Analyzing Tesco Plc's Challenges in Organic Food Supply

This research project investigates the issues and complications faced by Tesco Plc in the supply of organic food. The report begins with an overview of the research, background of the study, and its significance, outlining the research aim, objectives, and questions. Chapter 2 provides a comprehensive literature review, focusing on the major issues in organic food supply, including high costs, supply chain problems, meeting customer specifications, and affordability. The review also highlights the nutritional value of organic food and different sourcing channels. The research methodology, including investigation types, design, philosophy, approach, data collection, sampling, and ethical considerations, is detailed in Chapter 3. The report then explores the data analysis in Chapter 4, followed by the conclusion and recommendations in Chapter 5, including areas for further study. The report emphasizes Tesco's challenges in maintaining a competitive edge in the growing organic food market, addressing supply-side problems, inflation, and customer expectations. The research aims to ascertain the issues and complications that organizations face during the supply of organic food, using Tesco Plc as a case study.

RESEARCH
PROJECT

Table of Contents
TITLE: ............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
1.1 Over view of the Research...............................................................................................1
1.2 Back Ground of the Study ...............................................................................................1
1.3 Research Significance......................................................................................................2
1.4 Rational of the study.........................................................................................................2
1.5 Research Aim...................................................................................................................3
1.6 Research Objective...........................................................................................................3
1.7 Research Question ...........................................................................................................4
CHAPTER 2: LITERATURE REVIEW ........................................................................................4
2.1 Major issues faced by telco during supply of Organic food.............................................4
2.4 The relationship between Organic food and Human Health............................................1
2.5 Different ways by which organisation can supply organic food to their potential
customers. ..............................................................................................................................2
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................4
3.1 Investigation types............................................................................................................4
3.2 Research design................................................................................................................4
3.3 Research philosophy.........................................................................................................4
3.4 Research approach............................................................................................................5
3.5 Data collection method.....................................................................................................5
3.6 Data sampling...................................................................................................................5
3.7 Ethical consideration........................................................................................................5
CHAPTER 4: DATA ANALYSIS .................................................................................................7
CHAPTER 5: CONCLUSION AND RECOMMENDATION ....................................................18
5.1 Conclusion .....................................................................................................................18
5.2 Recommendations..........................................................................................................19
5.3 Area of further study......................................................................................................19
REFRENCES...................................................................................................................................1
APPENDX ......................................................................................................................................3

TITLE:
To ascertain the issues and complications that are faced by organisations during
supply of organic food. A case study on Tesco Plc.
INTRODUCTION
1.1 Over view of the Research
In this modern era people are very much concern on fulfilling their basic desires as to
taking benefits of offered products and services of firm. There is huge competition available at
market place and each business firm is concern on enhancing their performance through
satisfying the fundamental needs and wants of people (Tan, Tan and Khoo, 2014). In the busy
schedule people use various chemical products as to make their self more beautiful and attractive
but these products and harmful for human body as inclusion of harmful chemicals. Food can be
considered as the basic desire of human body and each individual work for fulfilling them in
effective manner. Food helps in making human life more easy and healthy and people are
concern on consuming high quality and healthy products in their daily life. People are very much
conscious about their taste rather than their health and concern on consuming fast foods, oily
items and junk foods. Organic foods are very much effective in maintaining humans life body
more health as these products and naturally grained and having various nutritions to effectively
development of people. Tesco Plc is the most popular British multinational retailer company and
deals in variety of products and services all over the world. The company gain huge profit
through selling wide range of organic products to their significant buyers. Organic food in
Britain are experiencing the highest growth and development in consumers demand for over a
decade. Organic food products are healthy in nature and people are very much concern on
consuming such type of products as to live a better and diseases free life. As a large business
enterprises Tesco Plc increases their market share through selling organic products to the people
who are belongs to different geographical area.
1.2 Back Ground of the Study
Tesco is a multinational company originated from UK. It operates a super market chain
worldwide. It is 3rd largest retailer in terms of profits. It has its stores in Asia and Europe region
as well (Peck, Christopher, Clark and Payne, 2013). Due to its size the company reaps many cost
and other advantage which help company to grow even more and diversify in various segment
1

very easily. There is an increasing demand for organic food and products among consumers due
its various advantages. Company have experienced the same as its organic sales have risen by
15% in the year 2017.Home delivery of organic products is taken care by ocado,It has also
grown by 16%.Shoppers are very enthusiastic in purchase of organic foods and products,
provided they are available in affordable prices and delivers high quality. Hence there is a clear
opportunity for company to bag on growth that is visible in the organic food sector ( Oosterveer
and Sonnenfeld, 2012). The company needs to remove its constraints like supply side
problems,inflation and high cost etc. in order to be effective and efficient and stand as a tough
competitor among its peers. The challenge with the company is to sustain its growth.
1.3 Research Significance
The main focus of the research is linked with identifying the major benefits of an organic
food is absence of doubt of all unnatural substances. Importance of organic food for health
doesn't end here. Their is fact that organic food doesn't contain any artificial preservatives in a
products of organic foods their shelf of life is shorter. It is important when they talk about a fresh
vegetables and fruits it start to reduce value of nutritional at a movement of harvesting. It make a
shelf life shorter which make organic vegetables and fruits more nutritious as they are relatively
consumed. Result of a organic food gives a greater amount of nutrients important it play a very
main role for a health of a human body (Morrison, Marcot and Mannan, 2012). Direct benefits of
health, organic food give a indirect numbers but having a importance of a positive effects in a
both environment and health of a human body. Production of a organic food are strictly
prohibited using of a chemicals, no risk of water and soil contaminated as it does not affect living
population nearby farms but where areas are wider as well it consider that ground water accounts
for a 80% of a drinking water in few parts of Southern England.
1.4 Rational of the study
The research into consideration is based on analysing the issues and conflicts that are
based on supply of organic food of business organisation. As small as well as large business
organisation faces various issues in supplying organic items because firm needs to apply various
safety measure as to protect the products that are related with organic items. There is huge
chance of damage in food products, so organisations are very much focused on supplying food
items through various resources as to providing health benefits to their customers. Supply has a
direct connection with organisational profit and revenue as fluctuation in supply cause changes
2

in profit of firm. High supply create profit for firm and low supply cause loss for firm. Tesco Plc
has various departments in which the sector of organic food create huge benefits for firm as to
supplying more goods to the people ho are very much conscious about their health and safety.
Tesco has wide range of customers who are very much loyal to the company and use various
products and services of Tesco since a long decade. The company is on higher position as to
supplying wide variety of satisfactory goods and services to their potential buyers, the company
is famous of serving high quality products and services to their customers. Company use less
chemical items in their products as to make them more healthy in nature (Mason and Evans,
2015). The major focused area of firm is to supplying more and more organic items to their
significant buyers through various mediums such as outlets, stores, whole sellers, distribution
networks, online selling etc. company attract their buyers through low prices of products as
organisation charge less mount on their organic products in order to increasing the demand of
products which create value in organisational growth and success.
1.5 Research Aim
This can be consist as most important part of research as the whole work of research is
based on aim. The basic purpose of creating research aim is to provide a clear understanding
about issue on which researcher needs to conduct an appropriate research through applying most
significant method. Research aim for this particular project is To ascertain the issues and
complications that are faced by organisations during supply of organic food. A case study on
Tesco Plc.
1.6 Research Objective
This is also an another important part of research which helps in carry out the whole
research activity in systematic manner as this provide a significant direction to the researcher in
order to attaining appropriate outcome and results. This part of research is interlinked with
research aim and this is a combination of various elements that are created as per the issue which
is described in the research aim (Labonté and et. al., 2012). Some essential objectives that are
effective in analysing the research issue in various perspectives are described as below:
 To determine the major issues which are faced by Tesco Plc during supply of organic
food.
 To identify the nutritional values that are gained by consuming organic food.
3

 To describe different channels through which organic food can be sourced to the different
channels.
 To analyse the relationship between human health and organic food. To recommend different ways by which organisation can supply organic food to their
potential customers.
1.7 Research Question
This can be evaluated as the most effective part of research project and signifies the
objectives that are created as per the description of research aim (Jones, Shrinivas and Bezner-
Kerr, 2014). This helps in creating the section of literature review more effective in nature
because this questions are widely based on research question that are prepared on the basis of
research objectives. Some essential questions are evaluated as below:
 What are the major issues that are faced by Tesco Plc during supply of organic food?
 What are the different tools by which nutritional values are gained through consuming
organic food?
 What are the various ways through which organic food can be sourced for Tesco?
 How to analyse the relationship between organic food and human health?
 What are the essential ways by which organisation can supply organic food to their
potential customers?
CHAPTER 2: LITERATURE REVIEW
2.1 Major issues faced by telco during supply of Organic food.
As per the opinion of Savitz, A., 2013, The Market of organic food is growing very
rapidly all over the world because of demand from consumers for organic food. But its not an
easy task to change business model and shift from non-organic to organic food supply without
facing any major issues. Hence the major issues faced by Tesco are as follows :- High cost: There can be a effect on the price of the organic products because the
difference in price of organic and non-organic will change with increase in the cost of
raw materials. Organic prices may see an increase because of such issue. Problems about supply chain: There can be problems in the supply of organic products
because it is facing many challenges like inflation in the supply chain because of reliance
on manual labour for the purpose of performing jobs like weeding. This could lead to a
4

inflated supply chain and may force the company to raise the prices of organic products.
which may hinder its growth going forward (Hjelmar, 2011). Meeting Customer specification: The fact that most of the crops which are harvested by
the company does not meet the required specification of the customers so finding an
alternate for this such as processing is a possible solution. Affordability: Organic food can be a viable option for the consumers in place of non
organic foods but the only factor which needs to be kept in mind is that it should be
affordable to the consumers and should not be high priced in comparison with non
organic food.
 High quality: The company is aiming at providing high quality of organic foods to its
consumers because what bother more to consumer is the quality of the food and not a
slightly higher price that they are paying for purchase of organic foods.
2.2 Nutritional value are gain by consuming organic food
According to the views of McDonald and Wilson, 2016, it is analysed that organic food
are beneficial for the health of person as he is not prone to any type of diseases and his body
remains fit and healthy. These are a following points which discuss the value of nutritional which
are gained by consuming a organic foods are as follows:
 Plant products: Numbers of content metabolites of primary and secondary foods from a
various systems of production for example conventional and organic systems. Conclusion
of a products of organic has a higher matter of dry and low content of nitrate and contains
low pesticides residual. Vitamins conclude that having a trends towards high vitamin c
content in a products of organic, content of mineral data were inconclusive.
It present a analysis of meta shows the study of a vitamins level C was high in
organically than in plant foods. High content of vitamin C found in many of a organic products.
Examples: tomatoes and peaches (Flynn and Bailey, 2014).
Numbers of a increasing studies measure a content of phenolic substance which might
have a role of chemo preventive in humans by cancer cell cycle modulating, inducing apoptosis
and inhibiting proliferation. It shows that organic products have higher phenolic substance and
low content of phenolic substances in a products of organic. Animal products: Products of animal have differences between conventional systems of
production and organic has observed. Studies of milk from USA, Netherlands, UK and
5

Denmark has seem that organically milk comes through animals has a high content of
conjugated linolenic acid and n-3 linolenic acids comparison with conventional systems
on milk. In now a days study from UK shows that milk from a less-input of systems, both
non organic and organic, having a higher content of CLA and n-3 linolenic, contents
having a higher has found a non-organic systems of low-input (Firth, Maye and Pearson,
2011). Grazing outdoor, biodiversity is high in pastures, no silage feeding and
concentrates on low level has found a factors of predominant which are benefits fatty acid
milk composition.
 Translation of compositional information to impact on health of human: Studies are done
on comparative on a composition of chemical of a products of food from conventional
and organic production systems which have value and give indications for having a
possibles effects of health. It is recognized that hypothesis effect the components which
are revised. Considering a estimation of a physiologists plant contain a 75000 or even
100000 having various components, or 7500-10000 per plant. Synergistically act in a
organism of plant became clear even having a methods advanced such as biology system
analyse thousands of substances, only top of iceberg of portray of a chemistry of a plant.
Secondly, it is unpredictable that consumes of organic which react biologically to a
product of food. It depends on individual of differences of constitutional with that actual
status of health (Firth, Maye and Pearson, 2011). Real life products are food matrix
integrated with a interactions of chemical between a products. Measure of factual effects
of a products of food are much informative not simple.
6

2.3 Various ways through which organic food can sourced for TISCO
Organic food: Organic foods are produced by comply methods with organic farming
standards. Organic farmers are a features that strive resources cycle, conserve biodiversity and
promote ecological balance. Organic product regulating in a company may restrict the uses of
some fertilizers and pesticides in farming. As per the opinion of Mahan and Raymond, 2016,
Organic food is produced in a way complies with standards of organic set by international
organisations, national governments and regional organisations. Organic food claims taste of
foods in a better which are generally not evidence supported. It is not a sufficient evidence in
literature of medical for supporting claims that a organic food is healthier and safer than a
conventionally growth.
TESCO organic food: Organic chilled and meat sales of food increased by 13% over past
12 months. TESCO said that the items of grocery includes cooking sauces, pasta and olive oil.
Almost sales are up to 16% and vegetables and fruits sales up 17%.
they say that people are increasingly buy organic food which need to be consistently and
affordable high quality all around a year considered a valuable opinion. Traditionally customers
due to high cost put off the organic food and lack of availability said by Organic Trade Board.
Results of TESCO sales of organic add a claims of rising sales of organic.
Various ways of organic food are sourced are as follows: Farmers: TESCO take products from farmers and they pack their products and sell them
in markets in different segments. Middleman: Company buy from a farmers in a bulk ans store them in their warehouses
and then sell them to the various stores (Duyff, 2012).
 Self produced/locally grown: they self produce the organic food and they directly sell to
the customers as they grow the organic products and sell them to a customers by having a
direct contact with them.
2.4 The relationship between Organic food and Human Health
As per the opinion of Ihara, 2013 Organic products are becoming very popular now days.
The term organic means basically the way agricultural products or foods are grown or processed.
The regulations regarding organic food is different in different countries,There is stringent rules
regarding production and processing of organic products. For example in US, use of
pesticides,petroleum based fertilizer is restricted. The increase in demand for organic food is
1

because on many reasons the primary reason out of them is its impact on human health. The
following are its benefit :- Organic foods have fewer pesticides: Various chemicals which are used in conventional
agriculture like herbicides,insecticides such pesticides are not available in organic foods
and are more environment friendly than non organic foods (Davis, Lockwood, Pantelidis
and Alcott, 2013).
 Organic produce is usually fresher: because it is free from preservatives which is
usually added in other agricultural produce to make it last longer. It is usually sold at
nearby stores from the farm where it is produced. There are various benefits of organic farming to the environment as well which leads to a
positive impact on human health, these are Reduce Pollution, Water
Conservation,Reduction in soil Erosion, Consumption of less energy. Organic Food is usually rich in nutrients: Some essential nutrients which are essential
for human health and growth are available in organic foods like omega-3 fatty acids,these
are up to 50 percent higher in meat and milk which are organically produced.
 Healthy environment for animals: Animals which are used for organic farming are kept
in neat and healthy environment they are give more free space to roam,which keeps them
healthy and therefore their produce will also be pure and healthy. Antibiotics or growth
Hormones are not given to such animals which is a positive for health of animals.
2.5 Different ways by which organisation can supply organic food to their potential customers.
According to the opinion of Buller, H. and Roe, E., 2014, Demand for organic food is
highest in recent decade with the popularity of organic fruits and vegetables growing. Tesco
focuses on the supply of organic food item to their potential customer. Company uses modern
method for the supply of organic food by which item can reach easily to the customers.
Company also discovered that sales of organic food is appear to be rising across all sectors.
Tesco focus on the supply of organic fruits where customers can easily purchase from that
particular place. Tesco implement its strategies for supply of organic foods which are as follows:
Wholesalers: Tesco focus on supply of organic food to the whole-sellers for uniform supply of
organic foods to its potential customers (Cribb, 2011). Company coordinate with the whole
seller to supply of fresh vegetables in the supermarkets , malls, where the freshness of the
vegetables can be maintained by using preservative method for vegetables.
2

Give supply to the retailers: As Tesco concern with the fruit supply,company opened small scale
warehouses for fruits which is coordinated by the employees of the company. So the fruits
can be directly availed by retailers and can be sold at affordable price in the market. Tesco
focuses on the quality and freshness of the fruits. It compliment fastest way of transportation
so that it can reach in the market as per the requirement of the demand made by its potential
customers.
Coordinate with supermarket, malls : Tesco segmented their customer according to their
buying capacity so that it supply fresh fruits and other organic foods to the malls and big
markets because most of the customer who have high buying capacity they used to visits
these malls for purchasing the organic food and fruits. It coordinate with the management to
supply the organic food as per the demand made by the potential customers of Tesco. It help
in maximising the level of profit for the company and also increase its brand perfection.
Supply through online demand made by customers: Tesco explores its chain of supply
according to online demand made by customer. This facilities is given to those customer
who won't be able to go market for purchase of organic food . Company in order to assist
those customer with free home delivery as per the demand of the customer. So Tesco make
warehouses for proper supply of the organic fruits and vegetables.
Tesco implement advance technology,shortest route,advance supply chain system, and advance
transport system to attain the satisfaction of its potential customer.
3