In terms of earnings it 's the third biggest retailer in the world and when it is considered by revenue it stands in the fifth place in the world. It has its stores across Asia and Europe. The main object of Tesco is to create customers with their loyalty and give life time value services .They stand as a modern and innovative organization which would handle changes in the market and adapt themselves to the current circumstances accordingly. This statement covers all the topics
Tesco 's ownership is owned by several partners due to it being a PLC. Thousands of people have shares within the company which means it is owned by shareholders who fund the company. The advantages of this ownership are being a PLC means you have limited liability which means you only lose what you put into the company. It is easier to access capital as you can raise share capital from existing and new investors. Shareholders are able to buy and sell their shares which can sustain the liquidity of the business.
It is a major point of concern for the organisation, therefore it is essential to be aware of the changes in the policies. The changes in the rate of taxation or any other aspects can affect the financial balance of the organisation. Although, Tesco operate a business on an international platform, the organisation is strictly dependent on the UK market shares. The downturn of the disposable income state and household incomes, the organisation has adapted to the existing condition by focusing on the advertisement of brand value rather than luxuries
Introduction Tesco is one of the world’s largest retailers, the company is doing stores and also online business. The company has a strong distribution network to maintain the position of the company among the world’s largest retailers. Distribution network of Tesco plays the role of make sure the goods are delivered to the global customers in the right time at the right place with the right goods. At the same time, the online home delivery service of distribution network of Tesco is one of the strategy to increase revenue but at the same time it becomes a problem to the company. Besides that, Tesco are having a higher transportation costs in the distribution costs.
Tesco has continuously been increasing its market share worldwide. Tesco is holding 13% of the United Kingdom retail market share. The organisation has increased its market share by charging low prices to attract customers and has been opening new branches in various part of the world. Tesco online is a strength for the organisation it is able to target wider range of customers. Tesco online is operating in 270 store across the world where millions of people can purchase their products online.
People working longer will increase the size of the labor force, but there will also be further pressure on services. This would affect TESCO products as people are curving more healthy products, thus Tesco started producing organic products, it provides as well an esteem added to its products and services. Technological factors: Technology is an intrinsic element to Tesco supply chain management of Tesco, it uses many technologies like wireless devices, self- checkout machines, intelligent scale, Radio Frequency Identification (RFID), Electronic shelf labeling, etc. The utilization of Electronic Funds Transfer Systems (EFTS), Electronic Point of Sale (EPS) and electronic scanners helps the company to improve stock activities and effectiveness of distribution (Tesco, 2014). Tesco as an online retailer would be able to sell a lot of good in sterling prices since it’s devaluating as a result competitors would be higher than its prices.
Tesco has many competitive advantages that make different from their competitors like: online store, club card, having best supply chain and provide insurance, travels and loans. Tesco should focus on their own innovation instead of copying others on what there are doing. Also, Tesco should not compromise on products quality. Their customer will always be loyal to them as long they are maintaining their good products quality by buying from their suppliers in mass and reduce wastage activities. Finally, Tesco can form a strategic alliance with another company to improve their services.
These three have helped Tesco to gain more customers as these methods are very common nowadays. Technology has a big role on a business’ success as everything is done by it. Legal factors affect the business positively as there are some rules and regulations to follow by Tesco to run a business. There are some important laws such as the health and safety act 1974, National minimum wage act 1998 and sales of goods act 1979. These laws help the business and the employees to be motivated in their workplace and it helps the business to be run smoothly.
TESCO SWOT Analysis TESCO SWOT Investigation Strengths Tesco is the third greatest organization of giving retail benefits on the planet. For the time being, it has created more than 5000 shops inside USA, Europe and Asia and the figure is expanding step by step. Tesco is ended up acclaimed retail mark with expansion of its shops system all through the world. The organization praised 41.7% of standard of business sector of retail in Joined Kingdom 2014. So greatest quality of Tesco is upgrading of its system in everywhere throughout the world.
As such, Tesco should honor its customers and never lose the focus. • Incompetent management that is not trustworthy: Tesco employees, especially store managers have a bad reputation. There has been a case in the UK, where store managers are caught stealing from the store items and at time cash. Therefore, Tesco should ensure that they have the right managers and employees that are trustable, and will not be pocketing in the company’s money or