Executive Summary:

December 6, 2018 Management

Executive Summary:A high percentage of retailers are affected by several important issues which they need to make sure they control for their business – this would then allow the retailer to gain more customers meaning the company can be more profitable. There are three main issues which I will be discussing within this report and they are listed below; • The global and international retailing environment• Sustainability and ethical concerns• Technology and retailing developmentsAt the end of this report I would have explained fully how these affect my chosen retailer and how to make sure they don’t affect the business.Analysis:Why I have chosen this retailer and why it makes an interesting example for exploring the above themes?As customers, visiting retail stores is part of everyday life. We visit several kinds of shops and consume different products that are very important to our day to day life. Tesco’s is a huge company that has been continuously growing over the last century; however, they still suffer several issues that can affect consumers, competitors, distributors and suppliers. Tesco’s is one of the main food stores that I shop at and I am interested in what makes the company continue to grow and do well in several companies – and they are still growing.Due to the size of the company I find Tesco’s to be the most fascinating when researching the extreme issues that they face. This report is based on my investigation of what issues that affect Tesco and how to fight the particular problems. These can critically affect the achievement of a retail business through the hits of supply and demand. Tesco will need to respond to these changes, but they need to always focus on the customer needs.How Tesco’s operates within its market and competes with similar retailers?As already mentioned Tesco’s is a massive company however the food market is probably the most competitive market due to the other food retailers available. Tesco’s is probably currently the biggest however several other stores are trying to catch up and this includes; Morrisons, Sainsburys, Lidl, Iceland, Aldi, Co Operative and Waitrose’s. Convenience stores are also starting to compete with Tesco’s as the consumers takes a shift towards more trips for fewer items which makes the local store more popular. Morrison’s is probably the most competitive store at the moment due to what they offer in store which Tesco’s don’t including their pizza section and an improvement to the bakery section. Others are close behind though and Tesco’s needOther than the food stores Tesco’s also have different smaller companies which include Tesco’s bank, Tesco’s express, Telecoms and Tech Support. This is another reason why Tesco’s is the biggest retailer in the world and would take some catching up from the other retailer. The only other company that offers smaller businesses is The Co Operative who have Insurance and Funeral Care. They are however not close to Tesco due to the number of companies around the world. Tesco’s re-focus on the customer and their changing needs, such as simplifying ranges and promotions, has meant they’ve know only attracted new shoppers but encouraged them to visit more often. (Campaign Live, Simon Gwynn, May 17). This has been their focus ever since they started back in 1919 but they have started to make this their prime focus which is showing in the sales. Tesco is now ever eager to ensure they stay above the competition to ensure they achieve higher sales each year, but this may become harder. How Tesco is affected by the three main issues listed?Tesco is a big company however this also heightens the issues that they face, and they need to focus on how to combat each problem.The global and international retailing environment:Tesco is the number one food retailer in the United Kingdom, they have already expanded into Eastern Europe, the United States and several countries in Asia. They are currently trying to expand to other countries especially Africa, and they would like to expand further in Asia. In latest years UK supermarkets have come under increased pressure over their management of suppliers and this is one of the big issues Tesco’s must deal with.There are several reasons why Tesco is the biggest retailer in the UK, Tesco’s operates under four banners of Supermarket, Extra, Metro and Express with the company selling 40,000 products (Essays, UK. (November 2013)Sustainability and ethical concerns: This is a major concern for any retailer and something that needs to be considered when trying to plan the future for any kind of business. There are a couple of issues that affect Tesco, and these are; Currency Exchange Rate, Oil Prices and Economic Growth. I will explain each one in a little detail below:Currency Exchange Rate: This has only really been heightened ever since UK made the decision to leave the EU. This now means the pound has started to plummet which can affect importation. Tesco’s suppliers have started to increase their prices due to this which would mean they could increase their prices – this would then mean more customers going to their rivals.Oil Prices: Various factors affect the price of oil which includes; supply and demand and market sentiment. Due to Tesco being heavily dependent on fuel, it is inevitable that an increase in fuel price will affect Tesco. Fuel prices influence transport costs which would then impact home deliveries and distribution costs. This would also mean more customers will start using their bikes instead of driving everywhere which would then help our corner shops – they would maybe receive more online orders, but they will need to increase their delivery charges.Economic Growth:


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