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Tesco Assignment - Case Study Example

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The food retail industry represents one of the most competitive industries of U.K. The firms in the industry intensely compete in order to gain…
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Tesco Case Study Assignment
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Download file to see previous pages In this regard, frameworks of strategic management like, PESTLE, Porter’s competitive forces and value chain analysis, has been employed.
The first part of the report discusses macro environmental issues, which affects the U.K. food retail industry. This is followed by analysis of Porter’s competitive forces to evaluate parameters that affect competitiveness of the business. The section of the report containing the internal strategic analysis deals with financial appraisal, resource appraisal and value chain analysis. The penultimate section of the report comprises ethical practices that have been adopted by the Tesco. The last section presents the recommendations that can be adopted by Tesco so as to overcome current issues that are being faced by the company and maintain its position as the market leader.
The findings from the report indicate that weak economic conditions in Europe can dampen future growth of the business. The first recommendation for the company is to introduce lower costs and discounts in the future in order to retain market share. The changing pattern of food consumption in U.K. and rising popularity of organic food will be essential determining factors for growth of the food retail industry. So, the second recommendation focuses on increasing availability of cheap organic food. The analysis from the report has shown that sale in U.K. has dropped for Tesco. This paper suggests that increasing promotional measures can raise the sales. Owing to increasing concern of the government regarding environmental issues, this paper recommends that further sustainability can be attained by adopting energy saving practices. Finally, the analysis has also revealed that dialogue with the customers have weakened, which is hindering business growth. The final recommendation of the report is that engagement with the customers must be strengthened in way of modifying existing practices or adopting new ones.
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