Analyzing Competitive Environment and Logistical Operations of TESCO

Managing Information and
Technology

Table of Contents
INTRODUCTION...........................................................................................................................3
Background..................................................................................................................................3
Product and services....................................................................................................................3
MAIN BODY...................................................................................................................................4
Analyse the competitive environment.........................................................................................4
Inbound and Outbound Logistical operations of TESCO............................................................6
Support Activities in Porter's Value Chain Analysis of TESCO.................................................7
TESCO's Value Adding Services ...............................................................................................8
Reflecting how TESCO can improve its operations by using innovative IT ideas ....................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Tesco is the third largest retailer in the world in terms of gross incomes. In the middle of
1990s, Tesco opened its stores in 14 countries across Asia Europe, and North America and Tesco
overtook Sainsbury for becoming market share leader in the UK food market. Tesco provide
consumer goods, telecommunications and financial services online and grocery home shopping
service at home. Tesco is involved in the business that offering food, non-food and other
retailing services. It operates various type of grocery store formats that offer trade good, such as
fresh produce, wines and spirits, in bakery stores, ready-meals and sandwiches. The company is
developing, reacting to new thing and opportunities and many introduce.
Background
It is the largest supermarket in UK. Tesco is founded in 1919. The founder of Tesco is
Jack Cohen son of polish jewin Tailor. The first Tesco store was opened in 1929 in burnt oak,
Edgware Middlesex. UK trading operations of Tesco is the biggest within the group with all
over 3300 stores and more than 3,00,000 employees (Tesco PLC SuccessStory, 2019).
It is listed in London stock exchange market. Tesco at present control 30% of the grocery market
in UK. In 1960, Tesco accepted special division in its bigger stores called Home 'n' Wear to
conveyance higher-margin, non-food merchandise, including clothing and home items, and in
1956 Tesco work with 900 supermarkets or stores. Tesco has policy of satisfying content and
ability and affecting motivations in view of bonus for substance better development and high
returns for stakeholders.
Product and services
Tesco Extra — Tesco extra shops are established in outside hypermarket that product range
widely in the range, even though some outside area is the heart of that location. The Tesco's
biggest shop of Tesco extra is in England.
Tesco Superstore- Tesco superstores are also a largest supermarket like a Tesco extra
hypermarket and keep a little of quantity of non-food items or provision of grocery. Tesco
superstore are only sold a branded product.

Tesco express- Tesco express store are sold such product as sweets, biscuit, fizzy drinks, and
chocolates (Tesco PLC — Company Profile, Information, Business Description, History,
Background Information on Tesco PLC,2020). Tesco express shop is vicinity of small retail
business shops that stock scope of everyday items like- coffee, snack foods, soft drink tobacco
products.
Tesco metro –These shops are situated in the outside city areas' railway station and inner city
area of high street. Tesco metro shops are shape and size between Tesco superstores and Tesco
express.
One Shop — It is the smallest shop in UK divided into many small shops that are too smaller
from Tesco express shops. In these shops selling product rate are higher and one shops are run as
a separate shop. It is open each and every day for selling small type of grocery items, alcohol and
newspaper.
Tesco made great planning or control all over its capacity supply chain demand chain and
quality for achieving their long term goals and objective. Tesco has clear organizational structure
and give many job opportunities (management, graduate, school-leaver and apprentice posts).
MAIN BODY
Analyse the competitive environment
Porter's five forces is a model to understand the competitive forces which have an
influence on the company so that the organization can find out their strengths and weaknesses.
This can be used in any segment which is going to be very helpful for the organizations so that
the company can have a better functioning for themselves. This is a competitive strategy for
organizations so that they can understand and make decisions for the future accordingly. The five
forces which are included in this factor are threat of substitute, competition in industry, power of
suppliers, power of customers and potential of new entrants. This is going to be a threat for the
organization but if there are decisions which are made accordingly then Tesco can have a better
functioning for themselves. Tesco is using technological information so that they can reach out
the customers better and faster than the competitors in market.
 Threat of substitute (Medium)
Tesco is providing the customers with low prices and low quality of products so that they
can have a better competitive advantage in market. Tesco has Sainsbury's and ASDA has the
major competitors in market and that is why Tesco has to make more decisions and use strategies