Analysis of Tesco 2

Topics: Strategic management, Michael Porter, Marketing Pages: 11 (3212 words) Published: May 4, 2008
Task A- Market (s) Environmental Analysis
Tesco PLC is a major food retailer that operates primarily in the United Kingdom. The company operates 2,291 supermarkets, superstores and convenience stores in the United Kingdom, the rest of Europe and Asia. The company also offers financial products, such as insurance and banking services, as well as electrical appliances and telecommunication products. For the year 2007 to date, Tesco PLC achieved revenues that totaled £ 46,611 million, an increase of 10.9% against the previous year revenues that were £42,016 million. Tesco is one of the largest food retailers in the world, operating around 2,318 stores and employing over 326,000 people. It also provides online services through its subsidiary, The UK is the company’s largest market operating under four banners: Extra, Superstore, Metro and Express. Tesco sells approximately 40,000 food products in its superstores, as well as clothing and other non-food lines. The company’s own-label products are at three levels, value, normal and finest. Own brand accounts for approximately 50% of sales. As well as convenience produce, many stores have gas stations. The company has become one of Britain’s largest petrol independent retailers. Other retailing services offered in the UK include Tesco Personal Finance and Tesco Personal Finance. The company has operations in the rest of Europe, including the Republic of Ireland, Hungary, Poland, Czech Republic and Slovakia. Tesco also operates stores in Asia, including Thailand, South Korea, Malaysia and Taiwan. Its products and services include: Store types: Extra, Superstore, Metro, Express,; Store offerings: Food Retail, Non-Food Retail, Petrol Stations, Home Living Range; and Tesco Personal Finance: Life Insurance, Pet Insurance, Home Insurance, Travel Insurance, Motor Insurance, Savings Accounts, Personal Loans, Secure Investment Bonds and Online Mortgage Finder. Customers buy more organic food from Tesco than from any other retailer and sales have grown by 39% over the last year. Since June 2006 Tesco has launched over 250 new organic products. They have put more effort than ever before into offering and promoting organic products.

The Pestle Framework categorises environmental influences into six main types: Political, Economic, Social, Technological, Environmental and Legal. These factors are not independent of each other. As any of these factors change it affects the competitive environment in which organisations operate. PESTLE FRAMEWORK

Source: Johnson, G, Scholes, E, Whittington, R, 7th Ed. Exploring Corporate Strategy

GM feed is prohibited in organic productsIncrease in Organic sales by 39% EU, Government, NGOs and the media have introduced new legislation on consumer goods, and revising existing directives.Employee profit sharing cost amounts to 12% of the net income. 9.0% increase in 2007 Market Value from 2006

Tesco’s ensures that their produce are of high quality and of environmental standardsSetting up of Sustainable Consumption Institute to guide Tesco and its customers towards a low-carbon future. Tesco's Charity Raising for 2006 gains Charity of the Year, Whizz-KidzIn April 2007 Tesco launched the battery-powered home delivery vans in order to reduce carbon consumption Tesco supports the United Nations Universal Declaration of Human Rights and the International Labour Organization Core Conventions and they are committed to complying with national regulations

Tesco is in compliance with the Code by the Office of Fair Trading and also the UK Department of Trade and Industry's Supplier CodeTesco has established an Environmental Policy and ensures that they comply with this and all other environmental legislation Tesco is does not engage in Child Labour and frowns upon...
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