A Report on the Effects of Brexit on Tesco and the UK Retail Landscape

This report examines the implications of Brexit on Tesco, a major multinational company, and its impact on the UK retail sector. It explores how Brexit affects import and export dynamics, supply chains, and the rise of the gig economy. The analysis includes the challenges faced by Tesco, such as price wars with suppliers like Unilever, and the company's strategies to adapt, including the use of shift leaders to manage costs. The report also considers the broader economic impacts, including fluctuations in the value of the pound and the potential effects on Tesco's stock and market share. The conclusion highlights the emerging themes related to Brexit's influence on the retail landscape and the strategies employed by supermarkets to maintain profitability in a changing environment, emphasizing the importance of adapting to new challenges and opportunities. The report also considers the impacts on the gig economy, the role of imports, and the overall economic condition of the retail sector.

EMERGING THEME

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
TASK 2 ...........................................................................................................................................3
CONCLUSION ...............................................................................................................................4
REFRENCES ..................................................................................................................................5
.........................................................................................................................................................5

INTRODUCTION
Emerging theme is a wide concept which consist that categories which have same and
similar meaning can be brought together into same theme. It directly considered as the
development or emergence of themes from information and data. The overall method of analysis
is known as thematic analysis (Dhingra and et.al., 2016). Gig economy is a smooth way of
working that is based on people who are having temporary jobs and they are doing separate part
of task or work. They get separate amount for each work. It is different from working for an
employer or an organisation. Tesco is a well known multinational company, the major purpose of
this firm is to provide best and suitable service to their customers in order to get more profit. The
report contains the study about the effect of Brexit in rise of gig economy of UK.
TASK 1
Brexit is a wider term and it is totally based on united kingdom's withdrawal from the
European union. It is known as an abbreviation for “ British exit” and it consist the fuelled
decision of EU and UK. The European union is a group of 28 countries that are bound through
a political and economical fusion.
Britain is mainly focuses towards their performance in agriculture department. They put
their all efforts for expansion of their food industry and try to increase their export in food and
drinks. UK is mainly dependent upon other countries for imported food and drinks products. The
higher import is loss condition for any nation. High cost of import consist that the citizens of
nation will have to pay more for their daily use products such as grocery (Mccall, 2017). For
increasing their export it is required for country to create a drastic shift in their stores, supply
chain in which source of local products are also included.
Retail company such as Tesco are already feeling a small indefinite quantity of a
carefully planned operation. Unilever suppliers and Tesco entered into a price ware related with
sports in October 2016. Unilever increase the price of products just for maintain profit such as
Ben & Jerry, Marmite or PG Tips. Rising of price is threat for Unilever because it may cause
consumer dissatisfaction towards brand and products. If the value of pound is decreased than it
may directly affects the price of suppliers. The battle between Tesco and Unilever has comes to
an end situation, still the war of price increases continuously. Tesco mainly concern towards
providing high quality services to their customers in order to get more profit. Tesco has lots of
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competitors at market place, so company use unique strategy of marketing which is not used by
its competitors. Tesco has dropped the plan to start up new stores and outlets at different location
, this plan increases unemployment (Inglehart and Norris, 2016). Shift leaders are described as
the people who are work in restaurants, fast food and similar firms, and manage the staff member
at the situation when manager is absent. Shift leaders are having authority to direct other in an
organisation according to their daily schedule. They try to interact with more customers in order
to establishing good relation ship with them and ensure that they have a nice experience. Tesco
mainly focuses on replacing management with shift leaders within the express chain. Shift
leaders are less cost effective, they put their all knowledge and skills in very less amount of
salary. Tesco is listed under ticket symbols TSCO and in London or New-york stock exchange it
traded with the symbols of TSCDY.US. As a well known brand, it has started its journey in
1919, and become a successful retailer across the globe. It has over 3500 stores and 310000
employees who are working with them. In 2013 Tesco faces bad timing due to decreases in
profit.
It has huge impact on companies shares, investor of firm are concerned that share of
Tesco may suffer again and again. Tesco increases its profit because of its food industry. It is
mainly keep in touch with UK's proclivity for relaying heavy import of food that may cause extra
expense for company and company have to bear the burden of these kind of extra expenses.
Morrisons has similar price to Tesco, has discourage consumers of closing the increase in prices.
Morrisons mainly exchange with the MRW stock symbol on LSE. Recently it is evaluated that it
has increases 50 percent in their profit margin. If the value of pound remain stable or in lower
level , so it will be needed for company to increases the amount of imported food items. As a
well known grocery retailer, company will regularly compete for increasing the level of market
share. Firm need to bear the burden of extra expenses which incurred by import of goods (Shao
and et.al., 2011).
When Brexit arises company need to know these things which are as follows.
 It is a straightforward process to leaving the EU and still no one do not know the form
this will take.
 The politicians, policymakers and advisers on UK are concern towards balancing the
interpreted benefit of regular access to the market place. It is required for complete
freedom from regulation of EU and budgetary contribution.
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 UK is biggest receiver of foreign investment in EU. The future of stock is doubtful and
uncertain because half of FDI stock are originated form EU.
TASK 2
Import has positive as well as negative impact on retailer sectors. UK is dependent on
other countries for import goods which are needed for people in nation. Increase in import may
cause less situation for a country it is a negative impact on nation. Retailers have faced a critical
time science 2008. pressured consumers income and rising commodity are two important aspect
that are helpful in reshaping the environment of retail. Import quotas are impacted on retailer
sectors including Tesco. Import is important for every firm for fulfilling the requirement of
things which are required in firm (Javier and Rice, 2011). Tesco is mainly depended on other
countries just for fulfilling the requirement related with food products. In upcoming five years
import affect the retail sectors. Tesco use various strategies for decreasing import, they put their
affords for developing more source that are helpful in fulfilling the requirements of goods.
Import is expense for firm as well as country. The positive impact of import is that it is helpful in
establishing friendly relationship with neighbour countries. Large amount of required things are
easily available to the people of different countries. Through the use of import people of different
country can take the advantage of unique and special things in which a particular country has
speciality. It also has lots of negative impact on the economical condition of retail sector as well
as nation. If there is increases in import f goods than it will create a loss situation. Every firm is
focuses on reducing import in order to get profit (Lutz, 2016).
The retail company and supermarkets increases the price if goods and services just for
maintain stability in their profits. Retail industry such as Tesco keep high price for their products
when the quantity of import increase. It is an important decision that may affect the overall
condition of business throughout UK. In over next five years this will affect the retailer or
supermarkets. This provide help and support for developing best strategies for better run of
business in future. When import of goods are increased than supermarkets and retail outlets
increase their price just for maintain profit. In this situation customers bear the burden of high
pricing, in this they get their required thing but at very high price just to bridge the gap between
profit and loss (.Lee, 2012).
Fluctuation in value of share may also affect the retail sector. The increase in rate of
share cause profit and decrease in rate of share may cause loss for any company. In over next
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five year it will impact on retailer industry as well as countries economy. The profit of nation is
based on the income of its retail outlets and supermarkets. Share are important aspect for every
business organisation, these are helpful in evaluating the actual profit and loss condition of firm.
Tesco apply various new and effective strategy for maintain the price of share. Sustainability is
required in price of share in order to earn long range of profit.
CONCLUSION
As per the above report it has been concluded that emerging theme is related with the
aspects those are similar in nature. Brexit is an internation legal perspective which is based on
the division of UK and EU. Brexit has impacted on import and export of Tesco. Brexit is a
descriptor for British exit which is based on the decision of UK to leave European union.
Supermarkets and retail outlets make effective strategies just for maintain their profit and
growth. Import is required for each and every firm to fulfilling the needs and demands for
customers but Tesco mainly focuses towards decreasing the quantity of import for maximising
the profit.
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REFRENCES
Books and Journals
Dhingra, S., and et.al., 2016. The consequences of Brexit for UK trade and living standards.
Inglehart, R. and Norris, P., 2016. Trump, Brexit, and the rise of populism: Economic have-nots
and cultural backlash.
Javier, R. T. and Rice, A.P., 2011. Emerging theme: cellular PDZ proteins as common targets of
pathogenic viruses. Journal of virology. 85(22). pp.11544-11556.
Lee, H. C., 2012. Cyclic ADP-ribose and NAADP: structures, metabolism and functions.
Springer Science & Business Media.
Lutz, H. ed., 2016. Migration and domestic work: A European perspective on a global theme.
Routledge.
Shao, Y., and et.al., 2011. Dust cycle: An emerging core theme in Earth system science. Aeolian
Research. 2(4). pp.181-204.
Truffer, B., Murphy, J. T. and Raven, R., 2015. The geography of sustainability transitions:
Contours of an emerging theme.
Online
Mccall, K., 2017. Brexit Britain: How supermarkets like Tesco are suffering and what it means.
[Online]. Available through: <http://uk.blastingnews.com/business/2017/03/brexit-
britain-how-supermarkets-like-tesco-are-suffering-and-what-it-means-
001552775.html>. [ Accessed on 19th July 2017].
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