[Solved] pestle or peest analysis

With regard to presentation we have been asked to select brand (product or service), perform as its specialist and finally present our findings/ideas. Our group chose one of the largest companies that operates in the UK Supermarkets market – Tesco Plc. In order to analyse macro, micro, and internal-environment of selected brand were used such an important tools as PESTLE/PEST, SWOT Analysis, Porter’s 5 Forces and BSG Matrix. And ultimately we have been asked to write an essay.

The purpose of this reflective essay is to think about findings individually of group presentation with a particular focus on the logic and rational recommendations, probable results, estimation of methods and tools. According to Jobber (2010, p. 98) PESTLE or PEEST Analysis can be defined as the analysis of the political/legal, economic, ecological/physical, social/ cultural, and technological environments and how it could affect the strategic development of a business.

During the progress of our presentation and analysing the factors which potentially will influence on performance of the company I have noticed that PEEST Analysis is a useful strategic tool for analysing current business position, understanding market growth or decline and help to summarise the external environment in which a particular business/company operates. However, I noticed that the data used in the analysis was based on assumptions which probably would be unfounded or wrong as a result.

Therefore, in my point of view, for the achieving effectiveness, this process of analysing needs to be undertaken on a regular basis. SWOT analysis can be named as one of the most renowned tools for analysis of the whole current strategic situation of the company and its environment. In other words, it is the basis for estimating the internal possible progress and limitations and the probable opportunities and threats from the external background (Management Study Guide, n. d. ).

In the time of preparing for presentation, I’ve noticed that SWOT Analysis plays a solid role as an instrumental in strategy formulation and selection. It is a strong tool, but consists of personal opinion/feelings, therefore the best way of using this tool as a guide/example, not as a recommendation (Queensland Government, 2012). Nevertheless, SWOT Analysis can be performed by anyone who understands business; moreover, it could help understand your business better and as a result develop business goals and strategies for reaching them.

Porter’s 5 Forces is strategic model which classifies and analyses 5 competition forces (competition in the industry; new entrants; power of suppliers; power of customers; threat of substitutes) that outline every industry, and helps to specify weaknesses and strengths upon the business (Tutor2u, n. d. ). Personally, I’ve found that model quite effective because it helped me to highlight where Tesco Plc has developed a competitive edge over its rivals.

Furthermore, by thinking and analysing how each force affects Tesco Plc, and by identifying the strength of force, I assessed the position and ability to make a sustained profit in the industry by providing the best service, big range of home-produced products and increasing customer loyalty. Unfortunately, this tool has got some limitations. It has been noticed that this model has further limitations in today’s market environment; as it assumes to static market structures and current economic forecast.

Originally, this model was based on the economic situation in the 80s with solid competition and that’s why it is not able to take into account new business models and progress upon the industries (due to technological progress etc. ) and also current global economic instability (Themanager, 2001). Another tool which has been used in the presentation was The BSG Matrix or Boston Consulting Group Analysis. This analysis can be defined as a two-dimensional matrix, used in developing the business plan of a large companies (e. . like Tesco), that outlines those business units in the company that create cash and those who use that. In order of applying this particular method for Tesco Plc I have found that as one of suitable methods for the analysis of such a big company as Tesco, because this method usually categorises the products into one of four different areas, such as Stars or high-growth products, Cash Cows or low-growth products, Dogs and Question mark, which all based on identifying market share and market growth (Jobber, 2010: 374).

Thereby, all the findings allowed our team to highlight areas in which company has got some challenges, such as Clothing (Question mark) and Technics (Dogs) which helped our group to make recommendations at the end of presentation. With regard to recommendations, I would like to pay attention on the fact that all of the tools and methods which have been used in presentation, helped our group to outline some challenges of Tesco Plc.

Due to that statement, we outlined key areas, such as online shopping market, music and video markets, on which Tesco Plc must focus on in case of potential progress, increasing profit and customer loyalty. In general, despite of the fact that all used tools have helped us to analyse the company’s performance, some of them have limitations which impede clear understanding of situation. Nevertheless, the mix of these tools gave us solid method how to examine performance of the company. As a final point, I would like to state that, generally, our group did presentation well.

Whilst I had a feeling that some of my partners were a bit apprehensive of doing such kind of research and presentation, I was very excited about that, thus I felt that I’m quite strong in presenting something I have researched. However, my one major concern was how successfully our group would present findings to the audience. Due to the fact that each member of the group was from different country with different culture and range of personal characteristics, my biggest concern was our multicultural team would not stay together, and our work probably suffer as a result. However, despite of all of my concerns, we prepared really well, worked hard and as a result did our best as a team.


Jobber, D. (2012) Principles and Practice of Marketing, 6th edition, Berkshire: McGraw-Hill Higher Education. Management Study Guide. 2012. SWOT Analysis – Definition, Advantages and Limitations. [ONLINE] Available at: http://www. managementstudyguide. com/swot-analysis. htm. [Accessed 03 December 2012]. Queensland Government. 2012. Benefits and limitations of SWOT analysis. [ONLINE] Available at: http://www. usiness. qld. gov. au/business/starting/market-customer-research/swot-analysis/benefits-limitations-swot-analysis. [Accessed 06 December 2012]. Themanager – Management Tools and Models – Management Portal. 2001. Porters Five Forces. [ONLINE] Available at: http://www. themanager. org/models/P5F_2. htm. [Accessed 06 December 2012]. Tutor2u. 2012. Porter’s Five Forces Model: analysing industry structure. [ONLINE] Available at: http://www. tutor2u. net/business/strategy/porter_five_forces. htm. [Accessed 06 December 2012].


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