Analyzing Tesco's Business Challenges: A Consulting Perspective

This report provides a business consultation analysis of Tesco, a major British multinational retailer, focusing on its supply chain disruptions. It identifies the client's problem as disruptions affecting product quality and distribution. The report analyzes Tesco's competitive landscape, target customer market, and external influencing factors using PESTEL analysis, highlighting key competitors like Sainsbury's, ASDA, and Morrison’s. It pinpoints the top three issues Tesco faces: supply chain disruptions, high market competition, and inconsistent product quality. The report concludes by emphasizing the need for Tesco to address these issues to ensure smooth business operations, improve product quality, and foster sustainable growth. Desklib offers a platform for students to access this and similar solved assignments for their academic needs.

Business Consulting
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Table of contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Clarifying who the client is and what business problem they are facing................................3
2. Critically analyzing and presenting areas of importance to the client such as competitors,
target customer market and influencing factors from the external environment.........................4
3. Top three issues client is facing...............................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Business consultation is defined as ways in which improvements can be undergone in
business to improve it (Haslebo, 2018). Tesco is the British multinational groceries and general
merchandise retailer providing products and services to customers.
The report will analyze Tesco facing issue of supply chain disruptions. Along with this,
importance of Tesco will be determined by explaining competition, target customers market and
influencing factors from external environment. Furthermore, top three issues client was facing
from explanation will also be discussed.
MAIN BODY
1. Clarifying who the client is and what business problem they are facing
Background of the client – The client is Tesco, major British multinational groceries and
general merchandise retailer which provides the products and services to the customers and
ensure that their needs and requirements are fulfilled at large scale. The company ensures that the
products and services are served to the customers in the market at large scale.
Client Problem – There are many issues and problems which the client is facing among which
one of the major problems is that it is facing supply chain disruptions. This has created
difficulties for Tesco to ensure the production system of the products and services working
smoothly and effectively at large scale (Rosnizam and et.al., 2020). Supply chain disruptions
have included the quality issues in the products and services which are being served to the
customers’ at large scale in the market. This has affected the cycle of the distribution of products
in the market. Supply chain disruptions are the major cause due to which Tesco is facing this
problem of not ensuring that the products and services are to be produced effectively and in
significant manner so that the business is not affected.
The quality of the products which are manufactured in the company are being affected
and this has created problem for the company in ensuring that all major tasks are taken into
consideration at large scale and this has helped in denoting the aspect that the quality of products
and services is disturbed (Russell, 2019). Customers now - a - days are more concerned about the
product quality, therefore Tesco should ensure that they are providing the best quality services
and products at large scale and ensure that they are making all customers satisfied by serving the
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best. The supply chain disruption the client is facing is due to the quality of the products which
have been the major cause of how the business is also affected at large scale.
Therefore, this is the major problem which Tesco is facing and this helps in ensuring that
all aspects are considered at large scale among which quality of products and services have been
affected at large scale in the supply chain disruption (Rosnizam and et.al., 2020). To ensure
smooth sailing of business Tesco should ensure that the problem of supply chain is solved so that
the quality of the products is not affected and the business seeks growth and development in
effective and significant manner. By solving this problem the company will be able to take
concern of the products and services which are to be expanded in consideration to how the
business is taking place and key points of increasing the business at fast rate in significant
manner possible.
2. Critically analyzing and presenting areas of importance to the client such as competitors,
target customer market and influencing factors from the external environment
Industry Analysis – Importance to the client such as competitors, target customer market and
influencing factors from the external environment affects the Tesco’s performance and overall
functions of it. Industry analysis is done on the basis of explanation of –
Competitors – Tesco has various competitors in the market such as Sainsbury, ASDA and
Morrison’s. Competitors play an important role in the market and in the business. Competitors
play an important role in analyzing and identifying the trends which are running in the market
(Verasophon, 2020). This helps them to know and analyse that how the products and services
can be distributed in the market and what are the measures which ensures the aspects of growth
and development in the business while competing with the competitors in the market.
Competition helps in also denting the fact and ways in which the quality of the product and
services are to be improved so that Tesco benefits from gaining the maximum number of
customers and the business seeks growth overall at large scale successfully.
Target Customer Market – Customers play very important role in the target market as due to
them the products and services are generated and produced at large scale within market structure.
Customers provide review towards the products and services which helps in analyzing and
identifying the ways in which there can be improvement within products so that the customers
are attracted and engaged in buying them (Tirawatnapong and et.al., 2018). Tesco focuses on the
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target market customers which help them in gaining scale of maximum number of customers’ at
large scale. Analysing and identifying target customer in market help in improving the business
at large scale and creates value for the products and services which are being provided to them.
The needs and requirements of the customers in the market are fulfilled in proper manner.
PESTEL Analysis – PESTEL analysis is being done for Tesco which helps in analyzing the
factors affecting the business. These are described as –
Political – Tesco has been influenced by the aspects such as – tax rates, stability of UK, acts of
legislation at large scale.
Economic – The main concern for Tesco is that they are most likely to leverage cost, profits and
prices and demand therefore changes in the policies should be taken into concern (Kairuz and
et.al., 2020).
Social – Due to changes in the trends, customers are more willing to buy the products and
services in bulk.
Technology – Tesco has provided the facility of online shopping to customers with delivery of
products at their door.
Environmental – Tesco committed to reduce the carbon footprint by 50% by 2020. Also, the
company is minimizing the waste products (Kairuz and et.al., 2020).
Legal – There are strict government policies and legislation which are being followed by Tesco.
3. Top three issues client is facing
Top three issues Tesco is facing are mentioned as follows –
 The supply chain disruption issues.
 Tesco is facing the problem of high competition in the market.
 The company is also facing issues of bad quality of products and services served in the
market to customers.
These are the major issues which Tesco is facing and this has created problem for the company
in initiating its growth and development at large scale. The business is being hampered by these
major aspects as this has created decline in the business due to which the company is facing the
issue of unable to creating value for the proper flow of supply chain management functions and
this impacted the scale of business (Evans and et.al., 2018). The major downfall and issue which
Tesco is also facing is that there is high competition in the market which has created the base of
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working more hard in providing the customers variety of products and services and serve them
best at large scale. The company is also facing issues in the quality of products and services
which can be solved by proper functioning of creating valuable products and services at large
scale. These are the three main issues which are created at large scale and due to which business
of Tesco is hampered (Mubarik and et.al., 2021). The issues can be solved at large scale by
evaluating and framing such effective strategies which helps in ensuring that for solving the
issues it is very important to ensure the smooth functioning of Tesco’s functions. These are the
major issues which are also affecting the customers as the products and services are delivered to
them within the market.
The issues can be solved by creating effective strategies and making ways through which
supply chain disruptions are removed ensuring the smooth distribution of the products and
services in significant manner. The quality of products can also be improved by ensuring that all
major changes in the process of production and improving the supply chain management
disruptions are done at large scale (Kwak and et.al., 2018). It is very important that these issues
are solved so that the business can take the initiative of how the business can upgrade the
business at large scale. Therefore, by solving the issues, the company will be easy to gain the
scale of how the business can be done and how are the strategies applied to the business at large
scale to solve the issues which Tesco is facing. These issues are to be solved so that the business
is not hampered affecting the customers and market at large scale possibly.
CONCLUSION
Thus, it is concluded form the above report that Tesco was facing the issue of supply chain
disruptions. Along with this, importance of Tesco was determined by explaining the competition,
target customers market and influencing factors from the external environment. Furthermore, top
three issues which the client was facing from the explanation were also discussed and explained
in detail. This helped in knowing that Tesco can take concern and improve the issues and
problems effectively.
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REFERENCES
Books and journals
Evans, B. and et.al., 2018. The lean supply chain: managing the challenge at Tesco. Kogan Page
Publishers.
Haslebo, G., 2018. Organizational consultation in a systemic perspective. In Systems and
Meaning (pp. 1-15). Routledge.
Kairuz, A.R.P. and et.al., 2020. PESTEL analysis of environment state responsibility in
Ecuador. Neutrosophic Sets and Systems. 34. pp.70-78.
Kwak, D.W. and et.al., 2018. Risk interaction identification in international supply chain
logistics: Developing a holistic model. International Journal of Operations &
Production Management.
Mubarik, M.S. and et.al., 2021. Resilience and cleaner production in industry 4.0: Role of supply
chain mapping and visibility. Journal of Cleaner Production. 292. p.126058.
Rosnizam, M.R.A.B. and et.al., 2020. Market Opportunities and Challenges: A Case Study of
Tesco. Journal of the Community Development in Asia (JCDA). 3(2). pp.18-27.
Russell, M.J., 2019. Universal problem?. Nursery World, 2019(8). pp.16-17.
Tirawatnapong, R. and et.al., 2018. Factors Influencing Bangkok People Purchase Intention
towards Tesco Lotus House Brand Products. International Research E-Journal on
Business and Economics. 4(2). pp.15-29.
Verasophon, P., 2020. CRM and the critical analysis of database marketing: a case study of
Tesco Clubcard.
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