PESTLE audits for Tesco and the NHS

Authors Avatar by humzah2013hotmailcom (student)

Business Level 3

PESTLE Audit for Tesco


Companies like Tesco need to keep a eye out on changes in Government, they will view the changes and government, they also need to know what political party are in power, changes in laws, changes in health and safety, Tesco will employ staff to investigate the new coalition.

As we are at a time of recession the government are making cuts, Tesco will have to research these cuts and see what has been cut, If Tesco was using loans they might not be able to get them anymore, Due to government cuts, there will less Jobs available, this would be bad for Tesco because sales of Tesco will go down.

If there is a recession, people will have less money which will decrease Tesco’s sales, because people won’t have enough money because of this recession, If there are Job cuts, people might go to another shop, or may even buy cheaper alternatives, People will spend less on their shopping, all this leads to low sales, and low sales lead to less profit.

As there is a coalition the government are constantly making new laws, cuts and several changes, they have made a lot of changes which include Tax changes, This is because they have lots of new ideas, Tesco will have to investigate these Coalitions and make changes to their business, If there is a change in the government for example they raise the VAT, Tesco cannot ignore this and must increase the price of their products.

New countries, as Tesco moves to other countries such as Asia they will have to know the political regulations of that company, they’ll need to know business laws, and Information on Terrorism, they need to know the policies of the government, the taxes.


Tesco need to take into account the recession as the recession means less customers, because they’re less jobs and money in the economy, the down point to this is that Tesco will make less sales because there is not enough money in the economy.

Tesco will need to know the economy of every country they in, They need to know the state of the economy of the countries that they are in, The state of the economy in the UK will be different to the state of the economy in Asia, so they will always have to know when and what is the state of their economy.

Tesco will have to look at employment rate of their customers in all areas, If there is high unemployment then Tesco will have to lower their prices of offer discount because if they don’t they will be to expensive for the customers and the customers could buy products from a cheaper business, or buy cheaper alternatives, and if the unemployment rates are low then Tesco can put their prices back to normal.

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Tesco will need to know the disposable income of most of their customers, if they have lots of disposable income, Tesco can charge high prices, and sell higher quality products, If Disposable income is low then Tesco will have to charge less money for their products which will be cheaper quality.

If the taxes have increase then Tesco will have to charge tax on top of their prices so they won’t loose money, For example if the VAT goes up 2.5%, Tesco will have to charge this 2.5% because they don’t want to loose money.



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