer childcare vouchers to all staff, whether
full or part-time, and these can be used for most types of childcare
Legal factor- Tesco
performance is directly affected by the laws stated by governments.
For example, Food Retailing Commission required to use
standard pricing for products. That means retailers must not change
the prices without any notice and it should not claim the payment
from suppliers. Most of the companies try to change product prices
regularly in order to attract customers and to keep the .position in
market. Tesco reduced prices on promoted products where as other
product prices increased so that it implemented politically correct
For example, Tesco
has been penalised £300,000 for mislabelling its strawberries,
selling them at “half price” for 3 months after they were
on sale at the full price for only 7 days.
promotion was opening of the Consumer Protection from Unfair Trading
Regulations Act 2008, which blocks retailers from doing promotion for
longer than the period over which the product was sold at full price.
It also protested about a further promotion involving the same
strawberries in which Tesco offered a free pot of single cream with
each basket but then removed the free cream offer, returning the
strawberries to their “half-price” status.The
guilty appeal by Tesco follow a preliminary hearing this year when
the supermarket argued the council lacked the authority to proceed
outside Birmingham on the case. The court threw out that claim. Tesco
apologised to the court for the miss-selling and it also agreed to
pay Birmingham city council’s £65,000 legal bill.
Political factors –
Schools being privatised (like NHS). A
government initiative creates the risk that the school may fail to
deliver the policy or be diverted away from local priorities etc.
Changes to the skills and qualification needed to be a teacher.
Changes to curriculum. Requirement to be self-managing and to be
This factors impact the
college directly from the government because the government is in
position to change the grades rates, how the student should study.
For universities the government can change the fees if they want, it
can increase or decrease or they also chose to stop giving
scholarship which can affect the student’s life. At the havering
college if the government change the grade rates that would affect a
lot of students which can be negative or positive way, depend on if
the grade boundaries go up or down.
Social factors –
Decline in birth rate, reflecting national
trends. Local population changes. Demographic changes may affect like
pupils with English as a second language etc. Inability to attract
staff. Social networking – blogs, Facebook, twitter. Changes to
qualifications expectation. Communication with the local community.
Integration of students with special needs. Parental preference –
has allowed parents the freedom of choice over their child’s
school. Information is accessible to staff anywhere in the world via
the Internet. Staff were not given enough training or access to
effectively change their habits and how they expected information to
be made available.
Social factors can include
religious and ethnicity because in college there is different type of
people from different background and religious and culture. In this
college there is law than no one can discriminate anyone by skin
colour, gender, race, religious or anything else and if the student
do not follow these rule there will be huge punishment or eventually
kicked out of the college.
Legal factors – New
legislation may create risks of non-compliance with the law, create
new administrative burdens etc. Changes to child protection
legislation. Raise the age of school leaving age. Increase/ lower the
age of starting school. Nursery/ kindergarten. Change to school
opening hours. Changes to funding of charity based organisations.
Health & safety legislation.
There are legal impact
that any college should follow, such as discriminate law from where
you cannot go against someone for who they are or how they look.
Health and safety is applied in every building and one the induction
day they let everyone know to be apply them, the place where the
student cannot go because there is dangerous machinery. Also there is
a law that said that drugs are not allowed at college and if they
find anyone carrying them they can be kicked out.
The political changes that
can affect the operation of Tesco is countries close to close other
such as England and Scotland, if they are disagree it may be harder
for resources to be transported in the countries. Like if Tesco had a
large number of suppliers in Scotland that is mean they will need a
limited amount of resources available if most of them come from
Also the change of elected
party can affect Tesco. The reason is a bad effect because it changes
a lot of things and while there is the same party they are able to
make prediction on their future line of operation. The change of
party can mean that Tesco’s future plans may need to be put on hold
or adjusted because the actions of the new party would be
unpredictable. This can also affect the directors of a business
because their main plans can be hugely out of the proportion. The
problem with Tesco operating in both China or any other countries and
the UK is that there is different laws and if they are trying to
carry out the same or similar operations in both countries.
Another factors that
affect Tesco hugely is a rise in taxation for VAT and corporation
tax. Which mean they will make less profit because their profit will
be reduce that they receive. A decease in the tax can also make it
easier for business but it is unpredictable when or how it is going
One of the legal factors
that can affect Tesco is a new bill. These bills called PIPA or SOPA
are suggested to prevent certain operations that involve copyright
and would allow the takedown of any website, however these bills are
rejected due to lack of agreement if it were to be introduced then
Tesco may need to take extra precautions with anything they do over
Another problem can be the
introduction of the a new law in increasing the health and safety
guides, which mean they may need to be extra careful and use
different methods in order to carry their operations.
Another problem can be the
rise of the minimum wage, which means the staff have to pay more
money in order to meet this. And because of that the business may
made less profit, they may also need to increase the price of their
goods which can affect the decreases of the customers.
One of the factor can be
the increasing of the population, which for Tesco mean that they have
less flexibility for the operations of their stores because they will
have to take more care of the older people that are the customers and
help them whenever they need, like to pass the products in the
counter to pay their products.
Another problem can be the
decrease of the money form the government which they use to increase
education. If people are unable to go to the university then less
people have good qualifications. This means that Tesco have to lower
their expectations when they employee people.
Another problem can be the
viewpoint of the population, if they go friendly they may feel bad
about the footprint. Because of that Tesco can use transport less and
sell different products. In this way the business will make less