Performance Evaluation of Tesco

This presentation provides an evaluation of the performance of Tesco, a famous British multinational retailer. It covers topics such as current trends in the supermarket sector, financial performance, SWOT analysis, growth opportunities, and competitors analysis. The presentation concludes with recommendations for Tesco to take advantage of opportunities and resolve legal issues.

PERFORMANCE EVALUATION
OF TESCO

Introduction of Tesco
Tesco PLC is one of the famous British multinational general and groceries
merchandise retailer offering customers with best quality products and services
from 1919. Basically, this organisation was founded by Jack Cohen and in
current time, it’s headquarter is at Welwyn Garden City, Hertfordshire, England,
United Kingdom. At present, this famous retailer is considered as third-largest
one at international level in terms of gross revenues and on the basis of revenue
it is said to be ninth-largest one. In United Kingdom, around 28.4% is said to be
the market share of Tesco PLC. In the year of 2008 there were approximately
3.751 stores and in current year, company is holding around 7,005 where a very
huge number of skilled employees i.e. 450,000 are continuously serving to the
customers with full efforts in order to satisfy their need and requirements.
Tesco PLC is one of the famous British multinational general and
groceries merchandise retailer offering customers with best
quality products and services from 1919. Basically, this
organisation was founded by Jack Cohen and in current time,
it’s headquarter is at Welwyn Garden City, Hertfordshire,
England, United Kingdom.

Current trends in supermarket sector
Shoppers are increasing or decreasing?
In relation with supermarket sector, there is a shift has been
observed from physical stores to online. Therefore, it can be
said that number of shoppers who purchase products from
physical stores are continuously decreasing. On the other hand,
these numbers are declining due to a number of reasons like
impact on financial conditions due to COVID-19 and so on.

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Performance of Tesco
Financial performance means how a company is using its assets
and generating profits. TESCO, always focus on customers
and provide them goods and service at low price which is the
reason of their profitability. The sales have continuously
grown in UK from 2016 to 2019 but in Asia the sales show a
decline in 2018 and again decreased in 2019.

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SWOT Analysis of Tesco
STRENGTHS
TESCO has largest network of grocery stores in Britain with
quality services for its customers. Tesco try to reach out as
many customers they can with the help of their strong and
efficient distribution networks. Tesco offers them cheaper
products with same quality. Therefore, building customer
loyalty towards their brand. They try to penetrate UK market by
intermediating different brands.

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WEAKNESSES
The company has inefficient management due to participation in
different types of field. Tesco has its roots in different fields.
Some of the sectors generate profits like Grocery and retail but
some of them are not so profitable and they should be
divested.

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OPPORTUNITIES
Growing market with emergence of other brands with the
company. Tesco is emerging with new brands for increasing
their growth level and serving the customers in an innovative
way. Although Tesco has expanded itself over 14 countries
but the companies has great potential to grow.

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THREATS
The company has price wars with its competitors which leads to
loss of revenue and increase of costs for the company. Tesco
faces other threats e.g. price war from Aldi and Lidl. These two
competitors are well-known as discounters, and therefore, it is
very difficult for Tesco to compete with them on price. Pricing
policies of these two companies have a significant impact on
Tesco’s profits.

Growth Opportunities
Sales explosion due to digital channelization. customers can
order grocery and can get deliver at any place. Tesco offers
this service for the convenience of its customers. Tesco offers
mobile app facility to its customers which is a demand of this
digital era.

Competitors Analysis
Porter's Five Forces Model
It is a tool for businesses to understand their competition and the
strategies they can use to compete in the marketplace. It also
helps to increase attractiveness as well as profitability of the
organisation by understanding all the 5 factors. Let's talk how
these factors impact TESCO and how the company has gained
competitive advantage.

Conclusion
Considering the above mentioned report. It is concluded that
Tesco is undoubtedly a very big multinational brand. But its
competitors are also big and growing aggressively. Therefore,
it should take advantage of as many opportunities as possible.
The company should resolve legal issues and clear its brand
name from all the legal proceedings, and come forward as
clean. So the people can trust the brand name again.

References
Adewuyi, A.W.A.W., 2016. Ratio Analysis of Tesco Plc
Financial Performance between 2010 and 2014 in Comparison
to Both Sainsbury and Morrisons. Open Journal of
Accounting, 5(03), p.45.
Guo, L. and Wang, Z., 2019. Ratio analysis of J Sainsbury plc
financial performance between 2015 and 2018 in comparison
with Tesco and Morrisons. American Journal of Industrial and
Business Management, 9(2), pp.325-341.