According to that organization forms its strategies to get benefit of opportunities or to handle industrial or environmental problem. Strategies of business focus on diversified ways to achieve success. Environmental analysis establishes a linkage between business and its operating environment. Various socio economic and sustainable issues are highlighted in this analysis. In this case study three important framework are used to explain importance of environmental analysis in growth and success of organization. External environmental analysis gives a detail idea about industry. There are some major forces which controls and influence the entire business environment of a country. In this case study environmental analysis of United Kingdom is done. Explaining and analysing various factors of environment organization develop its future actions and events. This analysis also gives information about other players present in the market. The companies form a clear idea about existing competition and its competitive position in the market.
This framework analysis highlights unpredictable and important environmental factors of UK market. PESTEL analysis explains six macro level environmental factors. These factors play a vital role in affecting business decisions of a company.
Political: UK has many political rules and regulations which affects the establishment of business strategies. UK government has imposed several laws and regulations regarding retail management and its waste disposal. Wide range political factors affect Tesco’s operation and business process. Different types of taxes are levied by UK government on the business activities of Retail Company. For example Tesco have given many taxes for conducting its business operations (Meckel 79). Tesco forms strategies to reduce its tax burden in its operating market. The government of this country also encourages the retail company to develop and expand its business