This document provides an executive summary and background on Tesco plc, a major British multinational grocery retailer. It discusses Tesco's expansion into the Chinese market and some of the factors that led to its decline. Specifically, the document notes that Tesco failed to understand various macro factors in the Chinese market, leading it to divest from a 90% stake to 20%. It will analyze Tesco's strategy in China using a PESTLE framework and provide recommendations for why Tesco failed to capitalize on the large growing Chinese market.