Apart from the SWOT analysis, impact of political, economic, demographic and environmental factors also have a substantial impact on the expansion of an organization. The significance of SWOT cannot be undermined, yet more important factors can also influence the competitor analysis for a company. The factors concerning with country and political risks, demographic limitations, formulation of new economic policies and changes in climate and weather as well as the available prospects for expanding into larger markets also have a credible impact on the competitor analysis.
Tesco Plc has provided employment to many unskilled individuals and first timers under job guarantee scheme. According to the provisions of employment legalization, the government persuades larger firms to present varied needs of labor demand. This means that larger firms must hire labor ranging from part-time to full-time jobs, local jobs to jobs at prominent locations (Lages, Mata & Griffith, 2013). The job guarantee scheme allows organizations to ensure training of unemployed individuals including older people, single parents and first-time employees. Tesco Plc doesn’t differentiate between part-time and full-time employees which is an essential facet of the employment legalization.
Competition commissions are also another risk in UK associated with country. The commissions have raised voices of dissent against supermarkets and large-scale food manufacturers. Their demands suggest support for small store owners, retailers, suppliers and processors instead of the expansion of large organizations like Tesco. Statistically, the above allegations stand true. While small stores in UK employed 500000 individuals by 2004 with turnover of 21 billion pounds, Tesco had employed only the half with a turnover of 29 billion pounds (Morley et al.., 2016).
European Food Authority regulations and European Commission proposals are major hindrances for setting up a base for organizations like Tesco. However, the recent news about the UK’s exit from the European Union has put these factors under shrouds. The possibility of UK’s exit from European Union has created a stalemate situation in the UK market and formulation of policies is under threat of uncertainty.