TESCO Business Analysis Report: PESTLE and SWOT Frameworks

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Added on  2023/01/03

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This report provides a comprehensive business analysis of TESCO, a British multinational organization. The analysis begins with an introduction to business studies, emphasizing different business processes. It then delves into an external analysis using the PESTLE framework, examining political, economic, social, technological, legal, and environmental factors affecting TESCO's operations. The report further explores the internal analysis, identifying TESCO's strengths, such as its market share and efficient supplier network, and weaknesses, including market failures and reputational damage. Opportunities like expanding Jack's stores and developing mobile applications are also discussed, alongside threats like economic crises and price competition. The conclusion highlights promotional strategies for enhancing sales. The report is supported by references to relevant academic sources.
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Introduction to Business
Studies
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Table of Content
Introduction
External analysis
Internal analysis
Conclusion
References
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Introduction
Business studies are they different business process that are assisting business organizations to
develop quality products to meet the specific customer requirements. There are different
concepts that includes marketing, human resources, accounts. Present report is based on
TESCO that is a organization willing to analyze the market according to different products
offerings. TESCO is a British multinational organization that has been established in UK
and stared by Jack Cohen in the year 1919 (Busco and Quattrone, 2018)
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External analysis
PESTLE analysis:
For the purpose of making a analysis of the external environment there is
discussion based on use of PESTEL analysis as a framework for TESCO:
Political factors:
TESCO is operating in 12 countries and they are exposed to many political
factors. For instance the TECSO has to pay a local council tax that was
named as TESCO tax but it was later removed by the government of UK.
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Economic factor:
It includes the factors that are related to economy of a country.
Such as it includes the factors has Interest rate, foreign exchanges
rates, gross domestic rates that are affecting the operations of
TESCO.
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Social factor:
It is the factor that is related to the changing social environment of
business. With the preset outbreak of Covid virus there has been a
shift in the changing preferences of people towards more e
commerce platforms to make their purchases.
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Technological factor:
It is the factor that is related to use of latest technology. Such as
TECSO is using RFID technology so that they are able to maximise
their profitability.
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Legal factor: It is related to the changing legislation op the
government. There are different legal laws that are affecting the
performance of TECSO such as it includes the commission law,
health and safety law, anti discrimination act.
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Environment factor:It includes the factors that are part of the
external environment. In case of TESCO there is a claim that they
will be generating 100 percent of electricity by the coming year
2030.
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Internal analysis
Strength:
TESCO has been able to capture the British market with their
annual revenue amounting to 63,911 million pounds.
TESCO has a efficient network of suppliers
TESCO has a highest market share as they are dominating
markets of UK by having a market share of 27 percent.
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Weakness:
TESCO has failed to capture share in Japanese and US markets
TECSO has suffered from a scandal in year 2017 that has
damaged the reputation of this company.
The Brexit referendum has affected the performance of
TESCO and the markets share prices gave fallen by 9 percent
that is not attracting new investors.
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Opportunity:
TESCO can expand their jack stores by investing more and face
the cost rival brands such as Lidl and Aldi.
TESCO can make investment to expand their business
operations across new countries such as developing countries
India.
TESCO can develop a special mobile application to manage
sales in the present situation of COVID 19
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