Management of Business - Tesco PLC

TESCO PLC.
Management of business

EXECUTIVE SUMMARY
 The research will focus on evaluating the
market position of Tesco and the change
strategy that might be undertaken by the same
in order to sustain in the competitive market
environment.
 The key changes in the organizational
operations are related to the assessment of the
market structure.
 Therefore, the research will delineate the
market competition and the position of the
organization while evaluating the strategies.

COMPANY BACKGROUND
 The concerned organization, Tesco plc, is a British
multinational grocery and merchandise retailer,
which is headquartered in Hertfordshire, England.
 The different developments that are undertaken
by the organization since its establishment in the
year 1919 have helped the same in maintaining
the competitive edge in the international markets.
 The revenue of the organization was recorded to
be around £55.9 billion whereas the net income of
the business was around £(54) million computed
in the year 2017.

ANALYSIS OF THE MARKET POSITION
Factors Explanation
Threat of new entrants (medium) Entrants like Amazon and ASDA have affected
the operations of the business through price
reductions and new product developments as
per the needs of the customers.
Bargaining power of buyers (high) The existence of different firms in the market
has provided the customers with a large
scope of choosing between the propositions
and thereby supported their power of
negotiating on terms of product quality and
pricing (Abrell-Vogel and Rowold
2014)
Bargaining power of suppliers (low) The bargaining power of the suppliers are
lower as the organization manages the
supplies on their own thereby affecting the
bargaining power of the suppliers
Rivalry among competitors (high) The concerned organization face high
competition in the market through the
existence of companies like Waitrose,
Sainsbury's and Morrison's.
Threat of substitute products (low) The organization face a less threat of
substitute products as they circulate unique