This study provides remedial measures for Tesco that is facing teething financial troubles currently. These recommendations have been derived from a careful analysis of the current status of the firm by taking into account the various factors that have contributed to its current mess. Tesco’s main facets like its corporate structure, its nature of business, what it sells, diversification, its current position, how it is stuck in middle and its generic strategies are discussed. These are a pointer to what Tesco is, how it got there and its current crop of problems. With this background, Tesco is critically analysed from the viewpoint of its strengths, weaknesses, opportunities and threats. Recommendations are a pointer to the way ahead for Tesco. These are of the likes of restructuring its stores, providing attractive price points, devising a particular strategy to counter the threat from Aldi and Lidl and removing the negative public image it currently has. The benefits of these remedial measures are to put Tesco to its path to full recovery and further onto striving to recapture its past glory.
Tesco’s main business in the UK is retailing grocery. This it does through 3300 stores and over 310,000 employees as noted in the Tesco plc website (n.d.). Tesco operates four types of store formats such as Metro, Express, Extra and Superstore as pointed out by Zhao (2014). Another format that it has ventured into recently is the Tesco online grocery shopping.
Tesco sells a really wide range of goods cutting across sectors of the likes of groceries, shoes, electrical appliances, alcohol, garden furniture, toys, financial services, holidays, legal advice and more. Grocery comprises of its single largest selling component. Under groceries there are subdivisions such as fresh food, bakery, food cupboard, frozen food, drinks, baby, health and beauty, pet care, household and home & entertainment as noted in the Tesco website (n.d.).