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    Business Analysis for Tesco Plc

    University: BPP University School of Business and Technology

    • Unit No: 2
    • Level: Undergraduate/College
    • Pages: 8 / Words 2035
    • Paper Type: Essay
    • Course Code: BM461
    • Downloads: 385
    Question :

    This assessment will cover following questions :

    • Evaluate the internal environment of the Tesco Plc and explain value chain model of the organisation.
    • Reflect the usefulness of the value chain model and how it helps in understanding internal business environment.
    • Tesco is a UK based retail supermarket chain. What are the resources and capabilities that are valued by the customers and difficult for the rivals to copy.
    Answer :


    Business environment is one of the most important topic for any of business organisation as it tells that how any of the company is required to adjust themselves in different working environment. It has the necessary role for firm because it simply gives the idea to prepare plans and policies so that business goals can be accomplished (Barros and Ferreira, 2017). In references to the file, the chosen organisation is TESCO Plc which is a British multinational company. It is one of the organisation which has been performing in the market since 1919. This company has been performing its business activity in different part of the world. In context of the file, various topics will be explained as value chain analysis. Also, internal and external factors will discussed which can affect the working policies of TESCO Plc in future period of time.

    TASK 1


    It is one of the business model which help to find out the different business activity through which company can get the opportunity to earn the money and take additional advantage in the existing market. It is said that there are number of activities in value chain model which can help the business organisation to understand different aspects through which goals can be accomplished. This model is categorised into two different parts and they are primary and secondary activity. Talking about the primary activity, it consists of different aspects which is related Inbound logistics where raw material is required to be stored in primary stage and then it is needed to be distributed into the production department so that required product can be manufactured (Briones Peñalver, Bernal Conesa and de Nieves Nieto, 2018).

    Another aspects in this respective stage is outbound logistics in which is final product in needed to be distributed to the final customers once the work of conversion of raw material into final product is completed. Talking about marketing and sales department, it is necessary to understand that they must give their focus upon promotion, advertisement etc. so that necessary products can be supplied to the customers through which goals can also be accomplished. In addition, the final activity which is needed to be performed in primary stage is that company must perform related to providing services and all to the customers. Here, work related to maintenance as well as repairing must be provided (Xayavong, Kingwell and Islam, 2016).

    In case of supporting activity, it can be said that it add on the activities like procurement which has a connection with the raw material where it try to check the production finished goods. It is crucial to understand the use of technology can be very crucial because it gives the idea that how any of the new products can be designed through which sales can be increased. In addition, the another aspects is related to HRM where it is needed to find the candidate for the company and also retain them for longer period of time (Walger, Roglio and Abib, 2016). The final factor in this respective activity is related with infrastructure of the company which is connected with the structure of an organisation and management. It is the model which is being used by the number of business which is helping them to accomplish their goals in specific time period.

    TASK 2


    A famous multinational general merchandise retailer, which was found in the year of 1919 and basically headquartered at Tesco House, Shire Park, Kestrel Way, Welwyn Garden City, Hertfordshire, AL7 1GA, England. This organisation was found by Jack Cohen and at present company is holding around 6,800 shops in all over the world. If it is talked based on gross revenue term, than TESCO is said to be one of largest retailers of world. This is a business which expanded very quickly and there were approx 100 stores of Tesco in the year 1939. this is listed on the London stock exchange (Villena Manzanares, 2019). They have all types of stores ranging from small convenience stores to large hyper markets. This is likewise one of first stores from which individuals used to purchase stuff. There are numerous adversaries of Tesco who are helping in in making it as one of the biggest retailer of United Kingdom. This is having biggest retailer and they are having benefits development of around 28%. Since 2008, this brand has been growing themselves and they are having a high offer in business sectors of Asia (Khan, Dewan and Chowdhury, 2016). They have effectively propelled various kinds of stores, for example, Tesco Home, Tesco Extra, additionally, Tesco super stores, Tecso Metro and numerous other creative sort which are helping them in having an enormous offer in the market. They are utilizing a predominant innovation and have a most ideal way with the goal that they can improve the shopping experience of their clients. They are many examples that can be given where, they have embraced advances, for example, RFID and different M and E-commerce offices. This is a retailer chain which is likewise having an extremely rearranged plan of action as they have been need to decrease their general expense and embraced proficiency in their waste administration strategies. They have likewise presented another store which is named as Jacks which is offering markdown and this is huge open door for this brand which can help them in developing and extension with minimal effort speculation. They have likewise made arrangements for development of different vital coalitions with different brands by framing vital organizations with effectively settled organizations so they can shape an imposing business model in the market and evacuate the undesirable challenge (Kisselburgh and et. al., 2016).

    TASK 3


    This is related with Value chains analysis which was discovered by Porter. This is divided in two major parts which are primary activities & supporting activities. Primary activities, where it can be said that these are inbound logistics which are connected with operation's of a organisation which involves supplying of large products to various physical outlets of Tesco. In this value has to be created in the organisation with help of usage of minimum resources for maximum outputs. Operation's is divided in three segment which are having a relation with core business environment of Tesco PLC. Manufacturing is also there which is related with grocery chains which this brand is selling throughout all their stores and another is bank in which there is a bank of this company. Outbound logistics is another part of this value chain in which it is having relation with who effectiveness in terms of cost can be achieved. This is a chain of supermarkets and they have presence both online and offline. Marketing & sales are also used as a major marketing took which can be used as a communicating tool. Marketing strategy used by Tesco is associated with competitive prices, which are used in wide variety of produ8cts and also for offering best quality in there products. For enhancing their brand image Tesco is making use that they are able to increase the satisfaction level of their external stakeholders. Services which is having relation with loyalty of their present as well as future customers. This will help in aching all the business objectives (Low, Ong and Tan, 2017).

    Secondary activities are also a very entail part which is helping in facilitating of all the activities in the value chain model of Porter. Different factors such as infrastructure of a firm is related with finance, maintenance of quality and planning of strategies in a organisation. Management of infrastructure is also needed in Tesco so that value chain can be optimized. Human resource management is related with various factors of Tesco which can help in reducing of the pressure of competitive advantage which is related with recruiting if employees in a organisation (Teoh, Lee and Muthuveloo, 2017).

    Technology development is also a part of value chain and this is helping in integrating all the activities related to various functional department of the organisation such as marketing human resource or finance. Procurement is also one of most important activity of the value chain model which is used for denting of a process in which there is purchasing of various inputs such as raw materials, skills of labour, infrastructure required, capital and all other such type of resources. This all helps in achievement of maximum efficiency in the operation of organisation. Every organisation is willing to achieve maximum output. This will helps in maximization of cost effectiveness and also will be very helpful in achievement of differentiation with compared to other competitive organisations present in the external environment. Value chain is very helpful for organisation such as Tesco as it helps them in developing a understanding of various functions which play a very crucial role in smooth functioning of a organisation (Vermeulen and Witjes, 2016).

    You Can Also Read - Identify Internal Business Environment Factors - Tesco


    If it is critically analysed than it can effectively be said that Value Chain Analysis is pretty much helpful in attaining different number of competitive advantages at both national and international market. On the other hand, it has also been analysed that there are ample number of business organisations that are effectively considering value chain analysis model in order to deliver the best value to potential consumers. This is very important for creation of efficiency by analysis of various activities which are part of primary activities of value chain. On the other hand, it is also said that there is a major advantage of this analysis there are five activities which have been mentioned in this report which is helping in developing a overall understanding of what a value chain is all about in a organisation and how it is helping companies such as TESCO.

    Including this, it is also pretty much clear that TESCO has utilised this type of in their manufacturing process. Value chain analysis has two division the primary activities which has been discussed with reference to Tesco help in overall understanding of various activities which are very important for starting of the manufacturing process. Another significant part of this Value Chain Analysis is the supporting exercises which are helping the essential activities to take place in a powerful way. This incorporates the foundation of TESCO PLC which is generally vital for leading of the considerable number of capabilities that the company is holding. Another segment that came in front i.e. human resource or representatives that effectively perform the analysis among different or various sections within Tesco plc, who are exclusively liable for playing out every one of the capacities. It is very well may be said that essential activities is exceptionally useful for TESCO also of incentive to the perform number of tasks. Different number of activities, that are effectively taking place could be understood with a good example where, 'data framework' in relation to managing department of TESCO PLC may contain a number of successful sources which can prompt success in TESCO's way.


    Considering the above mentioned report, the model i.e. Value chain analysis has helped in performing an effective internal analysis in relation to the particular organisation in a proper detailed and in efficient manner. Here, it can be said that it is much important for a company to keep on bringing modifications within their internal strategies so that desired goals and objectives could effectively be attained in specified time frame. Here, it can be said that primary and secondary activities that are taking place would also require proper analysis so that competitive advancements could easily be gained in a short span.

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