Political Factors Affecting Tesco

Political Factors

There are a variety of political factors affecting Tesco such as employment legislations. This means that the government urges retailers such as Tesco to provide a varied number of job opportunities. These opportunities includes job flexibility, lower paid jobs, higher paid job for those who are highly skilled and locally and centrally based jobs.

The national minimum wage is also a factor that affects Tesco. If the national minimum wage increases, Tesco will need to increase employee salaries and this will affect their revenue and profit.

Economic Factors

The economic factors are likely to affect demand, prices, costs and profit and this is a main concern for Tesco. Unemployment is the most influential on the demand. This

is because high unemployment mans that there is less disposable income to spend on good. The record for unemployment decreased to 5.4% as of February 2015. This shows that more people are working which means that more disposable income is being injected into the economy.
Social/Cultural Factors
According to ivory research, “Current trends indicate that British customers have moved towards ‘one-stop’ and ‘bulk’ shopping, which is due to a variety of social changes. Tesco have, therefore, increased the amount of non-food items available for sale.”
Religion is also a social factor that affect Tesco’s operation. Most Shops or supermarkets that supply meat offer halal meat. Halal is generated from the Muslim religion which is widely accepted. Subway’s, Sainsbury’s and similar supermarkets offer halal products which is now a trend.

Technological Factors
Tesco has developed its stores using technology over the past years making it better, more convenient and reliable for customers. They offer self-service check out that makes it easy for customers with smaller amount of shopping to quickly check out their items. This is more convenient as it helps lessen the queue time and makes it easier for people with less leisure time.