Tesco Plc Swot Analysis

3798 Words Apr 15th, 2011 16 Pages
SWOT, PESTEL, Porter 's Five Forces and Value Chain Analysis of Tesco | |
Introduction
This report is aimed at critically analysing the macro, meso and micro business environment of Tesco, one of the largest food and grocery retailers in the world, operating around 4,331 stores. Strategic evaluation tools such as PESTEL, Porter’s Five Forces, SWOT and Value Chain analysis have been used by researchers in order to achieve this aim.
Tesco – Company Overview
Tesco is among the largest food retailers in the world with revenue in excess of £54 billion in 2009 and employing over 470,000 people . They operate approximately 4,331 stores in 14 countries around the world. The company operates primarily in the USA, Europe and Asia and their
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The percentage of overall consumer spending on food has risen considerably over the years, as shown below (Euromonitor, 2010):

Fig 2: UK Spending on Food as % of Overall Consumer Spending 2004 to 2008
The economic downturn has been brought to light with the assistance of the following GDP growth graph since 1989 (Mintel, 2009):

Fig 3: UK GDP Growth 1989-2009
Social
* An analysis of the UK population shows that there are more retired people than children representing the Baby Boom generation (Herald Scotland, 2010). The ageing population is discouraging for the food retailers older people tend to eat less . They are less likely to travel to supermarkets to shop compared with the younger generation. Although internet literacy level drops over the age of 65 years within the population (Turban et al., 2001), it has nevertheless been predicted that the ageing population would find online shopping more convenient. However, small deliveries are considered to be ineffective and expensive. * Consumers’ attitude towards food is incessantly changing as they have become more health- conscious . An increase in the demand for organic food has been accommodated by Tesco to reflect this change in demand. Payment by cheques and cash at the checkout was first made possible by Tesco .
Technological
* One of the key macro-environmental variables that have directly influenced the supply chain, operations and processes of

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