Analysis of Tesco plc


Tesco plc is the leading retail shop in the United Kingdom where it is based. It operates globally in about 14 countries where it has more than 4,331 stores. Analyzing its economic factors, it is clear that it is favored by the stable economic conditions of the United Kingdom. However, increased unemployment in the country is a problem. Socially, a lot of people are buying packed foods as cooking at homes is declining. Tesco plc is able to manage its projects effectively hence its success in the global market.

Introduction – -Analysis of Tesco plc

Tesco Company is one of the biggest and largest food retailers both in the United Kingdom and the world. This company operates approximately 4,331 stores or retailer shops in more than 14 countries in the whole world. It has its head office in Hertfordshire, United Kingdom. The environmental forces affecting this company can be analyzed by PESTEL analysis.

  1. Economic Factors

Economic factors of Tesco influences demand, profits, prices, and costs. In the United Kingdom the level of unemployment is increasing hence becoming a challenge to Tesco in that, buyers will not have power to purchase products in large numbers.

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The presence of potential markets in the United States of America has made this company to concentrates its promotions there.

Financial Issues

Tesco plc is the third largest food retailer in the whole world when measured by revenues and when measured in terms of profits it’s second largest after Wal- Mart. It has employed about 240,000 workers in order to adequately satisfy their customers (Johnson & Scholes, 2002). There is increasing profit margins in this company following the increased number of working women and ageing population hence decline cooking at homes.   


Hammett, S. & McMeikan, K. (1994). Tesco – Competitive Management Development. Executive Development, Vol. 7 Issue 6, pp.4-6;

Hogarth-Scott, S. & Rice, S. (1994). The New Food Discounters: Are They a Threat to the Major Multiples? International Journal of Retail & Distribution Management, Vol. 22 Issue 1, pp.20-28;

Johnson, G. & Scholes, K. (2002). Exploring Corporate Strategy (6th ed.). London: Prentice Hill