SOCIAL positive way as the workers whom are hired

SOCIAL

Employee expectations: Tesco’s has a range of different
employees expectations one of these includes engagement, engagement is a must
have, when working within Tesco. Employees have to provide excellent services
to the customers, and have great communication with them, employees are also
required to complete all tasks that are set to a professional manner. They are
also expected to arrive to the workplace on time and have great punctuality,
completing a variety of jobs is what they are expected to do, plenty of variety
is what they need, they could be within one shift, working on the checkouts,
stacking shelves and guiding customers. These high expectations can affect the
business in a positive way as the workers whom are hired will have to be
skilled in these areas meaning that every job which is set will be complete to
a high standard. In addition to this there are very high expectations for the
store manager, they are expected to recruit highly skilled and educated people.

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Seasonal behaviours: Every season Tesco will have to change
their products as different seasons mean they have to change their stock to fit
the required standard, as stakeholders such as the customers, will want the
goods that match the season.

Cultural Trend: There has been a huge change in cultural
trends, and social trends with in the UK, customers have a high demand in bulk
shopping, so because of this Tesco have increased their number of non-food
items, this is because customers have also moved to one stop shopping.

ENVIROMENTAL

Climate: Due
to other companies having extreme pressure from their stakeholders about
climate change, Tesco have decided to step up to the stall and reduce the
carbon footprint by 20% by 2020. They are also going to try and reduce the
waste from which they produce within the store. Furthermore because of global
warming and the increase in temperature, the arctic ice caps are melting, it is
also said by 2040 we will have an ice free summer. Tesco are now beginning to
come up with a number of important things to protect the environment. Tesco have
allegedly said that they are going to decline the consumption of energy and the
utilisation of greenhouse gasses.

LEGAL

Tesco as a
company needs to deal with things such as credit cards, loans and many more.
Tesco follow the 2012 Financial Services Act, this was recently put into
Tesco’s system and the UK. There were three new leading bodies from which
consist of Financial Political Committee, the Prudential Regulatory Authority
this offers a micro perspective and is responsible for organizations to be
engaged in financial services. The Prudential Regulatory is there to try and
decline the negative effects which rise up from disruption, to the continuity
of financial services.

POLITICAL

The
government also introduced the Fat Tax, this was their aim to control obesity,
this is not a good thing as it can affect the sales and revenue, as Tesco have
a range of fatty and sugary foods.

In 2011 the
government introduced an increase to the VAT rate, it rose from 17.5% to 20%,
there goal was to increase the governments revenue by £13 billion a year. This
increase lowered customer spending, so they wasn’t getting their normal
revenue, therefore there key source of income was halted.

TECHNOLOGICAL

Technology
is very important for Tesco’s business to run, it is critical for them to have,
for example, the Tesco website is vital, a lot of purchases are made through
this website, the introduction of this website led to an increase in purchases
from their stakeholders. Tesco’s management needs to be looked at closely for
technologies which are deemed to be disruptive which occur frequently within
retailing companies. The whole introduction of online shopping led to a
disruption within Tesco’s business, so therefore for them to compete they
brought out the simple Tesco website.

ECONOMIC

There are
has been a substantial rise which are showing a recovery from the financial
crisis. There has been a higher economic rise, the GDP has risen, and it is
estimated to be 2.7% higher than previously. The major growth that has occurred
within this company is a positive occurrence because Tesco as a PLC and they
mainly operate in the Supermarket industry. 

SWOT ANALYSIS

Strengths of
Tesco

Tesco is one
of the biggest retailers in the world, it is in the top 100 of the largest and
valued brands. It rates high above other companies such as eBay. Overall Tesco
has a number of 6,809 stores worldwide, which was recorded in 2016, since 2012
there has been an increase of 433 stores. This shows that the company is
progressing in a positive way as the stores are growing in numbers dramatically
which further suggests that the company has many strengths as without specific
strengths the company as a whole wouldn’t be growing at an alarming rate.

Weaknesses
of Tesco

Tesco is a
massive company that is growing by the minute and is very successful, however
it has its weaknesses, Tesco’s overall profit has been negatively impacted by
bad debts from credit cards. Another weakness is that Tesco has its rivals such
as Aldi and Lidl who sell products at low prices, so to stay on top Tesco have
to lower their prices in order to compete, this is a weakness as they have to
lower their prices which means they won’t be getting as much profit as they
normally would. Another weakness that they faced is the Horsemeat scandal, this
caused shares in Tesco to fall by 5%, this could still possibly nowadays still
cause customers to never purchase from their again.

 

 

Opportunities

Tesco is an
expanding company, they are growing by the day, and they can expand into
industries such as digital entertainments, this can be shown through their
investment into blink box. The online shopping that Tesco have with in there
company allows customers to have greater flexibility for when they are
purchasing as some can’t always make it to the store, there being old
customers, and disabled they can’t always make it to the store, so Tesco have
the opportunity to expand into this sector. Furthermore the company is also
expanding dramatically, so they can have overseas stores which could be located
in Australia.

Threats

Tesco are
the number 1 retailer within the UK, so they are constantly under competition
from other existing companies such as Asda, Sainsbury’s, Morrison’s, Lidl and
Aldi. Walmart which is one of the biggest retailers in the world, is one of
Tesco’s biggest competitors, them being one of the 9th biggest
retail company in the world gives them all the necessary skills to compete with
Tesco. There are foods around the world which are going up in price, this means
that the customers might not be able to have purchase the goods from Tesco,
which means they could potentially have lower income.

 

5cs analysis

Tesco is one
of the UKs largest food retailers in the UK. There aims is to become one of the
most dominant and leading supermarkets. They aim to provide great quality
products at a low cost. They want to be cheaper than their competitors who
include Asda, Morrison’s, Sainsbury’s and Aldi and Lidl. Their products are
very good quality which causes Tesco to have a high rating from their customers
which increases their profit, helping them to stay the number one leading
retail brand. Tesco also have a clothing company which extends their profit as
a range of customers can come in and purchase their F&F clothing.

In terms of
technology Tesco have a range of technology features within their business
these include their website which is where a lot of customers purchase their
products, they also have a mobile company. There branding and image is Tesco,
Everyday Value, this is their own supply of products from what they produce
themselves.

COLLABORATORS

Suppliers:
Tesco suppliers have a range of suppliers who contribute to their company, they
have a good relationship with their suppliers, and some of these include
Verizon, who are a leading global technology company.

Stakeholders:
Tesco’s stakeholders include customers, employees, government, local community,
suppliers, financers and pressure groups. All of these stakeholders have an
influence on the business. They have a very good relationship with their
stakeholders as they are the ones that help the company stay at the top of the
retail market.

Distributors:
In terms of Distributors Tesco have a great relationship with theirs, Tesco are
able to restock their store in the space of 24 hours, meaning they never run
out of stock.

CUSTOMERS

Customers
choose to purchase products from Tesco for a variety of reasons, they can save
time and money. Tesco offer a range of cheap products which include their own
value products, which are at a significant low price, which means customers are
able to purchase the goods without spending a lot of money. Customers also shop
at Tesco as they can be rewarded with Tesco club card points which gives them
free money, they get a point every time they spend £4. Customers also purchase
goods from Tesco because they have an online store, so they don’t have to go
out of their way to go to their local store, they can just order it online and
get it delivered and get the delivery for just £3 a month. There is also click
and collect, customers can order there stuff online and collect it without
going around the store searching. Tesco also have a great relationship with
their customers as they allow them to bring in a profit of £6,000 a minute,
which is £105 a second.

Competitors

As of 2016
Tesco’s market share was 28.1 being the highest at of all the other markets
such as Sainsbury’s, Asda and Morisons. One of Tesco’s Competitors who include
Lidl are known for their lower prices, being low means they can compete with
Tesco’s standard prices. The weaknesses of their competitors is that they may
not always have the substantial things that Tesco have, which include home
delivery and own brand clothing.

Climate

See pestle
analysis

 

Five Forces
analysis

Threat of substitute

The threat
of substitute towards Tesco could be other companies such as Aldi and Lidl who
sell different products from around the world, and see it at cheap prices.
However the threat of products towards Tesco could be seen as irrelevant as
Tesco sell a range of different products within their store, which includes,
their own F&F clothing brand, and a whole load of other products which
belong to these specific categories, Health & Beauty, Technology &
Gaming, Home Electrical, Home appliances, Entertainment & Books, Baby &
Toddler, Toys, Garden, DIY. The range of products that Tesco sell are highly
diverse. They sell a range of products and substitutes, this is why it can be
argued to some extent that the threat of substitute is irrelevant in regards to
Tesco.

Bargaining power of Tesco Suppliers

Tesco as a
company has many suppliers, there bargaining power is really low. Suppliers
need big companies like Tesco so that they can exist, therefore, Tesco as a
company is strengthened as the suppliers depend on them, they are able to
negotiate and get lower prices.

Bargaining power of Buyers

The
bargaining power of the buyers is high, depending on the prices of the products
that the company sell, the buyers are easily able to switch from company to
another, and customers will be attracted to lower prices so the products can be
easily selected. The Tesco Loyalty card allows the increase of Tesco’s profit.
Tesco with their customers have an overall amount of 79 million shopping trips
a week.

Threat of new entrants

The grocery
market within the UK is dominated by a range of a few competitors, which
include ASDA, Tesco, and Sainsbury’s, all of these companies own 70% of the
market share. In terms of the threat of new entrants, Tesco isn’t really
threatened, they have a range of technology which keeps them at the top, and
these include the Tesco online delivery service, club card and their tills and
checkouts which keeps them at the top in the dominating position. It is
difficult for other entrants to raise enough sufficient capital because of the
other highly developed supply chains and large fixed costs.