Tesco SWOT Analysis Report: BM461 Global Business Environment (2020)

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This report presents a SWOT analysis of Tesco, a major UK supermarket chain operating globally. It begins with an introduction to the global business environment and its impact on organizations, then proceeds with a detailed SWOT analysis. The analysis identifies Tesco's strengths, such as its leading position in the UK market, innovative strategies, and global presence with numerous stores and job opportunities. Weaknesses include exits from certain markets and underperforming stores. Opportunities encompass the growth of discount stores and strategic alliances. Threats include legal issues, negative social media reactions, and the impact of government regulations. The conclusion summarizes the importance of understanding both macro and micro factors in the global business environment and the development of strategies to mitigate risks. References include relevant books and journals.
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SWOT Analysis
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
SWOT Analysis...........................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
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INTRODUCTION
Global Business Environment affect the overall environment that undertake several factors
and Nations and including their effective elements that impact the learning and functioning of an
organisation. These factors tend to impact the decision making and use of resources and
capabilities of an organisation. To carry forward this report Tesco is considered which is a
Supermarket chain in UK and also operate its stores various areas. The report tends to cover the
suitable evaluation of SWOT analysis considering prominent strengths weaknesses opportunities
and threats.
MAIN BODY
SWOT Analysis
This Framework is helpful in terms of planning strategically which is useful for an
organisation to analyse the suitable factors of an organisation and also useful in developing
effective strategies in terms of overcoming from the weaknesses and threats. The prominent
analysis please discuss as below:
Strengths: Tesco is the leading grocery retailer in UK and leads to increase their sales
and revenues effectively by developing innovative strategies. Moreover, Tesco tends to
thrive for the Global presence which is more than 6800 stores in 18 Nations and also
cover youth market area in the Asian market as well. Despite from this Tesco leads to
offer more than 743 thousand job opportunities across the world (Civelek and et. al.,
2016). Besides this they also tend to use Technology for the optimistic way in terms of
enhancing their shopping experience for their customers.
Weaknesses: The suitable weaknesses of Tesco include that Tesco had to exit from the
Japanese and American market because of its field export operations that leads to close
stores in Japan and America. Along with this it’s few stores and grocery outlets are also
not performing well and prominent areas and for this the exports suggest company to
carry out proper market research before taking entry in the market (Lewis and et. al.,
2017).
Opportunities: Tesco recently launched its new store which is the discount Store that has
seen prominent growth and also considered as the opportunity towards the growth of
business in terms of computing with other Rivals. Developing strategic alliances with a
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reputed organization can also become opportunity for company by offering more
products to attract large customer base.
Threats: Tesco was also accused in terms of misleading their customers with fake
Pharma brand names and marketing of concerning commodities and by this company
face severe legal threat proceeding in 2017. Tesco also face social media backlash at the
time of launching its Christmas advertisement in 2017 as people boycotted that the store
claiming a disrespectful act against the Christian faith (Kasemsap, 2018). Besides this
government norms tax matters legal regulations and many more tensed impacts the
operational efficiency and overall performance of Tesco.
CONCLUSION
By considering the above discussion it is identified that Global Business Environment is the
sum total of both macro and micro factors that lead to impact the operations and functioning of
company. Moreover, it is also useful in order to analyze the risk elements which are concerned
with other components and also leads to develop effective strategies in terms of overcoming
them.
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REFERENCES
Books and Journals
Civelek, M and et. al., 2016. A model of measurement of the quality of business environment in
SME segment. Journal of International Studies.
Kasemsap, K., 2018. Mastering business process management and business intelligence in global
business. In Global Business Expansion: Concepts, Methodologies, Tools, and
Applications (pp. 76-96). IGI Global.
Lewis, H and et. al., 2017. Design+ environment: a global guide to designing greener goods.
Routledge.
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