Economic Factors Affecting Tesco

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TESCO is a British multinational headquartered in UK , it was founded in 1919 by Jack Cohen , he began offering extra goods in London , on primary day he earned 1£ from offers of 4£ , In any case, the Tesco mark get to be distinctly unmistakable in five years and after that later inside 1924, when Mr Cohen purchased a shipment of tea from Mr T.E Stockwell. Which was then join later with the initials letters to shape Tes-co and Mr Cohen opened a leader Tesco store in Burn Oak, North London. In 1930 TESCO brand continued to evolve , MR Cohen bought a land and expanded the business, on 1947 TESCO floated on the London Stock Exchange , it had the self -service store back in 1940. TESCO is one of the biggest worlds retailers, it’s present in 11…show more content…
Economic factors:
In a rapidly economical changing world, TESCO seek to create strategies that would fit those changes such as inflation rate, taxes, interest rates as well as exchange rates.
High unemployment rate is a major factor that affects Tesco performance, with weak power of purchase on Tesco products which impact Tesco ability on producing several items, especially with Brexit, employers would use it as an excuse to sack people and become more redundant.
Inflation jumped more sharply than expected to 1%, the highest level in almost two years, the slump in pound lead to a rise in Tesco’s major supplier prices Unilever, who asked for a rise in prices. With a depreciation of sterling, costs will be higher and so are Tesco prices thus consumer spending would decrease which is going to affect production of Tesco, the employment and profit margins not to mention that fuel prices would increase as well. Social
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People working longer will increase the size of the labor force, but there will also be further pressure on services. This would affect TESCO products as people are curving more healthy products, thus Tesco started producing organic products, it provides as well an esteem added to its products and services.
Technological factors:
Technology is an intrinsic element to Tesco supply chain management of Tesco, it uses many technologies like wireless devices, self- checkout machines, intelligent scale, Radio Frequency Identification (RFID), Electronic shelf labeling, etc. The utilization of Electronic Funds Transfer Systems (EFTS), Electronic Point of Sale (EPS) and electronic scanners helps the company to improve stock activities and effectiveness of distribution (Tesco, 2014).
Tesco as an online retailer would be able to sell a lot of good in sterling prices since it’s devaluating as a result competitors would be higher than its prices. It can make a real profit from it.
Tesco should really be nimble to technology advancements because it might be an opportunity for the
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