Principles of Marketing: PESTEL and SWOT Analysis of Tesco Plc Ltd

This report provides a PESTEL and SWOT analysis of Tesco Plc Ltd, a leading food retail company in the UK. It examines the external and internal environment of the company and provides recommendations for growth and challenges.

PRINCIPLES OF
MARKETING
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PESTEL analysation....................................................................................................................3
SWOT Analysation......................................................................................................................4
Recommendation.........................................................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................7
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INTRODUCTION
Principles of marketing refers to the plans of action which the company used in order to
enhance the productivity and profitability of the organisation in effective as well as efficient
manner. the principles of marketing consist of the seven element that improve the value of
company in domestic as well as international marketplace. the principles are product, price,
promotion, place, packaging, positioning and places ( Wajid and Zafar, 2021).
The present report is based on the food retail industry which is leading the market of the UK
since many years named as Tesco Plc ltd. It is renowned as the British multinational grocery
origination which offers wide range of the product and services to the customer. The headquarter
of the organisation is in Welwyn Garden City, United Kingdom.
The present report will determine the external and internal environment of the organisation with
the utilization of different models such as PESTLE and SWOT analysation in appropriate
manner. along with that the report determine the value of the company in the marketplace and
provide growth aspects for the forthcoming challenges.
MAIN BODY
PESTEL analysation
Political factor: as the company is leading highest numbers of the stores all over the world due
to good political relations with the other boundaries. Different political parties increase the taxes
in various countries because of that the organisation face difficulty in manging numbers of the
stores -at the same time. As the government increase the taxes the potential consumer reduces the
buying powers which affect the sales of the company in the negative manner. along with that the
organisation is not able to generate high profit from the market even after adequate efforts of
enhancing productivity.
Economic: due to the inflation the prices of product and services increases which allow the
customer to shift toward different brands. Along with that it also increases the chances of
unemployment which affect the value of the company. apart from that the company is not able to
generate gross profit as import and export duty increases the prices of commodity. The labour
cost also rise continuously as the scale of the demand raises is the marketplace ( Voukkali and
Zorpas, 2022).
Social factor: the modern era the taste and the preferences of the consumer is changing rapidly
which shuffle the sales of the company. along with that the people are expecting fast delivery
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and flexibility of shopping. The company is quite concern about the health and safety of the
consumer as well as employees of the organisation. due to the advancement the potential
customer expecting more product option at one place. Shifting of the attitude of the customer
leads to the lowering the supply of the product in the marketplace.
Technological factor: in the previous year the company is having the issue of lower customer
but due to the technology the company build the trust among the consumer. In the modern era or
the world of the technology the company is using RFID in order to increase the satisfaction of
the consumer. Apart from that the potential buyers enjoy the service or faculty of online
payment. Moreover the Tesco offers e commerce services to the potential customers that increase
the value of the company in domestic as well as international marketplace ( Musa and Suryono,
2022).
Legal factors: the rules and regulation imposed by the higher authority directly affect the sales
of the company. as per the legal system the company is not able to pay less wages to employees
as decided by the government. The company find difficulty in operating different laws of various
countries which are unique as per the condition of nation. In the past year the also face the legal
case related to low pay to the workers of the company that also decreases the brand value in the
marketplace.
Environmental issue: the company is dealing with the pressures of the government in order to
control or address the environmental issue. In context to that the company launched the different
plans of action for instance remove, reduce and reuse and recycle the things which affecting the
planet. The company announced that in forthcoming period of time the organisation will reduce
the carbon footprint by 50%.
SWOT Analysation
Strength: the Tesco is leading one of the best supermarket in the UK by generating high sales
and the revenue in the marketplace. As per the record of the company the organisation raise the
descale of profit by 29% every year. Along with that the company maintain the relationship with
the potential customer which help the company in satisfying the buyers in adequate manner.
beside all that the company is having fruitful market share in domestic as well as international
marketplace. the organisation also expend the business all over the world buy opining the stores
in various geographical area ( Harrikari and et.al 2021). With the assistance of that the company
is able to provide effective services to the potential customers. Beside this company offer wide
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range of product and services to the buyers that worked as the comparative advantages of the
organisation. In thew past year the company achieved many international awards that boost the
brand value of the firm.
Weaknesses: in some era of the world the company is not able to operate the business in
successive manner. the company faced certain penalties for showing the the false account report
that also decrease the values of the company and customer is not able to trust the brand. The
higher debt and financial error of the organisation is the biggest weakness of the company that
also affect the profit of the company. in some are the employees of the company is not
performing well that reduce the productivity and profitability of the company. shifting toward the
Clubcard increase the controversy in the marketplace as the company deduct the points without
informing thew customers of the company.
Opportunity: the organisation has the opportunity to enter into various intentional market with
the amazing features of the company. in order of grow the company has the plan of action to join
the hands with the other brands that are already acquire the market value. Due to that the
company is able to determine taste and preferences of the potential customers belong to the
ghosted countries ( Djellabi, et.al 2021). Moreover the company can expend the platform by
utilizing the online shopping platform for the comfort of the customers that also attract the
attention of the new customers. The company also .provide the caseless stores and cardless
payment services to the consumer that will develop the interest of the customers in effective
manner.
Threats: due to the high competition in the marketplace the company is finding difficulty in
expending the network all over the world in effective as well as efficient manner. the continues
growth of the comparative company is the biggest threats of the company that attract the
potential buyers of the company that further result in decline in the profitability of the
organisation. Due to dynamic nature of the economy shuffle the taste and preferences of the
customer because of that reason the people shifting toward the necessary goods or found
substitutes of lower prices product and services. The rules and regulation or the policy of the
government affect the operation of the company and create difficulty in managing the business
(Benzaghta and et.al 2021).
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Recommendation
In order to acquire full control on the domestic as well as international marketplace it is
important to considered some points. Furthermore this recordation help in dealing with the
forthcoming challenges in effective as well as efficient manner. the recommendation is
mentioned as follow:
 The company should offer wide ranges of commodity and services that are unique in the
market that will asset in attracting the customers attention.
 The organisation should adopt the innovative and creative tools and tachinids in the
business in context got survive in the marketplace.
 Along with that the leader of the organisation should track the performance of the
employees and deliver the feedbacks on the regular bases in context to increase the
efficiency of the workers at the workplace (Bakhat, and Marroun, 2022).
 Moreover in order to increase the value of the company the company should adopt the
online platforms such as Facebook, Instagram, chrome, google, pointers etc.
 With the assistance of technology the company can improves the performance and
satisfaction of the consumer by collecting the reviews from the buyers.
 Along with that the company can increase the satisfaction of the consumer by resolving
the problems of the customers.
Conclusion
From the above report it will concluded that the Tesco is the powerful company but also dealing
with the various issues in the domestic as well as international marketplace (Abdullah and et.al
2022). the order indicates that multinational organisation like Tesco need to implement various
plans of action in order to improve the performance and profitability of the company. in context
to that the company should adopt the digital marketing platform for the marketing of the product
and satisfying the numbers of the customers from the marketplace. furthermore the study
indicated major steps for the further growth and prepare the company for the forthcoming
challenges.
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References
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Benzaghta and et.al 2021. SWOT analysis applications: An integrative literature review. Journal
of Global Business Insights, 6(1), pp.55-73.
Djellabi, et.al 2021. SWOT analysis of photocatalytic materials towards large scale
environmental remediation. Current Opinion in Chemical Engineering, 33, p.100696.
Harrikari and et.al 2021. Pandemic and social work: Exploring Finnish social workers’
experiences through a SWOT analysis. The British Journal of Social Work, 51(5), pp.1644-
1662.
Musa, E.I.O. and Suryono, Y., 2022, January. Learning Challenges During New Normal Era
Using a Combination of SWOT-PESTEL Analysis. In 5th International Conference on
Current Issues in Education (ICCIE 2021) (pp. 358-362). Atlantis Press.
Voukkali, I. and Zorpas, A.A., 2022. Evaluation of urban metabolism assessment methods
through SWOT analysis and analytical hierocracy process. Science of The Total
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Wajid, M.A. and Zafar, A., 2021. PESTEL Analysis to Identify Key Barriers to Smart Cities
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