What is a Situational Analysis? The essay explores the concept of situational analysis through pestle analysis. A situational analysis is primarily an investigation into the internal and external factors that can affect a company and is usually used to determine plans. An example of a situational analysis would be a pestle analysis that emphasizes the external factors that can affect a company and a swot analysis that emphasizes the internal and external factors that can influence a company. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay A pestle analysis is an internal analysis used to provide all the factors that could affect a company internally. In the following paragraphs Tesco company is analyzed with the help of pestle analysis. Political Factors Tesco is a multinational company specializing in retail products, mainly food. Tesco is a large company, which means that the amount of tax a company like Tesco would have to pay would be minimal because it provides employment opportunities. The UK is now experiencing new political factors such as Brexit, which are likely to affect Tesco's ability to import and export products. Tesco is said to operate in "12 countries including Asia and Europe". This could help Tesco's social growth and also the fact that different governments have different sets of rules on issues such as taxes. However, Tesco's spread into these countries could lead to management and innovation problems due to the amount of communication and marketing techniques between the countries. Brexit, which means the United Kingdom's exit from the European Union, is coming into play. Especially for a retailer like Tesco, this could damage trade, meaning suppliers outside the UK will struggle to supply anything to the UK. Economic Factors Because Tesco is a large company, it will likely have a number of economic factors to overcome, mainly related to taxes. . It is said that "in 2018 the minimum wage rate in the UK will be increased by 4.4% from age 25 onwards" in conclusion, this would mean that Tesco would have a lot more money now spent on other people's wages, which could potentially wasting millions of pounds in the process. However, an increase in salary for an employee could increase productivity. The "national minimum wage in the UK cost Tesco £495 million", this shows that Tesco lost thousands of dollars due to a change in the law which would also have reduced profits. This also shows us how Tesco will have to think about more innovative ways to earn a sufficient amount of money above the break-even point. Social factors It is said that "trends indicate that customers in the UK have moved towards bulk purchasing and one-stop shopping". This can be seen as one of the many trends that Tesco needs to overcome as Tesco is a retail company and overcoming trends such as one stop shop is a great way to improve Tesco's profit in the long term. Tesco is now said to have "increased the number of non-food items offered for sale" for this reason. This is a great way to maximize products and also generate customer interest in Tesco because it offers customers a diverse range of products. This is important because it gives customers fewer reasons to buy from other companies and especially from Tesco's competitors. Technological Factors Tesco now has a website that will allow people to purchase items online which can help increase profits. The, 6(1), 97-113.