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Tesco Plc

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Added on  2021-02-19

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Business Economics and Finance in a Global Environment INTRODUCTION 3 MAIN BODY3 CONCLUSION 8 REFERENCES 10 INTRODUCTION Tesco Plc is a British multinational company who is engaged in the business of general groceries and merchandise retailer with headquarters in England, United Kingdom. MAIN BODY Different activities done by Tesco ltd in United Kingdom and India In United Kingdom, company has the portfolio of various shops such as Tesco Extra, Tesco Supermarket, Tesco Express etc. Tesco Supermarkets are having large number of groceries and have less

Tesco Plc

   Added on 2021-02-19

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Business Economics andFinance in a GlobalEnvironment
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Table of ContentsINTRODUCTION................................................................................................................................3MAIN BODY.......................................................................................................................................3CONCLUSION....................................................................................................................................8REFERENCES...................................................................................................................................10
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INTRODUCTIONTesco Plc is a British multinational company who is engaged in the business of generalgroceries and merchandise retailer with headquarters in England, United Kingdom. Tesco is publiclimited company which was established in year 1919 by John Cohen. At present, company is having6800 shops all over the world. The products offered by the company are supermarkets, superstore,hypermarket and convenience shop. According to the year 2019 net income of the company is£1320 million. Company is engaged in diversified areas such as banking, financial sector, clothing,toys, furniture etc. Company is listed on the London Stock Exchange (LSE) and also is a member ofFTSE 100. The company operates in 11 countries with 450000 employees working in the company.MAIN BODYDifferent activities done by Tesco ltd in United Kingdom and IndiaIn United Kingdom, company has the portfolio of various shops such as Tesco Extra, TescoSupermarket, Tesco Express etc. Tesco Extra shops are the hypermarkets present all over Englandand located in the heart of the city i.e. centre of the city (Kotha and Sahu, 2016). TescoSupermarkets are having large number of groceries and have less non-food goods as compared tothe hypermarkets. Tesco express are the neighbour of convenience shops in which there is mainfocus on food products such as chocolates, sweets, crisps etc. In express branch company chargesmore amount of money as compared to the regular prices. Tesco Metro is in between TescoSupermarkets and Tesco Express shops in size. They are mainly situated in railway stations, innercity and streets. One Stop includes the small shops by the company and the shops does not includethe name of the company. Tesco has also selling petrol by diversifying the company in variousbiofuels to the customers. In India, Tesco came first in the city of Bangalore with the creative and innovative strategiesin different sectors such as finance, IT sector, commercial etc. Company came in year 2008 with thefranchise agreement with Trent Ltd who is subsidiary of Tata group in India. Company came upwith new Star Bazaar shop which is engaged food and non-food products in retail sector. Companyis using traditional ways for distribution purpose i.e. it is mainly focussing on Indian retailers,kirana stores etc. for the sale of company's product. Market Structure of Grocery Industry in United Kingdom and IndiaUnited Kingdom in Groceries industry has the market structure of Oligopolistic market. The
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supermarkets in United Kingdom have oligopoly market. Oligopoly is the market where thecompetition is very less and the market is shared by very small number of producers or sellers in thecountry (Oliver, 2019). Tesco covers the 25% of market share in the country and very few firms arepart of grocery industry. In United Kingdom Grocery industry has few companies and also pricesare set by the Grocery industry. In India, there is perfect competition in Grocery industry. There are large number of firmsunder grocery industry where the price are set by the market only. The buyers and sellers both theparties have the knowledge and information about the products sold by the company. Under thismarket structure all the companies sell the identical products and there are no entry and exit barriersfor entering into the sector. Comparative analysis of major microeconomic indicators for UK and India and their impact oneconomic policy of TescomicroeconomicindicatorsUKIndiaImpact in Tesco'seconomic policyGDP growth rateUK is the one of thetop most economy inthe world. The GDP ofUK is USD 2.62millions which is USD25 billion more thanIndia's GDP. Further,the GDP of is growingwith higher growth rateeven after facing Brexit(Malik and Meldrum,2016) .In the year 2019, Indiawas ranked one of thelargest economy of theworld. GDP growthrate is approx 1.7 percent as per the report ofworld bank 2019. Inaddition, same as UK,the GDP of the countryis also rapidly growing(Tripathi, Seth andBhandari, 2015) . With the help ofgrowing GDP rate, theTesco is improving itseconomical conditionin businesses of boththe country. With thehelp of higher rate ofGDP, the Tesco hasbecome able togenerate higher amountof profit and revenuefrom the runningbusinesses of UK.On the otherhand, by performingbusiness activities in agrowing economy suchas India, the Tesco isdevelopingandexpanding its businessin country. In addition,with the help of higherlevel of growth in GDP,Tesco is gaining a rapidgrowth in economiccondition of businessesbased on India. GDP per capita atUK leads in the worldsAs per the currentWith the help of
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