A Pestle Analysis for Tesco

A PESTLE analysis for Tesco must consider all the important external factors impacting on the company. These factors may have political, economic, sociological, technological, legal or environmental dimensions. The political analysis must include the impact of local and national government, and the international situation. The Economic analysis needs to investigate the influences of the stock market and tax increases, amongst many other monetary matters. Sociological factors are difficult to suss out.

We swim in the “water” of our culture without recognising it as an important determining factor. And sociological analysis is all about analysing the background culture. Technological factors are usually easier to spot, because new technologies involve change, and change is always noticed. For instance, online shopping has had a major impact on Tesco’s recent success. The change created by technological advances often lead to legal problems, which is why legal analysis is always an important part of a PESTLE analysis.

Tesco’s operations obviously have a significant environmental impact, from fossil fuel use to packaging issues. Reducing the demand on the planet is a challenge for any big company. A PESTLE Analysis for Tesco must look at all the six factors we have mentioned. Here they are again, with examples of each:

• political: an increase in unemployment due to a downward turn in the world economy.
• economic: impact on sales of the credit crunch. sociological: an increase in immigration from Eastern Europe resulting in a demand for new goods.
• technological: how can Tesco take full advantage of the world wide web
• legal: how can Tesco avoid legal opposition to expanding into new high streets
• environmental:  climate change is affecting supply and transport, how can Tesco adapt

In summary, any PESTLE Analysis for Tesco must consider all external factors.