PESTEL provides an analysis into the external business factors which may effect the company performances. It can be used on a daily, weekly, monthly and yearly basis to analysis the macro environmental effects on a company. POLITICAL-EU Free trading laws promoting trade between western and eastern European resulting in expansion of tesco retail outlets ECONOMIC-Economic recession has affected consumers buying behaviors. Consumers buy essential commodities however the demand for luxury has decreased.Consumers spend less time eating out and spend more time eating in, in order to cut down on cost. SOCIAL-The majority of the uk population is made up of retired people who spend less on food and eat less. Consumer attitude changing to become more healthy. Increase in demand for organic foods. Increase in UK ethnicity population has lead to a wide range of food items available in store TECHNOLOGICAL-Increase in population access to internet has caused an increase in Online grocery shopping. Loyaty programs has enabled tesco to analyze consumers spending habits.
