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Tesco Pestle Analysis & Swot Analysis of Tesco PLC by HND


Business strategy is the long term action plan of any organisation generated to achieve a set of goals or objectives. We will understand this by Tesco Pestle Analysis Tesco Plc and Tesco Plc Swot Analysis of Tesco Plc. We will know the power of human resources and business management. In other words, business strategy is generally a document that readable the direction a business will seek and its measures to fulfil the goals. We will understand this by Tesco Pestle Analysis Tesco Plc and Tesco Plc Swot Analysis of Tesco Plc. A classic business strategy is matured in three stages: analysis, integration and implementation. In recent times, Human Resource Management has emerged as a critical business function. With time, organisations have realised the benefits of the performance management system. Performance management is a process by which managers and employees work together to plan, monitor and review an employee’s work objectives and overall contribution to the organisation. Tesco PLC was established in 1919, and it has expanded in different parts of the world. 

Tesco PLC is the largest retailer in the UK, with more than 60 billion pounds. Human resource management works like a key to open all the success locks for an organisation. That is whyTesco employees is chosen by the best methods. It is one of the most desired fields in this dynamic environment. Today, employees are equally important for the business as capital because these employees are the only assets that help achieve the organisation’s objectives and goals. This is why Human Resource Management is gaining more and more popularity as a field. Therefore, Tesco PLC will focus on human resource management and understand the process of recruitment management and the techniques to motivate employees according to the job requirements. Tesco Plc is a retailer company that stands in the third position in terms of profitability and stands in the second position when measured in terms of generation of revenue. It is a multinational company, i.e. it operates in various countries of the world. It is headquarters in Welwyn Garden City at Hertfordshire in England, UK. Tesco mission statement is to locate in almost 12 countries across the continents of Asia and Europe. We will understand this by Tesco Pestle Analysis Tesco Plc and Tesco Plc Swot Analysis of Tesco Plc. Jack Cohen founded Tesco plc in 1919 in a group of markets. The name of the Tesco Company was given to it in 1924 when the founder Jack Cohen bought a shipment of Tea from T.E Stockwell. Jack Cohen united the initials of Stockwell and the first two letters of his surname and coined the name ‘Tesco’. 

The HND Assignment Help will discuss various responsibilities and purposes of different organisations. Tesco Plc, a leading retail supermarket in the UK, is undertaken as an example to highlight such circumstances. We will explain various roles and responsibilities of Tesco Plc regarding satisfying the needs and requirements of different stakeholders. The HND Assignment Help also relieved light on the role of the national environment. The impact of the fiscal policy, monetary policy, competition policy, and regulatory mechanism over an organisation’s business activities has been discussed in this blog.

Tesco Pestle Analysis Tesco Plc
Tesco Pestle Analysis Tesco Plc

Pestle Analysis of Tesco Plc

Political– One of the significant political changes that the government of the UK has initiated is the new tax measure in the year 2011. The government increased the VAT rate to 20% to increase government revenue. However, this has resulted in lower customer spending, thus affecting the profits (Feys and Probert 2015). The government has also proposed a fat tax that controls obesity and its problems. This has also adversely affected the sales of Tesco, as a result of which the Company launched a brand new healthy food range.

Economic factors– Regarding economic condition, it is seen that the country was a victim of the financial crisis. Despite the financial crisis, the economy regained its economic growth rate, and the GDP rose 2.7% higher. This growth in the economy is a positive sign for the Company as the supermarket industry grows.

Social factors– These are the factors that are related to society. Tesco provides its products through an online platform (Newton 2014). This has led to the shift in the tastes of the ageing population, which are more prone to online shopping nowadays due to mobility issues. Despite this favourable social factor, the Company has faced the accusation of not providing quality products after the horsemeat scandal. 

Technological factors– technology plays an essential role in the success of an organisation. Technological advancements have sprung up in the business environment, providing an opportunity for business organisations. Tesco has made use of mobile technology, which has increased the Company’s distribution services, which provided the customers with an opportunity to select their preferred wine (Barney 2017). Apart from this, disruptive technology has entered the market, an innovative technology. The growing popularity of this technology is an essential consideration for Tesco as in changing times, and customers would value disruptive technology.

Legal factors- The Company is adversely affected by the standard agricultural policy of the UK in which direct subsidies are not revisited. Thus, significant fines can be imposed on the Company for forcing the agricultural suppliers to sell at lower prices.

Environmental factors- In a recent press release, it has been identified that the Arctic ice is melting, causing a significant problem in the environment. Tesco has realised this and thus, has initiated a new programme that emphasises the consumption of energy and utilisation of greenhouse gas. Technological and environmental factors are the essential considerations that the Company needs to consider as they affect the business to a large extent.

Tesco Plc Swot Analysis of Tesco Plc
Tesco Plc Swot Analysis of Tesco Plc

Swot Analysis of Tesco Plc


Broad customer base: The Company serves a wide range of customers, including equipment brokers, drilling contractors, homemakers, and oil and gas companies. This is the principal strength for the Company as it is not dependent on a single customer segment.

Licensing agreements: The Company holds various patents and licenses for developed technologies which is a significant strength as the technology cannot be easily imitated. Also, several companies are attracted to work with projects because of a strong portfolio of patented technologies.

Broad product portfolio: Tesco specialises in several products and services thus, providing a comprehensive customer segment.


Concentrated operations: The operations of the Company are concentrated as significant revenues are contributed by limited places like Canada, the UK, Mexico and the US.

Controversies: Tesco has been involved in several controversies and scandals like defending infringement claims. Moreover, horsemeat scandal wherein horse-related puns were identified in the burgers offered by the Company.


High market growth: Tesco is provided with the opportunity of the increasing market due to the top drive market in the next five years.

Acquisitions: The Company can enhance its process by acquiring specific processes and companies soon.


Risk in the oil and gas industry: There is a high risk of damages caused by the Company’s operations, such as exploration and production applications.

pestle analysis of tesco

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