Analysis of Tesco's Internal Resources and Competitive Forces

REPORT based on
TESCO company

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Analysis of the firm’s internal resources and capabilities..........................................................3
Identify the key drivers of change in the external environment and evaluate their....................5
impact on the entrepreneurial activities of the organisation......................................................5
Evaluate the impact of the main competitive forces that are influencing entrepreneurial
activities and profitability...........................................................................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Tesco is a leading multinational company dealing in general merchandise retailer and
groceries. Its headquarter is situated in Welwyn Garden City, Hertfordshire, England. The
organisation has expanded its operations in seven countries across Europe and Asia with leading
market share in Hungary, Ireland and Thailand. The company was established by Jack Cohen in
1919 and its name was first appeared after Cohen had purchased a shipment of tea in 1924. Since
1990, Tesco has globally expanded its business with initially in eleven countries but due to
downfall in market in various countries, it now operates in seven countries. In terms of gross
revenue, the company is third largest retailer across the world and in terms of revenues, ninth
largest in the world (Domański and Łabenda, 2020). This report is based on the study of the
company Tesco, where its internal resources and capabilities shall be analysed using VRIO
model, its external environment shall be analysed through PESTLE and Porter's five forces shall
be used for analysing the impact of its competitive forces on profitability and entrepreneurial
activities.
TASK 1
Analysis of the firm’s internal resources and capabilities
The resources are the real assets for an organisation and the capabilities shall be defined
as a company's ability to make efficient use of the resources in order to give future advantage to
the organisation. For analysing Tesco's internal resources and capabilities, VRIO model shall be
used.
The VRIO framework is a tool for strategic analysis which is designed to help the
company to protect and uncover its capabilities and resource so that competitive advantage shall
be given to the firm for longer time (Lopes and et. al., 2018). It is a four question framework
which includes value, rarity, inimitable and organisation. The VRIO framework for analysing the
internal resources and capabilities of Tesco is discussed below-
RESOURCES VALUE RARE IMITABLE ORGANISATIO
N
Financial Resources YES YES YES YES
Employees YES YES YES -