TESCO Business Dynamics
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Unit 2
Business Dynamics
BY: Ajmal Shekeb NOORMAL
,Unit 2: Business Dynamics Ajmal Shekeb NOORMAL
TESCO 2
,Unit 2: Business Dynamics Ajmal Shekeb NOORMAL
Introduction
My purpose for this report is to explain and analyse the performance of Tesco and how they
can use their human, physical and financial resources to achieve their goals. I will also
investigate the factors helping to the success of businesses focusing on the role played by
managers and employees. I will consider how Tesco organize themselves and evaluate the
effectiveness. In this report, I will include an investigation on how Tesco can get a competitive
advantage over other businesses.
I will also mention the role of management in improving the competitive position of
businesses, and how managers implement policies to improve the ways in which staff
operates. And finally, by investigating the strengths, weakness, opportunities and threats, I
will consider the potential for Tesco to survive and grow.
PO1- Understand Business Organisations
Brief history of Tesco
Tesco was formed in 1919 by Jack Cohen as a group of market stalls in Hackney, London. The
Tesco name first appeared in 1924, after Cohen bought a shipment of tea from T.E. Stockwell
and combined those initials with the first two letters of his surname (TESCO), and the first
Tesco shop opened in 1931 in Burnt Oak, Barnet. His business expanded rapidly, and by 1939
he had over 100 Tesco shops across the country.[1]
Tesco is a British multinational groceries and general merchandise retailer. However, Tesco is
in retailing industry but there is also Tesco Mobile, Tesco Bank, Tesco Lotus, Booker Group,
Londis etc. Tesco Mobile Limited is a mobile virtual network operator in the United Kingdom,
Ireland, Slovakia, and the Czech Republic. Tesco Bank is a British retail bank which was formed
in July 1997.[1]
As of 2017, Tesco's UK shop portfolio was as follows:[1]
Format Number Total Total Mean Mean Percentag +/- Shops
area (m²) area (sq. area (m²) area (sq. e 2016
ft) ft) of space
Tesco 252 1,648,842 17,748,00 6,543 70,429 44.53%
Extra 0
Tesco 479 1,307,610 14,075,00 2,730 29,384 35.32% 1
Superstor 0
e
Tesco 1,740 376,629 4,054,000 216 2,330 10.17% 8
Express
Tesco 176 185,156 1,993,000 1,052 11,324 5.00% 1
Metro
One Stop 780 117,894 1,269,000 151 1,627 3.18% 1
Tesco 6 66,519 716,000 11,086 119,333 1.80%
Dotcom
only
TESCO 3
, Unit 2: Business Dynamics Ajmal Shekeb NOORMAL
Dobies 0 0 0 0 0 0.00% 36
Total 3,433 3,702,649 39,855,00 1,079 11,609 100.00% 27
0
Tesco operates in 13 countries across Asia and Europe which are China, Czech Republic,
France, Hungary, India, Ireland, Japan, Malaysia, Poland, Slovakia, South Korea, Taiwan,
Thailand, Turkey, United Kingdom and United States.[1]
Tesco is the market leader of groceries in the UK whose main competitors are ASDA,
Sainsbury's and Morrison's, which are often called the Big Four in the United Kingdom.
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In its 2018/2019 financial year, Tesco's annual revenue amounted to almost 52 billion British
pounds in the United Kingdom and Ireland. This was an increase of approximately seven
billion pounds compared to the prior financial year.[1]Tesco has financially performed
relatively well in the last 3 years. The main source of any business which is profit has
increased for Tesco. Most of profits comes from UK and ROI which is a major bonus for
TESCO 4