Key Issues Affecting Tesco Supermarket Subsector

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Explain two key issues that affected the Tesco supermarket subsector....................................................3
Using PESTLE model, categories two issues you discussed and reasons for doing so............................4
Demonstrate how key issues can impact sustainability of businesses......................................................6
Reflection................................................................................................................................................7
CONCLUSION...........................................................................................................................................7
REFERENCES............................................................................................................................................9

INTRODUCTION
Business environment refers to an integration of internal and external factors which
impacts the company operations and sustainability in positive and negative manner. This report
is based on the Food retailers and wholesalers subsector in which Tesco is taking. Tesco is the
leading multinational supermarket store in UK. This report includes the major key issues that the
Tesco face and by using PESTLE analysis these key issues can be discussed prominently.
Further this project reflects the impact of key issues on business sustainability so that best
solutions can be taken out. At last reflections are to be done that depicts the challenges that are
faced at the time of completing this project study(Prajogo, 2016).
MAIN BODY
Explain two key issues that affected the Tesco supermarket subsector
Tesco supermarket is one of the largest organizations within UK in which number of
employees are working. This company deals globally and attracts the customers from
international and national market. Tesco can face the major issue in their profits earning and
sustainability. In today’s world there are many food supermarkets are available within market
who offers the quality goods to their customers at reasonable cost. That will affect the subsector
in major ways. The supermarket subsector can face the many issues such as downward shift in
the quality of goods and services, accounting scandal, horsemeat controversy, cultural
differences in other nations and many more(Eling and Schaper, 2017). In context of Tesco
superstore subsector this report includes the two major issues that can be shown below:
 The first major issue that a subsector can face is related to the downfall in quality of
products and services: In Tesco plc consumers are visiting the stores for wet products as
these are relatively cheaper than other food retailers and wholesalers. Currently, Tesco
cannot maintain the quality of their offerings due to this low price of the goods and
services are not attracted the customers anymore. In recent times people are highly focus
on quality products rather than their price. In this Tesco can totally based on their
suppliers for their products and services for restocking the shelves to maintains the
quality and freshness of the foods and drinks. This is the leading challenge in front of