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Tesco Case Study


The following paper is based on the market environment analysis of TESCO, popularly known as the British multinational merchandise and grocery business assignment help. With the assistance of SWOT and PESTLE analysis it will assist to analyse the internal and external factors of the organisation. TESCO was founded in 1919 in London, United Kingdom and is the third largest retailer in the entire world, marked as the ninth largest in terms of revenue in entire world. It has its shop present in five countries across Europe and is the market leader of groceries in UK.

SWOT Analysis


Financial turnover: Tesco improved from a £6.4 billion yearly loss in the 2015 annual report to a £1.9 billion total revenue in the 2020 annual report.

Innovation: Tesco was named the winner in the EMEA area for Advanced NoSQL Architecture by Couchbase. Tesco received the prize for its efforts to improve its delivery system in response to COVID-19-related shortages. It had earned the prize for its attempts to enhance its delivery system in response to COVID-19-related shortages.

Performance during pandemic: Tesco grew by 10.5% in months leading up to September. Tesco's online prices have grown and is leading in the overall market. Tesco hired 16,000 staff to improve the quality and quantity, demonstrating the magnitude of the development.


Quality control: Tesco claims to have strict quality measures in place to ensure, however a distressing customer complaint indicated that there is scope for improvement. The company had apologised for selling partially digested fed chicken, but the situation should not have occurred in the first place.

Safety Issue: Given the wide variety of food total product concept sold by Tesco it had accusations of violations of food safety regulations can have severe repercussions. For example, issued emergency food recalls after essential security flaws and defects that put consumers at risk.


High-unemployment rate: According to a Guardian storey, the number of persons employed between the ages of 16 and 24 has dropped dramatically. This is because supermarkets are one of the few communities where children may still find work, Tesco's high levels of unemployment may help it gain the numbers needed to fuel its expansion.

Growth in online sales: COVID-19 measures to prevent also make it difficult for people to go out as frequently since they used to. The limits motivated people to shop for groceries online. As a result, Ocado saw a 76% increase in online sales. Tesco can and should take advantage of new trends.



Brexit and Supply chain: 80% of imported food sold in stores are affected by Brexit.

Competition: Asda's ownership suddenly evolved from Walmart to the billionaire Issa brothers. The current management assignment help want Asda to open stores in their 6000 forecourts across 10 countries. Tesco's share of the market is under threat from Asda's recovery.

PESTLE Analysis

Political: Tesco has operations in the Czech Republic, Slovakia, Poland, China, Malaysia, Hungary, Ireland and a number of other countries. All of these countries have different political situations provides a consistent political environment is essential for running a successful business. Britain has a fairly stable government, which has aided in its rise to the top of the local retail sector. In the business world, the Brexit deal has generated a climate of insecurity. Approximately 80% of the company's food items, according to estimates come from the EU.

Economic: Tesco had survived the pandemic's onslaught and months of lockdown and company shutdown. Many small businesses were forced to close permanently as a result of the lockout, and many people lost their jobs as a result. The increased unemployment rate promotes a climate of economic insecurity and social unrest amongst these general inhabitants. Tesco still gets the majority of its revenue from the British domestic markets. If the local government passes new e-commerce, internet ordering, and delivery model business regulations it would boost the expenses of the company, purchase price, sales, and revenue.

Social: Tesco caters to the trends in social of many cultures by serving cuisine in accordance with these tendencies. In the United Kingdom, for example, the company employs the Halal meat designation for Muslim customers. In Thailand and Malaysia, the corporation also holds the halal meat mark and brand. In the United Kingdom, Tesco also sells kosher products to Jewish customers.

Technological: Technology has become more widely used by businesses and organisations. It enables them to be more productive in a wide range of methods while also increasing the customer experiences. Tesco has also adapted to new innovation, which is one of the key advantages of this method. The covid-19 epidemic has increased the popularity of online buying and e-commerce. To prevent becoming infected with the virus, many began ordering weekly groceries. Tesco was strong enough to withstand the epidemic and business shutdown by remaining on the e-commerce channel and delivering products on scheduled.

Legal: Tesco did not present an accurate picture of its finances assignment helpand profits in 2017. The brand was fined heavily by the courts for giving false information. The corporation agreed to pay a compensation of $12 million. Tesco was sued by some of the employees for offering discriminatory compensation to male and female employees and such lawsuits put the company's reputation at jeopardy.

Environmental: Tesco is also collaborating on a program to discover illegal fishing boats that are damaging sea life by overloading and hunting beyond the season. These actions contribute to the development of a long-term environment. It had just announced phase 2 of their recycling plan, which include reducing, reducing, reusing and recovering plastic. It would assist the company in reducing or eliminating non-recyclable plastic.


Hence, it can be concluded that Tesco had expanded globally since 1990s and operates in more than eleven other countries of the world. It has diversified its business into clothing, toys, petrol, telecom, financial services, books, retailing and any other related business. On the other hand, there are rival market like Walmart and other firms which operate in the same market. As a result, Tesco will continue to benefit from strong leadership and management assignment help techniques that set it apart from its competitors.

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