PEST analysis of Tescos.

The first 200 words of this essay...

Unit 1 investigating business

External environment

PEST factors

Amendments

1. Political factors

Laws passed by parliament have played an important role to affect Tesco's performance for a long time. For example, a minimum wage is the lowest wage that employers have to legally pay to their workers. To put it another way, it is the lowest wage at which workers may sell their labour. The Minimum Wage Act 1998 sets a minimum wage across the United Kingdom, which is currently £5.80 per hour for workers aged 22 or above and £4.83 per hour for workers aged 18-21. This Act could restrict Tesco's performance to maximise their profits as they will have to pay the minimum wage at least or more for all the people working for Tesco. A wage is an expense as it is money going out of the business. However on the other side, it can help Tesco to achieve their aims in long term. For instance, if employees at Tesco get paid the right amount or more they deserve they will be happy to work for Tesco for a long time therefore Tesco can cut unnecessary spending such as training fee