Performance Analysis and Marketing Strategies of Tesco Plc

By

ACKNOWLEDGEMENT

I would like to thank my supervisor for supporting me throughout my project and giving his valuable suggestions. Finally thanks to all my friends and family for their utmost support and inspiration.

DECLARATION

I, (Your name), would like to declare that all contents included in this dissertation stand for my individual work without any aid, & this dissertation has not been submitted for any examination at academic as well as professional level previously. It also represents my own views & not essentially the ones associated with university.

Signed __________________ Date _________________

ABSTRACT

The research study is based on assessing the marketing strategy suitable for making the company's position better in the world market. The company that has been chosen for the respective study is Tesco. The Tesco is considered to one of the largest retailing companies in the whole world. The company is providing effective retailing services to its consumers around the world. The company started its business operations long time back and progress well in almost all the sectors it has been operating. 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.

TABLE OF CONTENTS

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the Research Study1

Aims and Objectives of the Research Study1

Significance of the Research Study2

Research Questions3

CHAPTER 2: COMPANY OVERVIEW4

Strategy Multi Channel Distributor Tesco6

CHAPTER 3: EXTERNAL ANALYSIS8

Political Factors8

Economic Factors9

Social Factors9

Technological Factors9

Profitability ratios14

Return on Shareholder's Fund (ROSF)15

Return on capital employed (ROCE)16

Operating Profit Ratio16

Gross profit margin17

Efficiency Ratios17

Average stock turnover period ratio18

Liquidity Ratios19

Current ratio20

Gearing Ratio21

Movement in Share Price of Tesco24

CHAPTER 5: INTERNAL ANALYSIS29

CHAPTER 6: BUSINESS STRATEGY38

Porter's Five Forces38

CHAPTER 7: KEY SUCCESS FACTORS43

Internal analysis43

Weaknesses43

Opportunities43

BCG Matrix44

Competitors44

McKinsey's 7 S45

STRATEGY (Strategy)45

STRUCTURE (structure)45

SKILLS (Skills)45

SHARED VALUES (Shared Values)45

SYSTEMS (Systems)46

STYLE (Style)46

STAFF (Personal)46

NPV46

Advantages46

Disadvantages47

Advantages47

Disadvantages47

Payback Period47

Advantages48

Disadvantages48

Payback Period48

Net Present Value49

CHAPTER 8: RECOMMENDATIONS51

CHAPTER 9: CONCLUSION53

REFERENCES56

CHAPTER 1: INTRODUCTION

Background of the Research Study

The research study is based on assessing the marketing strategy suitable for making the company's position better in the world market. The company that has been chosen for the respective study is Tesco. The Tesco is considered to one of the largest retailing companies in the whole world. The company is providing effective retailing services to its consumers around the world. The company started its business operations long time back and progress well in almost all the sectors it has been operating. 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 ...