BSNF52 Introduction to Organisation Assignment

Introduction

Tesco is one of the most prominent multinational supermarket chain. Which also plays a major role in supermarket retail industry. Tesco was founded in 1919 by Jack Cohen and has started growing into a multinational business which operates across the world like Europe and Asia (Tesco PLC. 2025). Since Tesco is serving diverse range of products in different business model for customer preferences. Tesco consists of groceries, clothing, electronic items etc. Tesco is also serving in finance, banking, and Information technology services. Tesco is known for customer centric approach with loyalty and affordability. This case study will be complete analysis of the Tesco as business. This report will discuss about the external environment of business through pestle analysis. This report will consist of challenges for the business it has faced and competition among other industry.

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Main Body

Business Analysis of Tesco

Background: Tesco first began in 1919 by Jack Cohen. First it was started as selling eggs and surplus groceries in the market of the London. Tesco was originally referred to a line of tea. The first Tesco store was opened in 1929. Initially, Tesco has focused on low prices and pile it high and then sell it again on cheaper prices. Eventually it started growing rapidly and became one of the largest grocery retailer in the United Kingdom (Smith, 2023). Tesco has been serving customers, communities and planet through healthy and affordable food.

Market and Industry: Tesco has its roots in grocery business since it is the biggest supermarket chain in UK for selling groceries. As now it has become most successful retail industry in UK with collection of diverse goods, housing items, clothing and various electronics items. Tesco has also opened several stores for their customer to give easy access for the shopping all out by their preferences (Krummel, 2022). These stores consist of supermarket, small convenience stores, online only platforms and one stop stores. With time and growth of the business Tesco has started businesses in finance sector, banking sector and IT services. Tesco focuses on providing convenient shopping experiences in services such as hypermarket, superstores, express stores, online shopping website and application.

Objectives: The key objective of the business is to build strong community and being sustainable from aiming to capture maximum market with profits and shareholders. Tesco is providing best shopping experiences so it focusses on customers better. Tesco supports local communities and local producers for customer engagement. It has been improving employee’s skills and capabilities for customer satisfaction.

Justification: Tesco has the ability to fit into business category because it has customer centric approach for its wider customer base. It has to get it right that what are the needs and preference of the customers, this is the only reason of such customer retention at Tesco (Sharmaa, Jain, and Pajni, 2022). The company has presented the value added services for customer satisfaction for its premium customers like Club card membership for maintaining the loyalty of customer and giving them positive responses.

Analysis of Business Environment of Tesco

Political: Tesco operates in many countries so each country has different governmental laws and policies. Changes in Taxation policies might affect its business. Brexit was one of the common examples. Political instability could hamper the supply chain, increase risk to stores.

Economic: The overall growth of a country could directly impact on its consumer behavior. If a country faces an economic expansion, then its consumers willing to spend on non-essential items. Conversely with economic downturns could lead to hinder consumer spending behavior.

Social: Tesco always try to find data insight for the understanding trends and exclusive demands of the consumers. With time customers’ shopping preferences change and also they keep up with trendy outfits. These preferences are driven by sustainability approach, health consciousness and to maintain ecofriendly environment.

Technological: Tesco has wide investment in technology to keep up with today’s requirement through technological evaluation. The data analytics technology widely uses to determine the customer insight and their purchasing behavior (Abdelazim, 2022). The e- commerce and online shopping application to provide real time shopping experiences has made Tesco to invest in technology is offering them value based customers.

Legal: Tesco has policies for labor laws and violation which always ensure that if there is any violation in labor laws then the company could take action against violation. Tesco provides health and safety policies to its employees. Tesco has also taken sustainability initiatives with these legislative objectives. 

Environment: Tesco has been using renewable energy resources for improving energy efficiency are crucial components for the company’s environmental strategy (Yasin, Anna, and Utama, 2024). It has an aim to reduce waste generation of plastics and promote recycling. Tesco is being protective for biodiversity and ensuring sourcing of raw materials.

Tesco has faced following challenges

In the name of competition Tesco has faced many challenges for example Aldi and Lidl, are discounter of UK. These are not a proper company but has affected the business of Tesco because of this Tesco started to create price variation and sometimes it gets lower than they think. The supermarket brands such as Sainsbury and ASDA also make Tesco conscious from acquiring market share. The increasing demand of online delivery services also has made to feel competitive to Tesco.

The challenge of being competitive in online presence and give better services via delivery at door step is next level task. In today’s world data compromisation is very easy so to protect customer’s data and saving customer’s privacy is a different kind of challenge in fast moving world with technology. Weather or geopolitical events could hinder the supply chain of the business. For customer it is always important that food need to be fresh on stores and in online deliver as well.

To match the increasing demand of customers that they get high quality product with an affordable range so the company lower down their profits sometimes and provide them value based products and service offerings. The company needs to adapt or capture those advancements with time. The rise of technological advancement with seamless integration of both online and offline platforms pose challenges for Tesco. If in case of economic downturns, the business could be affected by its consumer’s spending and require the company to regulate its strategies (Sharmaa, Jain, and Pajni, 2022). Sometimes communication also could be a barrier in supply chain disruptions for the business itself. Tesco need to invest in its training policies and features for its employees.

The factors have contributed to Tesco’s success

There are several factors who have contributed to Tesco’s success for instance, Club card loyalty program has significantly driven its business’s growth with time. This service offers to Tesco’s premium customer who are their regular customers. One of the most common factor is supply chain factor which ensure its efficient logistics yet minimise the cost. Pricing variation have also contributed to their success in economic expansions. Whenever a company gets success in one business or service then it tries to reach out to each and every fileds to match customer’s satisfaction, this is the common reason for such businesses.

This is the reason for Tesco’s expanding into several fields such as clothing, household goods, and financial services. Since it has largely expanded the business now technical support is the key pillar of the company. This provide outstanding services and for that technological factor is improving customer satisfaction via website and online delivery applications (Smith, 2023). The most effective technology has effected its success that is data analytical software and technologies for understand the purchasing behavior. It searches the purchasing history and acknowledge the purchasing behavior of the customer.

Tesco has adapted to changing the market trends for consumer preferences via bringing the innovation in product offerings, retail formats and digital platforms. Tesco’s marketing strategy has also contributed to its success tremendously from digital marketing and online advertisement on Facebook, Instagram, and twitter. This happen on social media when customer click on respective service the data analytical technology shows them the advertisement.

Compare Businesses and Entrepreneurs with Different Context

In my opinion businesses and entrepreneurs works differently in global, national, and local environment due to various factors and influences. On the pace of global operation, it includes navigation of diverse cultures, economic system and legal frameworks. On the other hand, national businesses work within a country’s certain economic, political, and social environment. For the local environment the company is further moving on cater to smaller market to empathise good relationship with local knowledge.

Businesses and entrepreneurs face more complexity because of the wider range of potential customers. They tend to increase sales and market share. On the broader perspective when it comes to global level the businesses and entrepreneurs face wide range of competition from other multinational corporations and international companies. It seems to have multiple cultures, languages and legal frameworks in company.

Additionally, businesses and entrepreneurs require international strategies. In comparison to national business the businesses and entrepreneurs only focus within a country on national level market. It seems quite easy when compare to global market, they only have to take decision on the entry base market such as licensing, exporting (Guerrero, Liñán, and Cáceres-Carrasco, 2021). They only need to create a robust identity which abide by the national market. They also tend to offer more specific geographic region when it comes to local environment in comparison to global and national market.

They need to establish a good and strong relationship with local producers and community as well. These environments must be facilitating with personalise customer services. The businesses and entrepreneurs must oblige with local rules and ordinances to maintain a transparency to local environment.

Key similarities and differences in Business like Tesco with Innovators

Tesco is a multination super market and retailer business on the other hand Revolut is a digital banking platform in the name of innovator in industry. They both provide banking services but a major difference between them is that their business model and target customers are different- different. The core similarities are they both serve financial services such as Tesco provide banking, credit card, and insurance meanwhile Revolut serves digital banking, investment offerings.

The other similarity between them is they both give priority to customer satisfaction with seamless and user friendly experience. Business like Tesco and innovator like Revolut, both utilise traditional and digital platforms to reach out to their consumers. With technology Tesco demonstrate an example of robust online presence (Smith, 2023). Hence, it has been expanding its digital services while Revolut serves fintech services like mobile applications and have online platform.

The key difference between businesses like Tesco caters to wider range of people who are interested in purchasing goods and services while innovator like Revolut has been focusing on individuals who are long for digital banking and other financial tools. The other difference in both is Tesco works at vast network in physical store format whereas, Revolut is initially a digital business with lesser physical presence. Growth strategies for Tesco is its “Fit for Growth” contains simple, online growth while Revolut depends on a “product-led-growth” approach.

Conclusion

The above report concluded that managing the business successfully is highly needed to remain competitive into the environment. The above report inferred that Tesco is a multinational company operating in retail industry of UK and aim to grow and develop by keeping the environment safe and promote sustainability. The environmental analysis highlighted that there was instability in the political and economic environment due to Brexit and other taxation rules. Further, it was assessed that there are certain challenges faced by Tesco like competition and others which affects the working of Tesco in the competitive market. Also, it was outlined that there are various factors which has contributed to the success of Tesco and it includes aspect like good marketing strategy, technical adoptions and many others. Lastly, it was assessed that at the different level of working like global, national and others both the businesses and innovators are different. The similarity highlighted that both aims at providing customer satisfaction and the difference is that it operates with different growth strategy.

References

Books and Journals

Abdelazim, Z., 2022. Organization Behavior-TESCO Case. Available at SSRN 4453477.

Guerrero, M., Liñán, F. and Cáceres-Carrasco, F.R., 2021. The influence of ecosystems on the entrepreneurship process: a comparison across developed and developing economies. Small Business Economics, 57(4), pp.1733-1759.

Krummel, D., 2022. Expansion in the Retail Sector—Market Entry Strategies in Consideration of Formal and Informal Institutions: A Tesco Case Study. Open Access Library Journal, 9(2), pp.1-19.

Sharmaa, A., Jain, R. and Pajni, N.S., 2022. Risk identification techniques in retail industry: A case study of Tesco plc. J. Corp. Gov. Insur. Risk Manag, 9, pp.201-214.

Sharmaa, A., Jain, R. and Pajni, N.S., 2022. Risk identification techniques in retail industry: A case study of Tesco plc. J. Corp. Gov. Insur. Risk Manag, 9, pp.201-214.

Smith, D., 2023. Logistics in Tesco: past, present and future. In Logistics And Retail Management insights Into Current Practice And Trends From Leading Experts (pp. 154-183). CRC Press.

Smith, D., 2023. Logistics in Tesco: past, present and future. In Logistics And Retail Management insights Into Current Practice And Trends From Leading Experts (pp. 154-183). CRC Press.

Yasin, T.R., Anna, Z. and Utama, G.L., 2024. Unpacking Indonesia's energy transition through a PESTEL analysis, for achieving Sustainable Development Goals. In E3S Web of Conferences (Vol. 495, p. 01007). EDP Sciences.

Online

Tesco PLC. 2025. Available through< https://www.ebsco.com/research-starters/business-and-management/tesco-plc#:~:text=Tesco%20PLC%20is%20a%20British,Ireland%20in%202023%20and%202024.>