Tesco Business Model Case Study

Business model and ethical risk assessment

A business model is a plan that is implemented by a company with the objective of it leading to a successful operation of their business. Some of the elements a business model obtains are products, sources of revenue, finance of a company and customer target market. Tesco describe their business model as straightforward, ‘they buy, move and sell products and services to their customers and use customers to get insight in order to do a bit better each time’ (Tesco 2012). Tesco’s business model focuses on these four core activities, they try to gain an insight into what customers want and try to understand their needs. By doing this it enables Tesco to but the right products to sell and distribute to their consumers. Tesco believe that by adjusting and improving on their four core activities for customers each time that they shop with them it will make their shopping experience better and easier.

As shown in the image below, Tesco’s business model begins with its four core objectives and then makes its way out to seven key enablers. These key enablers represent the business’s strength and without them the four core activities could not be implemented correctly or successfully. The company feel that these seven crucial components of their business model is what helps make them stand out as without them they wouldn’t have the opportunity to reach their full potential in terms of their main activities. Moving to the outer ring of the