Tesco Company Pestle Analysis Essay Example | Topics and Well Written Essays - 2000 words

Tesco Company Pestle Analysis - Essay Example This particular store was operational up to 2010. The brand’s first supermarket was opened in 1956 in Maldon. Tesco underwent organic growth in the 50s and 60s, while also undergoing acquisitions up to its peak ownership of over eight hundred stores. In 1957, the company bought seventy stores off Williamsons, two hundred outlets from Harrow Stores in 1959, two hundred and twelve stores from Irwin’s in 1960, ninety seven from Charles Phillip and in 1968 bought a chain from Victor value. At its inception, it specialized in drinks and food, but diversified into software, internet services, music and movie downloads, telecoms, electronics, and clothing. In 1987, Tesco completed a hostile acquisition of forty supermarkets from the Hillards chain for approximately ?220 million. 2. Pestle Analysis The pestle analysis is a tool that is vital in the comprehension of decline or growth of the market, thus creating better awareness of the direction, potential, and position of the b usiness. The tool is utilized for the measuring business activity in a company. Pest is an acronym for political, Economic, Social, technological, Legislative, and environmental factors (Cadle et al, 2010 p6). These are used for the assessment of the market or unit of organization. The headings used in a Pestle analysis are situational review framework and can be utilized reviewing company ideas, market propositions, direction, position, or strategy. Pestle analysis is an important tool when used in workshop sessions, on top of being quite simple to use. It is also quite useful in sessions that involve brainstorming, as well as for strategic planning, research reports, product development, and market planning. Since this tool is virtually external, it is best completed before the SAWOT analysis, which is more based on internal and quasi external factors (Cadle et al, 2010 p6). The headings in a Pestle analysis give the company a manner in which to examine the external scene surround ing it (Cadle et al, 2010 p6). It is possible to become too involved with internal issues while working in a company that the external issues are relegated in importance. The fact that these issues could have a huge impact on the success of the company makes their status vital. Ignorance of these issues could put the company’s future endeavours in doubt. The headings are as follows: Political This particular section involves the identification of political facets that impact on the organization. These are issues on politics within the company itself, political issues in the organization’s region or base, and political issues on the international and international stage (Williams & Adrian, 2007 p34). In an economy that is increasingly global, political changes affecting a particular country have an effect on legislation and business in other countries as well. The motor industry is one such industry that is affected by political changes in overseas markets. In case moto r car importation restrictions are loosened in a particular country, then countries that deal in motor vehicles will get an opportunity to export more cars into that particular country. It is however essential to realize that these companies will only benefit if they had produced adequate cars for the increase in export orders. Via keeping a close eye on any developments, such companies are able to better anticipate and prepare for these kinds of scenarios. The company can get enormous knock-on effects from these changes, with increased need for more sales team