Political website. Corruption leads to weakened development for Tesco,

 Political FactorsTesco is a global organisation so political factors will greatly affect the company. One of the political factors that affected Tesco is Brexit. The recent vote to leave the EU has sparked an argument between Tesco and its suppliers Unilever. “Unilever has reportedly demanded a 10% price rise for Tesco’s products to offset the higher cost of imported goods.”  During the vote to leave the EU, Tesco share value went down by 2.9% by the market closing time. “According to The Guardian.This means that Tesco will have to raise it prices once again to keep the value of shares and profits up.David Davis has privately suggested that EU preparations for a ‘no deal’ Brexit are “damaging” UK interests and spooking British businesses into moving abroad. According to the Independent. This will greatly affect Tesco as people are becoming less interested with U.K business and could move abroad to keep up with the new trade cost which would lower Tescos Sales.A political factor that affects Tesco sales negatively is the corruption in Turkey.Tescos Revenue from Turkey has dropped to 30 million according to the Tesco website. Corruption leads to weakened development for Tesco, known in Turkey as Kipa. As they are skeptical in making investments. Due to the corruption there is also increasing crime. Economic FactorsEconomic factors greatly affect Tesco. Economic factors would affect the price of Tesco products, the amount of profits and also the cost of its services. One of the main economic factors that is affecting Tesco in 2017 is the unemployment rate. As the unemployment rate decreased from 2016 Jan 4.6% to 2017 Jan 4.3% the decrease has made Tesco able to raise their prices and therefore increase profits. With more people working there are more people that can afford their products and the demand increases. The Average wage for the U.k in 2016 was £27,600 it has increased to £30,474 in 2017 this affects Tesco positively because people have more income to spend so they will most likely buy more products from Tesco which will raise profits and potentially make them able to lower prices so their products are more accessible to other people. In early 2017 Britain and Germany where the fastest growing economies in the group of seven (The Group of 7 is a group consisting of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States) however currently Britain has fallen within the table as other countries   Social Factors One social factor that is currently affecting Tesco is Religion.According to the Guardian there are 2.8 million Muslims living in the U.k with that number rapidly increasing. Islam is the the second most popular religion within the U.k in order to target their market correctly Tesco with have to change some of its products to be suitable to their Muslim customers. They will have to make their meat halal or face a huge decrease in profits due to the large community of Muslims not buying their products.One social factor that is currently greatly affecting Tesco is Technology. “Tesco is trialling Tap&Tag technology, which replaces paper receipts with digital receipts when customers make a purchase at one of its stores. To use the system, customers simply tap on the Tap&Tag console at the checkout with any contactless bank card or NFC enabled phone.”This will affect Tesco positively as they will no longer have to print receipts which stops pollution and also saves money.Another social factor that affects Tesco is diets, as the population increases more people are trying to become fit so Tesco must try to minimise fats/sugar and salts within its products and also make diet option to keep up with demand.This will affect Tesco positively and negatively as they will get new customers however they might have to change old products.  Technologic Factors One Technologic factor that is affecting Tesco right now is mobile payments such as apple pay. Currently 542 Tesco stores are using apple pay. ? of Tesco’s sales are made via a smartphone device. This advancement will affect Tesco positively as they will have more ways for people to pay for their products. However they will have to pay alot to implement this in all stores.Another Technological factor that Tesco  is trialing is  RFID (radio frequency identification) RFID will be better than barcodes as you don’t  have actually point the code at the machine it will automatically scan. This is advantageous to Tesco because customers will not have to go through this hassle of turning the items frequently to scan the barcode this advancement will increase efficiency.Another Technological factor that is affecting Tesco is the use of auto checkout machines Tesco has converted more than 25 of its 42 lanes to self checkout lanes. This is advantageous to Tesco as they don’t have to pay for people wage however it is hurtful to the economy as it leaves people jobless. Environmental Factors Tescos aims are “To achieve a sustainable footprint on climate, water and biodiversity from our biggest agricultural products by 2020, specifically:- 7% reduction in GHG emissions  Reduction in water use including local reduction targets for water-stressed areasImprovement in farmland biodiversity (soil health, pollinators and off-field biodiversity) According to the Tesco Website. This will affect Tesco positively as they will save money and also save the planet.Tesco have also decreased their direct water consumption by 2 million this year compared to 2016 which was 25.5million m3.This is also beneficial to Tesco because they spend less money pumping and using the water.Tesco follows an explicit environmental strategy including control over greenhouse gas emissions, striving to zero net deforestation by 2020, sustainable sourcing of seafood, and focusing on the sustainable agricultural supply chains. Tesco also boasts next to zero discharge of hazardous chemicals and active involvement into reuse and recycling initiatives (Tesco, 2017). Legal Factors There are a number of laws that affect Tesco because the organisation markets a wide number of products and services. For example, as regards the agricultural products the UK government is reforming the common agricultural policy. The government is revising the way direct subsidies will be allocated to farmers (Gov.uk, 2014, n. p.). Such measures can lead to lower subsidies, which affect the ability of farmers to meet the agricultural standards set by Tesco and the prices agreed with organisations engaged in the supermarket industry. Winnett (2012, n. p.) contends that significant fines can be imposed on firms like Tesco if such organisations force agricultural suppliers to sell at a price which is lower than costs.