Tesco in the Global Market: A Detailed SWOT and Operational Analysis

This report provides a comprehensive analysis of Tesco's position in the global business environment, focusing on a SWOT analysis to identify the company's strengths, weaknesses, opportunities, and threats. It highlights Tesco's strong market presence in the UK, its past failures in the US and Japan, and the impact of Brexit. The report also includes an operational analysis, examining how digital marketing and technology have influenced Tesco's performance, while also addressing financial challenges related to low-cost strategies. The study concludes by emphasizing the importance of SWOT analysis in strategic decision-making and operational efficiency for Tesco.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
SWOT analysis............................................................................................................................3
Operational analysis.....................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The internal environment is termed as the collection of number of factor which are
related to strength, weakness, competition, supplier buyers that’s are related to the company. The
report is based on Tesco that is leading retailer of the UK that are specialised in selling groceries,
electronics, clothing etc. The report discussed SWOT analysis and operation analysis of the
Tesco.
MAIN BODY
SWOT analysis
Tesco is one of the biggest market covering company in the retail business, further analysis od
swot in following ways-
Strength- Tesco is one of the biggest British market in terms of revenue as well as it is top
grocery market or supermarket in the UK that is consider as biggest strength. There are wide
variety of products are offer by the company but at the same time it has efficient network supply
on the basis of suppliers who are playing important role in order to manage efficient
management system the firm decided to reduce the cost so that people can able to buy more and
more products (Verasophon, 2020). The market share of the chosen company is highest in UK as
well as it helps attract more and more shareholder and investor. There is multiple award get by
Tesco and the performance is not limited to the fans and statistics.
Weakness- Some of the weakness which are considered in such a way when Tesco has
failed in US and Japanese market in the year 2012 because the firm could not export operations
and executing the plan on the basis of effective offshore. Also, there are some of the financial
errors which are affected for high credit card debt. Also, the company use debt which are directly
reduces the profit. The operating performance of the Tesco is comparatively weak which are
impacting on the basis of insufficient research before opening the stores.
Threat- There is economic crisis faced by the organisation in order to consider all the
external factors such as credit, taxations, government rules and regulation etc. All these factors
are affected growth and performance. In order to export the products at the global level it is
important to maintain the tax rates which are higher in the international market (Soegoto, 2021).
There are large number of competitors in UK such ass Carrefour, Walmart, Aldi etc. that can be
threat for the company. Along with this the Brexit deal has impacted in such a way where the
firm seriously affected by stop the business operations in the European countries.

Opportunities- The large number of opportunities which are help the Tesco by improving
the performance and increases the growth. In the new emerging markets company has expanded
the business operations in the 14 countries such as Indonesia, Turkey, South Korea etc. (Modica,
2019). Further, it has the chance to make alliance with the other brands in order to facilitates
better customer services and products by partnering up with them. It has the opportunity of
opening online stores at the large scale so that it can helps to upgrade the stores and application
for customers.
Operational analysis
It is known as process of analyzing a structure that organization determine an evaluate the
potential impact of an interruption to critical business operation. Along with this, it is one of
the most important aspect for company as it helps in continuity business plan. This framework
will help the company in analyzing the way any operation that would affect the organization and
take down the business interruption (Saad and et.al., 2019). However, conducting business will
help the firm in evaluating department independently and its relation with each other and helps
in determining the function as it is most crucial for the continuation of operation.
Furthermore, SWOT analysis helps the organization in finding the internal and external
strengths and weakness of the firm. The strength of the organization is growing their business
with help of digital marketing. That has impacted on marketing sector in positive way. Such as
digital marketing has helped the organization in covering the large area of market that has
contributed in increasing sales (Ballay and Sventeková, 2021). Along with this, it has enhanced
the marketing sector as it helps in sharing their content on various social sites that has
contributed in attracting large customer as well as increasing the profit of firm.
Furthermore, the main aim of the marketing sector is to increase the brand awareness of the
firm in the market thus making use of digital technology has contributed in growth of the firm
by increasing the brand awareness. Brand awareness resulted in enhancing the market position
of Tesco in business environment. Using advance technology has not only helped the
organization to increase their marketing but it has also contributed in improving their operation
performance of certain store. It has made use of advance technology such as digital pay and
computer visions technology has resulted in improving their performance. Along with this,
Tesco major weakness is that it is low cost strategy for increasing their customer and due to that

firm is facing loss as consumer are paying low price. That is affecting finance department of
the firm in a negative way (Gillis, Sreenivasan and Christie, 2020).
In order to improve that Tesco can monitor their financial position as it will give detail
about the progress of the business in the market. Along with this, it will also disclose the total
amount of sales and stock level that will be helpful in developing proper business plan on
monthly basis. Furthermore, company has to become more efficient in controlling the overhead
such as saving energy and implementing changes in behavior and using existing tools
efficiently.
CONCLUSION
Form the above report it has been concluded that SWOT analysis helps the organization in
identify the external and internal factor that will affect the company performance. Along
with this, it has also analyzed about the operational function of the firm that means
evaluating the o functional unit of the firm.

REFERENCES
Books and journals
Ballay, M. and Sventeková, E., 2021. Use of the method of operational analysis in the
framework of technological safety of emergency work. Transportation research
procedia. 55. pp.1490-1497.
Gillis, A., Sreenivasan, V. and Christie, M. J., 2020. Intrinsic efficacy of opioid ligands and its
importance for apparent bias, operational analysis, and therapeutic window. Molecular
pharmacology. 98(4). pp.410-424.
Modica, G., 2019. Pratiche di sostenibilità e sutainable development goals nel settore agri-food: i
casi Tesco, Migros, Rewe.
Saad, M. and et.al., 2019. Integrated safety and operational analysis of the access design of
managed toll lanes. Transportation research record. 2673(2). pp.127-136.
Soegoto, F.A., 2021. Product Development using SWOT Analysis. International Journal of
Entrepreneurship & Technopreneur (INJETECH). 1. pp.1-10.
Verasophon, P., 2020. CRM and the critical analysis of database marketing: a case study of
Tesco Clubcard.