Different types of external business activities are required to complete by Tesco PLC to maintain the flow of the business. Political, economic, social, technological, environmental, and legal activities are the combination of PESTLE that helps support all the activities on the track. This report contains the external analysis of Tesco PLC through PESTLE analysis and finds out the fundamental change management noticed in the direction. 

Tesco PLC's PESTEL analysis


Political – Political factors are the combination of different political activities that impact Tesco PLC's decision-making, such as tax rates, acts of legislation, and the stability of the UK. Moreover, Tesco must evaluate the overall strength of the political situation that can encourage change in the operational activities.


Economic – Economic factors are the combination of all financial activities that ensure demand, profits, and prices. Hence, Tesco PLC requires focusing on changes in the tax system or others that can affect financial accessibility. Moreover, it is essential to ensure the diversification of Tesco PLC to maintain effective strategies over the years. Tesco PLC also requires evaluating the households' income level and making advertisements based on the changes. 



Social – Social changes or trends of UK consumers have changed from bulk shopping to one-stop shopping. As such, Tesco PLC has changed the non-food items on the sale offer. Moreover, consumer goods and service demand are influenced by beliefs and attitudes. Social conditions, health issues, and many other activities are required to monitor Tesco PLC to ensure consumer approach and taste level. Therefore, adopting the changes as per the demand and accommodation are required to monitor by Tesco.


Technological – Over time, technology is changing and bringing newer opportunities for Tesco PLC. Tesco PLC adopted profound changes in its business activities: online shopping facilities and home delivery. Moreover, the self-service feature on the checkout points helps the consumer and reduces labour costs. Additionally, Tesco invests a significant energy efficiency in maintaining long-term objectives to diminish the carbon footprint.


Environmental – Environmental issues impact the business operation process, and Tesco must commit to reducing its carbon footprint by 50% by 2022. Moreover, Tesco is working on minimizing waste products in their store to focus on customer conciseness. 


Legal – Legal activities directly impact the operational process of Tesco PLC. Code of practice, changes of the price without prior notice, and facilitation of different policies as per the government regulation are also part of legal activities.


Tesco ensures proper connectivity of different external activities as per the situation. Moreover, their decisions on business activities are primarily influenced by business activities or operational process changes. Hence, doing business with Tesco in the UK requires following all the changes in the external business environment.