Challenges Facing Tesco: Quality, Marketing, and Scandals

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Tesco Business Project
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1. Executive summary...................................................................................................................2
2. Introduction................................................................................................................................4
3. Challenges/Problems Facing Tesco...........................................................................................4
4. Purpose of the Report................................................................................................................5
4.1 Company Objective........................................................................................6
5. Impact of Research on Stakeholders.......................................................................6
6. Evaluation and Analysis of Secondary Data............................................................7
6.1 Product and Service Quality.............................................................................8
6.2 Marketing Strategies.......................................................................................9
6.3 SWOT Analysis of Tesco.................................................................................11
6.4 Corporate Scandals......................................................................................11
6.5 PESTEL Analysis of Tesco...............................................................................12
7. Recommendations......................................................................................................................13
8. Conclusion.................................................................................................................................14
9. References

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1. Executive summary
Identifying Tesco's present challenges and related to current events was the goal of this
investigation. Secondary data about Tesco's difficulties were evaluated and analyzed, and the
conclusions were presented. Peer-reviewed publications from Google Scholar were used to
compile the data. The results from secondary data were also used to provide suggestions for the
firm to solve the concerns. Several problems affect Tesco, including decreased product quality, a
lack of marketing strategy, and corporate scandals. Due to quality difficulties, Tesco is losing
consumers and market share to its rivals, even though it is one of the world's largest retailers.
Several Tesco shops have been shut down in the United States and Japan, and elsewhere in the
world.
The company's inadequate marketing methods are blamed for the shop closings. Consumers in
Tesco's overseas markets were unsatisfied with the company's marketing methods. As a result,
Tesco has opted to continue with tried-and-true promotion methods rather than embracing more
modern methods like social media marketing and media advertising. Several controversies have
also engulfed Tesco, such as discovering horsemeat in Tesco-branded burgers and erroneous
accounting. The study's findings revealed the varied perspectives of Tesco's many stakeholders
on the company's current state of affairs. Problems with product quality hurt client satisfaction
and purchasing decisions. Customers are less inclined to make repeat purchases when the items
are of lower quality. As a result, the company's profitability suffers, affecting investors' returns. It
is not only customers, investors, and workers that suffer from bad marketing. The firm will not
sell its items if it identifies the correct customers via poor marketing. That means the business
will be less competitive and will not make any money. The company's failure to produce
revenues means that its workers will be laid off. The research presented suggestions for Tesco
based on the results of secondary data, which is analyzed. According to a proposal from the
report, Tesco has to gather data on the existing quality and consumer demands, educate
personnel, and use technology to enhance its goods and services.
Additionally, the corporation should use contemporary marketing trends like social media
marketing and efficient market entrance techniques like joint ventures to better understand its
target consumers' cultural preferences. The second proposal is that Tesco's auditors should be

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trained to reflect ethical or moral auditing procedures. The corporation may also put in place
regulations to guarantee that its accounting staff adheres to the highest standards of ethics. Tesco
may also engage public institutions required to supervise independent audits. Tesco can also hire.
As the last step, Tesco should guarantee its goods have the necessary components. These
suggestions will help the organization avoid any future scandals.
2. Introduction
UK-based Tesco Plc is a worldwide retailer. More than 360,000 people are employed by the
corporation, which has operations in the United Kingdom, the Republic of Ireland, and 11 other
countries across the globe. As early as 1919, Jack Cohen, the company's founder, sold unsold
excess food from a makeshift booth in East London. In 1929, the first Tesco shop opened in
Burnt Oak, Edgeware, north London, selling Tesco Tea (Tesco Company Profile, n.d.). Because
of its tremendous growth since then, the firm has opened numerous new locations and moved
into other nations. It expanded its offerings beyond food to include clothing, books and gadgets,
and financial services, including retail banking and personal loans (Awolowo et al., 2018).
Throughout its history, Tesco has maintained a strong financial position. Following $53.4 billion
in sales, the business made a group operating profit of £1,815 million (Tesco Company Profile,
n.d.). While being one of the world's most successful retailers, Tesco deals with various
difficulties that might harm its performance, image, and relationships with stakeholders. Reduced
product and service quality, bad marketing strategy, and different scandals, such as the horsemeat
affair, are only a few of the significant challenges (Rosnizam et al., 2020). As a result of these
issues, Tesco has seen its client base shrink and its profit margins contract. As a result,
management at Tesco must be aware of the many threats facing the firm to take the necessary
steps to counteract them. Stakeholder analysis demonstrates how the problems affect
stakeholders. Suggestions and findings follow a review and analysis using available data. Finally,
this study will outline difficulties encountered by Tesco.
3. Challenges/Problems Facing Tesco
While Tesco Plc faces several issues, one of them is the quality of its goods and services. For
example, Tesco sells a wide range of food, household goods, beverages, and clothing. Despite
Tesco's well-deserved reputation as a low-cost retailer, the quality of both its goods and services
has deteriorated, resulting in a subpar shopping experience for its customers (Rosnizam et al.,
2020). This has resulted in a loss of clients to rivals that provide better services and higher-