Tesco's SWOT Analysis: CSR, Brexit Impact, and Recommendations

This report presents a SWOT analysis of Tesco, identifying key issues such as unethical behavior and its impact on the company's image. It highlights the importance of Corporate Social Responsibility (CSR) initiatives, detailing Tesco's existing programs and their benefits. The report further explores the effects of Brexit on Tesco, including potential trade restrictions, increased costs, and employee turnover. A reflection on the group project experience is also included, emphasizing the development of communication and sourcing skills. The report concludes that integrating CSR into Tesco's strategies is crucial and that Brexit poses significant challenges, particularly regarding cost increases. The analysis draws upon various sources, including academic journals and online resources, to support its findings and recommendations. The report aims to provide a comprehensive understanding of Tesco's current position and future challenges.

TESCO SWOT ANALYSIS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Key Issue identified.....................................................................................................................3
Linkage to CSR............................................................................................................................4
How Brexit will impact Tesco.....................................................................................................4
Reflection.....................................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Tesco is the largest retailer in UK and has its operation spread in the entire world. The swot
analysis conducted in Tesco in the presentation helped in the identification of some of the major
issues (McLaughlin, 2018). In this report, the solutions to the issues that were identified will be
presented and the importance of CSR activities for Tesco will be highlighted and discussed.
Additionally, the effect of Brexit on the company will also be detailed in report.
MAIN BODY
Key Issue identified
On the basis of the poster presentation developed for the largest retailer Tesco, the major
issue that was identified is the unethical behaviour of Tesco (Edinger-Schons and et.al., 2019).
They seemingly have been involved in a series of scandals and fraud and this has weakened the
overall performance, goodwill and image of the company amongst its customers and in the
market s well. The company evidently promises in their CSR activities that they tend to enhance
and encourage the development of the local communities amongst which they are operating but
their business has taken a heavy toll on the local store managers thus increasing the negativity
that Tesco faces.
Nestle is another company that faced similar backlash of unethical practices but the
company has continuously improved themselves and regained the top position that they lost
(Nyame-Asiamah, and Ghulam, 2019). They were charged with the act of fraudulent
promotional and marketing campaigns where the uneducated mothers were fooled through their
advertisements of faulty products for children that were quite harmful on the contrary. In order to
rectify the scandal that they had entered in, Nestle immediately removed the previous
advertisements of their baby formula and they even proposed compensation t the mother who
had been affected due to their baby formula product. They additionally, featured mothers who
were now satisfied from Nestle brand repeatedly in their upcoming advertisements and engaged
in a lot of child welfare and mother welfare programmes.
The key strategy here, as can be noted and adopted by Tesco was that all the efforts hat
Nestle tool to rectify the situation were publicised by them repeatedly and the CSR activities
they adopted were also extensive (Gunjal, 2017). Therefore, it can be said that in order to
improve their image and regain the position, the company needs to work heavily on their
marketing and CSR strategy so that they can gain the trust of their customer back.
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Linkage to CSR
Corporate Social responsibility is not a promotional o marketing stunt by the company but
rather, it is an act of giving back to the company. Tesco has regularly engaged themselves in a lot
of initiatives and welfare programmes that are run regularly to benefit the community n which
they are operating.
The “Computers for Schools” initiative by Tesco was designed to provide free computers to the
schools where a part of the money spent by consumers at Tesco would be used to buy those
computers that were to be donated (Tirawatnapong and Fernando, 2019).
The “Every Little Helps” approach at Tesco is yet another example of how Tesco regularly
works for the community and people (Intro to business, 2008). Through this they focus on the
governance and ethics of the company, on the cyber security, on the general health and safety of
employees and consumers and on the product safety as well.
Apart from this, the company has also been actively working towards the environmental
improvement by the reduction in the carbon emissions, counting of the carbon footprints or
carbon calorie encounter and other such activities that have helped them in earning revenue but
also working for a good cause their motto has been to develop a better world for future (Fatricia,
2017). Therefore it can be evidently aid that the initiative taken by Tesco has largely benefitted
the wider public.
How Brexit will impact Tesco
Brexit will bring the variety of the impact on the organization operating in UK as well in the
neighbouring nation. As this political decision will have very negative impact on the efficiency
of an organization, specially retail sector organization. As this decision will incorporate the
variety of the restriction for Tesco to trade in neighbouring country, this will eventually slow
down the trading between two nation. At the same time Tesco has to pay extra sort of cost to
procure different product in the organization, this will eventually impact the revenue of the
business. As higher cost of product will minimize the profit margin of the company in the
market.
Brexit also can increase the amount of employee’s turnover in the organization. As Bexit has
created a good sort of uncertainty among different employee in the nation, this has resulted in
enhancing the employee turnover in many organizations. As many employee are moving toward
EU country to build there profession, this eventually will rise the recruitment cost of the
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company and eventually will also lower down the efficiency of different operation in the
organization, as employee are one who carries out different operation. This also may impact the
level of innovation in organization as lower numbers of brain are invested in organization (Ohms
and Raakjær, 2019).
Reflection
Conducting and carrying out the module for the organization in group has helped the module to
carry out the outcome of the presentation in more efficient way. As working in the team has
provided all the team member with a crucial support to carry out different operation of module.
Thing which went well in the module was collaboration of different member efforts. As all the
team member were given the different task to perform in the team and after that efforts or
outcome of each member task were linked together to carry out best outcome of the project.
There were many different skills set which was also developed by me due to carrying out
this project in group. Communication skill is one of such skill which was developed by me due
to working in the group. As this presentation has driven me to communicate with all members
with the help of different communication tool in the group. This eventually has good
communication skill of mine. Also, this presentation has helped me to develop good sourcing
skill of mine. This project has asked me to source variety of information from different source
available to carry out the outcome of the presentation very efficiently (Knapp, Gottlieb and
Handelsman, 2017).
CONCLUSION
Therefore, the report helps in concluding that CSR is the key aspect that can be integrated
with eh strategies developed by Tesco. It was also concluded that the company has been severely
affected after the Brexit where the chances of cost increasing for the company is severely high.
Lastly, a reflective writing was also presented in the report.
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REFERENCES
Books and Journals
Edinger-Schons, L.M., and et.al., 2019. Frontline employees as corporate social responsibility
(CSR) ambassadors: A quasi-field experiment. Journal of Business Ethics. 157(2). pp.359-
373.
Fatricia, R.S., 2017. STRATEGIC ANALYSIS OF TESCO SUPERMARKET. Jurnal
Manajemen Terapan dan Keuangan. 6(02). pp.69-86.
Gunjal, T.D., 2017. A SWOT ANALYSIS AND RECENT FDI CONTROVERSY OF RETAIL
SECTOR IN INDIA. International Research Journal of Multidisciplinary Studies. 3(4).
Knapp, S., Gottlieb, M. C. and Handelsman, M. M., 2017. Enhancing professionalism through
self-reflection. Professional Psychology: Research and Practice. 48(3). p.167.
McLaughlin, C., 2018. 14: Corporate Social Responsibility and Human Resource
Management. Human Resource Management, p.271.
Nyame-Asiamah, F. and Ghulam, S., 2019. The relationship between CSR activity and sales
growth in the UK retailing sector. Social Responsibility Journal.
Ohms, V. R. and Raakjær, J., 2019. The future of the Pelagic Advisory Council: Repositioning
the organization in the face of BREXIT. Marine Policy. 106. p.103535.
Tirawatnapong, R. and Fernando, M., 2019. Factors Influencing Bangkok People Purchase
Intention towards Tesco Lotus House Brand Products. International Research E-Journal on
Business and Economics. 4(2). pp.15-29.
Online
Dlabay, L., Burrow, J.L. and Kleindl, B.. Intro to business. 2008. [ONLINE] Available
through:< https://www.abebooks.co.uk/9780538445627/Introduction-Business-7th-
Edition-Les-r-dlabay-james-l-burrow-brad-kleindle-0538445629/plp>
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