SWOT, PEST and Porter’s Force Analysis for Tesco

Company Overview

Why Might Managers Be Suspicious Of Consulting Projects Offered For Free?

Select Three Different Types Of Project From Those Listed In This Chapter And Detail a Selling Strategy For Thorn Offered On a No-Fee Basis?

 How Would Your Selling Strategy Change It You Were Offering  Them On a Full Fee Basis?

Tesco is one of the largest British Retailer that is known for having its grocery outlets in Europe, USA and in most of the Asian countries. In the present date the company is also known for being world’s third largest retailer in groceries. The business organization had begun in the year of 1919 by Jack Chown who used to sell fresh vegetables and fruits in a very small store in the East End of London. Since the growth of the business organization the company has expanded widely in various parts of the world. It is now known for having a proper supermarket stores and as well as high graded street outlets in various countries. In UK itself the company has opened up more than 2000 plus stores which ranges from the super and hyper market stores to the small local grocery stores (Alam and Raut-Roy, 2019).

Regarding the case which has been highlighted in the case scenario of Tesco it can be said that the company has been facing been facing various types of higher management issues. For this the company has not been able to address the issues considering the urgency of the issues. It has also been found out from the case scenario that the company has been facing a problem regarding the rule of bad managers which is widespread in the stores of UK. This problem has been pointed out various times to the higher department or the HR but no policies were issued from the HR, neither have they provided any instant remedy to the issue faced. The research paper will thus aim to provide various types of remedies with the help of SWOT analysis, PEST analysis and Porter’s Five Factor analysis.

Strengths – The Company is known for holding an increased market share which is 13% total market in UK itself along with the retail outlets in other countries and areas. The company is also known for having a multi formal capability which is known for having a constant growth from the competitors in the present market scenario. In the year 2018 the company’s investment in UK, West midlands was a very aggressive move which helped the company to increase the market share in the market.

Analysis Using The Three Models

Weakness – Regarding the company weakness it can be said that the company is getting a high competition from Reliance Industries. However the company is presently in a growing state but is facing high amount of competition from the Reliance Industries as because the company is known for following the price stimulating strategies.

Opportunities – Taking about the opportunities in the market it can be said that Tesco has huge opportunities present inside the country of origin as well as in the international countries worldwide. According the author Sparks, (2019) the company can use the footfall and low cost structures in order to be price competitive over the competitors. Keeping the food sectors aside the company should try to adopt the banking industries and telecom ventures in a broader range.

Threats – The structural change of the country can thus spark a price war against the competitors. The price oriented market is about to become more and more aggressive over years. The company also faces various types of problem because of the present economic condition and many more.

Political factors – In order to increase the employment services the government is known for encouraging the retailers to provide a mix variety of job in the market.

Economical factors – Regarding the economical factors of the company it can be said that the economical factors are known for influencing the demand, cost, price and profit earned by the company.

Social Factors – The social factors include the current trends in the country, where the British people who have moved from the bulk shopping to one stop point shopping. Therefore it is an advantage for the company that they provide everything to the customers under the single umbrella.

Technological Factors – According to the author Johnson, Dickinson and Jones (2018) technology is known to be one of the most macro environmental factor which influences a company in order to achieve the goals with the help of the valuable strategies. Tesco Superstores are known for having few of the best in class technological devices such as the wireless devices, intelligent scales, electronic shelf labelling, self-checkout machines and many more (Heese, Srinivasan and Kelley 2019).

Threats of the new entrants – Regarding the threats of the new entrants it can be said that the company is dominated by few of the competitors including Reliance, Asda, Sainsbury and many more which on a total basis is known for holding a market share of 70% in UK.

SWOT Analysis

Bargaining Power of the Supplier – According to the author Heese, J., Srinivasan, S., & Kelley, J. (2019) it can be said that this force is represented by the power of the supplier and influenced by the larger supermarkets who are on the same page.

Bargaining power of the customers – Regarding the bargaining power of the customers it can be said that the company is known for keeping the most famous loyalty card which is known for retaining the loyal customers. This strategy helps the company in increasing the profitability towards the business.

Threats of the Substitute – The general substitution which is led by the government body of the country is known for reducing the price of the product by a certain limit. Therefore it can be recommended to the company that they can acquire existing small scale operation in local town’s and metropolitan cities.

Bargaining power of the competitors –According to the author Evans and Mason (2018) the grocery business in UK has seen an effective growth in the market of business. Therefore in this case Tesco is the key player with few of the largest store in UK. The company is known for being price competitive over the competitors, which acts as a market dominance over the large players. The company is working on with various types of customer related data and customer relationship information which can be used in order to communicated with the higher management in order to get information about the competitor’s pricing strategy.

Intensity of Competitive rivalry – Regarding the intensity of competitive rivalry it can be said that the company is facing huge amount of competition from the direct competitors of the company. The competition mainly exists in the case of price, product and promotions made by the companies over each other.

Managers should be suspicious regarding the consulting projects which are offered for free of cost in the organization as because the free of cost projects are known for making the employees understand and train with various types of objects which might not be necessary for them. Therefore the free consulting projects should be checked by the managers prior the training problem. The free consulting projects might have a lesser chance in getting their hands in to the information which is not easy to get for them. The free consulting services might also not be able to prepare the employees of the company for a foreseeable future.

PEST Analysis

Regarding the other types of projects which are listed in the course it has been found out that the strategic consulting careers is something which cannot be offered on a nonpayment basis. This is the perfect domain for the C suit strategies which help the management of the organization to represent various types of training needs to the employees. It will also create a long term vision for the company. Therefore it will be offered on an online payment basis, only those employees will be availing those who want to change their behavior in regard to the company they are working.

Operations consulting project – The operation consulting projects in the company will be directly pointing or else directing the management of the company in regards to the work they are processing with. This process management training needs is known for covering the supply chain management and increase the efficiency of the employees. This will be directed for free of cost but however the premium version of the training will be taken care of only after the payment made by the employees wanting it.

Human Resource Counselling – The human resource counselling project will be directly delivered to the top management of the company as because it will help them to learn about more policies they are interested in. It will help them in creating and implementing various types of policies as well as finding out instant remedy.

Conclusion

In light of the analysis it can be said that Tesco will continue to hold its leadership position within its segment where the other companies are trying to compete with the pricing strategies and differentiation strategies. Strategies like the company should try out using new managerial framework in order to illuminate the supply chain management critics and ineffective ways of using the IT system that is lowering down the company’s cost leadership strategy.

The company should also try to train the higher management such as the introduction training, first class serve training and policies and multi skills training. These types of training will help the management to learn how to behave with the customers and make and useful use of the company resources. According to the author Tomlin, (2018) the managerial department should also listen to the HR department and involve the employees in motivation process. Furthermore the company should also try to empower the employees by providing them haptic feedback and provide appraisals. This strategies will help the employees in gaining encouragement and respect.

References

Sparks, L. (2019). Tesco: how supply chain strategy supports retail success. The Business & Management Collection.

Alam, S., & Raut-Roy, U. (2019). Evaluating the Effectiveness of Reward Strategy at Tesco: Evidence from Selected Stores in UK. Indian Journal of Industrial Relations, 55(1).

Robson, K., & Pitt, L. (2018). Tesco in South Korea: Strategic Localization. SAGE Publications: SAGE Business Cases Originals.

Johnson, S., Robertson, I., Cooper, C. L., Dickinson, J., & Jones, N. (2018). Tesco Bank Wellbeing Case Study. In WELL-BEING (pp. 179-188). Palgrave Macmillan, Cham.

Tomlin, B. (2018). Intel: a case study in capacity planning and strategy. The Business & Management Collection.

Evans, B., & Mason, R. (2018). The lean supply chain: managing the challenge at Tesco. Kogan Page Publishers.

Wood, S., Coe, N. M., & Wrigley, N. (2016). Multi-scalar localization and capability transference: exploring embeddedness in the Asian retail expansion of Tesco. Regional Studies, 50(3), 475-495.

Heese, J., Srinivasan, S., & Kelley, J. (2019). Accounting Fraud at Tesco Stores (A).

Grundy, T. D. (2017). Dynamic competitive strategy: Turning strategy upside down. Routledge.