Use PESTLE analysis to find the political, economic, sociological, technological, legal and environmental factors affecting Tesco.
PESTLE analysis and SWOT analysis
To perform a comprehensive Pestle Analysis, integrate it with a SWOT analysis.
- PESTLE analysis is a "Political, Economic, Sociological, Technological, Legal and Environmental" analysis.
- SWOT analysis is a "Strength, Weakness, Opportunity and Threat" analysis.
In putting their elements side by side, you can easily see that PESTLE analysis is orthogonal to SWOT analysis. That is, every element of PESTLE analysis can use very element of a SWOT analysis to create a vastly more powerful analysis technique.
For instance, you can make an analysis of political strength and political weakness and political opportunity and political threat. In doing this you use the full power of SWOT analysis to help analyse the political element of a PESTLE analysis. And, of course, you can repeat this for the other five elements.
- By combining a PESTLE analysis with a SWOT analysis you vastly increase the power of your analysis technique
Tesco PESTLE analysis
A PESTLE analysis of Tesco examines the main external factors impacting on the company:
The political factors can be local, national or international. Many governments can be involved. For instance, Tesco might have to deal with British and Columbian politics in regards to its coffee supply.
Economic factors have large impacts. Fluctuations in the stock market, or tax increases, can seriously affect the bottom line of a company like Tesco.
Sociological factors can vary from the impact of immigration, to changes in fashion.
New technologies have had a great impact. For instance, online shopping has become a major factor in Tesco's recent success.
The changes caused by all the external impacts lead to many legal problems.
Finally, any large organisation has an environmental impact. For instance, Tesco uses fossil fuel in its transport network. Reducing this demand is a major challenge.
In summary, any Tesco PESTLE Analysis must consider external factors in detail, and examine how their impacts continually change.
Other Tesco Analysis techniques
GAP Analysis Analyses the gap between the present state of the company and the required state.
SWOT Analysis A useful complement to PESTLE analysis.
PEST Analysis A curtailed version of PESTLE analysis.