TESCO PLC Strategic Analysis
Executive Summary
Tesco is one of the leading retailers in the world. It is ranked the ninth-largest company in terms of net revenues in the world and the third in terms of gross revenues. The SWOT analysis revealed that the company has focused on innovation, brand reputation, and focus on quality as some of its main strengths. The PESTLE analysis revealed that Brexit poses a threat to the growth and success of the company. There were no major challenges and risks, which were identified in the strategy analysis, but there is a need to work on the identified risks to avert a decline in the growth.
Table of Contents
Appendices
List of figures and tables
- Introduction
Understanding the business environment is critical in unraveling the trajectory of a company or organization. An analysis of the business environment involves assessing both the internal environment and the external environment. There are various aspects that should be analyzed in the analysis, including but not limited to a SWOT analysis, PESTLE analysis, and porters five forces analysis. As a way of augmenting our understanding of this subject, this study will assess a critical analysis of Tesco plc to unravel the above-mentioned factors.
1.1 Aim and Objectives.
- To understand Tesco’s external environment and internal environment
- To understand how political, social, environmental, economic, technological and legal factors affect Tesco
- To understand the strengths, weaknesses, opportunities, and weaknesses of Tesco
- To understand how Tesco has incorporated the five forces by Porter
- To understand the various strategies that have been incorporated by Tesco to drive their business
Don't use plagiarised sources.Get your custom essay just from $11/page
1.2 Define strategy.
A strategy is defined as an action or plan that is crafted in a way that will enable a company to achieve long-term objectives.
1.3 Context of company
Tesco plc is a British company dealing primarily in the sale of groceries and as retailer merchandise. It is a multinational company with headquarters in Welwyn Garden City in the United Kingdom. In terms of gross revenues, it is the third-largest retailer in the world. In net revenues, it ranks ninth in the world. In the United Kingdom, it is the leading company dealing in groceries. It also has branches in other countries across Europe, such as Hungary and Ireland and Thailand in Asia. The company was formed by Jack Cohen in 1919 as a set of several stalls. Since the 1960s, the company has diversified into various areas such as financial services, sale of books, telecom services, internet services, software, electronics, clothing, and furniture. The diversification saw its stores grow from 500 stores to over 2500 in 2005. Some of the main competitors of Tesco include Morrisons, Sainsbury, and Asda.
1.4 Industry/Sector
The grocery industry has grown significantly in recent years. The impressive growth of this industry has made it possible for companies such as Tesco to thrive. The industry is expected to continue its upward growth, and this provides numerous opportunities for Tesco in the near and distant future.
- External Analysis
External analysis is an analysis of the factors outside of an organization that affects the sales, revenues, and profits of the organization.
2.1 Macro environment
The Macro environment is the external environment and encapsulates significant factors that are beyond the control of the company.
2.1.1 Definition and analysis
A PESTLE analysis encapsulates all those external factors that can affect a company. PESTLE stands for political, economic, social, technological, legal, and environmental factors. Political factors include those factors within the government or landscape, which can hamper the growth or success of the company. Economic factors, on the other hand, encapsulate factors within the fiscal and monetary sphere, which can affect the company. Social factors are those factors within the community, which have a direct impact on the company. Technological factors are those technological advancements that have an effect on the operations of the company. Legal factors include legislations that can affect how the company works and operates. Environmental factors refer to those factors within the environment, either natural or man-made, which have a direct impact on the operations of the company.
2.1.2 Application
Political factors
Conscious of the fact that Tesco operates globally, it is bound by different political and governmental formations around the world. Therefore, any changes in the political regime, which can alter the regulations, tax policies, and political stability, will have a profound effect on the operations of the company. It is, therefore, imperative for Tesco to look into countries that are politically stable, with predictable regulations and laws as a way of shielding the company from political threats. The political factors can also be positive in the fact that many governments are encouraging private investors to create employment for the local population and Tesco has contributed to the attainment of this objective, while at the same time increasing the market share for their products.
Economic factors
The economic factors are the most significant factors to Tesco since they have a direct impact on the prices, profits, cost, and demand for their products. It is, therefore, important to learn about any changes in the economic landscape, for instance, a change in the tax policies, which can significantly impact the success and growth of the company. Despite the growth of the company internationally, it still relies heavily on the British market since the market provides 30% of its entire market share. Any economic situation within the United Kingdom, such as Brexit, will, therefore, have a profound effect on the company. To circumvent this threat, the company has focused more on globalization and diversification in recent years.
Social factors
Social factors, including different cultures and customer purchasing behavior in countries where Tesco operates, can either impact the company in a positive way or in a negative way. Tesco particularly found out that in the United Kingdom, where the country enjoys a 30% market share, the customers are more inclined towards bulk shopping. On learning the above trend, Tesco increased the number of non-food items on its shelves to conform to the social changes within the British community. Social factors also include individual attitudes and beliefs, which also affect sales and revenues. Recent years have also seen an increase in health awareness not only in the United Kingdom but in many regions across the world. With this realization, Tesco is trying to adapt to these changes through the production of more organic products.
Technological factors
Technological advancements increase opportunities for companies to achieve more growth and success. Similarly, they can also bring about challenges. Technological advancements have, however, impacted positively to Tesco in the following two ways. Firstly, technological advancements have enabled Tesco to increase its online presence through the introduction of shopping through a mobile application and official website. Additionally, the increased online presence has enabled them to increase their home deliveries and thereby enabling them to attract a larger market share that had previously not been met. Secondly, the integration of technology has enabled the company to increase the number of check-points, which have consequently enabled them to promote self-service services. The move above has contributed significantly to improving how their customers access their services. In addition, it has also increased the convenience of shopping and, at the same time, reducing their operational costs. Technological advancements have also enabled the company to reduce their carbon footprints by increasing their energy efficiency through the introduction of cheaper, safer, and more affordable sources of energy.
Environmental factors
It is imperative for Tesco to address environmental needs as a way of ensuring that their operations do not affect the community. Tesco is aimed at ensuring that it reduces its carbon footprints by over 50% by the coming year 2020. As a way of meeting this objective, Tesco has crafted a way of managing and minimizing the waste generated within their stores. The company has added data on its carbon footprint in most of its items, including orange juice, dairy products, and other grocery goods. The move above has gone a long way in enabling the company to conserve the environment, while at the same time fostering the conscience of their customers. Additionally, the company has also introduced Clubcard points for rewarding customers that are contributing to the conservation of the environment, such as the use of recyclable products and deliveries that are not wrapped in anything.
Legislative factors
Government regulations and policies have a direct effect on Tesco’s performance. The commission on Food Retailing in 2004, for instance, implemented a policy guideline that would guide how companies work. The policy stipulated various regulations, including how companies could alter prices or demand payments from suppliers. As a way of enforcing these policies, Tesco initiated various changes in their price structure. They reduced their prices on goods based on the purchased fuel. In addition, the company also reduced prices based on the number or amount of goods purchased by the customers. Additionally, the United Kingdom recently passed legislation that advocated for an increase in the minimum wage through the Low Pay Commission Report. The legislation may drive the operating costs of Tesco upwards as it will be required to pay their employees higher wages. The above point implies that the legislative factors have a profound effect on any company, as revealed through the case of Tesco.
2.1.3 Critique
The analysis is critical as it enables an organization or company to understand external risks, challenges, and opportunities that have an impact on the organization.
2.2 Microenvironment
A microenvironment is an environment, which reveals the external factors that can affect a company but can be controlled by the company.
2.2.1 Porter’s Five Forces Definition and Analysis
Porter’s five forces analysis involves analysis of the different factors within the industry, which should be evaluated to foster a competitive advantage. As a way of unraveling the state of the competitive environment, the following is a detailed analysis of these five forces
2.2.2 Application
Bargaining power of buyers
One of the five forces, which have an impact on Tesco, is the bargaining power of suppliers. Gfghg noted that the bargaining power of buyers within Tesco is high. It is a notable fact that the products of Tesco are more standardized, and the differentiation is also low. The cost that can be incurred for switching to another product is, therefore, low. Therefore, buyers can easily switch from one brand to the other. In such a situation, the bargaining power of buyers becomes high, as is the case with Tesco, where the buyers have a significant influence on what the company manufactures. In light of this fact, Tesco has been able to lower its prices in a bid to attract a large number of customers. Additionally, the company has also introduced online retail shopping, which has made it easier for customers to access their products wherever they are. The strategies mentioned above have been integral in fostering the growth of Tesco both in terms of sales and revues. Additionally, the company has been able to increase its profits significantly and augment its market share within this industry. It is through these strategies that the company ranks as one of the most successful companies in this industry.
Bargaining power of suppliers
The bargaining power of suppliers in Tesco is relatively low. Suppliers always favor major grocery and food retailers and always fear losing businesses to large supermarkets. Therefore, large supermarkets always have the upper hand when dealing with suppliers. The position of retailers such as Tesco and the other major competitors is, therefore, strengthened when dealing with the suppliers since they have a higher bargaining power than the suppliers. Tesco will, on most occasions, have positive negotiations with the suppliers, and most of the time, the negotiations will fall in their favor. In addition, the company also has the advantage of getting low prices from the suppliers as a result of the low bargaining power of the suppliers.
The threat of substitute services and products
The threat of substitute goods and services is considered relatively low for the company for the food items and high for those items not within the food category. In the food industry, the number of food retailers within the food industry is not as significant, and this is because of the fact that the only existing companies are small food chains and licensees, which do not pose a significant risk to Tesco. The competitive advantage is brought about by the fact that the large supermarkets are able to offer high-quality products at a low price. Tesco has created a number of stores in city centers and local centers and thereby making it difficult for the new entrants to have any competitive advantage over Tesco. It is, however, important to note that any form of economic recession will obviously drive customers to go for lowly priced goods and services. The fact that Tesco has always maintained lower prices has made it have a competitive advantage over other companies with similar products in the market. The threat of substitute products and services on the non-food items is, however, conscious of the fact that there are other companies in the United Kingdom who are producing similar items or goods. In addition, conscious of the fact that there are more laws governing food items compared to non-food items, it is one of the primary reasons why the threat of substitute products on the food items is low while the threat is higher on the non-food items.
The threat of new competitors
The threat of new competitors in the food industry can be termed as low for the following reasons. One of the primary reasons why the threat of new competitors is low is because of the fact that it requires high capital to make investments. Additionally, it is also very expensive and competitive for any new entrant to enter into the food as a result of the high regulations that are required and the capital, which is required to make a name. The only notable competitors for Tesco include Morrisons, Sainsbury, and Asda. The four companies control over 80% of all the shopping within the industry in the United Kingdom. The fact that only four companies control over 80% of the entire industry indicates how difficult it is to venture into this industry. The only way through which new entrants can thrive in this industry is if they produce exceptionally high-quality products at the lowest cost. It is very difficult for new companies to produce low priced goods with exceptional quality within the first month or year doing business. In addition, the resources and time, which is required to get approval from the government, is also significant to establish new supermarkets. The above-mentioned hurdle, therefore, implies that there many hurdles that are required to venture into the business, which makes the threat of new competitors low.
The threat of competitive rivalry
There is an intense competitive rivalry in the food and grocery retail industry in the United Kingdom. Tesco faces stiff competition from direct rivals such as Asda, Waitrose, Morrisons, and Sainsbury. The company faces competition from the abovementioned companies on the products, promotions, and prices. The company that poses the biggest risk of competitive rivalry is Asda, with a close to 20% market share. The company has also been increasing its market share in recent years. Sainsbury also enjoys an over 16% market share in the market. Morrisons, on the other hand, enjoys close to 12% of the entire market share. The abovementioned companies, however, have a lower sales growth rate compared to Tesco. The fact that their market share is rising implies that the rivalry is continuing to increase. The increased rivalry is, therefore, posing as a threat to Tesco’s leadership position since it risks being dethroned from the top position. It, therefore, needs to work harder and craft new policies and strategies to retain the top position. In addition, the company has limited presence in the rural areas, and therefore there are some rising companies that are addressing these gaps. Moreover, the company has also found it difficult to capitalize on the market during times of economic recession. Other companies such as Lidl and Aldi have, therefore, capitalized on these moments to increase their market share. In 2008, for instance, during the economic recession, these two companies experienced an increase of over 25% in the sales recorded. The fact that there are still some areas within the market where Tesco is yet to capitalize, and there are some companies that are gaining from these gaps implies that the competitive rivalry is one area of focus amongst the five forces that Tesco needs to check.
2.2.3 Critique
The theory is important in the fact that it provides a blueprint on the areas where a company should increase its focus.
- Internal Analysis
The internal analysis incorporates an analysis of the internal factors of the company. The analysis involves assessing various factors within the company. An internal analysis of the company reveals the company’s objectives and thereby makes it easier to assess whether a company what the objectives and goals of the organization or company.
3.1 Vision, Mission, and Values
The mission of Tesco states that; “We make what matters better, together.” The vision of the company, on the other hand, incorporates five elements, which include a growing business that has enormous opportunities, a company that is needed everywhere in the world, modernity, and innovation and winning in both the local market and international market. The values, on the other hand, involves using the existing scales to improve how the company works and treating everyone equally.
3.1.1 Analysis
The vision, mission, and values of the company provide an insight into the company. In addition, it also aligns with the objectives of the company and thereby enabling us to understand the business direction being taken by the company.
3.1.2 Culture/leadership
Tesco has crafted a culture that involves the incorporation of innovation in the entire business aspects. The employees, customers, and the community have been integrated into a culture that has shaped the culture of the organization. The cultural web, therefore, transcends from the employees to the community.
3.2 Resources/competence
The resources or competence includes theories or strategies that can improve the operational processes of the company. The various theories used to assess the resources include VRIO or VRIN or Value Chain.
3.2.1 Value Chain Analysis
A value chain is defined as a link between the interface of the activities that are needed to support the business and the values that are being added by the business. A value chain is a tool that is used to evaluate the strategy of the organization. It enables companies to differentiate between the strengths and weaknesses in the process of adding value. The value chain of Tesco is illustrated through the following analysis.
3.2.2 Application
Operations management
Tesco has, in recent years, been known for the effective use of IT systems, which has improved how the company incorporates its low-cost strategy of leadership. Tesco recently introduced a digital program where it has invested close to 80 million British pounds. The program was introduced as an ERP solution. The program made it possible for the company to achieve more than 500 million pounds in profitability. Additionally, the introduction of the program has improved how the ERP system enabled the company to reduce the current holdings of stock within the company.
Inbound logistics
The logistics function within the company is structured in an agile and lean nature, which has contributed significantly towards the improvement of strategic management. The company uses the position of the market and the different economic scope to enable it to lower the cost of supply and further improve their bargaining power. The study has further unraveled how the company will improve its system of ordering products. Also, the company has also improved how the lists of their vendors are approved and further improved the in-store processes as a way of heightening the efficiency and effectiveness of the logistics. The improvement of logistics has also contributed significantly to the improvement of the operations.
Outbound logistics
The other critical area within the company’s value chain includes outbound logistics. Tesco has initiated integrated both offline and online retail chain for its food section. The above objective has been achieved through the integration of outbound logistics. In addition, the company has also integrated the use of different types and formats of stores. The integration of these stores has contributed significantly to the improvement of the customer’s experience. Some of the formats that have been integrated within the company include superstores, express, home plus, and metro. The stores are categorized and divided in accordance with the target population.
Sales and marketing
The company has fostered its sales and marketing segments through the integration of information technology. One specific feature, which has been introduced in the company, is the Clubcard. The card acts as a loyalty card that enables its customers to stay loyal and thereby to prevent them from accessing products or goods from their customers. Another important feature in their marketing and sales segment is the introduction of the Greener Living Scheme, which is a scheme that is primarily meant to advise their customers on environmental issues.
Services
Other than marketing and sales, Tesco has been focusing largely on services. One area where the company has placed a huge focus is on a dual strategy that involves differentiation and cost leadership. The strategy above has made the company increase its focus on the customers. As a way of achieving the above, the company introduced various services such as direct promotions and marketing, financial services, and the introduction of self-service kiosks. The services mentioned above made it possible for Tesco to improve its customer experiences, while at the same time improving the quality of their services. The value chain was therefore improved significantly as a result of this move. As a way of putting the perspective of Tesco’s value chain, the company has been able to improve the value of their brand. Also, it has also improved the value of the products and services when compared to their competitors despite the cost challenges.
3.2.3 Critique
The value chain analysis enables a company to understand the areas where it will improve the value of its products, prices, or operations.
3.3 Portfolio analysis
Portfolio analysis is an analysis of the various elements within a company, which showcases how companies make decisions and improve their returns.
3.3.1 Boston Matrix
A Boston Matrix, or what is commonly referred to as the BCG matrix is a framework for analyzing a company based on the share of the market and the growth. A Boston matrix has four components, which include cash cows, question marks, dogs, and stars.
3.3.2 Application
Based on the analysis, Tesco can be classified as a star. The above is mainly because of the fact that the company has the best grocery market share and generates the most significant revenues.
3.3.3 Critique
The Boston matrix analysis is a useful method of understanding how a company is performing within a particular industry.
3.4 Tesco Financial Performance in 2019
The revenues of Tesco grew by over 11% from 57 billion to 63 billion in the last financial year. The net income also grew by close to 10% from 1.2 billion to 1.3 billion. The gross margin rate was estimated at 7%, while the net profit margin grew by 2%. The operating margin was estimated at 4%. The return on investment was slightly over 3.5%, while the return on equity was at 9.7%. The return on assets, on the other hand, was slightly over 2%. The cash revenues within the company reduced by 1 billion, but the company still experienced impressive growth in its cash flow rates, which grew by more than 3%. The company recorded close to 2 billion from its cash flow margins. The price per share was recorded at 9.2, while the cash flow per share was recorded at 0.28. The company used close to 2 billion to finance the cash flows and a further 1 billion on different investment activities. The book value for every share was 1.4, while the tangible book value for every share was 0.8. The company has a debt to total capital ratio of 55%, which dropped from the 117, which had been recorded in 2018. The current ratio was 0.6, while the quick ratio was 0.4. The total debt to total capital was 0.55, while the total debt to total equity was 1.2. The earnings per share increased by 11% in 2019, while the dividends per share increased by 92%. The dividend payouts are commendable since there are only some few companies within the industry that are currently paying dividends. The dividends yield average for a five year period was 0.01%. The growth rate of dividends over the last five years was -17.13. The ratio to be paid out was 50%. The growth of the EPS over a five year period was -10.6, while the TTM versus the EPS over one year ago was 28.
- SWOT Analysis
A SWOT is an analysis of the strengths, weaknesses, opportunities, and threats that face a particular company. The strengths reveal the main areas where the company has a competitive advantage within the industry. In addition, it also reveals the critical areas where the company has made significant strides in operations. The weaknesses, on the other hand, reveal some of the areas where the company needs to improve. The opportunities, on the other hand, reveal some of the areas, which provide the company with a probability for more growth. The threats, on the other hand, reveal the areas, which pose risks for the company’s growth.
Strengths
Some of the strengths of Tesco include the following. One of the biggest strengths includes the fact that it is the biggest supermarket chain in the United Kingdom. In 2018, it was ranked as the largest supermarket in terms of sales and revenues. The other strength is the fact that it has the largest market share in the United Kingdom. The other advantage is the large global presence. Tesco has branches in over 14 countries, with close to 7000 stores. Other than countries in the United Kingdom, it has stores in other European countries, Northern America and Asia. The other advantage is the ability to increase its stores on a yearly basis. In less than one decade, the company has increased its stores by almost double. In 2008, the company had slightly over 3500 stores, which rose to almost 7000 in 2018. The addition of new stores every year has contributed significantly to its rising sales and revenues. Another advantage of Tesco is the diversification and a wide range of products. The diversification and wide portfolio of products have contributed to increasing the company’s revenues. For instance, the company deals in homeware items, cotton trading, telecom services, renting of DVDs, mobile phones, and school uniforms. The other strength is the superb use of technology. The company has incorporated the use of technology in most of its business aspects. The integration of technology has contributed immensely towards improving the experiences of their customers. Some of the technologies that have currently been introduced by the company include the use of mobile applications and barcode systems to track their sales. The other strength is a strong company brand and reputation. As a result, the company has received several local and international awards. Finally, the company has the strength of a strong network of the supply chain. The company has created a simple but efficient model of business that has not only reduced recurring costs but also improved how they do business.
Weaknesses
One of the weaknesses of Tesco is frequent financial errors. As a result of the high liabilities that are brought about by credit cards and debts, the company often gets errors in its financial books and thereby reducing the projected profits. Another weakness includes failed operations in Japan and the United States. In 2012, the Company quit the Japanese and American markets. It had operated in the United States for five years and nine years in Japan. The failure in these two critical markets is one of the most significant weaknesses in the company’s history. The other weakness is the recent decline in the share prices, which has led to a decrease in the operating profits. In 2018, the company experienced a close to 10% decline in the share prices. Another weakness of the company is constant accounting and fraud scandals. In 2017, for instance, the company was accused of misrepresenting profits and accounts. The other weakness is the fact that the company has crafted a low-cost strategy, which can, at times, dampen the margins of profits. In particular markets, the company has shown low sales and profit margins, something that has been brought about by inadequate market research.
Opportunities
One of the opportunities, which presents it in the near future, is the opportunity to expand some of its market segments. The company, for instance, introduced a new line of business known as Jack’s business. The line of business is a low-cost discount business, which has shown potential for significant growth and can, therefore, compete favorably with other low-cost rivals such as Lidl and Aldi. The other opportunity is on joint ventures, especially in countries where the markets are not performing well. Working together with local companies can, therefore, provide a deeper insight into the business environment within those countries and thereby enabling Tesco to increase their revenues. The other opportunity exists in fostering strategic alliances with other similar brands. For instance, the company can work with other distinguished companies in the same line of business to build on the value of their products and customers. The other opportunity is online shopping. Conscious of the significant growth of companies such as Alibaba and Amazon in recent years, it is palpable that the future of many businesses around the globe is online, and Tesco should, therefore, increase their online presence to drive sales. The other opportunity is in emerging markets. Tesco has primarily focused on European, Northern America, and some Asian countries. Therefore, the company has overlooked numerous countries in emerging regions such as Africa and Southeast Asia. It is clear that the countries with the highest growth rate in the world and therefore provide the biggest opportunities for business. It would be prudent to look into these countries since they provide the best markets at the moment.
Threats
One of the most significant threats facing the company is the threats from other global supermarket chains. The company faces stiff competition from other companies such as WalMart, Aldi, and Carrefour. The three companies have witnessed increased growth in recent years and thereby pose a threat to the market share currently being enjoyed by Tesco. The other threat is the threat of economic recession and changes in government policies. With changing political regimes, governments’ policies and tax regulations can change, and this poses a threat to the profits of the company. Any economic recession, whether local or global, can affect the operations, efficiency, and profitability of the company. The recent Brexit proposal has been projected as a potential threat to the company’s profitability since most of their profits have been attributed to the bond between the United Kingdom and the European Union. Another threat that faces the company is the probability of a decline in its reputation. The recent accounting and financial scandals, coupled with recent accusations on false brand names, could potentially hamper the reputation of the company if not properly checked. There is, therefore, every need to avert scandals in the near and distant future as one way of averting the decline in the reputation.
- Strategic Analysis
Strategic analysis is an analysis of the business environment of a company or organization. It particularly aims to assess the state of the environment through which a company operates. It makes it easier to assess plan on how an organization will make decisions and operate.
5.1 Business level strategy
A business-level strategy is an action that will be taken by an organization to provide value to their customers.
5.1.1 Porters Generic strategies
5.1.1 Definition
There are four factors involved in the generic strategies by Porter, which include differentiation focus, cost focus, cost leadership, and differentiation leadership.
5.1.2 Application
Tesco aims to achieve cost leadership by becoming the company with the lowest price for grocery products. The above is achieved through the use of efficient technologies and acquiring goods at the lowest prices possible. Tesco further aims to achieve an advantage in terms of low costs. The objective above is achieved through product differentiation and segmentation. Additionally, Tesco aims to achieve differentiation leadership. The above objective is achieved through industrial differentiation, where Tesco aims to dominate a competitive advantage in the industry. The fourth factor is on differentiation focus. Tesco has not pursued this segment since it has focused on large and diverse markets.
5.1.3 Critique
The four generic factors enable a company to discover how it will maintain a competitive advantage in the competitive market.
5.2 Ansoff
5.2.1 Ansoff’s matrix
The Ansoff Matrix unravels the attempts by the company to foster its growth, depending on the areas where the company focuses.
5.2.2 Application
Tesco has focused on price penetration as the strategy for penetrating the market. The strategy involves reducing prices to penetrate a particular market and then find ways of managing the prices. In product development, Tesco has always focused on quality to drive sales. In market development, the company has focused on innovation and the integration of technology to drive sales and revenues. Finally, the company has diversified into different product segments as unraveled in this study.
5.2.3 Critique
The Ansoff method enables companies to understand areas to focus on. In so doing, the model enables us to minimize errors and achieve efficiency.
- Conclusions and Recommendations
In conclusion, it is palpable from this study why Tesco is one of the leading retailers in the globe. The SWOT analysis, PESTLE, and Porter’s five forces analysis reveal some fundamental aspects of the company’s strategy. It is, however, important for the company to work on the weaknesses in order to avert and circumvent the risks and challenges that have been mentioned in this study.