Peest Analysis

In: Business and Management

Submitted By ajsmith1001
Words 801
Pages 4
PEEST Analysis of Tesco

i) Political and legal forces
An example of how political and legal forces may impact Tesco can be seen in the example of the allergen food law introduced by the Food Standards Authority in the UK to be implemented in December 2014 requiring all food service organisations serving unpackaged food or food that is packaged on site for immediate consumption to supply details of the items that contain the EU Top14 allergens (Allergy Aware Kitchen, 2014). Therefore Tesco will need to ensure its products are clearly labelled if they contain such allergens, illustrating how Tesco must adhere to changes in EU law. ii) Economic forces
Economic forces can be seen to likely impact Tesco through the effect of the recent economic recession influencing consumer spending. Lower household incomes in the UK as a result of the economic decline has led to a drop in sales of 1.5% in the third quarter of the retailer’s trading in 2013 as consumers have turned to discount stores such as Aldi and Lidl (Economist, 2013). Tesco similarly reported losses in its European and Asian operations, facing similar challenges from discount retailers. iii) Social and cultural forces
An example of how social and cultural forces are likely to impact Tesco can be seen in the form of consumerism through campaigners and religious groups calling for supermarkets such as Tesco for clearer labelling of meat. Campaigners are particularly seeking clearer labelling of halal products to give consumers more information on how their food is prepared, arguing consumers should be told whether an animal has been stunned before being slaughtered (Eardley, 2014). An EU study into the compulsory labelling of halal and kosher meat is due to be completed in summer 2014, the results of which Tesco will need to implement. iv) Technological forces
Technological forces can be seen to likely…...

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