Free Paper Sample on Tesco

Published: 2023-11-10
Free Paper Sample on Tesco
Type of paper:  Essay
Categories:  Company Analysis Europe
Pages: 5
Wordcount: 1106 words
10 min read


According to Kristensen (2016, p. 4), theUnited Kingdom, on the 23 June, held a vote on whether it should stick or leave the European Union. A British exodus, also known as Brexit, could lead to severe economic and political outcomes for the UK and the rest of the world. If the British Exodus becomes real, the UK's post-vote course will rely on whether the transitional period is flexible to leave the EU strategically or whether the separation is messy and lack a systematic approach. This study uses a case study of Tesco to analyze the impact of Brexit on businesses that both located in the UK, and outside the UK Finally, this essay will offer recommendations to companies based on this situation.

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Free to Make Trade Agreements

The UK has a chance to establish a business deal with countries around the world; this is because UL has chosen to leave the EU Tesco can exploit this opportunity can sourcing fresh foods from many countries around the globe. Already countries such as Australia and China are making trade covenant with the UK after Brexit. The UK is reconnoitering multibillion-pound free business deals with China. In return, China would ripe by having vast access to the UK’s manufactured goods and investment. Tesco can take advantage of the free business deal to be sourcing its raw material from China.

The supermarket industry needs to take essential measures to prepare for Brexit. Regarding the present risk, this should entail contingency planning to handle a no-deal withdrawal. Further, the supermarket industry must keep up-to-date with advancements, assess their certain uncertainties, and take necessary actions. On a brighter side, Brexit presents opportunities to the supermarket industry as stated above; companies should seizure those opportunities to profit from Brexit situation.

Analysis of Tesco

Tesco is a global food retailing company, is mainly based in the UK though it has stores in more than 11 countries. It bases on its profits it second place after Wal-Mart. It is famous for selling non-food and food products. To get a clear understanding of its global platform, this study will conduct Tesco’s pestle analysis.

Political Factors

It operates in a multinational platform, with stores in countries such as the Czech Republic, Turkey, the Republic of Ireland, and Europe. Among other Asian countries such as South Korea, Japan, among others. This suggests the company's operation is greatly influenced by these individual nations' political and legislative standards. These legislative entails EU regulations. Besides, Tesco plays a part in providing job opportunities.

Economic Factors

Economic factors are the company's primary concern; economic factors impact costs, demands, profits, and prices. Hence, the company should be informed of any changes in policies such as elements, which could influence the availability of finances. The company relies entirely on the UK market, getting a share of 30%, despite its international growth.

Social Factors

Due to changes in UK citizens' lifestyles, most of their clients buy goods in bulk and one-stop shopping. The resulting number of non-food Tesco sells. The kinds of products purchased by customers largely depend on social conditions, cultural beliefs, and attitudes.

Technological Factors

Technological factors have ushered new opportunities for the company. Technology has resulted in online shopping and the inclusion of home-based delivery of goods. The second thing that has brought is self-service checkout points. Self-service checkout points have reduced labor costs and have enhanced clients( Rosnizam et al., p 20). Moreover, the company has invested in an energy efficiency project to minimize its carbon footprint.

Environmental Factors

Now Tesco motivates its clients to shop at By shopping at its online platform, it reduces the fuel cost hence preserving its surroundings. Rosnizam et al., (2020, p.18) suggest that the company van after delivery of the client’s goods; it collects undesirable plastic bags from its client’s. Besides, the company has committed itself by 2030 to generate renewable energy and produce 100% of its electricity.

Legal Factors

Tesco's performance is influenced directly by various government policies and legislations. For example, the Food Retailing Commission proposed an enforceable code of practice should formulate forbidding several of the existing methods such as changing decided prices without notice, asking for payment from dealers. The availability of authoritative rivals with established companies formulated a threat of price war and robust supplies for product differentiation.

Redesigning the Value Chain for Businesses

The government's regulation for monopoly governs, and minimization of buyer's power reduces entry to the supermarket industry with such governing as license necessitate and reduce on accessibility to raw materials. To execute politically right pricing regulations, Tesco provides clients a price reduction on fuel purchases centered on money spent on groceries at its stores. Further, Dhingra, Ottaviano, Sampson, and Van Reenen (2016, p.7) argue that entrance to European full large scale incorporated manufacturing will become more difficult for food producers due to the requirement to address customs and tariffs necessities, and the launching of different UK laws and policies as a result of the Brexit process.

Consequences of Brexit

Short term and long term economic and political impacts of Brexit will influence production expenses, the difficulties of the regulatory burden, and determine the way the value chains are established and function from a cross- border view. This suggests that an alert business should concentrate on preparation for these possible influences.


Strategies are meant to assist one to prepare for the future. However, it is difficult to adjust to uncertainty occurrences such as Brexit. Brexit itself is unclear since its period of the incident is known, but what is unclear about the event is the details of the occasion are unknown and the outcome that will not only affect the UK and European world since obscure too. Therefore, businesses have no idea whether the event will be a disaster; its effect will go unnoticed, or there is going to make a business grow.


Ayodele, A., Abdallah, N.M. and Issaka, Y., USING TESCO AS A CASE STUDY.

Dhingra, S., Ottaviano, G., Sampson, T., and Van Reenen, J., 2016. The impact of Brexit on foreign investment in the UK BREXIT 2016, 24(2).pp. 1-12.

Kristensen, M., 2016. Understanding the Choice of Brexit. Economist, p.4. file:///C:/Users/lenovo/Downloads/The_Choice_of_Brexit_Michelle_Kristensen.pdf

Rosnizam, MRAB, Kee, D.M.H., Akhir, MEHBM, Shahqira, M., Yusoff, MAHBM, Budiman, R.S., and Alajmi, A.M., 2020. Market Opportunities and Challenges: A Case Study of Tesco. Journal of the community development in Asia, 3(2), pp.18-27.

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