Tesco Pest Analysis
Introduction
The Primary aim of HRM is to create a competitive advantages for an enterprise by ensuring that their employees are talented, competent and motivated, this can be achieved by greater training and investment in employees. To ensure advantage the enterprise must have comprehensive and well followed recruitment policies to ensure that they meet legal obligations as well as organizational needs and social requirements. This can be done via an analysis of the business’s Micro and Macro-environment. The objective of this report is to analyze the market in which Tesco PLC operates and discuss how this will affect the companies HR policies.
Political factors:
As with any company, Tesco is restricted, to a degree, by current employment legislation such as equal opportunities, health and safety, minimum wage, working hour limits. All of which will have an influence on the way that the company is staffed.
In addition to laws on the way that employees are treated there are also other political factors to take into consideration, for example, in January 2011 VAT was increased from 17.5% to 20% some companies have chosen, at least initially, to bear the brunt of the VAT increase and not pass it onto customers. Tesco are set to pay VAT until January 25th, however this will only be on the non-food portion of the product mix as food items are VAT exempt. Despite this, it will cause decreases in profit margins as, in 2007, non-food items accounted for 25% of the product mix and since, have seen a year on year increase.
Owen, E. (2011). Retailers Absorb VAT Hike For a Limited Time. [online]. Haymarket Brand Media. Available from: http://www.marketingmagazine.co.uk/news/1047799/Retailers-absorb-VAT-hike-limited-time/ [Accessed 07/05/2011]
Datamonitor. (2007). Tesco Case Study: Non-foods Hold Key to Tesco Future Growth Strategy. Marketresearch.com. Available from:
The Primary aim of HRM is to create a competitive advantages for an enterprise by ensuring that their employees are talented, competent and motivated, this can be achieved by greater training and investment in employees. To ensure advantage the enterprise must have comprehensive and well followed recruitment policies to ensure that they meet legal obligations as well as organizational needs and social requirements. This can be done via an analysis of the business’s Micro and Macro-environment. The objective of this report is to analyze the market in which Tesco PLC operates and discuss how this will affect the companies HR policies.
Political factors:
As with any company, Tesco is restricted, to a degree, by current employment legislation such as equal opportunities, health and safety, minimum wage, working hour limits. All of which will have an influence on the way that the company is staffed.
In addition to laws on the way that employees are treated there are also other political factors to take into consideration, for example, in January 2011 VAT was increased from 17.5% to 20% some companies have chosen, at least initially, to bear the brunt of the VAT increase and not pass it onto customers. Tesco are set to pay VAT until January 25th, however this will only be on the non-food portion of the product mix as food items are VAT exempt. Despite this, it will cause decreases in profit margins as, in 2007, non-food items accounted for 25% of the product mix and since, have seen a year on year increase.
Owen, E. (2011). Retailers Absorb VAT Hike For a Limited Time. [online]. Haymarket Brand Media. Available from: http://www.marketingmagazine.co.uk/news/1047799/Retailers-absorb-VAT-hike-limited-time/ [Accessed 07/05/2011]
Datamonitor. (2007). Tesco Case Study: Non-foods Hold Key to Tesco Future Growth Strategy. Marketresearch.com. Available from:
Bibliography: Name: Daniel Winter Unit: Human Resource Management Course: Business and Management Tutor: Mike Plummer Human Resource Management 1: Tesco