SWOT Analysis of TESCO Business

This report provides a comprehensive SWOT analysis of TESCO business and its impact on the marketing and research and development departments. It also discusses the opportunities and threats faced by TESCO in the global market.

Global Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
Task..................................................................................................................................................3
TESCO SWOT Analysis..............................................................................................................3
Operational Impact of SWOT Analysis on Marketing and Research and Development
Department of TESCO.................................................................................................................4
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Global business is a company that handle facilities all over the world such as TESCO. This
report will show the information relevant to SWOT analysis of TESCO business and also present
impact of SWOT analysis of TESCO on different department of business such as Marketing and
Research & Development (R&D).
Task
TESCO is a British company who lead retailers in UK. It is considered as third largest retailer
store in the world when measured by gross revenue. Tesco is actively involves in global business
operations. The SWOT analysis will help company in the current market conditions.
TESCO SWOT Analysis
Strengths: TESCO has leading retail stores from couple of years in UK. It has the largest
supermarket chain in UK. It has strong brand name and third largest retailer store after Wal-Mart
and Carrefour. TESCO is developing its business globally and it is also using innovation and
new technology in marketing and distribution. It is also increasing its market shares and its
Brand has market value (Peng, 2018). TESCO has been successfully able to generate positive
returns on the capital income it has received on various project in the past. TESCO is also using
online platform to spread their business. Its biggest strength is it has strong financial condition. It
has large product range. Its product have maintained quality over the couple of years and still
valued by consumers.
Weaknesses: TESCO has competitive pressure from competitors. It is trying to provide to too
many markets and many of these markets financial condition are not good. TESCO has failed to
capitalize in Japan and US. Its operational profits are decreased. In some specific areas its
performance is poor. It has inefficient strategies to increase profit. TESCO also faces cash flow
problems, when it doesn't have proper financial planning it faces cash flow problem. It has lower
budget for its quality control department compare to its competitors. The performance
classification is not in systematic manner. Workload is high as per employee. Lack of legal
experience and legal environment.
Opportunities: TESCO has many opportunities with the other popular and famous brands which
can help it to offer more products and attract new customers. TESCO can also form joint
ventures with local companies it can help TESCO to improve performance in those areas.

Internet is also an opportunity for TESCO to expand their business on online platform by using
internet to interact with customers. Population is beneficial for TESCO as they will increase the
number of potential new customers (Oh, 2017). Transport industry is also an opportunity for
TESCO it has reduced its cost of transportation and it will beneficial for company because it
reduces its all over costs.
Threats: The credit crush and the economic condition will be threat for TESCO because it affects
number of shares which affect its profitability. TESCO also has competitive threats because big
companies are able to provide products at lower prices and also wide variety of materials, and
they have strong supply chain. Constant change in technology require trained employees to keep
up these changes can lead to loss of business for TESCO. Customers taste are constantly
changing and this is the pressure on TESCO to change their product according to customer
needs. Fluctuation in exchange rate affect TESCO in business with globally. Suppliers
bargaining power is increasing over the years and cost of inputs could increase for TESCO.
Operational Impact of SWOT Analysis on Marketing and Research & Development
Department of TESCO
Marketing Department: TESCO Marketing department has focus on product promotion through
advertisements, sale, promotion, public relations, direct marketing or communication and
personal sales. SWOT analysis is very helpful for marketing department. It helps marketing
department to know their strengths, weakness and how to do marketing to using companies
strengths and how to overcome its weaknesses. It also uses opportunities for marketing in
different areas. New technology provide TESCO a new opportunity for marketing in online
sectors. SWOT analysis is to accumulate information about business and marketing activities
that will help to create market manager actionable business to increase their business. SWOT
analysis is a tool for marketing team to identify the strength, weakness, opportunities and threat
that are facing by business (Kuldilok, Tokrisna, and Boonchowong, 2018). If marketing
managers knows the strength of the company then they can promote product and service in
market in better way. Marketing manager can use strength to CTR in paid advertising. Marketing
manager use internet opportunities to promote, sale, advertisement the product and services in
online platform.

Research and Development Department: In research and development department SWOT
analysis is used for development of TESCO in globally. SWOT analysis helps in research for
TESCO in every department. Research and Development department know the weakness and
threats of TESCO then it will help to overcome this and if weaknesses and threats are reduced
then it will help company in overall profit and growth (Tirawatnapong, and Fernando, 2018).
Strength and opportunity is also helped Research and development department to increase their
sales in international market because if company knows their strength and if they are using their
strength with right opportunities then it will be profitable for company in every market.
CONCLUSION
This report concluded that SWOT analysis is helpful for TESCO and it will impact on other
departments such as marketing department and research and development department.
This report present information to an analysis of TESCO business and its impact on the structure
and operation of a business organization and it also demonstrates an understanding of the imapct
of changes in business environment.

REFERENCES
Books and Journals
Kuldilok, K., Tokrisna, R. and Boonchowong, K., 2018. Economic and Marketing Capability
Improvement for Small Scale Aquaculture Farmers through Community
Organizations. Journal of Fisheries and Environment 42(1). pp.33-52.
Oh, Y., and et.al., 2017. The viability of halal food industry for Brunei economic diversification:
SWOT analysis. PEOPLE: International Journal of Social Sciences 3(3).
Peng, S., 2018, November. The Status and Countermeasures of Rural E-commerce in Shandong
Province Based on SWOT Analysis. In 2018 International Conference on Economy,
Management and Entrepreneurship (ICOEME 2018) (pp. 197-199). Atlantis Press.
Tirawatnapong, R. and Fernando, M., 2018. Factors Influencing Bangkok People Purchase
Intention towards Tesco Lotus House Brand Products. International Research E-
Journal on Business and Economics 4(2). pp.15-29.