Tesco Globalization in Pestel Framework Essay Example
PESTEL Framework
Political Factors
Tesco is currently serving people in 14 countries across the world. The global operationsof the company make it vulnerable to the political and legal frameworks of these countries whichcan impact the market position of the company. There are large numbers of legislations passed by the governments regarding the employment of their own citizens (Balchin, 1994). The government of the countries these days pressurizes the company to offer job opportunitiesranging from flexible to highly paid skilled jobs to their citizens.Tesco has to meet the governmental and demographic requirements of these countries byemploying large numbers of local citizens including students, disabled, women and elderlyworkers to effectively meet the regulations related to employment.
Economic Factors
The economic factors hold importance for the companies operating in the diverselocations. These factors can have direct influence on the business operations, customer buying,demand, cost of production and services, revenues and prices of the merchandise. Moreover, thehigh rate of unemployment in the country decreases demand for large number of goods and themanufacturing capabilities of the companies.These factors influencing the business capabilities of a company are outside its control but the effects of these factors on a firm¶s performance can be severe. The international businessof Tesco is still growing and generating revenue but the company is mainly dependent on theeconomy of UK. So if there is any fluctuation in the economy and the markets of UK, Tesco willlikely to be among the suffering companies.
3 Social Factors
According to Clarke et al (1994) and Data monitor Report (2003), the current shift in theBritish customer buying trends has impacted the business of various firms. The currentcustomers are usually availing bulk purchase options from one single retailer "one stop option´which is mainly due to the social changes in the culture.
Political Factors
Tesco is currently serving people in 14 countries across the world. The global operationsof the company make it vulnerable to the political and legal frameworks of these countries whichcan impact the market position of the company. There are large numbers of legislations passed by the governments regarding the employment of their own citizens (Balchin, 1994). The government of the countries these days pressurizes the company to offer job opportunitiesranging from flexible to highly paid skilled jobs to their citizens.Tesco has to meet the governmental and demographic requirements of these countries byemploying large numbers of local citizens including students, disabled, women and elderlyworkers to effectively meet the regulations related to employment.
Economic Factors
The economic factors hold importance for the companies operating in the diverselocations. These factors can have direct influence on the business operations, customer buying,demand, cost of production and services, revenues and prices of the merchandise. Moreover, thehigh rate of unemployment in the country decreases demand for large number of goods and themanufacturing capabilities of the companies.These factors influencing the business capabilities of a company are outside its control but the effects of these factors on a firm¶s performance can be severe. The international businessof Tesco is still growing and generating revenue but the company is mainly dependent on theeconomy of UK. So if there is any fluctuation in the economy and the markets of UK, Tesco willlikely to be among the suffering companies.
3 Social Factors
According to Clarke et al (1994) and Data monitor Report (2003), the current shift in theBritish customer buying trends has impacted the business of various firms. The currentcustomers are usually availing bulk purchase options from one single retailer "one stop option´which is mainly due to the social changes in the culture.