Current Position of Tesco

The Current Position of Tesco in
relation to the competitors and the key
issues that is impacting on the
organisation

Table of Contents
The Current Position of Tesco in relation to the competitors and the key issues that is impacting on
the organisation.....................................................................................................................................1
INTRODUCTION.................................................................................................................................3
Environment Analysis of Tesco.............................................................................................................3
SWOT Analysis of Tesco......................................................................................................................8
CONCLUSION...................................................................................................................................12
RECOMMANDATION......................................................................................................................12
REFERENCES....................................................................................................................................14

INTRODUCTION
Tesco is a multinational retail organisation based in UK. This British organisation was
founded in 1919 and is headquartered at Welwyn Garden City Hertfordshire, England. This
study includes analysis of current position of Tesco in relation with its competitors. The key
competitors of Tesco are Marks and Spenser and Sainsbury’s. These organisation are also
multinational retail organisation are based in UK. This study for the analysis includes internal
and external analysis of Tesco and which includes its PESTLE analysis to determine the
impact of external factors on position of Tesco and another is SWOT analysis to determine
strength and weaknesses of Tesco. For the purpose of internal analysis of Tesco this study
includes analysis of factors like Product, Marketing and Management issues this analysis will
contribute in analysing the condition internal environment of Tesco. Later on the basis on
internal and external analysis of PESTLE factors this study summarise by SWOT analysis
which includes determination of Strength and Weaknesses and what opportunities and threats
can be presented in front of Tesco on the basis of external analysis of the company.
Environment Analysis of Tesco
Environment analysis refers to identification and analysis of the factors of internal and
external environment of the organisation. Internal environment refers to factors which exist
inside organisation and affect the organisation and on the other hand external analysis refers
to analysis of the factors which are not part of organisation neither are inside the organisation
but affect the operations of organisation. It is very important to analyse internal and external
environment analysis so that condition of Tesco in relation with competitors can be
determined.
External Environment Analysis
External environment consist of two types of environment which are Macro Environment and
Micro Environment.
Macro Environment of Tesco can be analysed through the framework which is known as
PESTLE. This provides information on following factors related to Tesco-
Political Factor

This includes effect of political factor and political environment on the operation of
Tesco. This includes what impact political rules and regulation make on Tesco, impact of
political ideologies of different countries. Tesco being a multinational organization have to
consider impact of political environment of all the countries in which it functions to
determine its condition. The company operates in around 12 countries and that is why
political factors of 12 countries affect the company. These factors are political instability,
impact of political relation of other countries with UK, Laws and regulations for companies
from other countries. For example if relations of UK are good with other countries in such
case it will be easy for Tesco to function in that country with less restrictions and business
difficulties.
Economical Factor
Economic factor refers to economic condition of a country and its impact on the
operations of Tesco. These factors are unemployment rate, cost of labour, and economic
condition of people and citizen of that country. For example in 2018 minimum wage rate in
UK increased to 4.4% and this cost Tesco millions of pounds in UK. There are other factors
as well like profit and cost, prices in various countries and cost of operations in all the
countries which may vary from one another. Other important factors are tax rates, rate of
interest and borrowings. If these are high eventually either cost of the product increase or
profit of Tesco decrease and both situation are not favourable.
Social Factor
This factor does not consist any of regulations and rules but is rather affected by the
customers of the Tesco. This includes customer buying trend. Taste and preference of the
customers and what customers prefer and want with their retail shopping affect this factor. In
relation with this fast delivery, effective and attractive offers and discounts and goods return
policy. Tesco if is able to follow all these consumers norms then it is able to secure a
favourable condition in competitive market. Consumers also seek to buy high quality
products at reasonable and affordable price. In this situation Tesco needs to ensure that it is
able to provide high quality goods at reasonable and affordable price.
Technological Factor
Some issues affected Tesco and its market position and Tesco lost its trust and
goodwill in the market. This trust and goodwill of Tesco returned through its technological