Case Study on Tesco - Assignment

INDIVIDUAL
ESSAY

INTRODUCTION
In the Global world pricing factors affect the variou internal and external environment of the
company. Tesco company also affected by the pricing factors where Tesco is famous retail
company in world. These report highlights pricing factors and SWOT analyses of internal
environment. Also reveals pestle analyses of external environment of tesco compant. In this
regard present report has been prepared.
MAIN BODY
Tesco company is an UK based company. It is third largest retail in world . It has shops across
the world.
Pricing strategy of Tesco is helpful for business in managing this work.. Pricing strategy
contribute gain competitive advantage in market. Company promotes its firm by using every
little helps message. The objective of firm is to minimise operational cost by offering quality
goods to consumers (Abdel-Basset, Mohamed and Smarandache, 2018). Where company used
various pricing which includes psychological price, economical price, geographical pricing and
product line pricing strategies.
SWOT of Tesco
Strength
 leading retailer and leading market share- Tesco is working well across the world
and has proven itself in managing the work well.
 Diversified stores - Tesco has many stores and offers wide range of products . Whereas
Tesco’s diversification strategy to be little-bit successful for firm. It has various items
such as clothing range mobile phone business, home-ware item, etc.
 Superior Technology and efficient chain network- Tesco company uses best
technology in well optimal source to enhance experience of a customer (Gürel and Tat,
2017). It has reliable appropriate supply chain network and it bear profitable relationship
with a supplier which helps in incurring cost.
Weaknesses
 Low cost strategy and poor operation performance- Its low cost strategy creates
problem in generating profit and managing revenues. . As it not carry sufficient market
research before enter in market which result in poor performance in particular market.
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 Decrease in operating profit- Since Brexit Referendum it prove worst performance for a
company in business market(Shenoy and Aithal, 2016). Which result in decrease in
operating profit.
Opportunities
 Online shopping- To grow and upgrade online shopping Tesco company avail
opportunity for online shopping and home delivery to compete with other competitor in
business market. The company use the different pricing strategy at to attract more and
more customers.
 Joint venture- The places where Tesco stores werenot performing well,there it has
opportunities for having the joint venture.
Threats
 Brexit Referendum- Brexit introduce friction and also introduce barriers. That makes
less efficient, where all three benifits- quality, price and choice- go backwards. Now with
Brexit the likelihood of no-deal of growing, as it threatened with lot of supply network
chain disruption and higher rates. Meanwhile buyers could face limited choice, higher
price and lower quality (Widya Yudha, Tjahjono and Kolios, 2018).
 Competition: Firm has many competitors and that is why many times company has to
make changes in strategy otherwise it will not be able to sustain in market for longer
duration.
Pestel of Tesco
 Political factors- political factors highly influence performance at globe level (Shenoy
and Aithal, 2016). And also turn raise demand for products & diverse the workforce.
Changes in political parties will create in managing operation hence overall working of
entity gets affected badly.
 Economic factors- Economic factors is another element that has high influence over
firm, as they highly leverage the cost, profit, demand and price. If unemployment rate is
high, then people spending power get minimised in such condition people will not be able
to buy such items frequently. On other hand if there is high GDP then firm may get more
benefit in term of getting high return over investments.
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 Social factors- Lifestyle influences the choice of person in such conditin sales of
business get affected. Verities services and goods which is demanded by customer are
mostly influenced by their attitude and belief, in turn that are influence by ansocial
condition.As the consumer are more aware about health issues, due to approach towards
changing in foods constantly. Hence changes are accepted by firm, as it accommodating
demand of an organic products(Samuelson, 2015).
 Technical factors-Advance technology brought lot of opportunities for company. Two
most distinct one which is introduction & development of on-line shopping and second
one is self-service checkout points which provide suitable for customer that reduce labour
cost.
 Environmental Factors- Increase pressure on Tesco by addressing environmental
problems and to adopt source of operation which benefit the society, Tesco committed
clearly that it reduces carbon footprint upto 50% till 2020. Company also minimizing
waste produced
 Legislative Factors-employment laws get changed in such condition Tesco has to make
changes in managing human practices. .
CONCLUSIONS
From the above study it is concluded that due to pricing factors in the global world. If
company do not consider the internal and external position of firm then it might create problem
in sustaining in the market. If enterprise wants to work well and want to gain competitive
advantage, then it will have to work hard and will have to make changes in its strategies so that it
can meet its organisational goal.
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REFERENCES
Books and Journal
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.
Gürel, E. and Tat, M., 2017. SWOT analysis: A theoretical review. Journal of International Social
Research, 10(51).
Samuelson, P.A., 2015. Rational theory of warrant pricing. In Henry P. McKean Jr. Selecta (pp.
195-232). Birkhäuser, Cham.
Shenoy, V. and Aithal, P.S., 2016. ABCD Analysis of On-line Campus Placement Model. IRA-
International Journal of Management & Social Sciences,(ISSN 2455-2267), 5(2), pp.227-
244.
Widya Yudha, S., Tjahjono, B. and Kolios, A., 2018. A PESTLE policy mapping and stakeholder
analysis of Indonesia’s fossil fuel energy industry. Energies, 11(5), p.1272.
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