Tesco Challenge

This presentation analyzes the performance of Tesco, current trends in the supermarket sector, and provides recommendations for Tesco's improvement. It also includes a SWOT analysis of Tesco and the financial performance of Aldi and Lidl.

Tesco Challenge

 Introduction
 Current trends in supermarket sector
 Performance of Tesco since October 2015
 Current financial performance of Aldi and Lidl
 SWOT analysis of Tesco
 Recommendations for Tesco
 Conclusion
 References
Table of content

Tesco is one of the biggest supermarket chain of United Kingdom
which is operating business all around the world. The entity have
captured a large market share by delivering best quality of
services to all the customers. This presentation is based upon
analysis of the organisation. It includes the trends in super market
sector, SWOT and analysis of performance of Tesco. Along with
this, financial performance of Aldi and Lidl is also assessed in this
presentation.
Introduction

There are various trends in supermarket sector which are shaping the whole industry. All of them are as follows:
 Now a days physical stores are going digital which means most of the companies are providing facility of online
shopping and deliver goods at door step of clients according to their requirements.
 Social commerce in supermarket industry is increasing massively because it helps to attract large number of
customers. For this purpose, supermarkets are joining social media such as Facebook, Instagram etc. so that they
can became social and connect with the customers.
Current trends in supermarket sector

In year 2015 Tesco faced a loss of 6.4 billion pounds which affected its market image and performance in
the supermarket industry. In this year company's profits were 354 million pounds which were decreased
from 779 million. It shows that the year was not good for the company. In order to overcome this type of
situation the management decided to implement new policies which has led the enterprise towards
development.
Performance of Tesco since October 2015

The financial reports of Lidl are hosing that annual revenues of the company are more than 84 billion pounds per year
which shows that the financial position of the company is very good. Employee strength of the entity is 315000 which
is facilitating it to execute all the operational activities in systematic manner. Aldi is also a largest company in the
supermarket industry which is generating revenues of around 45 billion pounds on yearly basis.
Current financial performance of Aldi and Lidl

 Strengths: Market share and image of Tesco is very good which is resulting in higher profits and revenues for the
organisation.
 Weakness: Operating profits of the company are very low which is affecting its operational performance.
 Opportunities: Tesco can provide facility of online shopping to its clients along with home delivery services for
the purpose of attaining growth in future.
 Threats: The competition in the retail sector is very high and the major competitors for Tesco are Sainsbury,
Waitrose limited etc.
SWOT analysis of Tesco

In order to regain the market share and improve profit performance Tesco is recommended to pay attention towards
following points:
 Jack's Discount store should be expanded by the enterprise as it will help to attract large number of customers.
 Tesco have faced the challenge of inaccuracy in final accounts therefore the company is recommended to follow
appropriate principles and accounting concepts so that possibility of such issues could be reduced in future.
Recommendations for Tesco

This presentation concludes that all the companies which are operating in supermarket sector are required
to pay attention towards the trends which are taking place in the industry as it can help to formulate
effective strategies. If the financial performance of an entity is weak then it should make sure that
appropriate principles and concepts are followed by it or not.
Conclusion

 Wood, S., Coe, N. M. and Wrigley, N., 2016. Multi-scalar localization and capability transference:
exploring embeddedness in the Asian retail expansion of Tesco. Regional Studies. 50(3). pp.475-495.
 Reid, W. and Myddelton, D. R., 2017. Analysis of Tesco’s 2004 accounts. In The Meaning of
Company Accounts (pp. 267-281). Routledge.
References

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