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TESCO Case Study Analysis

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TESCO Case Study

The concept of strategic management entails the evaluation of the business environment in which an organization operates and thereby identifying the opportunities and threats that may be faced. The scope of strategic management further involves the acquisition and utilization of the resources that are required to carry out the various business operations and functions of the organization.

In addition to this, how the resources available to the business organization are utilized also enables the process of effective decision making and strategy formulation. There are various aspects to the development of effective strategies for business organizations, for example, the availability of tangible and intangible resources, the presence of threats and opportunities in the market as well as the organizational culture and structure.

The following sections will focus upon the development of a case study on Tesco Plc., and conduct a SWOT and PESTEL analysis to identify the challenges that may be faced by the organization and thereby develop strategies to overcome them. 

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Overview of the Company

Tesco Plc. Is recognized as a British multinational organization specialized in the sale of groceries and other general merchandise. The headquarters of the company is situated in Welwyn, England. The organization was established in 1919. Over the years, the organization has developed its business operations in various areas across the United Kingdom including Ireland, Britain, the Czech Republic, Slovakia, and Hungary. Presently, the company has been observed to operate in more than 14 countries. Furthermore, it has also been observed that the company has catered to the specific needs and demands of a wide range of customers, which in turn has led the organization to occupy a significant market share in the United Kingdom.

In terms of the retail market in which the company operates, it may additionally be mentioned that the industry is highly competitive. This requires the business organization to develop strategies that may be able to provide the organization with a competitive advantage over the other rivals in the market.

In this case, a PESTEL and SWOT analysis may be conducted, which will help in the identification of the various ways by which the business organization may be able to gain a competitive edge and thereby profitable business outcomes. You can get study help.

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Situational Analysis

The concept of situational analysis pertains to the evaluation of the internal and external business environment in which an organization operates. This form of evaluation further enables the research of the market in which the business organization operates and thereby evaluates various factors that may pose opportunities and challenges to the organization. In addition to this, it may also be mentioned that various essential elements are considered to evaluate the business operations of an organization.

These elements can be identified to include customers, suppliers, competitors, government, and the legal issues that may be faced by the business organization. The impact of these elements upon the business organization, in turn, helps in the identification of the various opportunities and challenges that may be faced. Such identification of these opportunities and challenges, in turn, helps in the development of effective strategies that would help the business organization to achieve successful business outcomes. Our finance assignment help services will help you in business growth.

PESTEL Analysis

The strategic framework of PESTEL Analysis involves the consideration of the various factors that may influence the business activities, functions, and operations of a business organization as they may pertain to the external business environment. In this regard, it may be identified that the strategic framework of PESTEL analysis helps in the evaluation of the external business environment in which a business organization operates.

In the case of Tesco PlcThe purpose of conducting a PESTLE analysis is to identify the various means by which the organization may be faced with opportunities and threats from the external business environment of the retail industry in which it operates.

Such an identification of the threats and opportunities, in turn, will help in the formulation of effective strategies that will enable the organization to achieve its strategic goals and targets and thereby remain competitive in the retail industry among other major rivals across the world. The PESTEL analysis for Tesco Plc. can be conducted in the following manner:

Political Factors

  • Stability in the political environment in the country in which the company operates across the United Kingdom
  • Effective regulations developed by the governments of the countries in which the company operates, regarding corporate governance

Economic Factors

  • Increasing or decreasing rate of GDP from the previous years in the countries in which the company operates, as an indication of possible economic development and thereby financial opportunities in the market
  • Effective regulations developed by the governments about various factors such as employment, wages, and trade policies

Social Factors

  • Preference of the customers towards high-quality goods at low prices, which is aligned with the operations of the organization
  • Changing preferences of the customers in terms of the use of advanced technology as well as environment-friendly products and services

Technological Factors

  • Availability and scope for development of technological infrastructure in the countries in which the company operates
  • Preference among the customers towards innovative products and services in terms of the use and application of advanced technology such as artificial intelligence, virtual and augmented reality, and the like

Environmental Factors

  • Effective regulations in the countries in which the company operates, regarding the protection and preservation of the environment
  • Awareness among the customers targeted by the company regarding the importance of sustainable business activities

Legal Factors

  • Effective administrative policies to enforce the regulations adopted by the government of the countries in which the company operates
  • Effective regulations regarding ensuring the health and safety of individuals, quality standards, and labor laws

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SWOT Analysis

The strategic framework of SWOT analysis helps in the evaluation of both the internal and external business environments in which a business organization operates. Assignmenthelp.us provides a complete swot analysis of the Tesco Case Study. The main purpose of conducting the SWOT analysis is to enable the identification of the various internal strengths and weaknesses that are present with the business organization being evaluated, as well as the various external opportunities and threats that may be faced by it during its business operations.

The importance of the strategic framework of the SWOT analysis is to help the business organization ineffective strategy formulation so that it may be able to utilize the strengths and opportunities available to the organization and thereby tackle the weaknesses and threats that may cause discrepancies in its business operations and functions.

Such a SWOT analysis may be conducted for the business organization under discussion, that is, TESCO Plc., which will help in the identification of its strengths, weaknesses, opportunities, and threats in the following manner:

Strengths 

Weaknesses


  • Strong brand recognition in the United Kingdom due to the high quality of products offered to the customers 
  • High brand loyalty of the customers who have previously used the products offered by the company 

  • Lack of adequate development of technology and services as compared to the other competitors of the company such as Walmart and Amazon
  • Low presence on social media platforms, which in turn leads to a lack of effective communication of the company with its customers

Opportunities 

Threats


    • Development of new products in order to meet the changing tastes and preferences of the targeted customers
  • Increased presence on social media channels in order to reach out to the customers in a more efficient manner



  • Ever increasing competition in the retail industry owing to the presence of well recognized global brands such as Amazon, Walmart, Woolworths, Lidl, and the like.
  • Ever-changing tastes and preferences of the customers which require the company to engage in continual product and service development

 

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Conclusion

The various challenges that are faced by Tesco Plc., can be identified in terms of the SWOT analysis and the PESTEL analysis that have been conducted in the previous sections in order to evaluate the internal and external business environment in which the company operates. From such an analysis the various challenges have been identified to include a lack of presence on social media platforms, thereby indicating a scope of improvement in terms of the marketing strategies that have been adopted by the company.

An enhancement in the marketing strategies adopted may in turn help in the gaining of a sustained competitive advantage in the market among the other identified competitors. Furthermore, the company also faces a significant challenge in terms of the changing tastes and preferences of the targeted customers, which would directly necessitate the organization to engage in the process of product development, so that these changing demands of the customers can be met effectively.

The company is therefore required to develop effective strategies aimed towards the gaining of competitive advantage in the global retail market in order to be able to successfully achieve its strategic goals and objectives.  As you can see, when you avail our TESCO case study assignment help service, you get all-around assistance. Thus, if you want to stand out from the rest of the class, you can contact us.

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