The Effects of M&As in the Furtherance of Strategic Objectives of Dissertation

The Effects of M&As in the Furtherance of Strategic Objectives of Tesco Plc and Wal-Mart - Dissertation Example ................................................................................................................. ... Under the PEST analysis, political, economic, social and technological factors (for PEST) will be discussed. Additionally, legal and environmental factors will also be discussed (completes PESTLE analysis). Under Porters 5 Forces analysis, the 5 forces that influence any given industry will be discussed. These include powers handled by the supplier and the buyer, threat of substitution, competitive rivalry, and threat of new entry. Tesco – Company Overview Tesco Plc is an international retailer with active activities in most parts of the world apart from providing retail banking and Insurance services. Its wide distribution of stores enables customers to pick the products of their choice from various parts of the world. The company delivered a sales growth of 7.4% by the year 2012 and strong international performance with a return of capital employed of 12%. The company is projected to have a weak growth among its peers due to its low operating profit margin compared to the se ctor/industry average of 14.39% hence it is considered underperforming in the industry (Tesco Plc, 2012). Tesco Plc realized its potential in the retail industry and decided in many cases to consolidate its efforts with other businesses. The greatest interest was to establish the effect of these consolidations with its aims and objectives in order to unearth the truth on the possible effects of M&As. PESTEL Analysis Politically, the recession remains one of the main gamut that are currently affecting all the countries resulting to high numbers of unemployment. As one of the major and wildest growing retailers, Tesco will avail more jobs hence reducing levels of unemployment. Economic factors are significant for Tesco because they influence directly the buying behavior of