Swot And Pestle Analysis Of Tesco

Executive Brief summary:

This report outlines the "Introduction of Oyster Cards and CELL PHONES Top Ups Counters whatsoever TESCO Shops in UK". The SWOT and PESTAL research reflects that TESCO has currently the talents and resources to efficiently offer this service to improve the customer services to the clienteles. This survey also envisages the procedure and execution of change and its impact on the current composition while moving towards service enhancement with the facilitation of marketing and change management tools, ideas and platform. More emphasis would be on execution of strategies for successful adaptation of newly unveiled service.


Tesco is a favorite Britain's leading food retail group with an existence elsewhere in Europe, Asia and america. Tesco runs more than 2, 300 supermarkets, hypermarkets, and convenience stores in the united kingdom (where it is the market leader in food retail), Ireland, Central Europe, and Asia. Its operations include convenience and gasoline retailing (Tesco Express), small metropolitan stores (Tesco Metro), hypermarkets (Tesco Extra), and financial services through Tesco Personal Money. A global innovator in online food sales, it is the owner of a 35% stake in US grocery chain Safeway's Grocery Works. It is the leading online supermarket and it is now broadening its business with a Tv set route and a "retail centered education institution".

The Tesco offers to its customers a variety of food and non-food items under the solo point of sale, non foods range includes clothing, furniture, Home electrical power, personal care, processing, cameras and phones etc.

Vision & Values

We speak about Every Little Helps a great deal, but it isn't just a catchphrase or marketing slogan, it symbolizes everything we are a symbol of. For our people and our customers, it's how exactly we run our businesses from China to Chorley. (www. tesco. com)

Literature Review

My core books will be "Essential Guide to Marketing Planning" by Marian Burk Timber and Kevin Keller's "Strategic Brand Management". Which includes been the fundamental tool for supporting me in devising the right methodology for my dissertation? Furthermore, I will be using a few of Change management books "Making Sense of Change Management" by Esther Cameron and Mike Green and John P Kotter 's "Leading Change" Which can be useful in the analysis of change management process and tools for successful interventions. Set of a few of the resources that I am going to utilize it is really as follows:






SWOT and PESTLE Examination of Tesco

A PEST evaluation of the industry will study the local, nationwide and global affects of political, economical, social and technological factors to understand opportunities and dangers well.


Diverse ranges of products

Open a day a day

Strong Cash Flow Position

Increase turnover and trading profits

Strong Balance Sheet

Leading Supermarket Chain

Brand Awareness

Individuals resources

Online Shopping

Capabilities to turn resources into advantages OPPORTUNITIES

Develop brand awareness globally

New Markets

Market shift to globalization

Health understanding growth -GM crops

Innovation & Alliances

Low cost brand growth


Non-food - offers untapped new markets with higher margins


Belief of poor -(Tesco value brands)

Insufficient local knowledge of customers and culture

Foreign brand


New & existing competition

Volatility in cost of organic materials

Economic recession

Market change to globalization

Takeover bids

Far-East low priced brands

Extremely high competition for customers and resources

External Environment - PESTLE Analysis

All of those (political, economic, sociable, technical, legal and environmental) factors will to some extent connect with the retail industry in Sweden.

POLITICAL - Following the Western Integration and Free Trade Agreements, the marketplace has exposed for British isles Companies to invest in Eastern Europe. Tesco already has 60 Hypermarket store in Hungary. Lidl is uncompromisingly struggling with to maintain its market share with an aggressive rates strategy.

ECONOMIC - the Retail sector is rather tough economy prawn and also very hypersensitive to changes in interest rates. Since the incidents of Sept 11th the planet economies have suffered heavily, stocks plummeted and prices are in all time lows. The world overall economy is however, now on the up post Sept 11th. Consumers are optimistic and the retail industry is once again booming.

SOCIAL - changes in consumer flavor and lifestyle represent both opportunities and risks for the industry. Opportunities in terms of new market and consumers, however, there are added hazards in terms of alternative founded Swedish national stores (overseas company bias).

TECHNICAL - Changes in retailing methods consequently clothes sales via the Internet is now a put in place retailing. Paperless operation, the management and supervision of the business are undertaken onto it systems, which can be reached through secure servers; provide versatility in the jogging of the business. As Sweden reaches the forefront of scientific advancement with countrywide companies like Ericsson, Tesco would enjoy the extensive logistic and syndication channels already in place.

LEGAL - Nationwide legislation for health insurance and safeness both in terms of consumer privileges and also in conditions of creation of own natural renewable resources for making clothes.

ENVIRONMENTAL - The renewable source of resources found in production, namely cotton and wool are environmentally friendly. The hazards are in terms of legal consequences for livestock's in terms of health insurance and safety.

Critical Examination:

Today's world competition is very strong in every kind of businesses. Every organizations must provide excellent products in order to stay in competition, however their competitors also providing the same or comparable products. An important way to an organization to get an edge over its rivals is to identify the client need and extra service to fulfill and joy their customers, which can retain them and also gain new customers and causes ultimate gains. Therefore, the achievement of client satisfaction must be considered a major objective in every organizations.

To achieve customer satisfaction, an organization must provide high quality products and also provide an excellent customer service. Once the service and product that the company provided is good, they can buy customer loyalty. The customers will go again and again.

The above SWOT and PESTLE examination shows that the TESCO is fully capable to present the Oyster credit card top ups counters at TESCO retail outlets to facilitate the clients and yield affordable profit share from the marketplace, where small suppliers used to earn from the marketplace. The cost of the entire task could be workout and oyster top up machine could be purchase in volume at economical price from the suppliers.

While bringing out this new service certain structural changes would be under taken by the management and few strategies to adapt to effectively implementing the change process.

This new service will involved the attention of the huge existing customer basic; nonetheless it will also attract the new customer who could be facilitated by this new service as an enormous people travels through rails, pipes and buses to their work places, schools, shopping malls, amusement centers from morning hours to night.

Until this report none of them of the competitor such as ASDA and Sainsbury has with all this service to customer, which means this service will give a competitive advantage to TESCO on its leading challengers.

Change Management:

"Everybody has a casino game plan until they get hit in the mouth. "

-Mike Tyson

Change management is a organized approach to transitioning individuals, groups, and organizations from a current state to a desired future status. . . .

en. wikipedia. org/wiki/Change_management

Change management frameworks


Bullock & Battern

John P Kotter

Beckhard & Harris

Nadler & Tushman


William Bridges


Stacy & Shaw




Good for studying change at the start

Bullock &Batten

Good for simple isolated changes


Great procedure for large or small changes, does imply a linear approach

Beckhard &Harris

Simple change method (C=[ABC]>X) for examining change at any point in the process

Nadler &Tushman

Good checklist for what should be covered in change

McKinsey Seven S

Encourages problem emphasis &appears at differ from interdependent subsystems.

William Bridges

Good at tackling inescapable change


Another good checklist


Different way, start small and grow. Don't plan everything in advance as you can control change.


A new framework promoting the fact that there are no easy solutions. Not very prescriptive.

Aims and Goals of Change:

Change management is not an result in itself. Nor will the organization really care about how precisely cutting edge the answer happens to be.

The Goal is to see the resultant benefits actually being delivered:

As fast as possible


Across all the end - users

With an enthusiastic adoption by stakeholders and end - users

Delivering the targeted benefits back to the client who invested on a regular basis and money

In this respect, change management has a real contribution to make.

Change Process/ Strategy:

Following the aforementioned change model Tesco tactical management will first of all develop the job team for the initiation of the oyster cards project. A team/ job head will be picked depending after he required skills and experience. A team leader will create a clear vision about installing oyster top up machines at TESCO retails shops in UK. After creating a comprehensive vision he project team will develop a concrete Task Plan and implemented all the available resources of TESCO including human resource. Will take assistance from the existing IT team to link the oyster top up machines through networking and perform the required IT support to the recently developed project. Furthermore, work force would be employed and trained for the project and finally a test run would be carried out for successful launch. After a introduction, a proper monitoring will be achieved to examine the brief comes of the project and continuous feed back will be studied from the stake holders i-e employees and customers. In this scenario a desired state will be performed and effect could be observed in conditions of revenue.

Implementation of Strategies in Change Management process:

For the successful implementation of Oyster credit cards top up machines at TESCO retail outlets, two pursuing strategies would be used for the research of the prevailing driving causes and restraining makes and an research of stakeholders to identify the readiness of stakeholders for the change.

Lewin (1947, 1951) - Make Field Analysis

Force field analysis (Lewin, 1951) is a diagnostic strategy which has been applied to ways of taking a look at the variables involved with identifying whether organisational change will arise.

It is dependant on the idea of 'forces', a term which identifies the perceptions of men and women in the organisation about a particular factor and its own influence.

Driving pushes are those makes affecting a situation and which are trying to push it specifically direction. These causes tend to initiate change or keep it heading.

Restraining makes are forces behaving to restrain or reduce the driving forces. A state of equilibrium is reached when the total of the traveling forces equals the restraining pushes.

Lewin formulated three important assertions about make domains and change.

Increasing the driving a vehicle forces results within an upsurge in the resisting pushes; the existing equilibrium does not change but is retained under increased tension.

Reducing resisting causes is preferable since it allows movement towards the required status, without increasing stress.

Group norms are an important drive in resisting and shaping organisational change.

As considerably as TESCO is concern, its driving make is leading position and rapport in retail industry and availability of huge finances along with set up shape work of outlet stores. In improvements technology progression and skilled work force is also appreciable driving push in TESCO, however, set up work patterns, complacency and lower profit percentage would be resistance taking place factors. But driving a vehicle makes at TESCO are stronger when compared with restraining causes.

Stakeholder Research and WIFM

In their book Organisational Transitions: Handling Complex Change (1987) Beckhard and Harris describe and demonstrate two approaches for analysing relevant resources of energy.

They analyse respectively the 'options and strength of forces for change', and the 'readiness and capacity' of people and categories to enact change.

First, the nature of the change demanded must be specified, using tools and techniques associated with environmental and organisational research.

Then all the causes for change, both inside the organisation and exterior to it, are detailed along one axis of an grid.

On the other axis the potency of the pushes is indicated, as high, medium or low.

Sources and Strength of Pushes (Beckhard & Harris, 1987)

Early on in the change process, group need to identify which specific categories and individuals will be required to support the change if the change is usually to be successful.

When they have done so they can determine the readiness and capability of these individuals and organizations to enact the roles required of these in the change process.

Understanding the readiness requires analysing attitudes: determination, motives and aims.

Capability is determined by if they have the energy, the affect and the specialist to allocate resources, and the appropriate information and skills.

Beckhard and Harris (1987, p. 63) are suffering from a Readiness-Capability Assessment Chart which enables the user to list individuals or teams who are critical to the change effort, and to rank them (high, medium, or low) each regarding with their readiness and capability regarding change.

The following chart will be used to develop an evaluation related to stakeholder's readiness to build up the change or adopt the new procedure.

Readiness and Capacity (Beckhard & Harris, 1987)


(Key Individuals or groups



Action necessary to improve the readiness or capability

Need to rate as high, medium or low

Where a big change must be integrated from the exterior, ie when it has not been defined as necessary by the folks included, then it is improbable to achieve success (yield the entire results which folks have ambitions) unless some of these involved are in favour of it.

Several observers (Rogers, 1983) have advised however that not everyone must support an alteration, which not everybody must support it to the same amount.

Senge within the Fifth Discipline (1990) talks of the difference between




Suggesting that although it is more enjoyable (and reassuring) to obtain considerable commitment, it isn't necessary for everyone to be as fully signed-up as this.

There exist lots of positions along a continuum, along which players may position themselves in response to suggested action and change

TESCO execution Plan:

Clearly talk the eyesight of TESCO via effective communication tools.

Manage worker and customer prospects

Project manage and gauge the process

Be seen to include value to organizational goals

Build on some "quick wins" or shorter rewards.

Use the series professionals/ first lines professionals as well

Be realistic about personally and corporately

Manage conflict

Repeat key communications and communicate even though important to say

Manage Resistance

Remain obvious and "out of the bunker"

Keep eye on the ball also keep in mind about customers and competitors


After conducting an intensive research it's been finally in the advised that TESCO must have introduced Oyster Card top up counter-top at its all shops in UK to acquiesce the maximum market show on the consumer's product, this might be considered a unique step in the gain retail industry and satisfy the customer numerous population moves through underground metros, pipes, buses, daily to commute their workplaces, universities, schools, enjoyment centers etc. While presenting the oyster top up card center, certain change process should be followed by TESCO to investigate the readiness of stakeholders in popularity of the change. However, TECO traveling forces are tend to be more powerful than its restraining pressure, so the change could be easily absorb by the employees and other affiliates. TESCO has a proper establish infra-structure that properly facilitates the change. By this tactical move, I am certain that TESCO will not only increase the revenue but also attain the client loyalty as well as the competitive edge on the competitors.

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