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PESTLE and SWOT analysis for Tesco.

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Introduction: In this assignment I will compare the two analytical techniques used in Task 1 in terms of their usefulness in making particular marketing decisions, including the most useful for specific decisions. The business I am using for the purpose of this assignment is Tesco PLC. Tesco plc is a British-based international grocery and general merchandising retail chain. It is the largest British retailer by both global sales and domestic market share with profits exceeding �2 billion. In 2008, Tesco became the world's fourth largest retailer, the first movement among the top five since 2003. Originally specialising in food and drink, it has diversified into areas such as clothing, consumer electronics, financial services, telecoms, health and car insurance, dental plans, retailing and renting DVDs, CDs, music downloads, Internet services, and software. Source: http://en.wikipedia.org/wiki/Tesco Now I shall look at the PESTLE analysis and try to identify each of the factors PESTLE Analysis PEST analysis (also known as the STEER, STEEP, DESTEP, STEP, PESTE, PESTEL, or PESTLE model) stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. The model has recently been further extended to STEEPLE and STEEPLED, adding education and demographics factors. It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macro environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. ...read more.


Tesco is being threatened with anti-social behaviour orders unless it withdraws Halloween themed eggs from sale. The superstore has sparked criticism on Mersey side for the packaging, which some people fear will encourage youngster stop throwing eggs at homes and cars. Opportunities Tesco can develop new products such as travel agency or open a nursery for young children that could attract customers to join in. Tesco can expand their business overseas; this will make their reputation go higher. Tesco local competitor's such as small supermarkets may have poor products which will give opportunity for Tesco to get good products. Tesco have an opportunity to be sponsoring the 2012 games, which will actually promote the Tesco's brand name that may encourage new customers to buy from Tesco. Since the UK in recession people are going to save money so this would give Tesco an opportunity to give better prices on their products and services as customers would be more likely to spend money on food and drinks, Tesco can surprises their competitors by offering better prices for their goods and services and also their can make special offers to attract customers. Threats Tesco will face threats from their competitors especially Asda because ever since they invented self service checkout many of many of Tesco customers have turned to Asda. Asda's marketing promotions have usually been based solely on price, with Asda promoting itself under the slogan Britain's Lowest Priced Supermarket, 11 Years Running. As a wholly owned division of Wal-Mart, Asda is not required to declare quarterly or half-yearly earnings. ...read more.


However the economic factors can give Tesco an idea of how to solve their problem in the recession and try to not get affected. Social - social implications have to be analysed as this identifies where their target audience is situated which means that Tesco need to provide suitable product for their target customer However if Tesco open a store in an area where the business target audience are not available they will not make any profit. But if Tesco open the store where they can find there target customers they will achieve they target Technological - technological factor is important nowadays as Tesco have to be considering on using the internet and provide easy way for their customers to have a shopping online. However if Tesco didn't consider of the technological factors Tesco can fall behind in terms of technology which is weakness as this world is now becoming increasingly familiar to changes and technology. Legal- legal factor is one of the important factors that make Tesco responsible of their behaviour and to be ethical at the same time. However if Tesco is not aware of the legal issue they will be in a bad situation, in other word they may loss their customers if they are not illegal. For example employing youngest or discriminate their employee depending on race or religion. Environment- environmental factors can make Tesco aware of their customer's health and safety. However if Tesco does not take care of the environment they will probably be assumed as unethical business, because the environmental factors can affect the business in negative way such as problem with green planet and other environment businesses. ?? ?? ?? ?? Swadiq Mujahid M2 1 ...read more.

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