Swot analysis in context of TESCO

This study explains the Swot analysis of TESCO and its impact on the functional areas of the supermarket. It discusses the strengths, weaknesses, opportunities, and threats of TESCO.

BM461 GBE CW2
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Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Swot analysis in context of TESCO.......................................................................................2
Impact of opportunities and threats upon two functional areas of supermarket.....................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
Internal environment can be defined as comprise factors or forces like workers,
organizational culture, principles, values and management practices within an company that has
capability to influence and impact decision making procedure. The current assignment will be
based on TESCO, which falls under category of leading international supermarkets in the world.
This study will explain internal environment analysis by using SWOT model to determine
important drivers. Furthermore, this report will describe factors impact on functional areas of
chosen brand.
MAIN BODY
Swot analysis in context of TESCO
SWOT analysis is one of the best strategic planning techniques that have been utilized by
several companies (Abdel-Basset, Mohamed and Smarandache, 2018). It can help a company or
business to determine its strengths, weaknesses, opportunities and threats. This model can be
applied to a whole firm, it mostly use at organizational degree to identify how closely a venture
is aligned with business progress trajectories.
Significance of SWOT analysis-
This framework is essential because it help to determine weaknesses and threat of
organizations which management can overcome by taking right action and by using strengths
and opportunities.
Table of strength and weakness-
Strengths Weaknesses
 The biggest strengths of TESCO are its
skilled and knowledgeable workforce
who can contribute in competitive
environment to gain competitive
advantages (Neal and Neal, 2019).
 Other strength of chosen supermarket
brand is its management and leadership
styles which make business able to
grow number of outlets. From 3,751
physical stores, in current era firm has
 Lack of market investigation is one of
its weaknesses that impact sales and
profits margin in negative manner in
form of decreasing it.
 Low cost tactic is leading element or
weakness of TESCO that directly
impact profitability and sales level of
venture in negative manner.
 High credit and debts card liability can
lead to financial losses of firm. It can
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now operated 6,966 grocery stores all
over the world while operated venture
in retail industry.
impact profits margin and success
factors of company.
Table of opportunities and threats-
External factors Opportunities Threats
Political environment Brand expansion can help to
increase profitability and
financial performance of firm
(Parks, 2020).
Impact of increased tax rate
can be decreased through
managing operational cost and
applying waste management
strategies.
Economic Hire unemployed people who
can work even better and
serve TESCO consumers in
ethical manner.
Firm can overcome intense
competition by taking right
decision.
Social Firm can use technology to
determine needs and
preferences of customers.
Technological With advanced technologies
workers can develop creative
and innovative marketing
content.
Environmental Government and consumers
concern about environment
safety can be fulfilled by
reducing carbon footprint.
Legal By creating inclusive work
culture at workplace and
paying fair wage to workers
company can expand its
venture and motivate
Changes in laws and
regulations relate to
employees safety and security
impact current practices of
firm. It can posses as threat
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individual employees in
ethical manner.
which could be overcome by
following change in norms of
above term.
Strategic plan-
Opportunities Strength & chance Weakness and Chance
Brand expansion Tesco can use this opportunity
to increase its brand image in
market place and customer
base more than rivals.
Firm can use this chance to
gain competitive advantages
and reach at global level.
Technology advancement Organization can grab this
opportunity in order to reach
global market (Efobi,
Tanankem and Asongu, 2018).
This chance can be used by
marketing department to
conduct market research in
systematic manner.
Inclusive work culture This opportunity provide a lot
of benefits in term of
increasing motivational and
productivity level of skilled
employees even better.
It can motivate people to
develop effective plans and
create appropriate tactics in
context of pricing.
Threats Strength & chance Weakness and Chance
Change in tax rate This threat can be overcome
by providing right guidance
and direction in form of
management style.
It can increase consumer base
and promote products in
different market.
Consumer needs change Talented people who work for
TESCO can reduce negative
impact of this threat by
understanding needs through
advanced technologies.
This condition requires
appropriate market research
that can help to satisfy people.
Intense competition Organization can reduce the This threat can be overcome
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impact of this threat by using
skills of their works and
motivate them to work hard
with the latest technologies.
by using appropriate pricing
tactic which can increase
profit margin.
TESCO can overcome all weaknesses like lack of market research by using advanced
technologies accessible in the world of business. It can be define as opportunity which bring
several benefits to company.
Impact of opportunities and threats upon two functional areas of supermarket
Impact on production department-
Change in needs of buyer and intense competition put negative impact on production
operation of TESCO as it lead to increase high pressure on workers to work according to market
needs and perform even better. For example, when demands of customers get change it can
directly influence production team work and their practices in negative manner.
Company can handle this situation by using strength and opportunities together, for
example firm can direct people to conduct detailed market research.
Impact on finance department-
From above analysis, it has been identified that increasing charges on tax rate can impact
finance department and its activities in negative manner because it require extra pay on each
trade act by Tesco side. This impact could be overcome when company restructure its entire tax
and trade policy and then pay according to set rules.
CONCLUSION
By summing up above discussion, it has been analysed that TESCO with strong teams of
workers has been reach at global level where sells ranges of quality products and services to
local people. With this strength organization has gained competitive edge and successfully
satisfied its target market. Furthermore, from above analysis, it has been concluded that by using
key strengths, firm has effectively overcome weakness and obtained current market opportunities
which in return increased its profitability and productivity level even better than its rivals.
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REFERENCES
Book and Journals
Abdel-Basset, M., Mohamed, M. and Smarandache, F., 2018. An extension of neutrosophic
AHP–SWOT analysis for strategic planning and decision-making. Symmetry. 10(4).
p.116.
Efobi, U.R., Tanankem, B.V. and Asongu, S.A., 2018. Female economic participation with
information and communication technology advancement: Evidence from Sub‐Saharan
Africa. South African Journal of Economics. 86(2). pp.231-246.
Neal, J. and Neal, B.L., 2019. Oil and gas skill complexity, specializations, and modernizations.
In Workforce Education at Oil and Gas Companies in the Permian Basin: Emerging
Research and Opportunities (pp. 16-48). IGI Global.
Parks, E., 2020. Digital Marketing Proposal for Small Businesses: A Review of Digital
Marketing Strategies Regarded as Best Practices for Brand Expansion.
Online
How to Do a SWOT Analysis for Your Small Business. 2020. [Online]. Available Through: <
https://www.wordstream.com/blog/ws/2017/12/20/swot-analysis>
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