Tesco's Strategic Analysis for Expansion into the Mexican Market

This report provides an analysis of Tesco's potential expansion into the Mexican market. It begins with background information on Tesco, including its headquarters and key competitors. The main body of the report discusses the business environment in Mexico and its implications for Tesco, highlighting both internal and external factors. The report utilizes PESTLE analysis to examine the impact of environmental pressures and social protection procedures. Furthermore, it analyzes the business scenario using Porter's Five Forces model to assess competitive advantages and market attractiveness. The analysis includes financial performance data and relevant references to support the findings, offering insights into Tesco's strategic considerations for entering the Mexican retail market.

I have about Tesco and
country Mexico

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Background information of Tesco:..............................................................................................3
Discussion of business environment of Tesco in relation to Mexico:.........................................3
Analysis of business scenario:.....................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Tesco is a popular retailer of UK that operates its practices across the globe (Tesco,
2020). The purpose of the report is to analyse establishment or expansion of Tesco in Mexica.
The report highlights about organisational information, business environment and analysis of
business scenario. In this, analytical tools that are to be used are PESTLE Analysis and Porter's
five force model.
MAIN BODY
Background information of Tesco:
The headquarters of Tesco are located in Hackney, UK since 1919. It is a Public Limited
Company whose shares are freely sold as well as traded to general public with minimum share
capital of nearby £50,000 and usually with the letters PLC after its name. Public limited
companies will also have a separate legal identity (Kay, 2019). Its major competitors are
Sainsbury’s, Sports Direct, Asda and other Mexican companies that work within retail industry.
On evaluation of financial performance of Tesco, it can be analysed that its revenue is £55917
million, £57491 million, and £63911 million in 2017, 2018, and 2019. Along with, loss of £54
and profit of £992 and £1320 in 2018 and 2019.
Discussion of business environment of Tesco in relation to Mexico:
This part of report consists description of business environment and its implications on
business. It states that business environment consists of two types that is internal and external.
Former covers internal component of company such as, performance of employees, maintenance
cost associated with an organization, satisfaction level of customers etc. While later pinpoints
macro factors which business is not authorized to control but such external forces has huge
impact on efficiency and working of entity (Dent, Parnell and Carraher, 2018). It includes
various macro factors which can be studied with the use of pestle analysis, which states that
increasing pressure on companies for addressing issues related to environment and adopt
different ways of operations is on the one side benefiting society, but, on the other side, it is
decreasing profitability of firms like Tesco as their operating cost is increasing. While focusing
on the positive side of this, it can be stated that social protection procedures that company is
incorporating leads to increment in customer attractive, as people are becoming environmental
aware nowadays.

Analysis of business scenario:
Business scenario is evaluated in it according to which Business Scenario Analysis
enables firm in determining pros and cons of decisions made by organization. It helps in
examining potential impacts that business environment and scenarios can have on an
organization. Which ensures grabbing of efficient opportunities and elimination of possible
threats. Further Porters five forces enables management of an organization to develop an
effective strategy that enables firm to gain competitive advantage and lead the market. This
framework has the potential to evaluate the power that is lied with business. It further ensures
identification of attractiveness level of customers (Zahari and Romli, 2019). This framework
determines various threats that business possess along with their intensity, such as, high,
moderate or low.

REFERENCES
Books and Journals:
Dent, E. B., Parnell, J. A. and Carraher, S. M., 2018. Developing an Instrument to measure
Objectivism. The Journal of Ayn Rand Studies. 18(1). pp. 1-27.
Kay, J., 2019. The concept of the corporation. Business History. 61(7). pp. 1129-1143.
Zahari, A. R. and Romli, F. I., 2019. Analysis of suborbital flight operation using
PESTLE. Journal of Atmospheric and Solar-Terrestrial Physics. 192. p. 104901.
Online:
Tesco. 2020. [Online]. Available through: <https://www.tesco.com/>

6