Food Retail and Wholesale: Analysis of Tesco's Internal Environment

Food Retailers and
Wholesalers

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
TESCO Overview.......................................................................................................................3
TASK 2............................................................................................................................................4
Application of Value Chain model to analyse the internal environment of Tesco....................4
Task 3...............................................................................................................................................6
Analysis of the micro forces that can affect the activities of the company.................................6
TASK 4............................................................................................................................................7
Analysis of the value chain model on organisation efficiency...................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9
Books and Journals.....................................................................................................................9
Online Source..............................................................................................................................9

INTRODUCTION
The retail industry is changing rapidly, the food retail and wholesaling has gained much
importance in these times. The business environment possess opportunities and weakness also
for this the constant internal review needs to be done. The constant review of internal and
external analysis helps in analysing the strength and threats of the company in respect to
competitors. The main aim of this report is analyse the food retail and wholesale sector, the
company chosen for this case study is Tesco (Borusiak and Pierański, 2017). The Tesco is an
multinational food retailer, with headquarters in UK. The major competitors of Tesco in this
segment are Asda, Sansbury, Morrisons etc. The internal analysis of the company is being done
by using the value chain model and analysis of micro factors are also done in order to gain
insight on the company's position.
TASK 1
TESCO Overview
The Tesco was founded in 1919, by Jack Cohen. The company is listed on the London
stock exchange with market cap of £20 billion,2020. Tesco is a major food retailer in UK, with
subsidiaries operating across globe. The Tesco was initially selling the grocery and food products
multinationally and till now its major income is derived from its food segment. The company
believes in providing the customers with great standard, quality product. Tesco makes high effort
in thoroughly understanding the customers needs, market trends and then the team develops the
high value products. Especially, talking about the foods products, the chefs and food researchers
are always looking out the trends in food industry and understands needs of consumers. and try
to incorporate that findings into their product innovations that provide value and satisfy the
consumers. Tesco, believes in continuous innovations in the food offerings (Carpio-Aguilar,
Rincón-Moreno and Franco-García,2019).
Product Development
The company launched over 1300 new food items in,2019. Tesco has one department
named Nutrition department which solely is responsible for the testing the food product quality,
standards and results on health. This departments works in conjunction with the internal and
external stakeholder to maintain the quality. Such as the company in its recipes mentions
importance on the dietary intake, the company launches food products for everyone i.e kids,