Performance Evaluation of Tesco

This report provides a performance evaluation of Tesco, a multinational British grocery organization. It covers current trends in the supermarket industry, Tesco's financial performance since 2015, SWOT analysis, and growth opportunities. The report concludes with recommendations for Tesco's growth and development.

Performance evaluation of
TESCO

Contents
INTRODUCTION...........................................................................................................................3
Current trend in current supermarket...........................................................................................3
Tesco performance since 2015....................................................................................................4
Current financial performance of Tesco......................................................................................4
SWOT analysis of Tesco.............................................................................................................4
Growth opportunities and recommendations...............................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Performance evaluation is defined as the process in which organisational managers and
consultant examine as well as evaluate organisational performance and identify the factors that
affect the organisational performance. Proper evaluation of performance enhances organisational
ability to perform and gain all defined goals and objectives within time. In this report the chosen
organisation is Tesco which is a multinational a Multinational British grocery organisation
established in the year of 1919 by Jack Cohen. The headquarter of respective organisation is
situated in Weleyn Garden City, Hertfordshire, England, United Kingdom. It is the third-largest
retaining company in the world according to gross revenue. In this report current trend of
supermarket, financial performance, Swot analysis and growth opportunities are covered.
Current trend in current supermarket
There are various current trends that help the Tesco to sustain in competitive market and
gain various competitive advantages than other organisations. Through adopting various current
market trends respective organisation attain long-term growth objective and enhance customer
loyalty towards it. The organisation adopts all current market trends in order to sustain in
competitive market environment. Some current market supermarket trends are discussed below:
Seamless emergence of e-commerce: Tesco organisation evaluate current market trends
properly and improves organisational performance through providing online services by e-
commerce activities in order to fulfil orders more efficiently. Respective organisation starts
online home delivery options that enhance the customer base. In the e-commerce activities Tesco
conducts all buying and selling of goods and services by using electronic mediums such as
internet (Armstrong and Brown, 2017). In the current competitive business environment is
becomes necessary to follow trends to attain all goals and objectives in efficient manner.
Adoption of digital platform: Adoption of digital platform is the software that is designed
to simplify the user experience as well as it ensures the proficiency of software platform,
application or web sites. It is adopted by the Tesco to ensure the reach to wide range of
customers and enhance organisational performance (Hunter, 2020). There are various digital
platforms such as social media channels, internet marketing and various others are used by the
Tesco to spread awareness about organisational products among potential customers.

Tesco performance since 2015
Organisational performance is defined as the actual output as well as result of organisation in
effective manner. Various internal as well as external factors affects the performance of Tesco.
Respective organisation evaluates all these factors and implement proper strategies accordingly.
As Tesco is the one of the largest multinational grocery organisations so the revenue of
organisation is also very high. In October of 2015, the estimated pre-tax profit of Tesco is 74
million pound. The sales of respective organisation is increased by the 1.4 % according to the
statistic of 2021. In the year of 2018, sales as well as revenue is increased as compared to the
2017. Tesco gained the revenue of 53 billion pounds in the year of 2019. As it is measured that
there are tremendous growth in organisational revenue is noted from the 2015 to 2020 of around
2.1 % of its respective market. Organisation effective performance enhance the morale of
employees and retain them with organisation for long period of time (Lindblom and Kajalo,
2017). Organisational performance of Tesco is increased according to the statistics of revenue
and profitability. Organisational adopts various technologies and digital platform to enhance
overall performance level of organisation to gain sustainable competitive advantages.
Current financial performance of Tesco
Financial performance is defined as the subjective measure that reflects that how Tesco use its
assets in order to generate organisational revenue. It is the method of evaluating and measure
organisational overall financial positioning over a defined period of time. In the year of 2020
Tesco profit is rose by 360 million pound and come to 2.2 billion pounds as compared to
previous financial year that facilitates organisation to invest in other function areas in order to
expand business. In 2019/2020 financial year, the revenue of Tesco is almost 53 million British
pounds in the country of United Kingdom. Strong financial positioning facilitates the
organisation to perform all defined organisational function in proper manner to ensure the
growth and development of organisation in vast competitive environment (Putra, 2020).
Financial stability builds trust among all stakeholders retain them with organisation for long
period of time.

SWOT analysis of Tesco
SWOT analysis is defined as the strategic planning tool that is used by the organisation to
identify and evaluate organisational strengths, weakness, opportunities and threats as well. Tesco
evaluate all these factors and implement effective strategies and planning to enhance strengths
and opportunities and overcome the weakness and threats in order to grow business in
competitive business environment. All these factors of Tesco are discussed below:
Strengths: Strengths are defined as the internal sufficiency and advantages that facilitate
the Tesco to attain growth and development objective than other competitors. Tesco covers the
26.9% of grocery market share. The organisation performs strongly during the pandemic of
Covid-19 through using various online channels to conduct business activities. Tesco adopts
innovation very smoothly and the whole employees adopt the changes in effective manner that
enhance overall performance and profitability in competitive environment. The organisation has
skilled employees, effective management and its diversified stores are the biggest strengths of
organisation.
Weakness: Weakness are referred as the area of Tesco that requires improvement to attain
success in competitive environment. Tesco is the biggest competitor are Sainsbury, Asda and
Morrisons. There are various weaknesses that limits the organisational performance and
profitability are food safety issues, inventory management, shortage of products, quality control
and changes in leadership (Sener, 2019). High dependencies in the UK market is the biggest

weakness of Tesco That impacts on organisational performance. Improper accounting standards
is the problem that limits the organisation success in global market.
Opportunities: Opportunities are defined as the external factors that enhance organisation
performance and leads towards success. There are various market opportunities such as growth
of online grocery sales in the pandemic of covid-19, Strategic alliances with other brands and
joint venture activities enhance the growth and development opportunities. Use of digital
platforms and online shopping facilitates the Tesco to reach global customers and provide them
products and services according to their demand (Walters and Helman, 2020). Respective
organisation analyses all these market opportunities at their initial level and gain competitive
advantages through adopting them in proper manner.
Threats: Threat are the external factors that creates the disadvantages to the Tesco. In
external market environment various threats are raised that affect whole organisational
performance negatively. Implementation of Brexit impacts on business as there are various
restrictions are imposed of imports and market entries that impacts on supply chain of Tesco.
Economic recession as well as rising unemployment is the factor that enhance the financial
uncertainty of respective organisation. Tesco face the high competition form various competitors
such as Walmart, Asda and Sainsbury. On the other hand, covid-19 pandemic enhances the threat
level for the Tesco to survive in the competitive market environment.
Growth opportunities and recommendations
There are various growth and development opportunities for the Tesco to cover the wide
area of market through emerging market, Tesco has number of stores in various developing
countries that provides different products than groceries. Online shopping is the factor that
enhance sale of Tesco through adopting home delivery option. Strategic alliances in the most
effective growth opportunity in which Tesco develop business in partnership with other reputed
organisation that enhance organisational performance and customer base as well (Wickstrom,
2018). Apart from that joint venture is the option that provides various opportunities to Tesco in
order to enhance performance of underperforming branches to attain sustainable competitive
advantages.
To attain various growth opportunities, it is recommended to the organisation that it should
adopt the digital platform to promote organisational products and services direct to customers in
order to enhance sales and profitability level. The organisation initiates sales through using

various e-commerce and websites that ensures the organisation’s reachability to wide area of
customers. It is recommended that organisation understand customers buying behaviour their
needs, demands and preferences and offer them quality products and services in order to satisfy
as well as retain them with organisation for long period of time. Tesco should advertise and
promote organisation products on various social media channels to ensure global reach. It is
important for the growth and development that organisation identify the potential market and
apply suitable strategies to cover the whole market and take competitive advantages.
CONCLUSION
As per above report, it is concluded that performance evaluation is the necessary part of the
organisation to gain various market opportunities and overcome challenges to enhance overall
performance level of organisation. As Tesco is one of the leading organisations it evaluates all
current market trends and implement digital marketing and other trends within organisation to
enhance organisation profitability and performance as well. financial stability plays important
role in the success of Tesco. There are various growth opportunities are available in the
competitive market that help business to grow and develop in efficient manner.

REFERENCES
Books and Journals
Armstrong, M. and Brown, D., 2017. Job evaluation versus market pricing: Competing or
combining methods of pay determination?. Compensation & Benefits Review. 49(3).
pp.153-160.
Hunter, P., 2020. Corporate Strategy (Remastered) I: High Performance Strategy and
Leadership in a Volatile, Disrupted World. Routledge.
Lindblom, A. and Kajalo, S., 2017. Investigating the links between market orientation, marketing
capabilities and performance in the context of retailing: a structural equation model
approach. International Journal of Business Innovation and Research. 12(3). pp.337-
352.
Putra, H. Y., 2020, October. Fraud Detection at Self Checkout Retail using Data Mining. In 2020
International Conference on Information Technology Systems and Innovation
(ICITSI) (pp. 211-216). IEEE.
Sener, A., and et. al.,2019. Impact of commitment, information sharing, and information usage
on supplier performance: a Bayesian belief network approach. Annals of Operations
Research, pp.1-34.
Walters, D. and Helman, D., 2020. Performance Management: Value Drivers and Strategic
Value Builders. In Strategic Capability Response Analysis (pp. 75-98). Springer, Cham.
Wickstrom, M., 2018. Fiery Temporalities in Theatre and Performance: The Initiation of
History. Bloomsbury Publishing.