Answer To: For this assessment you will write a report of 2,200 words in which you analyse the eight major...
Kuldeep answered on Aug 21 2021
External Analysis Report for [Tesco]
TOPIC: TESCO COMPANY OVERVIEW
Student Name:
Unit Code:
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Tesco Company Overview
Running Head: Tesco Company Overview
Date:
2
20
Contents
Introduction and Company Overview 3
External Environment Analysis 3
Interpretation and Discussion 8
Main Threats 9
Conclusion 9
References 10
Introduction and Company Overview
Tesco Company Overview
Tesco is known as the biggest food seller in the world, with revenues of more than 55 billion pounds in 2009 and more than 480,000 employees. They have approximately 4,431 stores in 17 countries/regions around the world. Also, the company operates mainly in the USA, Europe as well as Asia, with its headquarters in England. According to the Datamonitor (2010), Tesco’s business network portfolio includes: more than 970 express stores that sell approximately 7,500 products in convenient locations, including food; 170 subway shops selling groceries in cities and city centers; 450 supermarkets sell food or non-food products, including the books or DVDs. Also, Tesco offers online retail services through the tesco.com website and Tesco Direct. Furthermore, they provide the broadband connectivity also financial services through Tesco Particular Finance. Tesco was originated in 1919 and its first store in Edgware, London, England in 1929, but over the years, it has become a market leader in the food retail sector in the UK. The relative position of Tesco's share about other market leaders is explained as follows:
External Environment Analysis
[Remember to provide the source for the eight-domain framework]
Technological Environment
Technology directly affects one of the key macroeconomic variables in the operations, supply chain, and processes of all grocery stores and shops. The use of the Internet through online retail stores has affected the operation of the supermarkets and the industry is rising steadily. Internet contributions have increased by more than 55% and it is estimated that 80% of the UK population uses the Internet. A loyalty program was introduced through information technology that kept customers out of the competition.
With the expansion of broadband Internet access in the UK, online shopping has increased a lot of popularity. Keinot (2010) noted that broadband users in the nation are 15.7 million, accounting for 72% of the entire market.
Environmental factor
The government is committed to protecting the environment and reducing packaging. The National Bureau of Statistics (2010) showed that the number of consumers of recycled bags increased from 72% to 75%, while consumers attempted to increase the plastic bags purchased from the stores by 66%. % To 70%. This helps allot to reduce prices and enhances Tesco's corporate duty. Tesco has launched the Great Living Plan, which only aims to provide the consumers with suggestions on the environmental issues, with reducing food waste while eating and carbon emissions. Tesco Green Clubcard points can reward consumers for recycling heavy loads, using mobile phones and aluminum cans, and give them the benefit of no-doubt delivery.
Economic Environment
Economic aspects are fear for Tesco, as they straight affect buyer behavior. Although it was announced in 2008 that the British budget was officially in the recession, a significant reduction in government interest rates contributed to the decline in unemployment in 2009. Therefore, with the improvement of consumer spending capacity, their spending power has increased even more steadily and Confidence in their financial situation. However, the optimistic feature of the slump is that clients are eating less and less at home, which allows food retailers like Tesco to raise production. Over the years, the proportion of overall consumer expenditure on food has improved. Since 1989, the financial downturn has been exposed with the help of the following GDP growth chart: An analysis of the British populace shows that more retired children than children who represent child boomers. The elderly population is not good for food vendors and the elderly are less inclined to consume. Compared to the younger, they are less likely to shop at the supermarket (Jonah, 2018). Though internet literacy rates among people over the age of 65 have declined, it has been predicted that older people will find it easier to shop online. But small-batch distribution is measured inefficient and expensive. Consumers ’attitudes toward food are continually changing as they become healthier. Tesco has adapted to the growing demand for organic food to reflect...