Pest Tesco Pakistan

Topics: Tesco, Inflation, Pakistan Pages: 8 (2320 words) Published: May 10, 2010
Marketing Planning in a Global Environment
Group Assignment No: 1
Topic: What is the purpose of a Political, Economic, Social and Technical (PEST) environmental analysis for companies in relation to their global (marketing) strategy? Present a PEST analysis for ONE of the following four companies: the computer chip manufacturer Intel

the train operator Scotrail
the food etc. retailer Tesco
the book shop retailer John Smiths
Group Members:
Bushra Yaseen
Naureen Ruftaj
Mahmood Ali
Suhaib Hussain Baluch
Submitted to: Sushil Mohan
Dated: 26/February/2010 {pcut:paragraph_to_cut}
The assignment aims to apply the PEST analysis for TESCO (a British international grocery and general merchandising retail chain) if they were to launch the stores in Pakistan. The assignment takes into consideration all the factors (Political, Economical, Social & Technological) which might affect Tesco when it starts operating in Pakistan. {draw:frame}

What is PEST? Why Pest is used?
PEST is an abbreviation of political, economical, social and technological analysis which describes the macro environment factors used to conduct a strategic analysis or performing market research. Political Analysis includes political stability, legal framework for contract enforcement, intellectual property protection, trade regulations & tariffs, pricing regulations, taxation - tax rates and incentives, wage legislation - minimum wage and overtime, product labelling requirements, environmental regulations. Economical Analysis includes type of economic system in countries of operation, government intervention in the free market, exchange rates & stability of host country currency, efficiency of financial markets, infrastructure quality, skill level of workforce, labour costs, business cycle stage, economic growth rate, unemployment rate, inflation rate, interest rates. Social Analysis includes demographics, class structure, education, culture (gender roles, etc.), entrepreneurial spirit, attitudes (health, environmental consciousness, etc.) Technological Analysis includes recent technological developments, technology's impact on product offering, impact on cost structure, impact on value chain Structure, rate of Technological Diffusion, technological Knowhow. Advantages of PEST Analysis

It facilitates an understanding of the wider business environment. It encourages the development of external thinking and strategic thinking. It can enable an organization to anticipate the future business threats and take action to avoid or minimize their impact. It can enable the organization to spot the new business opportunities and make use of them fully. {draw:frame}

Introduction of TESCO
Tesco, the leading Britain retailer commenced its business in 1919 in East London by Jack Cohen. Tesco now has 4308 stores with approx 440,000 employees. It is basically a retail service provider but it has diversified itself in telecom sector, health sector, clothing sector, hosieries, dental plans, DVDs, Internet services, financial services, pharmacy, car insurance, music downloads and software. Tesco is providing the products and services as per changing consumers’ needs and demands therefore; Tesco wants to facilitate its customers as much as it can. Mission: ‘Creating value for customers, to earn their lifetime loyalty’. Vision and Values: Our core purpose is to create value for customers to earn their lifetime loyalty. We do this through our values and code of conduct, the way we choose to work at Tesco. Our values are summed up in two phrases - ‘no-one tries harder for customers’ and ‘treat people how we like to be treated’. Tesco’s stores are divided into the six following types: Tesco extra stores are larger in size (located away from main city centres)...

References: Websites:
*Author & Textbooks*:
Kotler, P., and Keller, K.L. (2006) Marketing Management, 12th ed, Prentice Hall, London.
AGUILAR, F.J. (1967) Scanning the business environment. New York: Macmillan.
Johnson, G., Scholes, K., and Whittington R. (2008) Exploring Corporate Strategy Text Cases, 8th ed, Prentice Hall, London.
Narayanan, V. K, and Fahey, L. (2001) Macro environmental_ Analysis_: Understanding the Environment Outside the Industry, in The Portable MBA in Strategy, 2nd ed, John Wiley & Sons, New York.
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