ded cloths, medicinal products, a range of grocery products, services related to the financial sector, petrol, automobile products, communication equipments, software, internet offerings, insurance services, music downloads, and the leasing and selling of DVDs. It is also beneficial to note that the company sells its own-labeled products that make-up 50% of its total sales (Nash, 2006).
This present report will provide a comprehensive insight into the retail giant (Tesco) using three analytical tools or framework that comprise of the PESTEL analytical framework, Porter’s five forces and the SWOT analytical framework. In particular, the report will focus on the evalutaion of the external macro-environment whereby Tesco operates. Secondly, the analysis will cover on the competences as well as the resources of the company and thereby be able to identify the possible threats and opportunities that the company can utilise. Based on the findings of these analyses, the report will recommend on strategic options that the company can apply in order to strengthen its position within the market place.
Porter (1980) stated that for one to get insights about the business environment within which a company does business, it is necessary to perform a PESTEL evaluation that identify how different factors affect or shape-up the aforesaid business. As part of the PESTEL analysis some of the forces that will be analysed in relation to Tesco include political forces, economical forces, socio-cultural forces, technological forces, legal forces, and environmental forces that affect Tesco Plc.
In the writings by Krajewski et al. (2009) it was observed that PESTEL evaluation helps in identification of factors that influence the cost, demand, supply, and general financial performance of any business organisation.
In the studies conducted by Yip (2004), he state that political factors included rules and regulations that have been enacted by the executive or relevant government