Tesco External Infleunces

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OCN Access to HE Pathway – Business

To: Benson Osejindu

Unit -Title: Business Studies
– External Influences.
From: Husien Hussen

Date: 17/02/2011


Title Page 1

Executive Summary
& Methodology & Introduction Page 3

Main Body Page 4-14

Conclusion Page 15

Recommendation Page 16

References Page 17

Executive Summary:
This is report is aimed to find out the effects of competition as well as globalisation in the case of Tesco Plc. and the ethical as well as environmental challenges their face as a global business. With that intention I will be addressing the advantages and disadvantages of a global business and how its effects the people in developing countries in comparison to the people in developed countries.

I have used, and implemented various methods to create and successfully complete this report on globalisation. I have conducted partly primary research by going to a number of stores and asking members of staff but mostly I used secondary research as a base to establish global challenges Tesco Plc. faces globally and within the UK. I have visited www.tesco.com the Tesco website to explore the research information as well as other relating websites and also read ETI requirements Tesco is obliged to follow as a global player.

The aim of this case study is to find out how external influences effect Tesco Plc. as well competition and their current performance globally as well as nationally. I will be covering the effects on Tesco Plc. being a global player as well ethical issues and Tesco’s responsibility towards the society and the environment respectively.

Main Body:

The company I have chosen is Tesco Plc. Tesco is a well known UK based global grocery and general merchandising retailer which was founded in 1919 by Jack Cohen. Therefore, competition is not foreign to them, although Tesco Plc. is a global business it has to compete with other businesses in order to dominate the market and maintain the largest market share in food products within the UK. In food product sector Tesco Plc. is a leader and not a follower as it is in the non-food product sector which it also offers e.g. banking, communication and clothing.

Competitors of Tesco in the UK

Tesco’s greatest competitors are Asda followed by Sainsbury’s and then Morrison’s. Lidl, Aldi and Netto are seen as followers in the UK food retail market they do not dominate the market as the above mentioned do. The Market share of these companies in food products are as following:

Supermarket| Market Share
December 2009| +/- from
December 2008|
Tesco| 30.5%| 0.1%|
Asda| 16.9%| 0.1%|
Sainsbury's| 16.3%| 0.2%|
Morrisons| 12.3%| 0.5%|
Source: Wikipedia.com/tesco
source: tesco-case study

Tesco Plc. Is global business with stores in more than 14 countries across Asia, Europe and North-America. Tesco has to compete nationally as well as globally with supermarket giants like Wal-Mart which is US owned as well as Carrefour French owned and Metro-Group German owned. Despite heavy competition globally it is the fourth largest retailer in terms of revenue and the second largest retailer in terms of profit.

Effects of competition on Tesco Plc.
Prices are falling. The OFT estimates that grocery prices have fallen by over 7 per cent in real terms between 2000 and 2005 and falling prices have saved consumers more than £3 billion over the last three years; overall Tesco prices have fallen by 17% since 2000. Product quality is increasing. Many innovations in the supply chain have led to more (and better) choices of locally-sourced meats and...
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