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Tesco is considered to be one of the leading, supermarket retailing chains in Britain which also operates globally and has approximately 360,000 employees working under its banner. The aim and vision of Tesco is to serve their customers with affordable, healthy and sustainable food which would help them to enjoy better life quality and at the same time would also help in offering an easier way of living. One unique quality of Tesco is that the supermarket chain has their own factories where they make their products and therefore, do not have to depend on the external suppliers to get products which on one hand makes the products of Tesco labelled and ensures quality and on the other hand, also prevents delay which might take place if several suppliers were included in the process. Since Tesco makes their products in their factories, the cost of products too become reasonable for the customers. You can get custom case study help for any subject from us. 

Some of the products which are available at Tesco stores include all type of grocery items which are the company’s label products along with other non-food items like petrol, clothing, insurance, domestic appliances and others at a reasonable rate. Seek online assignment help from us now if you want to pursue your academic goals.

Tesco Growth Strategy

The success of Tesco in the recent years is the result of its strategy of expanding their business operations overseas, where they have successfully shifted to higher margins non-food merchandise while maintaining an effective UK business. Another strategy, which has made the retailing organization successful in the UK is that the company has built itself on low prices, while delivering quality products that has helped in cultivating the loyalty of customers. Similarly, the retailing organization has also been successful in coming up with several store concepts which has encouraged the organization to expand themselves into retailing services like banking as well as insurance. The focus of Tesco on the non-food items makes it quite difficult to compare Tesco with other supermarket retailers as it has grown to become a company of consumer goods.

Tesco converted some of its stores to a complete non-food market like Tesco Extra, hypermarket located in Nwecastle. Tesco has also went on to claim that its range of clothing products, Cherokee, Florence and Fred are considered to be one of the fastest growing in the country of UK pertaining to both value as well as volume with a market share of 4.4%. Some of the non-food where Tesco has invested are the petrol stations, on the grounds of the superstores. Then there is also Tesco in-store pharmacy and has also been successful in opening a Nutricentre which offers alternative medicines in the store of West Kensington. One of the latest supermarket venture of the company is to come up with Tesco Homes.  We have a team of experienced assignment writers as well. 

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Leadership and Organizational Culture at Tesco

The core value or culture within Tesco is to serve the customers in the best way, to understand them, prioritize their needs and at the same time, act responsibly within the community. In other words, it should be noted that Tesco is an organization which supports diversity as well as inclusion within their organization. Tesco believes in listening to people which includes both internal as well as external stakeholders and talking to them by making effective use of the tools which are available at their disposal like Clubcard as well as social media and thereby coming up with innovation to meet their needs efficiently.

At the same time, it should also be noted that Tesco also promotes the culture of team building processes, promotes trust as well as respect among the organizational members and also encourages the employees and the management to share their knowledge and experience that has helped in leading to positive growth and development of the organization. Tesco is aware that a culture of trust and respect will help it to succeed both nationally and internationally. Hence, Tesco has come up with a culture where employees feel recognized and are rewarded for their good work and contribution towards the organization.

The leadership of Tesco is such which has helped in motivating employees to perform consistently within the organization and serve the customers effectively. In other words, Tesco’s leadership style is based on democratic style of leadership, which is also known as participative leadership where employees are encouraged to take part in the decision-making process of the organization and their voices and concerns are heard and worked upon. This type of leadership style has helped in motivating employees and thereby made them loyal towards the organization as a result of which they perform effectively within the organization.

Sustainability at Tesco

They follow the framework of Little Helps Plan as their sustainable strategy which has helped in shaping their long-term goals for sustainability and also enables them to monitor and improve their performances. The framework has four components- People, product, planet and places and are effectively concentrating on issues of diversity and inclusion, healthy sustainable diets for people, climate change as well as poverty.

For instance, they treat their People aspect or the employees with respect and allow them with the flexibility to work which allows them to create a work-life balance for themselves and follow the human rights regulations pertaining to safety and fairness. Similarly, the organization values individuality and uniqueness which has helped in promoting diversity and inclusion by celebrating cultures, personalities and preferences.

At the same time, they offer products to their customers which are sustainable and healthy and the organization have also worked with the British Nutrition Foundation and launched a balanced diet for better future which is helpful for both people and planet. They follow the strategy of remove, reduce, reuse and recycle for their packaging to tackle the issue of plastic and have also launched soft plastic recycling facilities. To ensure that their foods are not wasted the organization continuously optimizes their forecasting that helps in reducing food surplus each day and have also collaborated with their suppliers to halve food waste in their supply chain by the year of 2030. For their planet, Tesco map their footprint and ensure there is complete transparency in their operations and have achieved zero-net deforestation in their supply chains. They have also reduced their emissions by installing aerofoil refrigeration technology.

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Tesco SWOT Analysis

Strengths

Tesco is considered to be one of the biggest retailers of groceries in the UK., with higher sales and revenue.

It dominates the market share of grocery companies in the UK with 27% market share and have also become quite popular in Ireland.

The organizational is also geographically diversified and has an efficient supply chain network.

Weaknesses

Tesco has failed its operations in the US and Japan.

Tesco in 2017, was charged with fines for fake accounting and misrepresenting profits.

Low-cost strategy can lead to poor profit margins.

Opportunities

Tesco has the opportunity to successful make strategic alliances with other brands which will add more products and customers to its stores.

There is also opportunity for joint ventures for stores which are underperforming.

Tesco and further develop by growing its online shopping business along with home delivery services.

Threats

Tesco faces threats from its competitors like Walmart, Aldi and others which might threaten its market position.

With UK’s exit from European Union, trade deals and cost matters, pose a threat for Tesco.

Government regulations along with economic upheaval can affect the operations and performance of the organization and act as a threat.

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Tesco PESTLE Analysis

Political Factors

  • Since Tesco operates in different countries therefore, it has to adapt itself to different political environment.
  • Import duties on goods can also have an impact on Tesco.
  • Brexit has created a lot of uncertainty for business communities which might increase the prices of the products and also includes tariff-free trade which would increase the prices of Tesco’s products and affect its low-cost pricing strategy.
 

Economic Factors

  • Unemployment rates in different countries along with the situation of the pandemic have led to financial instability and social unrest.
  • The international market is expanding, however, Tesco still depends on British home market for most of its revenues.
  • Any changes in the policies of the UK, might have an impact on the delivery model of the organization and might thereby add additional cost for the company.

 

Social Factors

  • Tesco operates in different countries and have been successful in following local social along with cultural trends and offers them food accordingly. For instance, the label of halal meat is used in the UK for Muslims.
  • Tesco has also been successful in meeting customers demand of vegan products and will be amplifying its sales by 2025 by 300%.
  • Tesco has also offered employment opportunities in unemployed regions of many countries.

 

Technological Factors

  • Tesco has made effective use of technology by enhancing its capacity of e-commerce and thereby delivered products on time.
  • Tesco has also partnered with Amazon Go to create cashier less billing technology which will revolutionize shopping experience.

 

Legal Factors

  • Tesco needs to follow the regulations of Food Retailing Commission like other retail segments.
  • Tesco has faced issues of gender bias and has also been convicted of fraud case.
  • The organization was also accused of unequal pay which is a legal issue.

 

Environmental Factors

  • Tesco follow Reuse, recycle, reduce and remove sustainability plans in all countries.
  • It has reduced its use of plastic to minimal levels
  • Have also installed aerofoil refrigeration technology to reduce emission.

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