Tesco's Performance Evaluation: Trends, SWOT, and Recommendations

This report provides an analysis of Tesco's performance within the supermarket sector, examining current trends like personalized customer experiences, sustainability, and home delivery. It discusses Tesco's financial performance since 2015, including significant losses and subsequent improvement...Read More

Performance evaluation of
Tesco

Current trends in the supermarket sector
 There are some trend that affect the supermarket
sector in opposite as well as positive manner and
it also helps to provide a new age in grocery
shopping as well. Such as:
Personalized
customer
experience
Sustainability
Home
Delivery
Offer healthy
products
Current
trend

Tesco performance since October 2015
 There is a huge loss suffered by UK retailers in their corporate history in 2015 such that
around £ 4.7 billion losses which in the result of fall in property values.
 The records also stated that there is a huge loss of a firm but from 19’s it is analyzed that
company improve its brand performance by offering the high quality of product to their
customers.

Current performance of Tesco
 The growth of Tesco is high because it is performing good and that is why, it is analyzed
that company is sustaining the brand image.
 By changing environment, company is also comply with trend and this in turn attract the
range of customers towards it. As the financial performance of the company is increases
and that is why, it is uses range of advance technology within a business that helps to
meet the define aim.

SWOT analysis of Tesco
 This tool is used to examine the strength,
weaknesses, opportunities and threats.
 The tools is a strategic management tool that
examine the performance of a firm.

Strength
 Market share: Tesco has a largest market share which
means it has more than 6800 stores in 14 countries.
Also having a diversified stores within a market is also
clearly reflected that company sustain the brand image
of a firm.
Market share
Biggest grocery retailer
Awards

Weaknesses
 Failed operations in US and Japan: From 2012, it is identified that company exit form
America and Japanese market in 2012 and this affect the entire store in negative manner.
 Fraud trial and accounting scandal: In 2017, Tesco is charged with heavy fines due to
false accounting decision that affect the financial performance of a firm.

Opportunities
 Strategic alliance with other brand: By developing effective strategy with regards to
partnership with reputed firm is considered as an excellent opportunities for Tesco and
this in turn helps to improve the brand image.
 Emerging market: Having a brand image is clearly reflected that it is expanding its
business in emerging market such that South Korea, Turkey and Indonesia which helps to
increase the profit of a firm.

Threats
 Controversy: Tesco face a social media backlash when it launched its Christmas in 2017
and it is boycotted the store claiming a disrespectful act. This controversy also affect the
business in negative manner
 Competition: Company faces a range of competition from its rivalry firm and this in turn
affect the overall brad image. Moreover, the market position can also threatened the entire
business performance in negative manner.

GROWTH Opportunities &
Recommendations
Opportunities:
 As per the research, it is analyzed through secondary research that Tesco should start its
business through online mode and this in turn increase the overall performance of the
company.
 On the other side, another opportunity for the company is to offer the innovative product
to their customers which in turn increase the overall brand image and grab attention of
their customers.

Conclusion
 By summing up above report it has been concluded that Tesco increases its performance
from last many years and this is due to offering innovative products.
 Also it has been summarize from SWOT analysis that company operate its business at
different country, while low performance in US and Japan is considered as weaknesses.
 Moreover, it is further concluded that by using joint venture as an opportunity that helps
to meet the define aim of a company and grab attention of many customers as well.

References
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Sector. Educational Research (IJMCER). 2(4). pp.67-71.
 Fenyves, V. and et.al., 2020. Financial performance of Hungarian and Romanian retail food small
businesses. British Food Journal.
 Kahraman, C. and et.al., 2018, August. Efficiency analysis in retail sector: Implementation of data envelopment
analysis in a local supermarket chain. In The International Symposium for Production Research (pp. 884-897).
Springer, Cham.
 Manjula, V.N., 2020. A Study on Talent Management, Employee Engagement and Employee Performance in
selected retail sector in Bangalore city. Solid State Technology. 63(6). pp.6282-6288.
 Naidoo, M. and Gasparatos, A., 2018. Corporate environmental sustainability in the retail sector: Drivers, strategies
and performance measurement. Journal of Cleaner Production. 203. pp.125-142.
 Oliveira, J.M. and Ramos, P., 2019. Assessing the performance of hierarchical forecasting methods on the retail
sector. Entropy. 21(4). p.436.