P5. Select a variety of techniques to undertake a situational analysis of a given business.
In this assignment, I am going to analyse and explain the PESTEL analysis, SWOT analysis and the
5Cs analysis of my business chosen which Tesco is.
TESCO
Tesco plc, trading as Tesco, is a British multinational groceries and general merchandise retailer with
headquarters in Welwyn Garden City, Hertfordshire, England, and United Kingdom. Tesco is the
largest grocery retailer with outlets across Europe, USA and Asia. In the UK Tesco now has over
2,200 stores ranging from the large Extra hypermarket style stores to small Tesco Express high
street outlets.
PESTEL ANALYSIS
This detailed PESTEL analysis of Tesco aims to explore some of the political, economic, social,
technological, environmental, and legal factors that affect Tesco today. Tesco is the market leader in
the UK supermarket industry. It is in fact, one of the largest and leading retailers in the world.
Political
Tesco’s home market is the UK where political environment is stable though Brexit has created a
lot of uncertainty. Like the home market, all of its overseas markets are politically stable as well.
Another issue that has affected Tesco, is the US- China trade war. The companies have been
battling to gain a proper ground of sale, since the tampering of markets by the trade wars
between two countries have become so intense, that regulations related to retail with China of the
American products is frowned upon. The change in tax policies, among the various supply
countries will affect the profitability of the company.
Economic
One of the most influential factors on the economy is high unemployment levels, which decreases
the effective demand for many goods, adversely affecting the demand required to produce such
goods. These economic factors are largely outside the control of the company, but their effects on
performance and the marketing mix can be profound. Another factor is that as the global
economies have been severely affected by Covid-19, it is expected that many people’s earnings
are likely to go down, and many may lose their jobs. This may result in less spending by customers
or switching to cheaper brands. This may severely affect the operations and profits of Tesco.
Social
Due to the fast pace of life, people prefer buying everything in one go, and based on these trends,
of bulk buying, Tesco has planned out its stores to facilitate these needs. Tesco has switched from
major food products to a food cum non-food model. The products that are demanded by its
various customers, depend on their social influence, or the societal influence. The choice of
products may also depend on the various cultural factors with which the individual has lived all his
life. These trends in changing culture, and societal influence among the upcoming generations
needs to be assessed by Tesco, and the consumers need to be provided with sufficient products to
choose from.
Technological
