Part 2 - Business Sustainability (2c)

2(c) - Under the PEST analysis, students are to analyse only Social and Technological factors of the company and share your findings.  

Using the PEST analysis, we found out that the social factors of the company are demographics, religion and health consciousness. One of the demographic factors is age. In example, when birth rate increases, number of infants or children will increase. Therefore, Tesco may want to sell more infants or children’s toys or product to enter a new market and make more profit. Tesco may also want to focus on education which concentrates on school uniform and stationery for primary and secondary students. Tesco also sell clothes which range from infants to adults. In addition, gender plays an important role to affect Tesco’s activities. Tesco creates different section for different gender, such as female clothing department and male clothing department. These ensure people from all genders and ages will visit Tesco to get what they want. Besides, it is significant for Tesco to appeal to all religions. For example, Tesco sells most of their products which are halal in order to respect the Muslims, but they set up non-halal department to reach customers of all religions. Tesco also practice health consciousness. They provide varieties of organic products, such as Bonlife Organic Pure Goat Milk Powder and Heinz Organic Spinach Pumpkin and Ricotta. Moreover, Tesco is the first hypermarket that initiates the practice of nutrition labeling. Nutrition labeling includes labeling the content of the products such as amount of calories, sugar saturated fat and others and recommended daily sugar intake. This helps consumers to purchase and consume the product wisely.

On the other hand, the technological factors of Tesco are Internet and industry’s focus on technology effort. In this new era, Internet has become the most important part of human’s life. Hence, Tesco improves its business by setting up an online website. This website provides a lot of information about Tesco, such as job available, promotions, Tesco Clubcard and others. Customers who are interested to get latest news from Tesco without going to Tesco can subscribe e-newsletter, which provide Tesco’s latest events and promotions through e-mail or smart devices. The significance of this website is online shopping. Customers can buy any products online. After paying, Tesco will deliver your purchases to where you desire. Thus, customers who are busy can also purchase their needs without wasting time and effort to go to Tesco stores. Therefore, online website improves customers’ loyalty by providing convenience to customers. Moreover, this industry focuses a lot on technological effort. Hypermarkets import new technologies to make work more efficiently and effectively. These include radio frequency identification which tracks products easily. This identification method can help to prevent theft too. When unpaid items are brought across the sensor, it will ring the alarm. In Tesco, using advanced technology can improve customer satisfaction. Electronic fund transfer system is used for payments of products, so that customers do not need to bring a lot of cash with them during shopping or purchasing. Besides that, electronic price scanner helps customers to identify the correct price of a product easily. Then, Tesco Clubcard contains information of customers. Tesco utilizes the information by providing offers and relevant information to the customers according to the demographic.