‘The impact of External Factors (PESTEC) on Tesco PLC Ellon's success.'
Graded Unit 2 Business – Stage 1 Submission
Word Count - 4622
1. Cover Page – Page 1
2. Contents Page – Page 2
3. Project Title & Statement of a topic to be investigated – Page 3
4. Aims and objectives of investigation – Page 4
5. Reasons for the choice of an issue – Page 5
6. Justification of choice of business – Page 6
7. Explanation of The Range of Primary and Secondary Sources of Information – Page 7
8. Explanation of How the Investigation Will Be Conducted with Justification for The Choice of Methods Used – Page 8
9. Plan – Page 10
10. Activity Log – Page 13
11. Personal Assessment of Skills
Appendix 1 - Personal SWOT analysis – Page 15
Appendix 2 – Personal Skills Audit – Page 16
Appendix 3 – Personal Curriculum Vitae – Page 17
‘The impact of external factors (PESTEC) on Tesco PLC Ellon's success.'
Statement of Issue to be investigated
The investigation will look at how external factors (political, economic, social, technological, environmental and competitive) affects the overall success of Tesco (Ellon). External factors play a significant role in the success of retailers, from environmental factors such as an earthquake in Ecuador will affect Tesco in Ellon as bananas will not be able to be transported, to new laws introduced by the government resulting in increased alcohol pricing which has resulted in a significant decrease in sales.
The investigation will look at how Tesco (Ellon) can maintain and encourage to customers despite having to adapt to the ever-changing external factors. This can be done a variety of ways ranging from increasing their marketing campaign, lower prices, make cuts in other areas of the organisation, etc.
As Tesco is a retailer that provide a wide range of products ranging from baby clothes to fresh fruit and veg, they also have a wide range of customers ranging from small children to elderly customers. Tesco provides options to all income brackets and provides both cheaper products and more expensive premium branded products (Tesco's Finest) which encourage customers who want a higher quality product to shop with them while still providing more economical alternatives to those who might not have enough disposable income.
Aims and Objectives of the investigation
The investigation aims to find out the impact that the government has on one of the largest retailers in the UK. The investigation will focus on different laws and regulations that affect the operations of Tesco and how it impacts their overall success in areas such as sales and profitability. The investigator will also aim to provide possible methods that Tesco deal with new and current regulations imposed by the UK government to continue to satisfy customer wants and needs to keep being successful.
The researcher has set out some objectives to be achieved to successfully achieve the aim of the investigation. The researcher will follow a set of objectives that are SMART (Specific, Realistic, Measurable, Achievable and Time-bound) criteria. The objectives are as follows;
- Carry out an internal organisation interview with the staff of Tesco (Ellon) at three different levels of authority (Staff, Department manager, and Store manager) in order gain an insight on the different levels of management and how external factors impact the success of Tesco (Ellon).
- Carry out a customer survey to find out their opinions on the changes of Tesco (Ellon) because of External factors. The customer survey will identify if Tesco is doing an adequate job in still meeting the wants and needs of customers.
- Recommend ideas that Tesco (Ellon) can use when dealing with changes from external factors to maintain its customers and overall success.
- Provide recommendations on other ways that Tesco (Ellon) can maintain or improve its current success despite changes from external factors.
- Utilise fundamental primary research to see how specific factors impact the success of Tesco (Ellon).
- Use secondary research to investigate the impact of external factors on other organisations and how they have either successfully or unsuccessfully dealt with the changes.
Reasons for The Choice of Issue
There are some reasons why the researcher has decided to choose external factors as the selected issue. Firstly, the researcher has a great deal of background knowledge in this area and will able to accurately provide sufficient and relevant information that will help achieve the objectives of the investigation.
Second, the researcher has seen first-hand how external factors have impacted their day to day life whether it be at work or home. The researcher has seen first-hand how external factors have affected their family businesses and has seen increases and decreases in sales from changes in government and the economy. The researcher has also seen how external factors have affected both him and his colleagues. There has been a significant increase in customers ordering their shopping online instead of in-store where they would be provided excellent customer service as it would save them a lot of time and can sometimes be cheaper to order online.
Another reason for the choice of the issue is that, as the researcher is employed in the organisation that Is chosen (Tesco), they will have access to a plethora of information regarding external factors which will help the researcher when creating the report.
The third reason for the choice of the issue is that it directly links to the HND business course the Researcher is currently studying. The chosen issue has come up in the managing people and organisations unit and has allowed the researcher to have a strong understanding of the selected topic.
The organisation will have to have a strong understanding of the external factors that can affect businesses; they will have to know of this to maintain and improves its overall success by making decisions that will result in encouraging new customers and keeping their current ones.
Justification for The Choice of Business
There are some reasons why the researcher has decided to go with Tesco (Ellon) for the choice of their topic. One of the main reasons the researcher has chosen to investigate this organisation is that they currently in employment with Tesco (Ellon) which will provide easy access to a wide range of topic relevant information.
The researcher has also decided to do this organisation as their choice of topic as they have seen how external factors have impacted the store they work at. They have also seen how external factors have affected they're wages. An example of this is how alcohol and tobacco laws introduced by the government have changed how Tesco (Ellon) operates as it has decreased there sales significantly which has resulted in a slowdown in their pay increase.
Finally, Tesco Plc has been a significantly growing organisation within the UK and has successfully become one of the largest retailers in the UK and globally. Because of this, there is an endless supply of information that the researcher can use to investigate the chosen topic of how external factors affect Tesco (Ellon). The retail industry has grown in immense proportions in the last few years. In 2016 alone, the retail sector in the UK generated £358 billion worth of sales.
Because of the financial instability in the world, retailers like Tesco have to adapt to the constant change from new government laws, to increases and decreases in consumer spending. The senior management team of Tesco has to make decisions which aimed to maintain or increase sales despite changes in the environment, changes in politics, the economy, social changes, technology and changes in competition.
Explanation of The Range of Primary and Secondary Sources of Information
To successfully achieve my aims and objectives, the following sources of primary and secondary information will be used in the investigation:
Primary Sources of Information
The first source of primary information that will be used in the investigation is interviews. There will be a total of three interviews that will be asked to different staff members at different authority levels of Tesco Ellon (shop floor assistant, department manager, and store manager). The interviews with staff members at different authority levels will allow the researcher to adequately collect information on how external factors affect each job role within the business. An interview with a shop floor staff member will provide information on how external factors affect their day to day job role, whereas an interview with the department manager and store manager will gather information regarding on how external factors affect the store budget and staffing need of the organisation. The researcher will be able to gather topic issue relevant information that will be used in the write up of the investigation.
The second source of primary information that will be used in the investigation is customer surveys. With the utilisation of customer surveys, the researcher will be able to obtain information on how external factors have impacted on the opinions of the customer towards Tesco (Ellon). The customer survey will be handed out to 10 random customers. The customers will be chosen at random and asked politely and professionally if they would complete the survey. A customer survey can be easily justified as an effective way to gather information that will be topic relevant as the surveys will provide up-to-date information and will be able to be topic relevant as the researcher will be able to produce questions of their choosing.
Secondary Sources of Information
The first source of secondary information that will be used in the investigation is the internet. This source of information will be able to provide the researcher with a large amount of easily accessible information. The researcher will be able to access more detailed background information to improve their knowledge of the topic issue related area. The information gathered from the internet will be mainly from educational and social media websites. The researcher will also be able to use the internet to find information on other organisations that have also had to deal with external factors. The researcher will be able to use this information to compare with the chosen organisation (Tesco).
The researcher will utilise company reports as their second source of secondary information. Company reports will provide detailed information on competitors and the chosen organisation. The researcher will be able to find both historical and up to date reports which can be compared. The researcher will be able to use the quantitative data sources from company reports that will help back up the aims and objectives of the investigation.
Newspaper articles- The final source of information that will be used by the researcher in the investigation is the use of newspaper articles from reliable organisations that are topic relevant. Newspaper articles will provide the researcher with in-depth information that is up to date and related to the HND Business topic of managing people and organisations.
Explanation of How the Investigation Will Be Conducted with Justification for The Choice of Methods Used
The first method of research I will use for the investigation interviews. A set period of the investigation will be used to ask questions to 3 employees of Tesco's in the Ellon Area. Questions will be asked at multiple levels of authority at Tesco ranging from shop floor colleagues, up to department and assistant store managers. The results will then be collated, analysed and concluded from both internal and external opinions of the organisation.
Before the interview, a specific time and date for the interview will be negotiated with the interviewee at a time of their most convenient. The use of interviews will allow the researcher to gain topic relevant, internal and external information about the organisation. The information gathered from this method of research will enable the researcher to come up with a definite conclusion on how external factors impact the success of Tesco Ellon.
Desk Research –
The second method of research that will be used in the investigation is desk research. Because of the significant improvement of technology in the past few years, information can be accessed far more efficiently. This method of research will allow for the researcher to quickly access topic relevant information regarding how certain external factors affect retail organisations such as Tesco and how overall changed has forced organisations like Tesco Ellon to adapt to maintain its success. The main methods of desk research that will be conducted are through: the internet, company reports, and accurate, up-to-date newspaper articles.
This method of research will allow the researcher to back up the information gathered with reliable quantitative and statistical data. Using reliable newspaper organisations will the researcher to obtain up to date, accurate information that is topic relevant.
The final method of research that will be used by the researcher in the investigation are customer surveys. After the topic relevant questions have been created, they will be handed out to 10 customers of Ellon Tesco, the questionnaires will be handed in store to 10 random customers. The information gathered will then be processed, analysed and concluded at a later date.
Through the analysis of Tesco Ellon customers, the researcher will be able to gain an idea of how the customers fell about how they feel about the changes occurring in Tesco because of external factors such as government legislation on alcohol and how it has either encouraged or discouraged them from shopping at Tesco Ellon.
Stage 1 Planning – Friday 9th November 2019
Stage 2 Developing – Friday 26th April 2019
Stage 3 Evaluation – Friday 24th May
Activity Time & Resource's
Brainstorming Possible Topic Ideas 1 Hour
Meeting with the lecturer to discuss possible topic ideas 20 Minutes
Shortlisting possible topic ideas presented with the lecturer 30 Minutes
Finalise topic idea and confirm with the lecturer 10 Minutes
Ask for permission with the store manager at Tesco Ellon to ask interviews and hand out surveys 15 Minutes
Completion – 25 / 10 / 2018
Stage 1: Planning
Activity Time & Resource's
Start background research of the chosen organisation 1 Hour 30 Minutes
Graded unit Microsoft PowerPoint
Graded Unit Marking Scheme
Type statement of the issue to be investigated 40 Minutes
Graded Unit Marking Scheme
Create Aims and objectives for the investigation 50 Minutes
Graded Unit Marking Scheme
Suggest and justify reasons for the choice of the issue to be investigated 1 Hours 40 Minutes
Graded Unit Marking Scheme
Suggest and justify the reasons for the choice of the organisation 30 Minutes
Graded Unit Marking Scheme
Explain the range of the primary and secondary sources of information that will be used in the investigation. 50 minutes
Graded Unit Marking Scheme
Graded Unit Microsoft PowerPoint
Complete the ‘Plan" and the ‘activity log.' 2 Hours
Graded Unit PowerPoint
Graded Unit Marking Scheme
Completion – 09 / 11 / 2018
Stage 2: Development Stage
Activity Time & Resource's
Develop the interview questions that will be asked to the staff of the organisation 1 Hour 30 Mins
Memorise the interview questions and set dates with three staff members to ask interview questions. 40 Minutes
Conduct the interviews with all three employees 30 Mins
Notepad and pen
Analyse the results from the interviews Word
Create a survey that will be handed out to random customers 1 Hours
Hand out the survey to 10 casual customers 15 Mins
Analyse the results from the customer survey that was handed out 2 Hours
Using secondary research (Internet) to find information on External factors and find information on company reports and websites including (Tesco) 3 Hours Mins
Use HND managing people and organisation notes that are relevant to the topic issue. 2 Hours
Find reliable and up to date newspaper reports regarding retailers and relevant factors that have impacted the company. 2 Hours
Analyse the data found, then condense them into note format suitable for the report Microsoft Word
Collate all the findings found from the primary and secondary research gathered Microsoft Word
Make a plan for the write up of the report 30 Mins
Write up the Report 5 Hours 30 Mins
Completion – 26 / 04 / 2018
Step 3: Evaluation
Activity Time & Resource's
The overall conclusion of the investigation 40 Mins
Outline of whether the objectives that were set have been met in the investigation 30 Mins
Which methods of research have worked effectively (positives and negatives) 50 Mins
Analyse sources of research 1 Hour
Outline possible recommendations for future investigations 20 Mins
Outline of new skills and new knowledge that has been gained through the process of the investigation 40 Mins
Week Number Activity Time & Resource
03 / 09 / 2018 We have started talking about the graded unit and talking about what the graded unit involved. We have gone through in detail which helped me understand what the graded unit involved and has made me excited about starting it. We have also gone through the mark allocations for each section of the graded Unit For the planning stage. I am feeling happy about starting the graded unit as the lecturer has gone through it in detail.
3 ½ Hours
GU2 Marking Scheme
10 / 09 / 2018 I am currently deciding what business I should base my report on. I am thinking whether to do it on a small local business, or a large business. My decision will be based on how much information I will be able to get. Laptop
17 / 09 / 2018 I have decided to do my topic based on my work (Tesco Ellon). I am not Currently thinking of topic ideas. Laptop
24 / 09 / 2018 I have decided to do my graded unit on external factors and how they affect Tesco. I am still thinking about how I can make my question more specific. However, I will talk with my lecturer about possible ideas next week when I have my one to one meeting. Laptop
01 / 10 / 2018 I had my one to one meeting with my lecturer where we discussed ideas that I have come up with for my graded unit report. I am keen to choose a topic regarding external factors and how they will affect Tesco. I thought my meeting with my lecturer was very beneficial for me. Ten mins
08 / 10 / 2018 We have discussed what we need to be doing in the next few weeks and talking about reflection. I am still deciding what to do my graded unit on regarding whether to talk about the effect of external factors on profitability or sales. Blackboard
15 / 10 / 2018 I have decided to do my graded unit on how economic factors affect Tesco PLC (Ellon) and have done some preliminary research to decide if there is a sufficient amount to write a report based. I will continue to do more research based on my topic over the next few days and decide if there is enough for me to peruse this topic Microsoft Word
22 / 10 / 2018 After doing some preliminary research throughout the past week, I have decided to change my topic idea to how to political factors affect Tesco plc (Ellon). I have decided to do this instead as there are many more sources of information. Google
1 hour 30 mins
29 / 10 / 2018
I Have started to complete my graded unit stage 1 and will be working on this until the submission date on the 7th of November. Microsoft Word (Graded unit stage 1 draft)
Personal Assessment of Skills
Appendix 1 – Personal SWOT Analysis
- I am a very creative person and can come up with many ideas to complete tasks.
- I am very trustworthy to the people close to me such as my friends and family
- I can easily make new acquaintances and friends as I have excellent social and communication skills that allow me to get to know other people quickly.
- I became committed to activities I do and determined to be the best I can in them before I try new things.
- I am a very empathetic individual which helps me when making new friends, and I can fit in into a new environment with ease and quickly adapt to the new culture/environment.
- Sometimes I can give myself too much to do and results in me become pressured to get everything done in an appropriate time.
- Sometimes I finish tasks too quickly, and that impacts my results
- Sometimes I try to argue what people think on issues such as politics without realising that I should respect other people's views.
- During a task, I can start to overthink different processes which can sometimes result in me becoming stressed which leads to me becoming less productive.
- I can take criticism and make sure that I use it so that I can improve next time I do a related task.
- My good computing and I.T. skills might be essential for an employer and may give me an advantage when applying for a job over other candidates.
- My excellent communication skills might be useful in the future as I may be able to "move up the ladder" by talking to people and portraying ideas that I have that may earn me promotions and will allow me to become closer to becoming the best I can be.
- During tasks, I should become more aware that I can ask for help instead of trying to complete everything myself which would help me not grow stressed when doing demanding tasks and would help me with my productivity.
- I often do not voice my concerns as I don't want other people to think differently of me if I say something that may be taken the wrong way this is a threat to me as it may impact the decisions I make and could affect my future.
Appendix 2 - Personal Skills Audit
Planning To Manage Time
I can plan my strategies to manage my time. An example of this is during the investigation, and I had to create a plan of what activities I would do during the investigation and how long I would spend on the activities which help me manage my time as I know what I have to do on that specific time. In everyday life I also have to plan, such as on the way to college, I have to plan, so I am not late for my classes during the week.
Working Under Deadlines
I can effectively meet deadlines for tasks and not leave them to the last minute. I make sure that I go plenty of time to complete the tasks to the best of my ability. An example of when I work under deadlines is at my place of employment (Tesco) where I have to work all the cages of stock by a specific time and then have to make my department, look pristine for the next day.
I can effectively motivate a team when I see that they are struggling. An example of when I do this is when I am at the gym with my friends where I can motivate them into pushing themselves further than they would be able to achieve on their own through words of motivation and positive feedback. I also give motivation to my college friends where I give them words of encouragement when doing assessments and challenging tasks.
Working as part of a team
This is one of my stronger skills, as I work very well and effectively as part of a team. I can communicate clearly with team members and provide relevant information to complete tasks. I also work well as a leader because of my strong communication skills. I can give the team with practical ideas and help them push through to achieving the task at hand.
Appendix 3- Personal Curriculum Vitae (2018)
I am a very hardworking and motivated individual, who strives to ensure that tasks are done to the best of my ability and who can work well as part of a team or as an individual. My career goals are to become a manager within a large organization or to create my own business Where I can further develop my skills. I can be an exceptional asset to the organization as I am seeking to increase my knowledge of understanding from every experience in the workplace.
• Strong work ethic
• Very positive attitude
• Time management
• Good communication skills
• Ability to adjust after criticism
• Able to work part as a team
Education & Training
2011 – 2017 Ellon Academy
Highers: Business Education (C), Biology (C), Geography (B)
National 5's: Business Education (B), Math's (A), English (B), Biology (C), Chemistry (C), Geography (C), French (C), Graphic Communication (C)
2017 – 2018: North East Scotland College – HNC Business Management
2018 – 2019: North East Scotland College – HND Business Management
Tesco – Stock Replenishment
I was Responsible for making sure customers can get what they want and making sure customer service is the priority. Frequently, I must work under pressure to meet as many customers wish to as possible. I must be able to find any product within the store. My day at work would usually consist of filling shelves, being on checkouts when they are exceptionally busy, reducing products that will be out of date at the end of the day, making sure all the waste is recorded towards the end of my shift, and finally making sure that the fresh isles are all faced up and looking neat and tidy.
Niree Boarding Kennels (27/09/2013 – 20/12/2015)
My day at work would usually consist of cleaning and feeding the dogs and cats which were present at the kennel. During my stay, I got to know a lot of people because they would bring in and take home their pets. I made acquaintances with many people, and I improved my communication skills during my time working their considerably. After I finished my work, I offered the owner if they needed anything else doing, there was usually plenty for me to do and they were delighted with most of the work I achieved.
Ellon Kirk centre café (22/06/2013 – 26/09/2-15)
I would usually be asked to help at the weekends where I would take orders of customers when they would come into the cafe and sit down at a table of their choosing. After I received the orders of what customers wanted, I would ask another member of staff to make hotter meals, and I would make the drinks. After they were all done, I would serve the table. After the customers left the cafe, I would offer to help clean the table and make it pleasant for the next customers.
• Clean full driving license for a car
• First aid trained
• Fire safety trained
• Hobbies include going to the gym, spending time with friends and people and making music.
references available on request.
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