Plest Analysis for Tesco's and Water Aid

Topics: Inflation, Money, Policy Pages: 10 (2887 words) Published: November 13, 2010
PLEST analysis for Tesco's And Water AID

PLEST is a strategic planning tool used to evaluate the impact political, economic, social, and technological, Legal and Environment factors might have on a project. It involves an organisation considering the external environment before starting a project. The PEST analysis is an important part of the project planning process: •Political factors include areas such as tax policy, employment laws, environmental regulations, trade restrictions and tariffs and political stability. •Economic factors are economic growth, interest rates, exchange rates and inflation rate. •Social factors often look at the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. •Technological factors look at elements such as R&D activity, automation, technology incentives and the rate of technological change. •Legal factors are health and safety laws, consumer laws and regulation •Environmental factors are recycling, pollution


Government policy affects Tesco and water aid in so many different ways this include government spending,tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. For example, if the government spends more on schools, this will increase the income of businesses that supply schools with books, equipment etc. Government also provides subsidies for some business activity - e.g. an employment subsidy to take on the long-term unemployed. The government regularly changes laws in line with its political policies. As a result Tesco and water aid continually have to respond to changes in the legal framework.

Tesco is been affect by environmental policies regularly. As one of the largest super market in UK Tesco produce large amount of waste and also it spend large amount money of transporting which pollute the environment. Tesco boasts about its progress on reducing waste and how it is following a market trend to introduce degradable plastic bags. But grocery packaging still makes up roughly a quarter of household waste, and the UK's biggest supermarkets distribute billions of plastic bags, which end up in landfill.

Operating in a globalize environment with stores around the globe (Tesco now operates in six countries in Europe in addition to the UK; the Republic of Ireland, Hungary, Czech Republic, Slovakia, Turkey and Poland. It also operates in Asia: in South Korea, Thailand, Malaysia, Japan and Taiwan), Tesco's performance is highly influenced by the political and legislative conditions of these countries, including the European Union (EU).

The planning system controls the use of land and what's built on it. It's enforced by local planning authorities (LPAs).When Tesco is building a new building they need to conceder about the planning permission. If they didn’t follow the planning permission the permission for the building can be rejected. So when they plan they need to conceder about the neighbors’, design, nature and wildlife, Environmental health, Road and highway. Also when water aid building new water bump or wells they need to get the permission from the local council or the government. A thorough PESTE analysis would help to identify the relevant laws on planning permission and whether any resistance to planning was on lawful grounds or merely local people’s dissent. The PESTE analysis would there fore initially assess the potential success of a store in a new area. Legal

Various government legislations and policies have a direct impact on the performance of Water aid and Tesco. Under sale of goods and service Act Goods and service must be fit for the purpose also it must be describable. Trade Descriptions Act makes it an offence for a seller to describe falsely in adverts, notices or salespersons. E.g. Tesco can’t advert on a paper that they are offering 2liter milk for £1.00 and selling them for £1.30 on the store.

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