Tesco Business Analysis Report: Challenges and Opportunities

This report provides a comprehensive business analysis of Tesco, a major retail corporation. The analysis encompasses SWOT, PESTLE, and value chain assessments, offering insights into the company's internal and external environments. The SWOT analysis identifies strengths, weaknesses, opportunities, and threats, highlighting areas like pricing strategies and customer follow-up. The PESTLE analysis examines political, economic, social, technological, legal, and environmental factors impacting Tesco, such as taxation changes and technology adoption. Value chain analysis focuses on the inefficiencies in the business model and the impact on the customer. Furthermore, the report discusses the findings from primary data analysis, including questionnaires and interviews, to assess stakeholder value. The report concludes by emphasizing the importance of ongoing analysis for Tesco to address challenges, capitalize on opportunities, and maintain customer loyalty.

BUSINESS
CONSULTANCY
PROJECT

TABLE OF CONTENT
•I
ntroduction
•O
utcomes from SWOT Analysis
•O
utcomes from Value Chain Analysis
•O
utcomes from PESTLE Analysis
•O

Introduction
Tesco is the largest retail corporation in terms of revenues. This presentation aims
at identifying the key problem areas within Tesco with a view to have a
discussion on factors of macro and micro environment and other such
organisational constraints which are being encountered by the enterprise within
present context.

Outcomes from SWOT Analysis
Tesco operates in a variety of store formats such as Metro, One Stop Shop, Extra
and Superstore. In this regard, company makes use of the customised pricing
strategies in accordance with the various store formats. As a result of this, this
organisation has often been accused of making use of Price discrimination strategies
like Express Pricing. Also, inefficient management within stores depicts that the
outcome of this can be seen in the form of weak customer follow-up.

Outcomes from Value Chain Analysis
Decline in optimum quality of services of company has lead to loss of business
growth and brand value of entity in marketplace. Also, this has resulted in loss of
trust of customers in the products sold by entity leading to significant reduction in
sales and profitability. Further, the business model of entity in relation to its express
stores tends to focus on delivering the fresh produce which consequently suffers from
unpredictability of prices of raw materials which may even lead to enhanced cost of
delivery.

Outcomes from PESTLE Analysis
Taxation systems of countries keep on changing at frequent intervals of time with
an aim to improve financial reporting. Owing to this, it gets difficult for Tesco to
follow each tax law and procedure.
Tesco also suffers from lack of resources to implement effective technologies while
carrying out business operations in rural areas.

Outcomes from Porter Five Force Analysis
Tesco Express is operating in rural areas where the competitive rivalry as the
number of substitutes available are less. Also the capital requirements to
establish a retail venture within rural areas is low which makes it easier for new
entrants to gain entry into market. Owing to this, the threat of getting replaced
and being outpowered by a new entrant always exists for the company.

Outcomes from Primary Data Analysis
The collection as well as analysis of primary data by way of questionnaires and
interviews reveal that Tesco has witnessed a significant reduction in overall
stakeholder value which has resulted in decline in revenues as well as profits of
entity.

CONCLUSION
From the above discussion, it can be concluded that Tesco needs to constantly
analyse its internal as well as external environment factors in order to find out the
probable shortcomings of company along with the strong competitors prevailing
within the market. This will assist the organisation in taking necessary measures
which can significantly help in declining the loss caused as a result of the adverse
factors and continuing to attract the customers by way of its products.

REFERENCES
Špička, J., 2016. Market Concentration and Profitability of the Grocery
Retailers in Central Europe. Central European Business Review. 5(3). pp.5-
24.
Tama, S. K., 2017. Export opportunities and obstacles of Bangladesh’s RMG
sector: a case study on Aman Textile Ltd.

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