Business Consultancy Project Report: TESCO's Problems and Solutions

This report presents a business consultancy project focused on TESCO, a multinational grocery retailer. It begins with an introduction and situational analysis, including SWOT and PESTLE analyses to understand industry trends and TESCO's position. The report identifies key problems, particularly the use of traditional technology, impacting productivity and profitability. Stakeholder perspectives, including employees, customers, suppliers, shareholders, investors, and government bodies, are considered. A proposed solution advocates for adopting advanced technology, outlining approaches such as aligning technology with strategy, effective communication, current systems analysis, early training, change management integration, governance structure creation, and continuous monitoring. The report also includes a cost-based analysis and discusses business and risk assessment. Finally, a plan of action is proposed to guide the implementation of these solutions.

The Business Consultancy
Project

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Situational analysis......................................................................................................................1
Problem identification.................................................................................................................9
Proposed solution......................................................................................................................12
Plan of action.............................................................................................................................14
CONCLUSION..............................................................................................................................23
REFERENCES..............................................................................................................................25

INTRODUCTION
The business project consultancy refers to a multi week, months or years long
collaborative process between client and team of consultants having an appropriate goal to sort
out specific problem faced by an organisation. It includes that the project is developed provide
the customer an opinion of an external expert on matter of operational or strategic importance.
The present report is based on TESCO which is known as a British multinational groceries &
general merchandise retailer with headquarter situated in Welwyn Garden City, Hertfordshire,
England, United Kingdom. It was founded by Jack Cohen in the year around 1919, almost 100
years ago. However, they have revenue of £57,491 million and £1,644 million operating income
approximately as 460,000 of staff members are working in company on regular basis. This
assignment will focus on situational analysis of given organisation including industry trends
with the help of SWOT and PESTLE analysis. It will also include identification of problem with
view point of stakeholders. The proposed solution including effective approaches, cost based
analysis, business, risk assessment and stakeholder analysis along with plan of action is given
below.
TASK
Situational analysis

Problem identification
The problem identification is very important aspects in order to remove overall threats
and weakness of an organisation. It is necessary to initially determine issues then only it is
possible to sort out them in order to avoid future risks. However, there are number of trends in
grocery industry which are observed in present time and that are responsible for creating specific
but major problem of TESCO which impacts on its productivity as well as profitability. In
addition to this, it has been analysed that TESCO has one of major problem hat they are still
using traditional technology in current scenario whereas other competitive companies prefer
advanced and innovative technology. In context of traditional technology, it is not much
sufficient in present advanced phase in order run business and fulfil new demands of people in
appropriate manner (Amelec, 2015). Stakeholders of TESCO has their different opinions
regarding use of traditional technology as it impacts on growth of brand which are related to their
benefits collected from business.
Employee – This can be described as staff members working in an organisation and put
efforts on regular basis by following desired norms as well as policies in order to complete their
tasks with maximum outcomes. However, employees can be considered as backbone of any
company who conduct number of required operational activities or procedures in order to
manufacture and supply products in market according to demand of customers to fulfil them in
proper manner. In addition to this, employees are people who knows everything about
operational policies, techniques, methods and machines hence they are capable to provide
accurate suggestions for changes which are beneficial or success of business. In context of
TESCO, employees have an opinion that advanced technology is required to applied at work
place as it is helpful to carrying out regular tasks in short period of time which facilitate to fulfil
demands of clients properly. They also provide views that training and learning programs are
required to organised for making employees capable to operate new technological machines or
software to gain maximum profits from the same (Press and Cooper, 2017).
Customers – The customer are base for design of product and modification of the same
are usually applied according to actual need, wants and demands of consumers in order to boost
up sales of brand. It is necessary for every business company to first analyse actual modifications
in demands of people in respect of implementing changes in products and services which provide
support to make customer satisfy in appropriate manner. Meanwhile, people expect maximum

benefit from product at reasonable price towards that organisations should focus as it is helpful
to improve customer base and profitability respectively. In case of TESCO, customer provide
opinion regarding old machines and software which consumes much duration of time while they
are paying for purchasing products and they are needed to be changed. Moreover, clients also
suggest to company that they should use advanced technology as old machines and software
consumes more time as well as electric energy also which increase expense of TESCO.
Suppliers – The suppliers are those people who provide raw material and other related
goods which are essential to conduct product procedures in ore to manufacturing desired units of
products to complete desires of clients. The suppliers plays an important role on business of a
company because they supply raw material on time which provide support to complete
production of product and services at correct time to supply them in market to fulfil needs of
customer (Witjes, Vermeulen and Cramer, 2017). In addition to this, Suppliers faced problems
when comp[any demands things which are out of date then it will create problem of for both
suppliers as well as organisations. In case of TESCO, they are using traditional technology
whose parts are not easily available in present advanced market but requirements of enterprise
create a conflict situation with suppliers. Suppliers provide opinion that TESCO should set up
overall production system with and advanced technology which is helpful to speed up production
and increase range of loyal customers through achieving their satisfaction with an accurate
service.
Shareholders – This can be explained as a person who owns or hold shares of company's
stock (equity) as they benefits from success and profits of business. However, the overall profits
gained by an organisation is dividend into shareholders in form of increased stock valuation or
profits distributed as dividends (Basu, 2017). Shareholders are actual owners of a company who
apply desired capital in business and face respective profit and loss of organisation. The
shareholders of TESCO agree with idea of implementation of new technology by removing
traditional one but they want time in order to set up innovative technical system in organisation
to improve production and growth.