Business Consultancy Project

This report provides an analysis of Tesco Express in terms of its internal strength and opportunities that it can gain. At the same time, the report analysis the external scenario of the shop so that the threats received by the store can be analysed. The analysis of the BCG matrix provides an idea about the growth and share that Tesco Express have in the markets of United Kingdom.

Running head: BUSINESS CONSULTANCY PROJECT
Business Consultancy Project
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Table of Contents
Introduction................................................................................................................................2
SWOT Analysis.........................................................................................................................2
PEST Analysis...........................................................................................................................5
BCG Matrix Analysis.................................................................................................................7
Conclusion..................................................................................................................................9
Bibliography.............................................................................................................................11

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Introduction
Tesco Plc is one of the most reputed grocery stores in the United Kingdom. The store
operates throughout the country and because of this; it has various shops all across the
country. One of the shops that Tesco have is the Tesco Express. Tesco Express shops are
neighbourhood convenience stores that are established at about 200 sq meters
(Tescoexpress.in 2018). The main stocking of the stores is that of the food supplied by Tesco
Plc along with other daily consumable products such as biscuits, chocolates, sweets and so
on. These shops are usually located in busy city-centre districts along with small towns and
villages. In 2010, a small controversy was seen in the company that had witnessed claims that
Tesco Express was charging a price for the products it manufactured (Tescoexpress.in 2018).
The controversy was later cleared by the analysis that costs in these shops need to be high as
it is smaller than the parent store.
The report focuses on the analysis of Tesco Express in terms of its internal strength
and opportunities that it can gain. At the same time, the report analysis the external scenario
of the shop so that the threats received by the store can be analysed. The analysis of the BCG
matrix provides an idea about the growth and share that Tesco Express have in the markets of
United Kingdom.
SWOT Analysis
Strength
 Well known across the country
 Conveniently placed
 Provides opportunities for purchase of
daily products
Weakness
 Expensive
 Not much promotion
 Can be easily disposed off

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Opportunity
Strategic alliances
Can reach remote areas across the country
Opportunity to outgrow the main store
Threat
Set up of large companies
Lack of labour
Pressure from stakeholder
Table 1: SWOT Analysis
(Source: Created by author)
The analysis of Tesco Express shows that the store has huge opportunities and
effective strength to become one of the best convenient stores in the country. It has been seen
that the strength of Tesco Express lie in the fact that it is well known across the country. As
stated by Madhavaram, Hunt and Bicen (2017) reputation of an organisation and the stores
can have a huge impact in the setting up of companies. In the case of Tesco Express, the
reputation of Tesco Plc and the growing reputation of Tesco Express can provide the store
with abilities to progress. At the same time, other strengths of the store are that it is placed at
convenient locations.
As seen from the analysis, Tesco Express is located in busy city-centre districts. This
can provide ample scope for people to purchase products on a daily basis. Hence, the shops
can increase the rate of sales. Along with this, it is seen that provides products that can be
used on a daily basis. For example, products such as cookies or chocolates can be consumed
at any time of the day and can help in curbing the hunger of person. Hence, these strengths
provide Tesco Express with an opportunity for improvement.
Along with the strengths, the weakness of the store is that it is deemed to be
expensive. As seen from previous research, Tesco Express has been expensive mainly due to
the fewer amounts of sales of the company. It is necessary for Tesco Express to ensure that
the prices of the products become less or pocket friendly so that the opportunity of growth of

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the store increases. Another weakness of the store is that it does not gain much promotion.
Unlike its parent company, Tesco Plc, Tesco Express is less promoted mainly because it is
located at areas that are not highly populated.
As pointed out by Gollay et al. (2016) the strategies that are adopted by Tesco
Express in terms of understanding its promoting its stores need to comply with the
expectations of the customers. At the same time, it has been seen that with the emergence of
large companies in the areas, Tesco Express can be easily disposed off. The location of the
store is convenient and takes a small amount of land space. Hence, similar convenient stores
from competing companies like Aldi may have a negative impact on the stores of Tesco
Express along with its opportunity of growth.
Therefore, it can be said that set up of large companies can be a threat of the store.
This is mainly because unlike Tesco Express, other companies may set up its parent
companies within the market; hence, this can provide extra competition to Tesco Express. As
pointed out by Grant (2016) competition at any level is good for the development of a
company. Hence, despite the threat, Tesco Express can use this as an opportunity for growth.
At the same time, other threats include the lack of labour. Unlike its parent company, Tesco
Express cannot effort to recruit large labour in the stores due to its limited size.
However, the number of items in the store needs to be high so that customers can be
satisfied with the stock. Thus, this can be a threat for the store, as customer satisfaction in
terms of addressing the needs of the people cannot be gained. Apart from this, pressure from
stakeholders can be a threat. The pressure can be mostly from the customers as the
expectations remain of good quality and variety of products at a convenient price. Hence,
these threats can be considered as negative factor for Tesco Express. Despite this,
opportunities for improvement and growth can be gained by the store.

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One such opportunity that Tesco Express may gain is that of strategic alliance. It can
be seen that in order to continue with growth in the market, Tesco Express can create
partnerships with other local stores that sells complimentary products. With this, opportunity
can increase that can buoy Tesco Express to high standards in the markets. The fact that the
stores can reach remote areas is another opportunity for growth and expansion. As stated by
He (2015) it is important for every organisation reach its target market irrespective of the
areas in which it operates. The advantage of Tesco Express is that it is placed in areas such as
the towns and villages across England.
Therefore, the customer base is strong which can help Tesco Express to gain more
profit. This can provide it with an opportunity to outgrow the parent store. With a high
increase of customers, able competition, pocket friendly prices Tesco Express can become a
famous store in the country and can seize its partnership with the parent company and form a
company of its own. Thus, after analysing the internal capabilities of the store, the external
opportunities and threats that Tesco Express may gain can be analysed.
PEST Analysis
Political
Tax measures adopted by the Government
can be a threat
Economical
Signs of recovery of the economy can be
considered as an opportunity
Social
Increase in population due to migrants and
increase in life expectancy rate which is an
opportunity
Technological
Technology can help in developing a steady
supply chain management system
Table 2: PEST Analysis
(Source: Created by author)

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The political factor of United Kingdom can provide major threat for the growth of
Tesco Express. As observed by Zakharova et al. (2015) the Government of the country can
be a threat for organisations as it has taken initiatives to impose taxes on the products. Hence,
with a high price of products that already exists at the stores, Tesco Express may be faced
with the threat of losing customers. Hence, the political factor can be a huge threat for the
store as with an increase in taxes the prices of the commodities need to decrease.
The economical condition of UK has been gradually increasing ever since from the
financial crisis in the country. With a high rate of financial growth rate in the country, Tesco
Express can enjoy a growth in the supermarket stores. Therefore, more than one of the
products of the store can be considered as a high revenue-developing commodity. As stated
by Shanbhag, Dutt and Bagwe (2016) customers may reduce the spending on lower products
and try to purchase products that are more expensive. Hence, recovery from the economic
recession of the country can help in stimulating the growth of Tesco Express in the country.
The social factor can be considered as an improvement in the UK mainly due to the
growth of the population. The number of migrants as well as the increase in life expectancy
rate in the country has provided Tesco Express with an opportunity to target more customers.
According to Suh (2014), targeting the migrants can be considered as one of the effective
strategies hat Tesco Express can pull off as it can help in continuous and bulk sale of its
products. Hence, opportunities for growth based on this area can help Tesco Express in its
quest for expansion.
As stated by Wang and Ge (2013) technology can be considered as one of the reasons
for success of many businesses across the world. Tesco Express can improve its supply chain
management so that it can enhance cost efficiency of the store. This can help in gaining
opportunities for possible competitive advantage if the store faces stiff competition. The use

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and development of technology by Tesco Express can reflect the core competencies that the
business possesses and the manner in which technologies can help in the growth of the store.
BCG Matrix Analysis
Cash Cow
Tesco Express can use the farmers as a
means of developing the business further
Star
Tesco Express can focus on the development
of chocolates to enhance the growth of the
store
Question mark
Eliminate business units that remain in areas
with less rainfall
Dog
Electronic goods provided by Tesco Express
Table 3: BCG Matrix Analysis
(Source: Created by author)
The analysis of the BCG matrix of Tesco Express suggests that the store may have an
opportunity for growth in a strategic manner, provided the store pays attention to strategies
while conducting its business. Analysis of every factor related to the BCG matrix can be
taken into consideration so that the store can increase its business in the market.
As stated by Hueske, Endrikat and Guenther (2015) every organisation need to
include business units that provide the main source of earning. In the case of Tesco Express,
business units of the store are underdeveloped. This is mainly because the store is a
subsidiary and the earnings of the store are normally processed for the development of the
parent company. However, as observed by Hubbard, Rice and Galvin (2014) opportunities
for redemption are always possible. An example can be provided that provides details about a
critique suffered by Tesco Express over the quality of the food products that it supplies. In

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order to ensure that the food supplied is fresh, Tesco Express has managed to create small
business units by collaborating with the farmers within reach of the location of the store. This
provides opportunities for the development of the business units and some of the direct sales
by the farmers can be used by the store for its benefits.
At the same time, the stars provide an opportunity for growth in the market. In the
case of Tesco Express, one of the products that the store can focus for future growth and
development is that of the chocolates. As observed by Navarro-García, Arenas-Gaitán and
Rondán-Cataluña (2014) the stars provide an opportunity for identifying a particular service
or product that can help in the growth of an organisation. For Tesco Express, the
development of chocolates can be the star of the company mainly because it can help in
curbing the food requirements of the customers. Any people can consume chocolates while
travelling from one place to another and the fact that the food product is light in consumption
can provide the customers opportunities to purchase more of the product. Therefore,
development of the chocolates based on the resources available can be considered as an
important factor for Tesco Express.
As stated by Torquati et al. (2018) every organisation has certain business units that
produce fewer amounts of profits. In the case of Tesco Express, the unit in focus is that of the
farmers. However, farmers all across the country cannot produce similar fresh products at a
consistent level. Therefore, it is necessary to identify those business units and ensure that
different strategies be developed for the growth of the market. Healthy crops can grow if the
rain in an area is heavy. In places particularly at the Western side of the country, rainfall is
less as compared to other areas. Hence, Tesco Express in those areas can expect less
productivity from the business units. For this reason, it is necessary for the store to depend
upon the other areas in the business so that the store can grow steadily in the existing market.

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However, Medina and Belanger (2017) stated that generation of less income from one
business may not a negative effect on the overall growth of the store.
The last segment of the analysis is the dog that defines the non-satisfactory products
of an organisation. Such products have low market share and subsequently a low level of
growth. In the case of Tesco Express, such a product can be the electronic goods that it sells.
These are categorised as every day use but most people tend to purchase food products from
Tesco Express. Hence, the electronic goods can be considered as having provided a low
market share that Tesco Express can dispose off. Instead, Tesco Express can introduce
different brands and variety of chocolates so that it can mitigate the cost of losing out cash
flow from the sale of electronic goods products. Hence, it can be said that Tesco Express
need to understand the factors that exist behind the low growth of the store and eliminate it
for providing more space to the star products.
Conclusion
Thus, it can be concluded that in order to continue with a business in a successful
manner, it is important that every organisation consider analysing the internal as well as the
external strategies. This can help in understanding the required strategies that need to be
adopted so that organisations can be successful and at the same time maintain competition in
the business. One of the basic opportunities that can be gained from this analysis is that
organisations can understand self-strength and the manner in which it can imply it to
eliminate any form of threat in the business. In the case of Tesco Express, the store needs to
come out from the shades of its parent company so that it can be successful. The analysis of
the internal capabilities as well as the external factors can help Tesco Express to continue its
dominance in the market. At the same time, with the application of the BCG matrix, Tesco

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Express can understand the level of growth that is required in the market and the strategies
that need to be involved within the market.

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