Tesco PLC Report

  • Published: May 2016
  • 9344 Words
  • 40 Pages
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Tesco PLC is a UK-based global supermarket chain and it has 7817 shops and 517,802 employees around the world. Founded in 1919 by Jack Cohen, Tesco has emerged to become the biggest retailer in the UK and more than 80 million shopping trips are made to Tesco stores each week (Annual Report, 2015). Tesco’s mission statement is “to be the champion for customers – to help everyone who shops with us enjoy a better quality of life and an easier way of living”.

Tesco business strategy can be described as cost leadership with a focus on availability, range and customer service. During the financial year of 2015, the group sales amounted to GBP 69.7 billion with the group trading profit of GBP 1.4 billion, however, the company made a net loss of GBP 6.4 billion during the same period (Annual Report, 2015). Along with market saturation, such a poor financial performance has been caused by a series of scandals that include an overstatement of commercial income by GBP 208 million (Rigby, 2015) and the cases of supplier mistreatment. It has been revealed that the supermarket chain demanded a payment of GBP 1 million from one of its suppliers, L’Oreal (Ahmed, 2015) and the company has been found to delay payment to suppliers in order to improve its operational profit margins in 2014 (Simpson, 2016).

These scandals caused a severe damage to Tesco’s brand image and replacement of the leadership at the top level. The new leadership headed by a new Chairman of the Board John Allan and new CEO Dave Lewis pledged to restore the trust towards the brand via focusing on the core values that had made Tesco popular in the first place.

Tesco PLC Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Tesco PLC. Moreover, the report contains analyses of Tesco’s business strategy, leadership and organizational structure and its marketing strategy. The report also discusses the issues of corporate social responsibility.

1. Introduction
2. Business Strategy
3. Leadership
4. Organizational Structure
5. SWOT Analysis
5.1 Strengths
5.2 Weaknesses
5.3 Opportunities
5.4 Threats
6. PESTEL Analysis
6.1 Political Factors
6.2 Economic Factors
6.3 Social Factors
6.4 Technological Factors
6.5 Environmental Factors
6.6 Legal Factors
7. Marketing Strategy
7.1 Marketing Mix
7.2 Segmentation, Targeting & Positioning
7.3 Elements of Tesco Marketing Strategy
7.3.1 Advertising
7.3.2 Sales Promotion
7.3.3 Events & Experiences
7.3.4 Public Relations
7.3.5 Direct Marketing
7.3.6 Personal Selling
8. Porter’s Five Forces Analysis
9. Value-Chain Analysis
9.1 Primary Activities
9.2 Support Activities
10. McKinsey 7S Framework
11. Corporate Social Responsibility (CSR)
11.1 CSR Programs and Initiatives
11.2 CSR Criticism
12. Recommendations

List of Figures

Figure 1 Tesco Corporate Governance Structure
Figure 2 Tesco organizational structure at store level
Figure 3 Changes in Tesco’s profit before tax
Figure 4 Changes in the number of Tesco stores worldwide
Figure 5 Changes in Tesco advertising budget
Figure 6 Tesco Porter’s Five Forces
Figure 7 Market share of grocery retail chains in the UK from January 2015 to April 2016 27
Figure 8 Tesco Value Chain Analysis
Figure 9 Tesco McKinsey 7S Framework

List of Tables

Table 1 Tesco SWOT analysis
Table 2 Tesco segmentation, targeting and positioning for Technika TV
Table 3 Tesco CSR performance





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  • Published: May 2016
  • 9344 Words
  • 40 Pages
Tesco PLC Report