BUSINESS ANALYSIS

Tesco PLC: Business Analysis

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Tesco PLC: Business Analysis

Introduction to Tesco PLC

Tesco is a significant international retailer. As a global business, the company perceives itself as having a vital role to play in helping to minimize its environmental impacts. Although based in the United Kingdom, Tesco PLC has developed into an international grocery and general merchandising chain, employing 440,000 staff worldwide and with sales exceeding £59 billion (in the year ending February 2009). Operating income exceeded £3 billion. These figures make Tesco the largest British retailer in terms of both combined sales and domestic market share, and the third largest in the world after Wal-Mart (United States) and Carrefour (France). It is claimed that £1 in every £7 of UK retail sales goes the way of Tesco.

Tesco plc has been using the strategy of high pile that is, selling cheap as a way to minimize production costs. The mission and vision of this company are the superior technical and presentation and value for their products and offer customers innovative solutions for their customers design, manufacturing and procurement requirements. This is normally done by improving the quality, productivity and services a competitive advantage. Food and beverages are sold food sector represents the largest industry in the United Kingdom. This sector provides employment to more than three million people in various levels such as primary production, manufacturing and retail. In 2003, retail food and drink accounted for about 9% of gross domestic product in the country. To increase their competitive advantage, Tesco plc has diversified its production, where it provides clothing and other non-food lines. Products are included in three layers, the value, normal and fine. In addition to producing comfort, most of the business of the company's gas supplier so that one of the largest independent gasoline retailers UK.

Local and International Business Review

Despite the challenge of low demand in some of the largest markets, the growth of business of general merchandise, apparel and electronics remained. Company have seen outstanding performance in key areas and terms of market share. These have helped to offset the effects generated by the cautious consumer spending in these areas more discretionary. To align itself with its different structures, Tesco will define the non-food items such as "general merchandise, clothing and electronic products" (excluding health products, beauty and household). In this category, overall sales of the group grew by 8.8% during the year reaching 10.3 billion pounds. In the UK, increases in gasoline prices and VAT increases have had a significant impact on discretionary consumer spending. Many distributors city suffered from declining sales and issued warnings about their results.

The local, regional and global authorities are stakeholders of Tesco PLC. Local, regional and global authorities keep an eye on the company's policies and checks that whether the company is operating within the policies, specified guidelines and mentioned rules and regulations (Baalbaki, 2003, p. 19). In order to serve their interest, Tesco PLC maintains sound relationship with these local, regional and global ...