Analyzing Tesco: Deriving Business Value Through Data Analytics

This report analyzes how Tesco Plc derives business value from data analytics, focusing on the quality and quantity of background research and information analysis. It identifies key roles within a business intelligence system, including project managers, business analysts, and database administrators, and examines how these roles contribute to informed decision-making. The report applies financial matrices and key performance indicators (KPIs) to evaluate Tesco's performance, considering the impact of the COVID-19 pandemic on the retail sector. It discusses how business intelligence software supports decisions related to product development, business expansion, and technology adoption, ultimately aiming to enhance productivity, revenue, and overall business growth. The analysis spans various analysis types to provide a comprehensive view of Tesco's data-driven strategies.

DERIVING BUSINESS
VALUE FROM DATA
ANALYTICS

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Quality and quantity of background research, analysis of information.......................................4
Appropriate list of roles that are covered in the specification.....................................................6
Application of matrix ..................................................................................................................8
Spam of analysis types...............................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Data analysis is a process that involve analysis and interpreting the data and information
that can support the business objective. This report is based on the case study of Tesco Company
in context to analysis some of its data to interpret about the business performance. The
organisation is based in retail sector and was established in the year 1919. Jack Cohen was the
founder of the organisation. Headquarter of the company is located in England, United Kingdom.
Company is currently serve at approximately 7000 different business locations at various part of
the world. The organisation own various supermarket, hyper market, super store and
convenience store that can support business to drive its operations. This project will analysis the
performance of the company in previous few financial years. List of the role of a business
intelligence system can also present under this report. Furthermore, appropriate financial matrix
will also use to evaluate the overall performance of the business.
MAIN BODY
Quality and quantity of background research, analysis of information
Tesco Plc is among the competitive firm associated with the retail sector that is highly
indulged with the sector. The organisation dominate the entire market with its presence and
performance by offering various retail sector products and services. The business is also active
over the e-commerce platform with the use of its own website of company that could favour the
business to achieve all its objectives. The company was initiated its business operations in the
year 1919. The organisation is been active in the market with the presence of its offline stores in
the form of super market, hyper market, super store and such other convenience store that can
allow all different products offer by the business (Béné and et.al., 2021). The product segment
offer by the Tesco Company is well diversified as it cover all categorise of target customer that
involve male, female, children and all other categories. All these different categories of customer
allow and support the business to deliver all its products and services in such a manner that
organisation can mitigate all its various business objectives. The offline store available at all

different locations are capable enough to support the business objectives of the Tesco Company.
The company is currently operating its business at various locations that include United
Kingdom, Ireland, Hungary, Czech Republic and Slovakia. All these are the different locations
that could support the Tesco Plc to support its business objectives. The availability of the
organisation at all the some various locations could support the company in enhancing and
maximising the overall growth and development possibilities of the business in respective target
market. The international presence of the company could support the business is marking its
strong dominance at the global level. Company offer different brands that involve Jack's, One
Stop, F&F, Booker, Makro and Premier (Bierganz, 2021). All these brands and companies allow
the business unit to support the best possible performance of the business. The recent
performance of the company is not as effective as it was in the earlier financial year. The covid
19 pandemic has been very challenging era for the company as it could restrict the business to
deliver the productivity in the market. The pandemic situation could imposed the lock down like
practices that could not allow the Tesco Company to open its stores and super market. The
impact of lockdown has been significant over the companies operate in the retail market. The
business sales could completely go down that further reduces the growth rate of the organisation.
The pandemic situation has addressed the significant downfall in the overall performance
of the business. The trading operations and activity was completely depend upon the e-commerce
business operations. The e-commerce platform could allow the organisation to provide the
facility to its customer to place the order over internet. This option was favourable enough for
the company to mitigate the business operations at some level. E-commerce trade was still active
that could empower the Tesco Company to mitigate the business objectives and aim at some
level. The views of the Czeczotko and et.al. (2021), is also stated the fact that retail sector is
among the widely affected sector due to the covid pandemic. The some areas of the sector which
include groceries and other respective product trade was kept on performing but the other areas
that involve clothing line and other product sale could complete reduce. The income of the
customer could widely affected in the pandemic situation that could further create an impact over
the performance of the Tesco Company. The scholar in its research over the impact of covid over
retail sector performance clearly demonstrate the fact that the sector is widely influenced
negatively due to the pandemic situation. As the practical situation was not favouring the
business units like Tesco Plc to open the stores in order to cater the product and service to the

target customer in market (Hacıoğlu-Hoke, Känzig and Surico, 2021). The 2021 was the year
when the strong downfall was monitored in the overall performance of the company. This was
significantly affected to the business unit. The experts do believe that the market will become
more open in the next few years that will allow the businesses to improve the performance and
cope up all the losses at some level.
Appropriate list of roles that are covered in the specification
There are a certain role which are a part of the organisation hierarchy of the Tesco Plc
Company. These roles involve marketing, human resource management, sales, PR and many
more roles. All these roles denote to one specific operation or function perform by the company.
Handling business intelligence system is also a key role that influence and frive the overall
performance of the venture. The business intelligence system is a entire and complete structure
that allow and support the business to sustain a control over the tool. Handling the whole
business intelligence system require various role that include project manager, business analyst,
technical BI project manager, business intelligence consultant, business intelligence client, ETL
developer, business intelligence sponsor, database administrator and such other role and
responsibility that allow the organisation to utilise the whole system in the best way possible
(Havlíček and et.al., 2021). The role of the business intelligence system is to support the
company to analysis and interpret the whole data and information and entertain the competitive
advantage by taking strong decisions in favour of the business. The key target of the system is to
utilise the data and statistics records in such manner that company get to take the best suitable
business decision. Manager coordinate the whole information and communicate with the
management so that previous performance of the company can interpret and based on the results
of interpretation the organisation get to make the business decisions that can support the business
objectives of company. Analysis role is directly contributed towards analysing the information
identify the areas that seek improvement and aspects that Tesco Plc Company should consider in
order to improve the performance in future time as well.
The various decisions Tesco Plc take are totally based on the outcome this business
intelligence system adopted by the company. Interpretation the information could provide the
detailed crux about the areas that performed well and favourable for the company and all such
areas that need some amount of improvement and development by the business to maximise
growth and future development (JUNG and JEON, 2021). Technical PI Project manager contain

role to interpret the values Tesco Plc could contribute by initiating the projects in the business.
This is a favourable aspect that allow and communicate the business unit to taker all important
decisions to support the overall performance of the venture in respective target market. The
business intelligence system play a very direct role in performing the business operations in the
respective target market. The business intelligence system is a current and future need of
delivering business operations by companies belong to any respective business environment
sector. Business intelligence client completely involved with addressing and analysing about the
client requirement and need. In order to achieve success in the business ventures require to cope
up with the need and demand associated with the target customer base of the business. Data base
administrator is one of the key role part of the business intelligence tactics perform by the
organisation. The administrator allow the management to understand the need and requirement
of the business and further to make the best suitable business decision.
The management at the Tesco Plc has utilised the business intelligence software and tool
to entertain the best suitable business decisions. The role of this software is to empower the
company for taking various decisions related to the product development, business expansion
related decision and such other decisions that may empower the venture for enhancing the
business growth and development requirements (Khanna, 2020). Technology improvement and
advancement related decisions also make by the business with the use of business intelligence
practice. The entire practice support the business to adopt the new and advanced technologies
that can support and empower the organisation to maximise the overall performance of the
business venture. Product officer take all various decisions based on the aspects presented by the
business intelligence software. In the business situation this entire application is widely
supportive for the organisation to make all important bushiness decisions. Further, the
application is well supportive abd advanced to empower the business for considering the key
aspects and areas that seek some level of improvement and development in the organisation.
The key role these business intelligence software and application play is to motivate and
direct the company for enhancing the productivity, improve revenue of business and further to
enhance the growth of the organisation. These are the key role this entire practice or application
play in favour of the business (Mamaysky, 2020). Tesco Plc could empower better planning with
support of this application. Increased accuracy is also what company could benefit itself against
utilising this application in the regular business operations. This entire application helped the

organisation considerably with the sales and profit related forecasting. On the basis of the
forecast that are made further decisions are made related to improve performance of company.
The organisation could also make pricing related decisions with the use of this application. This
is among the most significant practice company could adopt in the business as it could direct the
best pricing decision in the business.
Application of matrix
The KPI demonstrate as the key performance indicator associated with the business. The
role of the key performance indicator is to guide and direct the business to formulate suitable
business strategies that cab empower the business to maximise the business growth and
development possibilities. The key performance indicator is a framework that is use by the
company to support the overall performance of the business that can favour and empower the
business venture to support the further business direction. These are the core indicators
associated with the organisation that may provide a proper summarised indicator over the
performance of the venture under respective target market (Mantin, 2021). These are the features
and factors that may support to the Tesco Plc Company to support the further growth and
development of business under respective target market. Sales of the company is among the most
comprehensive indicator company may use to further demonstrate about the overall performance
of the venture in respective target market. The sales values and figure strategically direct and
guide the company about its overall performance which business may adopt in order to support
the final growth and development of the business. Further, along with the sales other indicators
of performance involve the profit margin that involve gross profit, net profit and operating profit
margins (Pasic, 2020). All these are the various profitability margin which company may adopt
in order to channelise the overall performance of the venture further. These are the indicators
state the fact that how efficiently company was able to deliver the final performance in the
market. The role of the key performance indicator is to direct the company in respect to the key
areas that require an improvement. Profitability is among the core indicator and key areas that
provide the right strategic direction to the company in respect to its performance that may guide
and direct the company in context to its core performance of the venture in respective target
market.

The above stated graph clearly show that gross profit of the company is constantly rising
but in the year 20212 the profit margin could go down. This indicate that the Tesco Company
could not deliver the similar growth in the year 2021 as well. This clearly demonstrate that the
organisation need some strong strategic change that can favour and empower the business to
deliver the similar business performance (Prapha, Wilshaw and Ivanhoe, 2020). The earlier
financial years could comprehensively support the gross profit and relevant growth rate in the
profit margin but in the year 2021 the downfall witnessed in the profit margin in comparison to
the financial year 2021.
1 2 3 4 5
0
500000000
1000000000
1500000000
2000000000
2500000000
3000000000
3500000000
4000000000
4500000000
5000000000
2902000000
3350000000
4144000000 4580000000 4349000000
Gross Profit
Year Gross profit
1 2 3 4 5
-1000000000
0
1000000000
2000000000
3000000000
4000000000
5000000000
6000000000
7000000000
-40000000 1206000000 1322000000 971000000
6143000000
Net profit
Net profit Year

The above stated graph is further demonstrate about the net profit margin of the
company. The net profit is among the key performance indicators company may use in business.
The ratio is clearly indicate that the organisation is comprehensively earn the suitable net profit
margin. The net profit margin is a strong indicator company may utilise to demonstrate about the
performance of the business venture (Razzak, Blackburn and Saridakis, 2021). IN financial term
there is not any better indicative than the net profit margin of the company to disclose about the
performance of the organisation in respective target market. The role of the net profit margin is
suitable enough to support the overall performance of the venture in respective target market.
The operating profit margin of the business further disclose about the performance of the
Tesco Plc. The operating profit is further demonstrate as the key performance indicator related to
the business. This indicator clearly disclose about the performance achieve by the company in
respective target market. The operating profit margin of the business comprehensively disclose
all the key performance indicator achieve by the company under the respective target market.
The management of the Tesco Plc clearly demonstrate and measure the performance of the
venture with the use of the profit margin of the company. Profitability is a core indicator related
to the performance achieve by the company. Operation profit the term itself disclose about the
operating profitability of the business. In business terminology the operating profit margin is one
of the core factor or indicator that disclose about the performance of the venture in respective
target market.
1
2
3
4
5
0 500000000 1000000000 1500000000 2000000000 2500000000 3000000000
1168000000
1564000000
2077000000
2617000000
2506000000
Operating profit
Operating profit Year

Spam of analysis types
Descriptive analysis
The mean value of the profitability is 1986400000 which further disclose the median
value as 2077000000. The performance of the business is widely demonstrate with thee values
and figures. The role of the key performance indicator is to direct and guide the company in
respect to the performance achieve by the company in the respective time.
Diagnostic analysis
Tesco Plc Company is one of the most prominent business unit at a global level in the
retail market. The sector is growing rapidly in the market that could favour the business unit to
delegate the business operations efficiently. The market demand of various products of Tesco Plc
has declined in the previous few years. The demand of the product offer by the company has
been declined in the recent few financial years. The consumer behaviour in respect to the Tesco
Plc has also changed in the recent financial years (Salisu, Raheem and Eigbiremolen, 2020). The

consumer of the company are favouring more the e-commerce trade in comparison to purchase
the product from the store of company. This is a very significant change in the customer buying
behaviour that they prefer more e-commerce trade in comparison to the traditional mode of
purchasing. This change could further improve the e-commerce trade of company but also
decline the traditional trade made by the company.
The technology related issues also face by the company. The e-commerce sector require
the constant support of rapid technological development and advancement which require
financial resources. The organisation do not involved rapid;y in advancing its technology that
further created a massive challenge for the company (Wilkes, 2020). Any advancement made in
technology require a huge financial budget which is not feasible for the company every time it
look forward to make any change in the technological related change company make. The
financial limitation is also consider as one of the major technology related issue face by the
company. The culture of the organisation is also associated with the organisation. The culture of
the organisation is well supportive towards any change company coordinate. The leadership of
the Tesco Plc is widely supportive towards the change management practice adopt by the
company in order to maximise the business growth and development.
Predictive analysis
The value of R square is identify as .8437.

The value of R square is identify as .9124.
Prescriptive analytics
In process to deliver better performance in future Tesco Plc can make certain strategic
changes. This include the focus must be given over technological development and advancement.
The better customer satisfaction must also be given a priority by the company in order to
maximise the business performance. This will support the organisation to enhance the overall
performance of the business. This analysis is wisely supported by the business to maximise and
enhance the overall performance of the business (Scapin, 2020). The focus must also be provided
over the product development and market development. This would allow the organisation to
further raise the scope of the business in order to perform more efficiently in the business. This
would allow the organisation to address better performance in the business.
CONCLUSION
The Tesco Plc is among the most prominent organisation and firm associated with the
retail sector. The organisation has faced a low performance level in the recent past years that
could further demolish the growth rate of company. The organisation may adopt certain change
sin its pricing practices and further technology related change that will support the company to
make a better changes that can favour to the performance of the company in respective target
market.