Essays on Managing Business Operations - TESCO Case Study

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The paper "Managing Business Operations - TESCO" is a perfect example of a business case study. Founded in 1924, Tesco is a leading global retailer, currently operating some 2,491 stores and employing an estimated 350,000 people across the globe. The company’ s profits exceed £ 3 billion each year. The company’ s headquarters is located in Hertfordshire, in the United Kingdom, where it also enjoys market leaderships under the names Metro, SuperStore, Homeplus, One Stop and Express retail stores (CorporateWatch 2014). Apart from the retail stores, Tesco also operates an online retail platform called Tesco. com.

Its core products range from clothing, food, telecommunications services, property development, financial services, and household ware. The company also runs a number of gas stations across the UK. Its international operations include Ireland, Slovakia, Poland, Hungary, Czechoslovakia, Japan, South Korea, and Thailand (DataMonitor 2004). In the UK market, the company has been losing ground to its competitors since 2011 due to growing competition. The major competitors include Sainsbury, Asda and Walmart. Still, Tesco is the current marketing leader controlling 30 percent of the market (International Markets Bureau 2011). 1.2 External factors affecting Tesco Several political and legislative factors affect Tesco operations.

In regards to labour legislation, the UK government encourages supermarket retailers to offer an integrated mix of employment opportunities from the lower-paying and flexible to locally based jobs. Tesco has aimed to comply with by employing student’ s elderly workers and disabled (Li 2008). On the other hand, economic factors, such as competition from established retailers such as Sainsbury, Morrisons, Asda and Walmart have affected the company’ s prices, costs and profits. Indeed, current statistics show that Asda has replaced Tesco as the price leader (CorporateWatch 2014; Kotler 2003).

An additional critical economic factor is the rise in the rate of unemployment, which has reduced the customer’ s disposable income, leading to slowing demand and sales. Still, Tesco is the market leader with 20.8 percent (Figure 1). Figure 1: UK retail market share (International Markets Bureau 2011)


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