Comprehensive SWOT Analysis of TESCO: Business Performance Report

This report presents a SWOT analysis of TESCO, a leading supermarket brand in the UK. It begins with an executive summary and introduction, defining the internal environment and the significance of SWOT analysis. The report then details TESCO's strengths (financial turnaround, skilled workers, innovation), weaknesses (lack of management, financial errors, low-cost tactics), opportunities (online shopping, market trends, technology advancement), and threats (pandemic, intense competition, food safety law fluctuations). The analysis also includes a TOWS matrix and explains the impact of threats and opportunities on TESCO's production/operations and marketing functions. The conclusion emphasizes how TESCO can leverage its strengths and address its weaknesses to gain a competitive advantage. The report references academic sources and includes an appendix summarizing the SWOT elements.

SWOT ANALYSIS

Executive summary-
SWOT analysis is defined as strategic concept that help to analyze key strengths,
weaknesses, opportunities and threats of a company. The study is based on TESCO, that has used
its power in term of strength to overcome the negative impacts of each factor. By using business
growth chances, operations and marketing department achieved strategic objectives and aims.

Table of Contents
Executive summary-..................................................................................................................................2
INTRODUCTION.....................................................................................................................................3
PORTFOLIO 2..........................................................................................................................................3
Defining internal environment.................................................................................................................3
Defining SWOT analysis.........................................................................................................................3
Significance of SWOT.............................................................................................................................5
Tows analysis..........................................................................................................................................5
PORTFOLIO 3..........................................................................................................................................6
Explaining impact of threats and opportunities on two functions of TESCO..........................................6
CONCLUSION..........................................................................................................................................6
REFERENCES..........................................................................................................................................8
Appendix....................................................................................................................................................9

INTRODUCTION
SWOT analysis refer to strategic planning tools that utilized in the context of
organizations in order to determine their power, weak points, growth chances and threats. The
current assignment will be based on TESCO, which falls under category of leading supermarket
brands in the UK. This report will explain, internal environment, SWOT analysis and importance
of this tool. Furthermore, it may also define TOWS analysis and impact of each threat and
opportunity upon two business functions of company.
PORTFOLIO 2
Defining internal environment
Internal environment of a company is consider as set of certain elements that accessible
within companies and affected their productivity, performance and profitability (Toksöz, 2021).
In the context of TESCO, each component of its internal circumstance may listed below;
 Leadership styles
 Corporate culture
 Effective management
 Human resource
 Organizational capabilities
Defining SWOT analysis
It is a kind of effective technique that utilize in regard to TESCO to define its power and
key competencies along with threats and opportunities (What Is a SWOT Analysis and How to
Do It Right, 2021).
In this technique S stands for strengths, which enable firm to overcome weakness, gain
opportunity and deal with threat.
Strengths-
Financial turnaround- organization may have this strength which it may use to enhance
customer satisfaction and overcome political factor negative impact like tax rate change.

Strong and skilled workers- in term of power, company may have talented employees
who are able to contribute in gaining competitive edge.
Innovation management- Firm may capable to manage concept related to innovation
and activities in regard to innovative products.
Flexibility- TESCO is capable to provide flexible working hours to employees that help
retaining them for longer.
Big grocery outlets- It able to arrange every food and other category of products, by
using their power and that is big stores in the United Kingdom.
Organizational culture- it may allow management to use advance technology that
people accept and perform with this effectively.
Excellent technology usage- supermarket is enable to use great technologies that help to
grab opportunities offer by technology advancement factor.
Weaknesses-
Lack of management- in many stores of TESCO, due to lack of effective management
customer may suffer during products purchase duration.
Financial errors- this weakness may arise due to high credit and debts card liability that
emerge as financial issues.
Low cost tactic- it may decrease sales of company because people consider low cost
items not worthy of buy in quality.
Shortage of items- due to lack of inventory management firm may deal with this issue
that emerge as it weakness and negatively influence organizational image.
Leadership change- continuous leadership fluctuation may put negative impact on
worker’s performance.
Lack of quality control system- this weakness of company may lead to decrease
customers visit and increase number of their complaint that indicate room of current and further
improvement.

High dependency on European market- due to high dependency on this market, firm
may face complicated issues, when political circumstance may change within it.
Opportunities-
Online shopping- firm may grab this chance by using online application and sites.
Current market trend- veganism is current market trend that company may take into its
consideration for gaining further benefits.
Technology advancement- it allow marketer to reach at desire outcomes by using
advance technologies like social media.
Threats-
Pandemic- it may put negative impact on organizational productivity and strategic
management plan.
Intense competition- is one of those external factor that may put a lot of pressure on
manager to create strategic plans.
Fluctuation related to food safety Law- due to factor company may face challenge to
make change in their existing policies and processes.
Significance of SWOT
Competencies is set of abilities that use to deal with many issues. Skilled employees, is
the key strength of TESCO, which it may use to take benefit of opportunities offer through
PESTLE, such as veganism market trend.
Capabilities may defined as power that firm may use to gain competitive edge. TESCO
financial performance is its main resource which it may utilize as capability to give tough
competition to rivals and pay extra charge on trade procedure as external factor.
Tows analysis
Organization may use its labor to take benefits of technology advancement by using
advance technologies.
It may contribute to overcome negative impact of threat like intense competition and
reduce weakness by managing stores performance effectively.

It may also overcome negative impact of threats by reducing weakness in term of using
advance machines and storage management systems.
PORTFOLIO 3
Explaining impact of threats and opportunities on two functions of TESCO
Production or Operations-
Operation is the main function of company. It is essential in term of increasing customer
satisfaction level. Management may use certain strategies like market research, vegan items
collection, etc. through which organization may take benefit by using operation department as
they able to implement each in term of managing inventory and creating list of vegan goods
(Păunescu and Argatu, 2020). In term of threats, high competition within retail industry and
pandemic as environmental factor may put negative impact on operation function of
supermarket. It may drive the attention of management towards considering essential stages and
actions that help to deal with each issue effectively and appropriately. It may play vital role in
strategic implementation against threat by developing and monitoring effective plans.
Marketing-
This function considers as set of effective approaches that play crucial role in success of
TESCO. It may able to contribute in research and development, price setting, promotion
activities, distribution, etc.
Social media usage, brand awareness and web traffic generating are the strategies that
provide benefits to TESCO and it may use marketing department for their strategic usage in
effective manner (Stošić-Mihajlović and Trajković, 2020).
This section may affect by each strategy to reduce impact of threat in positive manner, by
using advance technology, for generating excellent brand awareness which in return may allow
them to generate strong web traffic.
CONCLUSION
From above analysis, it has been concluded that manager and leader by using abilities,
competencies and skills of employees as a strength as gained competitive advantages and

increased customer base. Furthermore, by using advance digital technologies marketing and
operations department has maximized productivity of company.

REFERENCES
Book and Journals
Păunescu, C. and Argatu, R., 2020. Critical functions in ensuring effective business continuity
management. Evidence from Romanian companies. Journal of Business Economics and
Management. 21(2). pp.497-520.
Stošić-Mihajlović, L. and Trajković, S., 2020. The importance of marketing instruments for
market approach and operation of export companies. Journal of Process Management.
New Technologies. 8(1). pp.18-23.
Toksöz, S., 2021. Relationship between employee behaviours and engagement in organisations’
internal environment. In E3S Web of Conferences (Vol. 244, p. 08026).
Online
What Is a SWOT Analysis and How to Do It Right. 2021. [Online]. Available Through : <
https://www.liveplan.com/blog/what-is-a-swot-analysis-and-how-to-do-it-right-with-
examples/ >

Appendix
Strengths-
 Financial turnaround
 Strong and skilled workers
 Innovation management
 Flexibility
 Big grocery outlets
 Strategic planning
 Organizational culture
 Excellent technology usage
Weaknesses-
 Lack of management
 Financial errors
 Low cost tactic
 Shortage of items
 Issues in food safety
 Leadership change
 Lack of quality control system
 High dependency on European market
Opportunities-
 Business expansion
 Online shopping
 Current market trend
 Emerging markets
 Strategic alliances
 Technology advancement
 Rise of meat alternatives
 High unemployment rates
Threats-
 Pandemic
 Intense competition
 Fluctuation related to food safety Law
 Changes in tax rate
 Trade barriers
 High employment rate
 Emerging demand for variety of food
items
 Emerging trend in market related to
fashion