Widely recognised sources that impact the business in 21st century. As I have discussed earlier that there are too many factors that influence the business in different ways. I am choosing PESTLE analysis which is also called PEST analysis to evaluate the business environment and factors which influences the business. PEST analysis is the common factor to evaluate the business assessment and influence decision making. In order to check the profitability of the selected market PEST analysis can be used to evaluate. In order to analyse if the Singapore market is profitable in future for TESCO, the PEST analysis could be considered. It is the investigation of political, social, structural, technological influences of the company. (Griffiths, A. & wall, s. 2005) It is also consideration of the market which influences the profitability of the market in macro environment. (oxford university press 2007). PEST analysis is also considering all the factors which relates to the growth and decline of the market. It helps to understand the potential introduction of the business and is also beneficial when planning market activities. In the following, the PEST analysis is conducted step by step whether it is profitable for the expansion of TESCO in Singapore. Political analysis:
The analysis is being done according to the political point of view. It also covers the point related to the ruling party, rules and regulations and the stability of the Government and laws which must be taken into consideration when entering the Singapore market. In their point of view to make them corruption free, their salaries must be high. In Singapore Government salaries are high than all over the world ( The New York Times 2007). One more important factor to be taken for the future market of TESCO in Singapore, what are the restrictions about foreign investment. Their Government will allow TESCO as a foreign investment in Singapore or not. For this purpose TESCO has to get all the knowledge about their laws and regulation for the purpose of expanding their business in Singapore. Economical analysis:
This section is about gathering the information according to the economical point of view. In this area you can find out the interest rates, foreign direct investment, and sales of the retail market. In short it is all about the economical condition of the country in which you are going to operate your business. Singapore has very high capital per income so people can easily afford to go to the market and spend money in the TESCO or in other retail stores. The interest rate in Singapore is low so TESCO has no problem to borrow money from Singapore. It is good for TESCO to operate business in Singapore to borrow money from local financial institution.
About foreign direct investment, there is 100% foreign direct investment in Singapore so there is no issue of the laws and regulation in this country to operate business for TESCO. Another important factor to look at the economic condition of the country, that is to check previous year sales index in...