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 business. They are generally used to determine plans. An example of a situational analysis would be a pestle analysis which highlights external factors that can affect a business and a SWOT analysis which highlights internal and external factors that can affect a business. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original Essay A pestle analysis is an internal analysis that is used to provide all the factors that could affect a business internally. In the following paragraphs, Tesco company is analyzed using pestle analysis. Political FactorsTesco is a multinational company specializing in retail products, mainly food. Tesco is a large company, which means that the amount of taxes that a company like Tesco would have to pay would be low because it provides employment opportunities. The UK is currently facing new political factors such as Brexit, which may impact Tesco's ability to import and export products. Tesco is said to operate in “12 countries, including Asia and Europe”. This could contribute to Tesco's social growth and allow different governments to have different rules regarding issues such as taxation. However, Tesco's distribution in these countries could lead to management and innovation problems due to the amount of communication and marketing techniques between the countries. Brexit is being implemented, which means that the United Kingdom will leave the European Union. Especially for a retailer such as Tesco, this could harm trade, meaning suppliers outside the UK will struggle to supply anything to the UK. Economic Factors As Tesco is a large company, it will likely have to overcome a variety of economic factors, mainly related to taxation. . It is said that in 2018 the UK minimum wage rate increased by 4.4% for those aged 25 and over. In conclusion, this would mean that Tesco would now be spending a lot more money on other people's salaries, potentially wasting millions. of books in the process. However, an increase in an employee's salary could increase productivity. 'UK national minimum wage cost Tesco £495m', showing Tesco lost thousands of pounds due to change in law, which would also have led to lower profits . It also shows us how Tesco will need to think of more innovative ways to make enough 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 because Tesco is a retail company and overcoming trends such as one-stop shopping is a great way to improve Tesco's profits in the long run. Tesco is now said to have, as a result, “increased the number of non-food items offered for sale”. This is a great way to maximize products and also generate customer interest in Tesco as it provides customers with a diverse range of products. This is important because it gives customers fewer reasons, 6(1), 97-113.