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Assignment 2- Unit 1exploring business
6.2.23
Assignment 2
The effects of the environment on a
business
1
,P4- pestle, swot and economy policies
SWOT (1 business strategy hub.)
Strengths Weaknesses
Tesco's leadership in the market is Tesco's decreasing operating profits
one of its strengths. Tesco, Asda, are one of its weaknesses. The
Morrisons, and Sainsburys are the company's operating profit
UK's main four supermarkets, and decreased by 21.3% (£1.7 billion) in
Tesco has a market share of 27.9% the fiscal year 2021. This has caused
of the country's grocery retail sales. its share price to struggle and drop
In the UK, it is the most well-liked by 8% in the first three months of
supermarket. 2022.
Another strength of Tesco is that it Tesco's fines for selling outdated
has a diversified product and food is another area of weakness.
market range. Tesco’s strategy of For selling over 67 expired foods,
diversification has proven to be including pizza, a variety of milk,
quite successful for the company. It and soup in three stores between
sells clothing items, household 2015 and 2017, Tesco was hit with a
items, DVD rentals, mobile phone £7.5 million fine in 2021. Then Tesco
business and other services such as publicly acknowledged to harming
an indoor hair salon and opticians. consumer safety.
The final strength of Tesco is that is • The Clubcard scandal is Tesco's
has online shopping. Tesco has seen last area of vulnerability. Tesco
over 60% growth in its online sales changed their Clubcard programme
after covid 19. It is proven by the in January 2018 so that points might
statistics that Tesco has a great be doubled and quadrupled without
online shopping experience and will giving customers advance notice. It
hire over 16,000 employees such as received a lot of response from
delivery drivers to support the customer complaints who were
online shopping process. paying twice for some things.
2
, Opportunities Threats
One opportunity for Tesco is that it Tesco's supply chain is one threat.
has emerging markets. Tesco is Shortages brought on by problems
opening more locations in rising in the supply chain are a danger to
nations including South Korea, Tesco's operations and profitability.
Turkey, and Indonesia even though After a recent health crisis
it already has stores in many interrupted its supply chain, Tesco
developing nations. The business was obliged to place restrictions on
could be able to make more money the amount of critical goods a
from this opportunity. consumer may purchase. Customers
at Tesco can only purchase a certain
quantity of bottles of eggs and
The planned launch of cashless
sunflower oil, for instance.
stores presents Tesco with another
opportunity. Tesco built its first
cashless store in 2018 and intends Another threat of Tesco is their
to add more. Events in the past competition with other
have brought attention to the supermarkets. With rising growth
health dangers associated with and popularity of supermarkets
handling objects like coins and such as Walmart, Asda, Carrefour,
banknotes that are randomly and Aldi (Tesco’s biggest
circulating. Since most consumers competitors nationally and
prefer not to carry cash, they are internationally,) Tesco’s market
looking for options for cashless position can be threatened as those
transactions. stores can continue to grow over
the globe.
The "One Hour Delivery" is Tesco's
final opportunity. Woosh, a one- The legal threat against "Fake Farm"
hour home delivery service offered is the last threat facing Tesco. Tesco
by Tesco, is now available to was charged with using false farm
consumers at more than 100 Tesco brand names to deceive consumers
locations. By the end of 2023, it and promote its food items under
intends to have at least 600 stores the names "Woodside Farms" and
around the country. "Boswell Farms." In 2017, it was
subject to serious legal action. Due
to this, customers and other
suppliers can stop trusting Tesco.
Pestle
3
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