Comprehensive Report: Tesco's Performance, Market Position, and SWOT

This report provides a comprehensive performance evaluation of Tesco, a leading UK retailer founded in 1919 by Jack Cohen. The report delves into Tesco's background, highlighting its presence in 14 stores across Asia, Europe, and North America, and its market leadership in the UK grocery sector. It examines current trends in the supermarket sector, including Tesco's expansion into clothing (F&F) and homeware brands. A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats, offering insights into its strategic position. The report also analyzes Tesco's financial performance from October 2015, including key ratios such as GP ratio, NP ratio, return on assets, return on equity, and return on invested capital, providing a holistic view of the company's market performance. This assignment solution is available on Desklib, where students can find past papers and solved assignments.

Performance evaluation of Tesco
GROUP MEMBERS:
1. 2.
3.
4.

Tesco Background
 It was founded by Jack Cohen in 1919, from London's East End's market stall.
 In 1929 Cohen opened a Flagship Tesco store in Burnt Oak.
 It is a British merchandise retailer and a multinational grocery store, It's headquarters are
in England, Hertfordshire, United kingdom, Cheshunt.
 Talking about profit, It holds the position of second largest retailer of the world. After
Walt-Mart and Carrefour, In revenue measures it is the third largest retailer of the world.
 It has stores in 14 stores across Asia, Europe and North America, and it is the grocery
market leader in UK.

Current trends in the supermarket sector

Tesco performance since October 2015
 TESCO is a global leading retailer. Retailing is a highly competitive industry which is
characterized by brand recognition, low profit margins, economy of sales and inventory
management. One thing that resulted in low sales from 2015 was preference of customers
for value of the products that they were buying. It is carrying out great competition from
Marks and Spencer, Morrison, Sainsbury. In-spite of such a market pressure TESCO has
continued to hold its position in market. During the pandemic when all the businesses
were getting suffered it showed its effects on TESCO too but a fast recovery proved to be
a game changer and raised the sales. There has been a fluctuating increase in sales from
the fourth quadrant of 2015 to 2021. But post covid in 2020 to 2021 the sales bar was very
high.

Current performance of Tesco
Ratio analysis of Tesco
Particulars 2020 2021
GP ratio 7.07% 7.51%
NP ratio 1.50% 10.61%
Return on assets 1.92% 12.53%
Return on equity 6.90% 47.96%
Return on invested capital 5.75% 23.09%

SWOT analysis of Tesco
 SWOT analysis is a strategic planning technique which is helpful in identifying the strength, weakness,
opportunities and threats of a person or organization.
 This tool is helpful in identifying the strategic position of an organization and figure out its threats and
weaknesses for it’s competitive advantage
 This tool may be used for decision making.

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

Growth Opportunities & Recommendations

Conclusion
 The report has summarized about TESCO which the leading retailer of UK. In the above
report we studied about the background of the company.
 It was founded by Jack Cohen in 1919, currently it operates in 14 stores across Asia,
Europe and North America, and it is the grocery market leader in UK.
 Further we learned about the current trends in supermarket sector and came across that
along with its grocery business, it also includes clothing label called F&F and home ware
brands like Go Cook and Fox and Ivy.
 Along with it we performed a SWOT analysis of TESCO in which we came across
various strengths and weaknesses of the company.
 The study has also shed light on performance of the company from October 2015.