Case Study on Tesco Supermarket: Management and Strategic Analysis

This case study provides a comprehensive analysis of Tesco Supermarket's management challenges. It begins with an overview of the company, its market position, and the issues it faces, including internal management problems and competition from rivals. The analysis employs SWOT, PEST, and Porter's Five Forces frameworks to evaluate the company's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, and technological factors impacting its operations and the competitive forces at play. The study also examines the skepticism surrounding free consulting projects and suggests selling strategies for different types of projects, including operations consulting and human resource counseling. The conclusion offers recommendations for Tesco to maintain its leadership position through strategies such as new managerial frameworks, improved supply chain management, and employee training. References to academic literature are included to support the analysis.

0Running head: CASE MANAGEMNT ON TESCO SUPERMARKET
CASE MANAGEMNT ON TESCO SUPERMARKET
Name of the Student
Name of the University
Author Note

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Company Overview
Tesco is one of the largest British Retailer that is known for having its grocery outlets in
Europe, USA and in most of the Asian countries. In the present date the company is also known
for being world’s third largest retailer in groceries. The business organization had begun in the
year of 1919 by Jack Chown who used to sell fresh vegetables and fruits in a very small store in
the East End of London. Since the growth of the business organization the company has
expanded widely in various parts of the world. It is now known for having a proper supermarket
stores and as well as high graded street outlets in various countries. In UK itself the company has
opened up more than 2000 plus stores which ranges from the super and hyper market stores to
the small local grocery stores (Alam and Raut-Roy, 2019).
Regarding the case which has been highlighted in the case scenario of Tesco it can be
said that the company has been facing been facing various types of higher management issues.
For this the company has not been able to address the issues considering the urgency of the
issues. It has also been found out from the case scenario that the company has been facing a
problem regarding the rule of bad managers which is widespread in the stores of UK. This
problem has been pointed out various times to the higher department or the HR but no policies
were issued from the HR, neither have they provided any instant remedy to the issue faced. The
research paper will thus aim to provide various types of remedies with the help of SWOT
analysis, PEST analysis and Porter’s Five Factor analysis.
Analysis using the three models
SWOT analysis
Strengths – The Company is known for holding an increased market share which is 13% total
market in UK itself along with the retail outlets in other countries and areas. The company is also

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known for having a multi formal capability which is known for having a constant growth from
the competitors in the present market scenario. In the year 2018 the company’s investment in
UK, West midlands was a very aggressive move which helped the company to increase the
market share in the market.
Weakness – Regarding the company weakness it can be said that the company is getting a high
competition from Reliance Industries. However the company is presently in a growing state but
is facing high amount of competition from the Reliance Industries as because the company is
known for following the price stimulating strategies.
Opportunities – Taking about the opportunities in the market it can be said that Tesco has huge
opportunities present inside the country of origin as well as in the international countries
worldwide. According the author Sparks, (2019) the company can use the footfall and low cost
structures in order to be price competitive over the competitors. Keeping the food sectors aside
the company should try to adopt the banking industries and telecom ventures in a broader range.
Threats – The structural change of the country can thus spark a price war against the competitors.
The price oriented market is about to become more and more aggressive over years. The
company also faces various types of problem because of the present economic condition and
many more.
PEST analysis
Political factors – In order to increase the employment services the government is known for
encouraging the retailers to provide a mix variety of job in the market.
Economical factors – Regarding the economical factors of the company it can be said that the
economical factors are known for influencing the demand, cost, price and profit earned by the
company.

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Social Factors – The social factors include the current trends in the country, where the British
people who have moved from the bulk shopping to one stop point shopping. Therefore it is an
advantage for the company that they provide everything to the customers under the single
umbrella.
Technological Factors – According to the author Johnson, Dickinson and Jones (2018)
technology is known to be one of the most macro environmental factor which influences a
company in order to achieve the goals with the help of the valuable strategies. Tesco Superstores
are known for having few of the best in class technological devices such as the wireless devices,
intelligent scales, electronic shelf labelling, self-checkout machines and many more (Heese,
Srinivasan and Kelley 2019).
Porter’s Force Analysis
Threats of the new entrants – Regarding the threats of the new entrants it can be said that the
company is dominated by few of the competitors including Reliance, Asda, Sainsbury and many
more which on a total basis is known for holding a market share of 70% in UK.
Bargaining Power of the Supplier – According to the author Heese, J., Srinivasan, S., & Kelley,
J. (2019) it can be said that this force is represented by the power of the supplier and influenced
by the larger supermarkets who are on the same page.
Bargaining power of the customers – Regarding the bargaining power of the customers it can be
said that the company is known for keeping the most famous loyalty card which is known for
retaining the loyal customers. This strategy helps the company in increasing the profitability
towards the business.
Threats of the Substitute – The general substitution which is led by the government body of the
country is known for reducing the price of the product by a certain limit. Therefore it can be

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recommended to the company that they can acquire existing small scale operation in local town’s
and metropolitan cities.
Bargaining power of the competitors – According to the author Evans and Mason (2018) the
grocery business in UK has seen an effective growth in the market of business. Therefore in this
case Tesco is the key player with few of the largest store in UK. The company is known for
being price competitive over the competitors, which acts as a market dominance over the large
players. The company is working on with various types of customer related data and customer
relationship information which can be used in order to communicated with the higher
management in order to get information about the competitor’s pricing strategy.
Intensity of Competitive rivalry – Regarding the intensity of competitive rivalry it can be said
that the company is facing huge amount of competition from the direct competitors of the
company. The competition mainly exists in the case of price, product and promotions made by
the companies over each other.
Why might managers be suspicious of consulting projects offered for free?
Managers should be suspicious regarding the consulting projects which are offered for
free of cost in the organization as because the free of cost projects are known for making the
employees understand and train with various types of objects which might not be necessary for
them. Therefore the free consulting projects should be checked by the managers prior the
training problem. The free consulting projects might have a lesser chance in getting their hands
in to the information which is not easy to get for them. The free consulting services might also
not be able to prepare the employees of the company for a foreseeable future.
Select three different types of project from those listed in this chapter and detail a selling
strategy for them offered on a no-fee basis?

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Regarding the other types of projects which are listed in the course it has been found out that the
strategic consulting careers is something which cannot be offered on a nonpayment basis. This is
the perfect domain for the C suit strategies which help the management of the organization to
represent various types of training needs to the employees. It will also create a long term vision
for the company. Therefore it will be offered on an online payment basis, only those employees
will be availing those who want to change their behavior in regard to the company they are
working.
Operations consulting project – The operation consulting projects in the company will be directly
pointing or else directing the management of the company in regards to the work they are
processing with. This process management training needs is known for covering the supply chain
management and increase the efficiency of the employees. This will be directed for free of cost
but however the premium version of the training will be taken care of only after the payment
made by the employees wanting it.
Human Resource Counselling – The human resource counselling project will be directly
delivered to the top management of the company as because it will help them to learn about more
policies they are interested in. It will help them in creating and implementing various types of
policies as well as finding out instant remedy.
Conclusion
In light of the analysis it can be said that Tesco will continue to hold its leadership
position within its segment where the other companies are trying to compete with the pricing
strategies and differentiation strategies. Strategies like the company should try out using new

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managerial framework in order to illuminate the supply chain management critics and ineffective
ways of using the IT system that is lowering down the company’s cost leadership strategy.
The company should also try to train the higher management such as the introduction
training, first class serve training and policies and multi skills training. These types of training
will help the management to learn how to behave with the customers and make and useful use of
the company resources. According to the author Tomlin, (2018) the managerial department
should also listen to the HR department and involve the employees in motivation process.
Furthermore the company should also try to empower the employees by providing them haptic
feedback and provide appraisals. This strategies will help the employees in gaining
encouragement and respect.

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References
Sparks, L. (2019). Tesco: how supply chain strategy supports retail success. The Business &
Management Collection.
Alam, S., & 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).
Robson, K., & Pitt, L. (2018). Tesco in South Korea: Strategic Localization. SAGE Publications:
SAGE Business Cases Originals.
Johnson, S., Robertson, I., Cooper, C. L., Dickinson, J., & Jones, N. (2018). Tesco Bank
Wellbeing Case Study. In WELL-BEING (pp. 179-188). Palgrave Macmillan, Cham.
Tomlin, B. (2018). Intel: a case study in capacity planning and strategy. The Business &
Management Collection.
Evans, B., & Mason, R. (2018). The lean supply chain: managing the challenge at Tesco. Kogan
Page Publishers.
Wood, S., Coe, N. M., & Wrigley, N. (2016). Multi-scalar localization and capability
transference: exploring embeddedness in the Asian retail expansion of Tesco. Regional
Studies, 50(3), 475-495.
Heese, J., Srinivasan, S., & Kelley, J. (2019). Accounting Fraud at Tesco Stores (A).
Grundy, T. D. (2017). Dynamic competitive strategy: Turning strategy upside down. Routledge.