Presentation: Analysis of Demand and Supply Factors Affecting Tesco

This presentation provides a comprehensive analysis of the factors influencing Tesco's business performance. It delves into key demand factors like customer income, product price, and preferences, as well as supply variables such as production costs, technology, and natural conditions. The presentation examines how these factors interact within the retail industry's market structure. Furthermore, it addresses economic problems like instability and inflation, suggesting pre-planning as a crucial long-term solution. The presentation also highlights Tesco's marginal cost and its strategy to attract a large customer base. The conclusion emphasizes the impact of these factors, both positive and negative, and recommends strategies to mitigate economic challenges. The presentation references relevant research on demand, supply chain management, and microgrids to support its analysis.

PRESENTATION

INTRODUCTION
 This presentation mainly discusses
most important factors which affect
Tesco in both way positively or
negatively.
 Three most important supply
variables also has been mentioned
in this presentation which can affect
this company.

Demand Factors
There are three major demand factors has been mentioned below which highly affect
Tesco.
Demand
factors
Income of
customers
Product
price
Preferences
and taste

Elastic or Inelastic
 Tesco sells its products and services on the
basis of elastic price, because there are many
competitors currently existing for the company
in retail market.
 If company use inelastic price then demand of
its products and services will be decreased.
Reasons is, customers have many alternative
options in the market.

SUPPLY VARIABLES AFFECTING BUSINESS
Three most important supply
variables has been mentioned below
which can highly affect Tesco. Supply
variables
Non Price
factors
Production
cost
Technolog
y
Natural
conditions
Price
factors

Production Factors
Tesco uses various factors of production in its
production processes like, Technology, Employees,
Natural resources, Raw-material, Strategies etc.
 Fixed Factors: In these factors, employees, natural
resources are comes under fixed factors, because
company can use them continuously.
 Variable Factors: On the other side, Technology,
strategies etc. are comes under variable factors,
because company always need to update these
according to market conditions.

Marginal Cost
Marginal cost is a cost which company has taken for earning profit from customers. Currently this cost is very
low in this company, because company take only few additional charges as a profit on their products and
services. But its marginal revenue is very high, because it has very large customer base.
Market Structure: Tesco is operating is business operations in the retail industry, in which market structure of
retail industry is very large in all around the world.

Economic Problems
 Instability in Economy: This is a very problem or issue for the Tesco, because unstable
economy always negatively affect sales ratio of company. Reason is, customers are not
highly demanding products in unstable economy.
 Inflation: Inflation is another big problem within economy which directly affect supply
aspect of the company. Reason is, inflation stage always increase wants of customers, so
this can promote uncertainty within supply aspect of company.
Solutions:
 Pre-Plan: Top-level management of company is responsible to make pre-plan to deal with
economy instability problem. Pre-plan is basically long run solution which always protect
company from such economic problems.

CONCLUSION
 It can be concluded that there are various demand and supply factors existing in
company's business environment which completely affects it.
 These factors affect Tesco in both way positively or negatively. Marginal cost of this
company is too low, because its aim is to attract large number of customers.
 Different economic problems are big issue to the company, where it needs to use
mentioned suggestions to deal with these economic problems.

REFERENCES
 Tokimatsu, and et.al., 2017. Long-term demand and supply of non-ferrous
mineral resources by a mineral balance model. Mineral Economics. 30(3).
pp.193-206.
 Eagle, S., 2017. Demand-driven supply chain management: Transformational
performance improvement. Kogan Page Publishers.
 Wang, R., Wang, P. and Xiao, G., 2018. Demand and Supply Management in
Microgrids. In Intelligent Microgrid Management and EV Control Under
Uncertainties in Smart Grid. (pp. 21-44). Springer, Singapore.