Question

Topic: Student Questions

Please Can Someone Help Me

Posted by Anonymous on 3/23/2008 at 11:05 AM ET 25 Points
Hi i am in my first year of finance and accounting and we have to do a report for tesco including a PEST analysis i have been trying to do a PEST analysis on tesco. This is what I have got so far is it right and do you know what else i can add

• political: government bans the sale of alcohol to people over the age of 21.
• economic: the government decides to put a tax on food.
• sociological: Tesco moves into Russia, tries to adapt to the different shopping patterns of the native population..
• technological: - hydrogen powered lorries impact on Tesco's distribution costs.
• legal: mad cow disease has a long term impact. Tesco will not be able to avoid paying large compensation claims
• environmental: - climate change decimates Tesco's third world suppliers.


thankyou
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RESPONSES

  • Posted by Peter (henna gaijin) on 3/25/2008 at 12:41 PM Accepted
    I think you are a bit spread out. You should do a PESTLE analysis on the company based on a particular country or region, as most of the PESTLE factors vary from country to country (for example, drinking ages are set in some countries, and being added in others).

    In other factors, you may want to look more broadly. TESCO being a supermarket that sells many things likely won't be impacted too much by a change in drinking age (I am assuming that alcohol is not a large percentage of their sales, so even if these sales drop, it won't affect the company a lot).

    So, what political aspects are happening that will impact supermarkets in general? Are there rules being considered which would affect what hours they can be open, whether other supermarkets can open, are they buying many products from China where the government may be putting limitations on Chinese products due to product safety, etc.
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