Topic > Tesco's Most Important Factors - 1467

Tesco's Most Important Factors Tesco first launched its international expansion in 1994. After 11 years its sales had grown to contribute 20% (7 billion pounds) to total turnover from overseas sales. Tescoexpansion's success abroad is mainly due to the strategy of searching for new markets in an initial growth phase. These markets have few, weak competitors and a lot of potential. Tesco's expansion abroad occurred mainly in Eastern Europe and the Far East. So far Tesco has established itself in thirteen countries abroad, some of these include; Czech Republic, Malaysia, Poland, Republic of Ireland, Thailand and Türkiye. This assignment will focus on Poland in Eastern Europe, Thailand and Malaysia in the Far East. The assignment will carry out a PESTEL analysis of Tesco's expansion overseas. It involves political, economic, social, technological, environmental and legal issues impacting Tesco. There are many political factors that affect businesses. The main factors are legislation, government agencies and incentives proposed by governments to attract investors. Investment incentives in Poland are very favorable for large companies like Tesco. The Polish government offers these incentives mainly to companies that invest more than £10 million. Some of these incentives that the Polish government offers to Tesco are job grants, training grants and grants for infrastructure development. There may be problems for businesses during public holidays. Tesco was seen to be outside the employee law and was therefore ordered to pay its workers a total of 35 million baht for a total of 8,500 employees. There was also an investigation into allegations made by Tescosuppliers of forcing suppliers to sell their products below cost. Tesco has also been accused of charging suppliers fees to sell their products. The Thai government has stated that these unethical business strategies are not welcome. In my opinion, the most important factors are political and technological. Political problems plague companies seeking to expand overseas as they have a lot of control over what companies can and cannot do. Technological factors are also extremely important since technological progress can mean efficiency and be able to withstand any competition.