Business Consultancy Project Report: Analyzing TESCO (6IM511)

This report provides a comprehensive analysis of TESCO, a leading retail organization, using various business analysis tools. It begins with an introduction to TESCO and its vision. The core of the report involves the application of analytical tools such as PESTLE (Political, Economic, Social, Technological, Legal, and Environmental factors) to assess the external environment, and SWOT (Strengths, Weaknesses, Opportunities, and Threats) to evaluate the internal environment. Porter's Five Forces model is used to analyze the competitive market dynamics, and the BCG matrix is employed to evaluate TESCO's brand portfolio. The report also includes recommendations for TESCO to improve its operations and profitability, such as implementing Just-In-Time (JIT) in various functions and integrating the BCG matrix with JIT. The report concludes with a summary of the findings and references used, emphasizing the importance of these tools in making strategic decisions. The project was completed in 15 days at a cost of £100, focusing on gaining insights for future research, and utilized online resources.

6IM511 THE BUSINESS CONSULTANCY PROJECT
Coursework 1

Table of Contents
Introduction of Company.......................................................................................................................3
Analysis tools.........................................................................................................................................3
Recommendations.................................................................................................................................6
Conclusion.............................................................................................................................................6
REFERENCES..........................................................................................................................................7

Introduction of Company
TESCO is one of the leading retail organisation of groceries and other food
merchandise in the world. It was founded in 1919 by Jack Cohen at Hackney,
London, UK and headquartered at Welwyn Garden City, England. They have around
6,600 stores in different part of the world and have about 460,000 employees
working with them (Amelec, 2015). The vision of organisation is to make innovative
changes in their functioning and also want to grow their business, which will provide
lots of opportunities for their employees to grow and develop themselves.
Analysis tools
PESTLE : PESTLE is an analytical tool use by organisations, so that they can
identify the external factors that can affect their decisions and also their
performance. This can help organisation like TESCO in making their future strategies
according to the change that will take place in external environment of business.
PESTLE Analysis
Political factors: This factor can is
not in control of organisation like
TESCO, but also change in this can
affect the performance of them. If the
political conditions of a nation is stable
then it become easy for organisation
to perform their business and gain
profits ( Antony, 2014).
Economic factors: For organisation like
TESCO, it is very important to study the
economic conditions of a nation, as if the
economic condition of that nation is stable
then, it become easy for them to perform
their tasks and also provide the products
and services to their customers. It also
help organisation in gaining good
customer base.
Social factors: For TESCO it is
important to study the demands of
society, and understand that what
society is expecting from them. This
will help them in improving their
goodwill in society and also help in
attracting ample number customers
towards their products and services.
Technological factors: Nowadays,
technology is changing very quickly, and
for increasing the efficiency of system and
operations, it is required by TESCO to
adopt new technologies which will also
help them in improving their customers
experience and also leads to increase in
profitability.
Legal factors: Every nation have Environmental factors: It is important for

some set of rules and regulations,
which organisation like TESCO have
to follow. This will help them in
performing their business in ethical
manner, so that they do not get fixed
in some legal controversy.
TESCO, that they must perform their key
operations and activities in a manner by
which the environment do not get
affected. Therefore, it is important to
study this factor and make strategies
according to it, so that they do not get fix
in any issue.
SWOT : SWOT is one of the most powerful tool which is used by analysts presented
in an organisation, so that they can identify the internal environment of their
business. This help them in making their future strategies according to the outputs,
so that their performance for future get improved.
SWOT Analysis
Strengths: They are one of the
biggest retail and super market chain
in the world. Therefore, they have
ample number of loyal customers and
also have huge financial sources
which allow them to do some thing
innovative with their operations. This
also help them in making huge
investment, so that their production
level get increased and also it's cost
get reduced.
Weaknesses: The problem which is
faced by TESCO, that increases their
weaknesses are increasing competition.
This leads to decrease in their profitability,
and also leads to decrease in their
financial resources. As due to
competition, they have to reduce the
selling price of their products so that
customer get attract towards that and buy
it. Decrease in selling price will lead to
reduction in profits of organisation.
Opportunities: TESCO can grow their
business in the nations which are
developing and also can invest in
nations where they are not performing
their activities. This will help them in
increasing their business in those
nations where they are not able to
Threats: Change in policies related to
business are one of the biggest threat for
TESCO. Also increase in competition in
local as well as global market in a
problem for them.

perform better. For this, they to make
proper market study of that place.
Porter’s 5 forces: This is a model which TESCO can use, so that they can make
strategies for gaining some advantages in competitive market.

Porter’s Five Forces
Bargaining Power of Suppliers:
TESCO is one of the leading
organisation in the world of groceries
and food merchandise. That's why they
a long list of suppliers which are ready to
make contract with them and supply raw
materials which they need. This all help
TESCO in locking the deal with suppliers
at their conditions, which clearly states
that bargaining power of suppliers in
TESCO is very low.
Bargaining Power of Customers:
TESCO have ample number of loyal
customers, which love to buy the
products offered by them and also
these customers have believe on the
products offered by them. These
customers know that the quality of
products offered by TESCO is very
good, for which customers are ready to
pay reliable cost. This all help TESCO
in keeping the bargaining power of
customers low ( Basu, 2017).
Threat of New Entrants: TESCO is
performing their business at very vast
level, and for new entrance it is very
risky to start business at that level from
their beginning. As success of business
is not guaranteed, and this factor
reduces the threat of new entrance for
TESCO.
Threat of Substitutes: In market, there
are several products which are same to
the products offered by TESCO and
also have ability to replace the products
offered by them. Due to this factor only,
the threat of substitutes are very high
for TESCO.
Rivalry between Competitors: There are ample number of competitors of TESCO
present in market place like, Adani, ASDA LIDL. They use to provide products and
services similar as TESCO provide, which leads to tough competition among all the
competitors in market.
BCG matrix: BCG matrix is also known as growth share matrix, which TESCO can
use for making a proper brand portfolio of their products according to the
performance of them in marketplace.
1. Star: Under this, TESCO use to place those products of them which are
highly rated and are very much famous in marketplace, and also use to place
those products which help them in generating huge amount of cash. Products

which are very common on STAR category are either products of monopoly or
can be a new in market.
2. Cash Cow: These are the products which are said as market leaders for
TESCO, and also use to generate huge amount of profit. Generally these
profits are more then the cost of that product.
3. Dogs: These are the products and services offered by TESCO which have
very low market share and also have low growth rate (Press and Cooper,
2017).
4. Question marks: The products categorised under this, are those on which
TESCO do not say any thing, because the growth rate of that product is high
but then also the market share is very low.
Recommendations
It has been recommended to TESCO that, for increasing the profits of
organisation, they can use JIT in different functions, so that change in external
environment do not affect their performance. This will help them in reducing the cost
of operations and will also save their extra cost. Along with this, they can use BCG
matrix with JIT, so making brand portfolio become easier and better.
Conclusion
From the above discussion, it is concluded that, SWOT is one of the most
powerful tool which an organisation can use for analysing internal environment of
their business, where as for analysing the external environment PESTLE is very
helpful. Along with this, BCG matrix help an organisation in categorising their
products, so that effective band portfolio can be designed. Also it is concluded that,
TESCO have to evaluate this proposal, so that they can make required changes in
this, after which implementation of proposal will be more reliable. The time taken to
complete this proposal is about 15 days and cost included in this is £ 100. Also the
scope is that this help me gaining authenticated information which will help me in
future, while working on same type of reseach. Also the online resource were used
for compelting this proposal.

REFERENCES
Books and Journals
Amelec, V., 2015. Increased efficiency in a company of development of technological
solutions in the areas commercial and of consultancy. Advanced Science
Letters. 21(5). pp.1406-1408.
Antony, J., 2014. Readiness factors for the Lean Six Sigma journey in the higher
education sector. International Journal of Productivity and Performance
Management. 63(2). pp.257-264.
Basu, R., 2017. Managing project supply chains. Routledge.
Press, M. and Cooper, R., 2017. The design experience: the role of design and
designers in the twenty-first century. Routledge.