Business Analysis Report: Trends and Recommendations for Tesco

This report provides a comprehensive business analysis of Tesco, focusing on the trends within the retail industry and the company's adaptation to them. It examines the changes in customer demands, the rise of online platforms, and the importance of employee satisfaction. The report includes a SWOT and PESTLE analysis to evaluate Tesco's strengths, weaknesses, opportunities, and threats, as well as political, economic, social, technological, legal, and environmental factors. It also provides recommendations for Tesco to improve its operations, adapt to technological changes, and maintain a competitive edge in the market. The report emphasizes the importance of understanding customer needs, adapting to Brexit, and leveraging artificial intelligence for better performance.

INQUIRY BASED
LEARNING

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Trends..........................................................................................................................................3
Analysis.......................................................................................................................................4
Recommendation.........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Inquiry base learning which includes problem solving and investigation and focuses on
these in an educational purpose. The business in the market must have a proper understanding of
the changes which are coming in the trends and the demands of the customers so that there is
going to be a well maintained reputation of the organization for a long run. There are a lot of
business analyses which the business has to conduct so that they are sure about the measures
which are being taken by the organization. Tesco belongs from the retailing industry which was
founded in 1919 by Jack Cohen. The headquarters of the organization is in England, United
Kingdom and there the company is making a net income of £1.320 billion as of 2019. The report
consists of the trends which are changing in this industry and the analyses which the business has
in the market to be able to grow and have higher profitability for the further expansions.
MAIN BODY
Trends
There are a lot of changes which have come in the retailing industry and it is very
important for all the businesses globally to adapt to online platforms if they want the customers
to be loyal and the economic factor of the company to be stable. The customers are getting very
technological friendly and that can be a great advantage for Tesco as well to be able to increase
their sales. There are a lot of online platforms which have come up in the market from which
Tesco has already started an online website to be able to make the customers get their products at
home directly and they do not have to get out of their house to get their products (EFFENDI-
HASIBUAN and SULISTIYO, 2019). The customers can be provided with different shelves and
space for the products is a very good factor because the company is going to make the customers
have a good experience. There are E-commerce factors as well which is going to make the online
shopping of the customers get better. There products have high boxing quality and protection
provided to the customer’s products which are being delivered so that there are no damaged
products reaching the customers and the reputation of the organization is going to be intact. The
demands of the customers are increasing and changing as well which Tesco will have to adapt to
very quickly and for that the organization will have to get in the right technology so that the

demands of the customers are going to be met (Turnip, Wahyuni and Tanjung, 2016). The
expectations of the customers are changing and they have to be met by Tesco so that there is a
better functioning and the company will be able to have higher profitability.
Due to the current situation which the world is going through the customers do not want
to get out of their houses and get the products which they need. They want fully safe delivery to
their houses so that they are not putting themselves in any kind of danger. The products are going
to be sanitized and cleaned so that the customer’s safety is well maintained. Tesco has a lot of
experience in the market which is why the organization will be able to operate effectively in the
market if there are right measures which are going to be taken. The focus should not just be on
the customers but the employees of the organization as well so that there is going to be a better
experience which is going to be present in the market (Acar and Tuncdogan, 2019). The
employees also want their rights and freedom in the organization and if those are fulfilled then
the productivity and operations of the organization is going to increase and the company will be
able to profit effectively. The turnover of the employees is high because the competitors are
offering better job satisfaction to the employees so that they can take away the skilled and
experience employees from large organizations (Caswell and LaBrie, 2017).
Analysis
There are a lot of frameworks which are present in the market which can be used by
organizations to be able to analyse the market effectively. There is a requirement of a strong
planning so that the objectives and targets can be met so that the business will be able to have
higher profitability in the market. The frameworks which are going to be used in the further
report are SWOT and PESTLE of Tesco (Becker and et.al., 2020).
SWOT
 Strengths
Tesco has been in the market from a long run which makes the company gain a lot of
experience which is a very good factor for a long run in this competitive market. The

organization is going to make the right risks and measures for them to be able to operate in
market and compete with the other retailers.
 Weaknesses
Tesco is focusing on the growth in United Kingdom itself which is not going to be good for a
long run since the organization can have better reputation. There are tight regulations which are
present and the company will have to find solutions to be able to operate effectively.
 Opportunities
The market is growing and expansion can make the company have higher profitability in the
market which is going to make the organization have higher revenue to expand in globally.
Online presence for Tesco has worked out a lot which is a great factor and the company will be
able to get higher portfolio for themselves in the market (EDUCATING and KIDS, 2016).
 Threats
The competition in the market is very high and that will have to be analyzed and measures
have to be taken accordingly so that the business will be able to grow in the market. The pricing
of the products and services are fluctuating very quickly so that is why Tesco is having to deal
with them from time to time otherwise they can lose their market share.
PESTLE
 Political Factors
Tesco is operating in 12 countries and has a great experience to be able to expand them by
following all the rules and regulations which are present in different countries. It is due to Brexit
that there are a lot of changes which have taken place in United Kingdom and a lot of laws which
have to be followed for the betterment of the company. There was a rise in the unemployment
rate which will have to be improved making the business have good operations.
 Economic Factors

Tesco is very much dependent on the market of United Kingdom alone even though the
organization has expanded them in a lot of countries. Due to this factor there are going to be a lot
of risks on the economic factor of the organization.
 Social Factors
There are a lot of sales and discounts which the organization is putting out so that the
organization can attract more customers which is going to make the organization have more
revenue generation. The products and services of Tesco are developed and improved according
to the customers so that there is going to be better operations and standards which the
organization can create for themselves in the market (Riza and et.al., 2018).
 Technological Factors
There are a lot of operational management and information technology which is being used
in the organization which is going to make the company have a good operations and functioning.
There is electronic fund transfer system which Tesco has adapted in the organization so that they
can improve the satisfaction level of the customers.
 Legal Factors
There is a sense of transparency which is present between the customers and employees of
Tesco so that the productivity and operations of the organization is not fallen. Safety and security
laws are going to be monitored in Tesco so that there is going to be a good environment for the
employees to work within.
 Environmental Factors
There are renewable resources which are being used by Tesco so that the organization will be
able to compete effectively in the market (Gladun and Buchynska, 2017). Tesco is taking
measures to be able to improve the environment of the country by taking carbon footprint
measures for a better operation to take place which is going to be very good for a long run. The
wastage of Tesco is also well planned which is not harming the environment and making the
reputation of the organization improve in the market.

Recommendation
Tesco has not adapted to a lot of technological changes which are coming in the market
because the company is having loyal employees who do not want changes. There is a good
human resource department which is giving the right training and development to the employees
but the changes have to be accepted by the employees and the old staff of the company does not
accept the changes that easily. Changes coming in Tesco are slow which is why the demands and
needs of the customers are not being fulfilled from time to time which can be a great loss for the
organization for a long run. The company will have to lose their employees who are not going to
get in changes effectively and have to get in the right staff which is going to make the company
have a balance in the changing time. The workforce has to be well motivated so that they give in
their best in the organization which is going to be very beneficial for a long run. The customers
of the organization will have to be informed about the changes which are taking place so that the
organization will be able to gain the trust of the customers and the employees will also have to be
told that the changes which are required (van Uum, Peeters and Verhoeff, 2019). The changes in
the organization have to come in slowly so that there is going to be a higher productivity and the
employees do not feel the pressure and the operations would not be harmed. The focus of the
management will have to be higher on the external and internal factors so that the organization
will be able to benefit from this factor.
The company will have to understand the customers and their demands effectively so that
the research and development department can work on the products and services accordingly.
There are supposed to be a lot of changes which Tesco will have to keep getting in the products
and services and for that the company will have to make sure that they are not taking risks but
just doing what the customers expect. The feedbacks from the customers and employees will
have to be worked upon so that there would be a better reputation and standards which Tesco can
have for them in the market. There are a lot of changes which have come in Brexit which will
have to be adapted in Tesco so that there is going to be better functioning (Venant and et.al.,
2017). Artificial intelligence is present in Tesco but an up gradation is needed so that the
organization will be able to improve their CSR policies as well for a better performance in the
market.

CONCLUSION
From the above report it can be concluded that the businesses in the market need to have
a good sense of trends and market so that there is going to be better functioning for a long run.
The competition in the market is increasing therefore it is very essential for the organization to
be able to compete with them effectively so that there is going to be a better operations which
can take place. There are a lot of measures and actions which can be taken by businesses in the
market but they cannot take risks because the portfolio, brand image, reputation and standards of
the company in the market. The data which the businesses collect for the further plan has to be
good and they must work according to their feedbacks as well so that there is going to be better
functioning.

REFERENCES
Books and Journals
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teacher candidate’s success story. Journal of Humanistic Mathematics. 7(2). pp.161-
186.
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Portraying Supports, Situational Beliefs, and Chemistry Teachers’ Adoptions. Journal
of Turkish Science Education. 16(4). pp.538-553.
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