Global Retail Giant: A SWOT Analysis of Tesco's Business Environment

This report provides a comprehensive SWOT analysis of Tesco, a major retail brand in the United Kingdom. It examines Tesco's strengths, such as its financial capacity and diverse product catalog, and weaknesses, including quality standards and inventory management issues. The report identifies opportunities in digital marketing and telesales, and threats like changing political scenarios and online shopping platforms. The analysis extends to the operational impact on marketing and human resource management, suggesting strategies to improve marketing based on consumer demands and addressing HR issues related to quality and training. The conclusion emphasizes the importance of departmental capabilities in ensuring continuous growth, regardless of the company's size.

Global Business
Environment

Contents
INTRODUCTION.......................................................................................................................................3
SWOT Analysis...........................................................................................................................................3
Operational Impact Analysis.......................................................................................................................4
CONCLUSION...........................................................................................................................................6
REFERENCES............................................................................................................................................7

INTRODUCTION
The report is a constructive analysis of various capabilities and limitations of biggest
retail brand of United Kingdom. For this purpose the report has utilized one of the most effective
tools of analysis that is SWOT. Also, the report have made evaluations on possible steps that two
crucial departments of Tesco can take in order to ensure continuous growth of company.
SWOT Analysis
In this section of the report, a brief analysis of different drivers of growth and possible
hurdles has been discussed, for one of the largest retail firm of the World, Tesco. In order to
analyze drivers of growth and the hurdles that company can face in future, the report has made
use of SWOT analysis, which is the most efficient tool of business analysis in bringing multiple
important heads under one tool of analysis. Therefore, the utility of this tool is evident.
Strengths
 Biggest strength of Tesco is its financial capacity. The company has many large finances
to support it growth and continuity of operation, it hardly depends over funds for
outsourcing them. And, this comes as its biggest strength. The stronghold point of good
chunk of finances have also helped company in managing is operation at the time of
pandemic as well (Wood, Wrigley and Coe, 2017).
 Another big strength of Tesco is its product catalogue. The company may had earlier
started its original business as the company of retail brands, but not Tesco has established
its hold in many other markets as well, like Banking and Finance, investments, books and
stationery and many other. This provides its maintenance of revenues and continuity of
business operations.
Weaknesses
 If consideration of weaknesses of company comes in mind than standards of its quality
are considered relatively poor, and also it has been complained by consumers that
company is not taking sufficient steps to improve their quality of products.

 Inventory management, and other such relate issues of company has also bought before
the world as its weakness. It have had been complained by consumers at different
markets and departmental stores of company that products were belonging to expiry
dates. This becomes more sensitive weakness of company after complaints are already
regarding quality standards of company.
Opportunities
 The market scope of Tesco and the range of its products offers the company with many
new opportunities, and the foremost being the company to focus digital methods and
telesales. Situations that are posed by the pandemic have change entire scenarios in which
market could function. And, as a result of this online shopping and telesales have grown
their utility before consumers. Tesco is already a brand among consumers and all that
company is required to do is to make its stores digitized. It should not be using other
platforms like Amazon, but rather develop its own platform (Brannen, Mughan and
Moore, 2020).
Threats
 Changing political scenarios among the world is biggest threat for the company in this
market. For example Brexit, after UK had decided to leave the European Union it has
been observed that relations of UK with other countries of Europe are getting soared.
Many other countries in the world as well, are being reluctant to maintain business with
UK as they are suspicious over new business and economic policies of the country.
 No matter what opportunities could Digital and Online channels of shopping are bringing
in the market, but for companies engaged in retail business and are operating through
departmental stores, these platforms will always be remaining as threat.
 New range of connectivity that these platforms are bringing between consumers and
products are threat for businesses that has departmental stores and work in a chain.
Operational Impact Analysis
All such points that had been discussed in the analysis of drivers of growth for Tesco, are
obviously potent in levying impact over operations of the company and its different departments

in some way or other. In this section of the report, nature and extent of such impacts are analyzed
for the company and its two crucial functional areas, Marketing and Human resource
management.
Marketing
 Marketing management of the company is required to be strategized in such manner
where the company can easily gauge those standards and quality which consumers are
requiring and demanding in the market and which are suitable to them in best possible
way. Also, the marketing team of company can be used effectively to analyze as to which
brands are being heavily purchased in market and then Tesco can try competing with
those brands in the respect of quality of products. For giving effects to this purpose, it is
well assured that company cannot be facing crunch of liquidity as it is the biggest
strength of company.
 Marketing team of company have to try their hand and efficiency in beating biggest threat
of company, that is online and digital shopping platform. However, Tesco can afford to
go digital in sales, but this can only be comfortable for the time being because this not
core business of company. In this manner effective strategies by company are required in
terms of all respects, keeping in mind core business of company.
Human Resource Management
 Human Resource management in Tesco must go on analyzing as to what faulty positions
are being taken by employees of the organization, which are causing poor standards of
quality and mismanagement of inventory in the company. If these defaults are already on
the parts of employees, than serous actins should be taken by company against these
employees (Awadari and Kanwal, 2019).
 Also, the company must impart necessary training and development to employees in the
organization so that requirement posed by new challenges and developments can be met.
These developments are most importantly seen in the concern of frequently digitization
of businesses in the modern business environment, and various new practices that the
world after this pandemic shall inducing.

CONCLUSION
From the above discussion it can be concluded that, regardless of the size and scale of
business operations of a company, every business entity in the world is seen having its own
specific strengths and weaknesses. But assuring continuous growth and development of
organization depends on capabilities of different departments.

REFERENCES
Wood, S., Wrigley, N. and Coe, N. M., 2017. Capital discipline and financial market relations in
retail globalization: insights from the case of Tesco plc. Journal of Economic
Geography. 17(1). pp.31-57.
Brannen, M. Y., Mughan, T. and Moore, F., 2020. The creative use of insider ethnography as a
means for organizational self investigation: The “Essence of Tesco” project. In The
Routledge companion to anthropology and business (pp. 132-154). Routledge.
Awadari, A. C. and Kanwal, S., 2019. Employee participation in organizational change: A case
of Tesco PLC. International Journal of Financial, Accounting, and Management. 1(2).
pp.91-99.