Social and Technology

Social Factors

          Refer to the social, religious and cultural aspects of the business environment that may be affected and may react to, the firm's strategies either positively or negatively.

These may include demographic aspects like age, gentle and income statistics, population growth rate, education, and trends.

          As we have covered on previous pages they can be many factors affecting Tesco’s activities. Another one of these social factors. These could include lifestyle changes, education, and living condition.

Increase birth rate: Tesco may start to look at selling children’s toy or products to open a new market which in the long run will eventually create more profit because they’ll have an extra market that parents and children are interested in. 

Education: Tesco will also focus on education. As seen on adverts they already sell school uniform for children that are certain ages which is mostly primary school and secondary school. They will also sell school equipment for all age from primary school and even to college. This open a whole new markets.

Technological factors

          Businesses are continually developing new technologies to provide the best solutions for the market place. Intelligent companies find out what the most appropriate technologies are for their businesses and use it.

           Importing new technologies into business can be an advantage for organization as well as customers. In Tesco, using of advanced technologies improved customer satisfaction. Technologies used in most of the Tesco stores are:

Electronic shelf labeling- system used by retailers for displaying product pricing on shelves.

Electronic Point of Sale- point at which a customer makes a payment to the merchant in exchange for goods or services

Radio Frequency Identification- wireless non-contact use of radio-frequency electromagnetic fields to transfer data, for the purposes of automatically identifying and tracking tags attached to objects

Electronic Fund transfer system- electronic exchange, transfer of money from one account to another.

Wireless devices- to convenience customers to access to internet when they are needed

Price Scanner- convenience for customers to check out the price of the products.

Customer can feel more convenient as product is readily available to them. The above mentioned technologies helped Tesco in improving the stocking and distribution processes. The adoption of Electronic Point of Sale (EPoS), Electronic Funds Transfer Systems (EFTPoS) and electronic scanners have greatly improved the efficiency of distribution and stocking activities.