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PESTLE analysis of Tesco and Coca Cola

Paper Type: Free Essay Subject: Business
Wordcount: 1059 words Published: 1st May 2017

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Tax policies: Tesco has to make sure that they are paying their taxes and making sure that their staffs are also paying their taxes.

Trade restrictions: Tesco also have to make sure that they adhering to any trade restrictions in place in the United Kingdom.

Economic climate: Because of the economic climate Tesco could be struggling to give out jobs to people which means less stores across the UK and even stores having the possibility of being closed down to reduce spending.

Interest Rates: As interest rates go up so do the cost of items that Tesco might be buying for instance in January 2011 The VAT is set to rise to 20% making goods more expensive.

Exchange Rates: Exchange rates changing mean that importing and selling goods becomes different each time as the supply of importing goods changes.

Cost of capital: The cost of capital allows Tesco to see if their business is doing well and if it can be changed.

New businesses: this as it allows new businesses to expand whilst also introducing new products to the supermarket chain. A good example of this is the new microwavable meals.

Changes in Fashion: Changes in Fashion means that Tesco needs to change their products this can be bad but it can also be good depending on how fast it is seen. This also relates to trends.

Immigration: with a lot of immigrants from Eastern Europe there is a lot of demand for new goods to be put into the stores.

Rate of change: The rate of which technology changes is fast at the current time which means Tesco have to keep in with it all.

Training: Without the relevant training of staff they can’t use the machines properly

Online Shopping: Online shopping has made Tesco extremely popular whilst also making it possible to have fewer stores around the UK and making them able to deliver to places where people may not be able to get to the stores.

Health and Safety Laws: This restricts to the things that Tesco’s can do within their stores.

Data Protection Act: They have to keep all data they take of their customers protected.

Age Restriction Limits: They have to make sure that all the workers in their stores are not selling age restricted items to under age people.

Pollution: They have to make sure that they are protecting the environment in such ways of not producing a lot of pollution

Recycling: They have to have policies in place about how products are recycled such as their carrier bags.

Energy: They have to make sure that they are not using a lot of energy

PESTLE analysis for Coca Cola







Government standards: If Coca Cola doesn’t mean the government’s expectation then the company can get a fine which can range from a small price to a big price for the company.

International laws: As a global company Coca Cola needs to be careful of the changes in things such as accounting and taxation as if they get this wrong it could ruin their international status.

Global company: This is a good thing as if they are lacking in sales in one or two countries they could be making it up in different countries meaning that they aren’t losing money all the time whereas they would if only operating in one country.

Interest rates: As rates go up it costs more to produce the Coca Cola as the price for the ingredients of which they need increases.

Economic Climate: Due to the economic climate when it crashes it means that things like Coca Cola do not get as much money as people cannot afford to spend money on buying these drinks in bulk nor singular as the price of them rises whilst the client will be struggling with money.

Budget cuts: This means that jobs will become cut and that people will become un-employed leaving fewer jobs in the industry and less chances to open more locations around the world.

Nutrition and health: When people get to the age of about 37 they start to worry about their health more which means the demands for carbonated drinks from companies like coca Cola decrease alongside their revenues.

Diabetes: Some people with diabetes cannot drink sugary drinks such as Coca Cola therefore having the ‘Diet’ version of the drink helps as this allows them to have more of it increasing sales.

Underage drinking:

When teenagers get to around the age of 15 they start to drink underage this stems the sales in companies like Coca Cola as it means they aren’t getting as many sales.

New flavours: As technology advances this allows Coca Cola to try new flavours such as the Cherry Coke and Coke with lemon. This allows the Coca Cola’s revenue to go up and people want to try these different flavours.

Training: due to the complexity of new technology some staff will require training to operate machines or will require experience this means that less jobs can become available.

Machines over humans: As machines get more complex which allows them to do more things more humans are becoming redundant due to machinery taking their position.

Ingredients: Coca Cola has to follow guidelines to how much of each ingredient they are allowed to use to allow safe production and to enable people to drink these drinks without becoming ill or addicted.

Health and Safety: The factories of which the drinks are produced in have to adhere to any Health and Safety regulations that are set out to stop injuries happening.

Patent: All products that are made by the company have to go through a patent pending before they are allowed to hit the shelves in shops and supermarkets.

Environmental laws: Coca Cola has standards set in their factory’s of which they have to follow to be allowed to produce their stock.

Recycling policies: Coca Cola has to try and make their bottles are recyclable as possible without making the bottles a hazard to be drinking from this means that they might have to change the materials.

Energy: Coca Cola alongside many companies try to have an energy efficiency policy to reduce the energy they are using therefore not polluting the environment as much as they need to.


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