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Tesco

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Marketing environment of Tesco: political and economic environments.
Economic environment:
The economic environment implies level of demand in the current economy situation. Economic factors are very essential for the company (especially for such huge companies as Tesco), because these factors can influence on costumers’ demand, price’s setting and profit. Recession is main factor of the economy. That means decay of goods and services production and unemployment growth.
Recession has affected Tesco sales massively: as UK is now under recession due to credit crunch, the average income level is now getting lower, so people are trying to save, not to buy.
Tesco has had the worst UK sales performance level due to the heavy discounter strategy it employs. Tesco is experiencing the adverse effect of the recession as in order to make their products affordable for consumers they have to reduce their profit margins.
These economic factors are largely outside the control of the company, but their effects on performance and the marketing mix can be profound. Although international business is still growing, and is expected to contribute greater amounts to Tesco’s profits over the next few years, the company is still highly dependent on the UK market. Hence, Tesco would be badly affected by any slowdown in the UK food market and are exposed to market concentration risks.
Political environment:
Political environment consists of two main aspects: first political parties, which make some regulations that can not be offended. Second is main party, which makes the main rules of behavior. Such a huge company like Tesco must be always informed about any political issues.
As Tesco is an international brand and it has shops not only in UK but also in some European countries it has to meet many political conditions of those countries as well as conditions of EU.
As government

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