Business Consultancy Project

This Business Consultancy Project provides an analysis of Tesco's business, including its SWOT analysis and PESTLE analysis. It also offers ideas for actions to improve the company's performance in the changing business environment.

Business Consultancy
Project

TABLE OF CONTENTS
SUMMARY.....................................................................................................................................3
ANALYSIS......................................................................................................................................3
IDEAS FOR ACTIONS...................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

SUMMARY
Tesco is the British multinational companies operating business in retail sector. An
organization has its headquarter located in England. Business entity has ranked as the third
largest retailer globally in context of gross revenue. Tesco has its retail outlets located in
different countries which enables firm to deliver goods to large number of customers. An
enterprise by delivering quality of products has able to achieve leadership position in the market.
Tesco has capture approx. 28.4 percent market share. An organization has expanded business at
international level as well (Bah and Fang, 2015). The different types of products which are
offered by Tesco includes convenience goods. Business entity has diversified its products into
different segments such as books, electronic, furniture, toys, telecommunication, financial
services etc. Diversification strategy has supported firm in increasing sales and profitability.
Low cost strategy has assisted an enterprise in attracting more number of customers. Tesco offers
wide range of products to customers. An organization has market capitalization of approx. 18.1
million pounds. Business entity is involved in merchandising of goods.
Tesco vision is to become most highly valued business among shareholders and
customers to whom company offers products or services. Vision of Tesco consists of basically
following components these are a growing business, leading in the market, inspiring, earning
trust and loyalty as well as commitment from the customers.
Mission of Tesco is to become champion of customers. Other mission is to bring positive
change in the society and help people to live quality life. In addition to this, core purpose of an
organization is to cater the needs of customer and provide them with high level of satisfaction.
ANALYSIS
Swot analysis is considered to be as an effective tool which can be utilized by the
manager in Tesco for analyzing the internal situation of an organization. This technique will
assist management in identifying the strength, weakness, opportunities and threats. Swot analysis
will support manager in determining an appropriate ways for reducing the threat s and
overcoming weaknesses. It will also support an organization in exploring various business as
well as growth opportunities (Botha, Kourie and Snyman, 2014).
Strength : The biggest strength is that Tesco
has achieved leading position in retail industry.
An organization has highly skilled as well as
Weakness:
High inventory cost as compared to
competitors which has negative effect on the

talented workforce.
Business entity has innovation skills which
helps firm in attracting more number of
customers.
Strong distribution networks due to which
company able makes timely delivery of
products or services.
Good relationship with suppliers : This
strength support Tesco in overcoming supplies
related issues.
Tesco has an effective promotional strategies
which has assisted an enterprise in capturing
wide market share.
An organization has its retail outlets in many
countries which provides firm an ease in
delivering goods or services to customers.
Business entity can diversify its food range.
Tesco PLC can develop its own branded
products.
profitability of firm.
There are gaps in the product range sold by
Tesco .
Lack of innovation skills.
Ineffective product positioning Strategy.
Tesco is still utilizing the traditional
technology.
Undefined selling proposition.
Opportunities: Tesco has an opportunity to
enter into market.
Business entity by utilizing online platform
can attract more number of customers.
Tesco can employ advance technology and
can develop more innovative products.
Threats :
As Tesco is operating business both at
domestic and international level there is threat
of legal issues.
Threat of new entrant
Increase in competition.
Changes in social factors can have negative
effect on the demand for Tesco product in the
market.
Change in economic factors might impact
profitability of firm.

Pestle analysis is considered to be an effective technique which can be utilized by
manager in Tesco for analyzing the situation of market or external environment. This technique
will assist management in identifying those macro environmental factors which might have
effect on the business. It also supports management in determining the different strategies which
can be implemented in order to provide an appropriate responses to changes in various elements
in external business environment (Baraibar‐Diez, Odriozola and Fernández Sánchez, 2017).
Changes in external factors such as social , technological , economic can have both positive and
negative impact on business.
Political factors :It includes rules regulation , political situation in the country etc. For instance,
Brexit has resulted into the political instability in UK which has negative effect on retail
industry. In addition to this, import and export permission given by government has supported
Tesco in increasing the sales as well profitability.
Economic factors: Increase in the tax rate by the government in the nation has lead to the
decline in the profit margin of Tesco. Decline in the rate of foreign currency rate has assisted
Tesco in gaining the transaction benefit.
Social factors: Due to continues changes in these variables Tesco is facing the challenges in
maintaining the balance between demand and supply. Increase in the health consciousness
among the people in the society have negative effect on the demand of Tesco products (Hamilton
and Webster, 2015).
Technological factors: Technology has enabled Tesco to bring improvement in quality of
products or services. Advancement in technology has given rise to stiff competition due to which
Tesco is facing difficulty in concentrating on core business operations.
Legal factors: As Tesco is operating business globally changes in law has direct effect on the
Tesco business operations. Tesco workers took a legal action against employer on the basis of
age and gender discrimination.
Environmental factors: Tesco is facing the immense pressure from government agencies to
address environmental issues.

IDEAS FOR ACTIONS
It is required by the company to develop the understanding about the laws and regulations
of the country in which it is operating. As this strategy will help an enterprise in eliminating the
threat of legal issues Tesco should execute market research before entering into the market, as
this will assist firm in developing the understanding about the customers needs. Firm can also
form strategic partnership with global companies, as this tactic will assist an organization in
gaining competitive advantage (Jonker and Stegeman, 2017).
CONCLUSION
It has been concluded from the report that the changes in external factors have direct as
well as significant impact on the business operations. Study has also concluded that changes in
internal variables have direct effect on business performance of company. It has been concluded
that an enterprise is performing well in the market but still there is some sope of improvement.
It has been suggested to manager in an enterprise to develop an effective strategies for
dealing with changes in business environment.

REFERENCES
Books and Journals:
Bah, E. H. and Fang, L., 2015. Impact of the business environment on output and productivity in
Africa. Journal of Development Economics. 114. pp.159-171.
Baraibar‐Diez, E., Odriozola, M. D. and Fernández Sánchez, J. L., 2017. A survey of
transparency: An intrinsic aspect of business strategy. Business Strategy and the
Environment, 26(4), pp.480-489.
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology. Elsevier
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Jonker, J. and Stegeman, H., 2017. Session 1: Changing Business Models for the Circular
Economy.