Essay Unit 1 - Exploring Business assignment 2 on tesco (graded distinction)
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Course
Unit 1 - Exploring Business
Institution
PEARSON (PEARSON)
Essay Unit 1 - Exploring Business assignment 2 on Tesco (graded distinction) this assignment covers all the criteria for you to achieve your desirable grade (pass, merit or distinction)
Assignment 2- business
Introduction
In this report I will be talking and researching the problems that surrounding environment
can have on a business. This report would cover factors such as political, economic, social,
technological, legal and environment factors and how this Can affect a business.
P4
Tesco
The supermarket Tesco is a UK retailer, which was discovered 102 years ago in 1919 by jack
Cohen who made a profit a profit of £1 from the sales of £4 on his day 1 and that’s where
the brand started. The company is currently the 4th largest food retailers in the United
Kingdom with 1938 small convenience stores (one stop) and 795 large stores around the
country. Tesco is not only national but it is also an international company as it operates in
11 countries across Europe, Asia and north America and it headquarter is currently located
in Welwyn Garden city. Tesco currently sells varieties of products which are food and
beverages, clothing, home appliances and also offers financial services such as car
insurances and loans.
External environment and what is PESTLE
external environment has a variety of impacts on the companies and that’s why PESTLE is
used to see whether why and when will the company succeed.
Advantages of PESTLE
PESTLE will help to decrease the impact and any deep effects of potential threats of
your organizations
New ideas so the company can improve
It is very easy to use as a template for your analysis
,P (political)= this is usually is influenced by the government. E.g., tariffs, tax policy,
environment and trade restrictions
E (economic)= this is influenced by the economic performance e.g., economic growth,
interest rates and rate of inflation
S (social) = this factor gives the company to make a plan and a strategy. E.g. population
growth, age, language and demographics patterns
T (technological) = new innovations and developments in technologies which will affect the
organizations operations e.g., research and development
L (legal) = this can impact the business environment in a country if a new law comes in. e.g.,
health and safety laws and taxation and imports/exports
E (environment)= this can influence environment surroundings us e.g., environmental
protection laws, energy consumption regulations and waste
Political
Tesco is an international organisation who runs their business across lots of different
countries and in different regions of uk. As Tesco is a global business, they have to follow
every government and political law such as they have to adapt many safety laws in order to
keep the products safe. Political peace is a significant point. However. The recent crisis from
Brexit had created many strict regulations that might contribute to decline or a rise in
Tesco’s revenue. Another political factor which is the tax policy in several countries could
bring a huge impact on Tesco’s profitability.
Economic
Economic factor is something that Tesco can’t control as it is beyond company’s reach and
can have a negative consequences Tesco PLC is concerned about the economy since it can
affect demand for goods, product costs, employee pricing, and overall profits. Like the
recent pandemic due to covid 19 have created so much bad influence on the world’s
economy do that’s why many people are prepared to lose their jobs and a huge decrease in
wages are predicted. customers may change their views and switch to cheaper products or
alternatively spend less which could be very bad for Tesco as they loss lots of profitability.
The reduction in the population has a severe impact on earnings and the number of rewards
given to shareholders. The uk’s market is growing day by day so Tesco adapts to the market
and continues to rely on the British domestic market for the most of it of its sales. If new e-
commerce, online shopping, and delivery model business law is passed by the local
government. The company's revenue, market price, profits, and income would all benefit.
Social
Shown on the Guardian research, the number of people without job is rising specially those
who are between the age of 16 - 24. Tesco's most important target is to develop
opportunities for young people to work. Tesco had social changes such as having online
, shopping specially for those who have mobility issues and who are elderly this change
brought a lot of success in the company. Tesco has adapted a variety of initiatives about the
recent social developments and demands. For example, due to high volume of requests
Tesco has launched meat counters where they sell halal meat.
Technological
Technology is becoming more widely used by organisations and currently ruling all over the
world. the technology factor creates a great experience for the customer and gives a great
image of the company. Tesco has also enhanced to new technologies, which is one of the
key reasons for its success. The covid-19 epidemic brought a huge success to Tesco with
their online shopping service. To prevent becoming infected with the virus, many began
shopping online. Tesco was able fight the covid-19 crises by remaining on the e-commerce
platform and delivering products on schedule. To improve more delivery service and to give
a better experience, the Tesco is aiming to hire an additional 16000 workers.
The following tech is being used by Tesco is:
Self-checkout machines
Self-product labelling
Online shopping
Radio frequency identification
Wireless connection
Legal
Tesco is just not only a grocery store but also provides lots of finical services such as loan
and mortgages and right now Tesco is aiming to remove any negative effects that could
influence the finical service organisation. there are other legal factors that Tesco have to
follow for example they must pay their employees the governments minimum wage.
Environment
Governments in the United Kingdom and other countries around the world care about their
environment so they are forcing companies like Tesco to take steps to prevent dangerous
environment for the citizens and not only government want good for the environment but
also there is a huge public demand and campaign to protect the environment. Tesco has
taken some serious steps to protect the environment such as the company just announced
phase 2 of their recycling plan, which include removing, reducing, reusing, and recycling
plastic. It would help the company in reducing and eliminating non-recyclable plastic. Most
significantly, it operates in a loop, reducing waste over time. It's a great start in the right
direction for the environment. Tesco has also taken a number of steps in this direction. They
have promised to eliminate one billion pieces of plastic packaging by the end of 2020.
SWOT analysis
Swot analysis is a template for a planning method, evaluating for key points of business:
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