Business Plan Analysis: Tesco's Strategies and Performance Review

This report offers a comprehensive business plan analysis of Tesco, a leading global retailer. It begins with an introduction to business plans and their strategic importance, followed by an examination of Tesco's mission, vision, and organizational culture. The main body of the report delves into Tesco's company description, highlighting its history, operations, and employee-centric philosophy. It then explores the opportunities Tesco faces, including online sales growth, employment, and expansion into emerging markets. The report also covers Tesco's marketing strategies and plan, management and operations, financial analysis and projections, and potential exit strategies. References to books, journals, and online resources provide further context and support the analysis, making this a valuable resource for understanding Tesco's business model and strategic approach.

BUSINESS PLAN

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Mission, Vision and Culture........................................................................................................3
Company description...................................................................................................................4
Opportunity Analysis & Research...............................................................................................5
Marketing Strategy and Plan.......................................................................................................6
Management and Operations.......................................................................................................6
Financial Analysis and Projections..............................................................................................6
Funding request and Exit strategies.............................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business plan is basically a formal document which includes the goals of the business,
approaches to achieve those goals and the time frame which will be required to achieve the same.
This helps in deciding the future of the business and helps in planning about the future. These are
inherently strategic which is started with resources and abilities. This helps in increasing the
profitability and the assets (Chetthamrongchai, 2018). Tesco is the largest retailer dealing in the
groceries and general merchandise and is headquartered in UK. It performs its operations in
various countries across the world. It is the market leader in terms of groceries in UK. The
company has gained immense success since the time it was founded. Tesco strives hard to retain
and attract the customers so that it can gain competitive advantage among the competitors and
also helps in increasing its brand equity. The report will shed light on the company and its
various aspects. It will also focus on the mission, vision and culture of the company. This will be
followed by analysing the opportunities for the company. The report will also shed light on the
marketing strategies which will help in developing a marketing plan. The management and the
operations of the company will also be highlighted. This will be followed by analysing the
finances of the company and the exit strategies will also be highlighted.
MAIN BODY
Mission, Vision and Culture
The mission of the company is to become the champion of customers and also help them
so that they can enjoy better quality of life and easier way of living. The job of the company is to
deliver the great products at great value in a right way. This is why, the mission statement of the
company is “We make what matters better, together” which means that everyone is the part and
parcel of the company’s success (Tesco plc., 2021).
Vision: The vision of the company is “To be the most highly valued business in the
communities they operate, customers they serve, shareholders and the loyal and committed
colleagues”. The five elements of the vision which helps in describing the sort of company it
aspires to be. These include growing business which is full of opportunities, wanted and needed
around the world, winners at applying the skills, innovative and modern full of ideas, earning
loyalty and trust from customers, communities and colleagues along with becoming inspiring
(Ismail, 2017).
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Culture: The culture at Tesco is too motivating and inspiring. It is shared friendly which helps
in the employee empowerment. The work environment is also much flexible along with shared
beliefs and values. Due to the shared culture, the employees are more eager to understand the
needs and demands of the customers. The employee participation and flexibility is increased by
the decentralised structure and culture of the company.
Organisational culture deals with the shared values, beliefs and the assumptions which help in
guiding the action of its members (Peeroo, 2019). It can be impacted by variety of the factors
such as nature of business, external environment, founder’s value and the leader’s behaviour.
Tesco performs its operations in various countries therefore the company has to adapt itself
according to the country in which it operates. The company also treats its human resource as the
important assets and also make significant investments in it. Tesco also follows the Maslow’s
hierarchy of needs in order to satisfy the needs of the employees and the customers which keeps
them motivated thereby making a perfect culture of the workplace for the employees to work
efficiently.
Company description
Tesco is one of the largest retailers in the world. It was founded by Jack Cohen in 1919 in
London’s East End. The company expanded its operations in various other countries like China,
Malaysia, India, Ireland and many other countries. The company has employed almost 530,000
colleagues. The company considers its employees as the biggest assets. The success which was
gained by the company did not happen by chance but with the relentless efforts of the employees
and the management. The philosophy of the company “Every Little Helps” puts the
communities, customers and the employees at the heart of everything. The main aim of the
company is to provide a great shopping experience for every customer served by the company.
This can be in stores, other service provisions or online platforms. The revenue earned by the
company £64.760 billion and the operating income of the company is £3.005 billion (Alexander,
2020). The net income of the company is £0.973 billion. The company considers its employees
which are almost 423,092 in number as the major reason for its rapid and continuous success.
Tesco deals in the products of groceries and merchandise in the supermarkets, hypermarkets,
superstores and convenient shops (Alam and Raut-Roy, 2019). Tesco is also a member of the
Global Compliance Program. The company not only provides quality products to the customers
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at reasonable prices but also contributes positively towards the sustainability. The company is
also striving hard to be a zero carbon business. The customers can also engage themselves while
contributing towards sustainability by buying the lower carbon products and changing their
behaviour which can help in reducing the emissions. The company also reward these customers
by giving them, Club card points and also are available on recycling the mobile phones,
cartridges, home insulation, carrier bags etc. This is why, the company is known for providing
quality products and services both online and offline along with impacting the environment
positively.
Opportunity Analysis & Research
The company Tesco faces various opportunities which can lead to its rapid progress and
profitability. The company can grow its online sales of groceries which can help the company to
continue performing its operations even in the times of pandemic where there were complete
restrictions on the stepping out of people. The company dealing in the supermarket can also
provide jobs and employment to majority of the people in different departments. This can help
the company in fuelling its growth by providing employment opportunities. Furthermore, the
company can also provide meat alternatives because the demand for plant based sources of
protein is increasing day by day globally which give opportunity to the company to provide meat
alternative. The supermarket can also sell the inventory at affordable rates along with preventing
food poverty and wastage. Tesco can also make use of advanced technologies like AI and
machine learning. The company can also partner itself with the IT consulting companies for
improving the operations as well as productivity. Machine learning and AI must be used for
predicting and delivering the street-level requirements which could help the company to become
game-changer (Rosnizam and et.al., 2020). The major opportunity for the company is to expand
its online business so that it can attract majority of the customers towards itself. The people in
UK are more preferring online shopping and getting the products at the door steps. This will help
the company to attract and retain the customers. Tesco must also expand its business including
the stores in the emerging countries like Turkey, South Korea, and Indonesia etc. This can prove
to be a profitable opportunity for the company. The company can also make use of the local
businesses especially where Tesco is underperforming. This will help the company in gaining the
local profound knowledge of the market which can enhance the performance in such regions.
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Tesco can also develop strategic partnerships with the reputed companies so that the company
can offer more products which can help in attracting more customers. This was also observed
that the company has a discount store named Jacks which is showing a significant growth. So the
Company must grow this business and can successfully compete with the rivals which are low
cost such as Lidl, Aldi etc.
Marketing Strategy and Plan
Management and Operations
Financial Analysis and Projections
Funding request and Exit strategies
Exit strategies are basically the contingency plans which can be executed by trader,
investor business owners or the venture capitalist for liquidating a position in financial asset or
disposing of tangible business assets. There can be many reasons for executing the exit strategies
which can include the changing in the market conditions, liability lawsuits or divorce, retiring of
the business owner of the investor so cashing out, legal reasons or any other (Adamyk, 2019).
There are various exit strategies which can be applied by Tesco which are as follows:
Merger & Acquisition: This deals in merging with the similar company or bought by larger
company. This can be applied by bigger companies like Tesco because it can be proved to be
quicker and efficient way for growing the revenue instead of creating new products. The
resources can be saved by combining and the win-win situation can be created because of the
complementary skills in the bordering companies.
Selling to a friendly individual: This is considered as the great way for cashing out so that the
investor can be paid, paying oneself, tasking sometime off and getting again back to gave fun.
The demand of the shareholders is high along with the liability concerns. So, Tesco must not
make use of this strategy for exit.
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REFERENCES
Books and Journals
Adamyk, K., 2019. PESTLE Analysis on Tesco PLC.
Alam, S. and Raut-Roy, U., 2019. Evaluating the Effectiveness of Reward Strategy at Tesco:
Evidence from Selected Stores in UK. Indian Journal of Industrial Relations. 55(1).
Alexander, I.N., 2020. The influence of technological innovations on organization's competitive
advantage: Case study on Irish food retail company (Tesco) (Doctoral dissertation,
Dublin, National College of Ireland).
Chetthamrongchai, P., 2018, June. Consumer behavior and customer loyalty program: Case of
Tesco in Thailand. In Proceedings of International Academic Conferences (No.
7208909). International Institute of Social and Economic Sciences.
Ismail, I.N., 2017. The Roles of Corporate Governance and its Influances on Risk and
Performance: Tesco Plc.
Peeroo, S., 2019. Customer-initiated conversations on Facebook pages of Tesco and Walmart.
In Information Systems Design and Intelligent Applications (pp. 43-51). Springer,
Singapore.
Rosnizam, M.R.A.B. and et.al., 2020. Market Opportunities and Challenges: A Case Study of
Tesco. Journal of the Community Development in Asia. 3(2) pp.18-27.
Online
Tesco plc. 2021. [ONLINE]. Available through:
<https://www.tesco.com/>
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