Business Creativity BUSN 11075

Group Presentation

Student’s Name:
ID:

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Table of Contents
Introduction......................................................................................................................................3

Background information about Tesco.............................................................................................4

The business model issue.................................................................................................................5

Internal business environment of Tesco..........................................................................................6

Key challenges and opportunities of Tesco.....................................................................................7

Impact of the challenges on growth and sustainability....................................................................8

Re-developing a business model for Tesco.....................................................................................9

Recommendations..........................................................................................................................10

Conclusion.....................................................................................................................................11

References......................................................................................................................................12

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Introduction

There are thousands of grocery stores that are correctly running around the globe and among
them, Tesco can be identified by its name. Tesco is well-known among people in the UK.
Therefore, this presentation will carry information about Tesco. This will discuss the background
information of Tesco at the beginning. Further, it will talk about some business model challenges
that Tesco is currently facing (Rosshow, 2020). Then, it will talk about the internal business
environment of Tesco, the opportunities and challenges of Tesco, the impact of the challenges in
business growth, and model development to solve the business model issue of Tesco. Lastly,
there will be provided with some recommendations and a conclusion of the whole presentation.

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Background information about Tesco

General Information
Tesco is leading the grocery market in the UK by setting its headquarters in Welwyn Garden
City. Tesco is having a market share of 28.4% in the grocery industry of the UK as it is one of
the largest shops in the nation (Harrington, 2021). The firm started its activities in 1919 and
currently, it has shops in 4,673 locations.
Product of Tesco
Tesco is a diversified shop that is dealing with a number of products in the firm. First of all, one
can find daily household products in the shop. Further, books, clothes, furniture, food items, toys
for children and electric products (Carry, 2021). Moreover, the firm is also connected with
different financial, petrol and software services.

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The business model issue

The major business model issue that Tesco is facing is reducing the profits of the firm due to the
poor customer service provided by the firm. The firm has been facing issues related to the
engagement of the workers in the firm and due to this issue, the workers are not ensuring the best
customer service (Arvidsson, 2018). As the firm is a huge company and ensuring good service is
necessary, the current employee engagement model of the firm is not working well. Therefore,
the firm has been facing a huge downfall in its profit.

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Internal business environment of Tesco

Through SWOT analysis the internal environment of the firm can be analysed. Here it is-
Strengths
 The firm has a leading market share.
 It is geographically diverse (Eden, 2020).
 Good technical support is available.
 The online shopping facility of Tesco is also available.
Weaknesses
 Fraud in accounting is one of the common weaknesses of the firm.
 Negative publicity can be seen in Tesco.
 Lack of employee engagement in the firm.
 Unfair business practices by several workers of the firm.
Opportunities
 The emerging global business market is a huge opportunity for the firm.
 Ensuring a cashless store is also an opportunity.
 Matching the price with the competitive market so that competitive advantages can be
obtained.

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Threats
 New laws enforcement by Brexit.
 Rising the production cost of the firm (Fai & Morgan, 2019).
 Unfair business practices by the accounting department of the firm.
 Economic crisis due to the war between different nations.

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Key challenges and opportunities of Tesco

Key Challenges
Among different challenges that the firm has been facing, is the accounting scandal or the unfair
activities done by the accounting department of the firm (Carry, 2021).
Another big issue that the firm is facing is the lack of employee engagement which is leading the
firm towards poor customer service.
Key Opportunities
One of the major opportunities of the firm is expanding the operation of Jack’s business
activities as this discount store of Tesco has been working with profitability (Robertson, 2021).
Another opportunity for the firm is to connect with different strategic alliances to walk in the
global marketplace.

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Impact of the challenges on growth and sustainability

The firm has been facing huge growth and sustainability issues due to the challenges that are
facing the firm recently. For example, due to the horseman accounting scandal, the firm has
faced a huge downfall in its reputation and therefore, a huge profit is lost in the recent year.
Moreover, the growth in other areas is not happening actively due to the downfall in the
reputation.
Again, due to the employee engagement challenge, the firm is not providing enough service to
the customers. In recent days, the firm has been facing a huge poor customer service (Rosshow,
2020). Due to the poor customer service provided by the firm, the customers are not feeling
comfortable while buying things from the firm and therefore, the growth has stopped.

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Re-developing a business model for Tesco

As the firm has been facing issues with employee engagement and poor customer service, a
proper employee engagement model can provide a good service for the firm. Here, the Zinger
model of employee engagement can be followed by the firm to engage its customers. First of all,
Tesco needs to build a good connection with the workers of the firm so that the workers can feel
connected while working in the firm (Willum, 2021). Then, building authentic relationship
building with the employees is necessary. In this case, involving the workers in decision-making
activities is required. Recognising and acknowledging the workers is also an important factor
for the firm to motivate workers. At last, the engagement of the workers as a continuous process
is also necessary.

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Recommendations

Some of the things that should be followed by Tesco to mitigate the current issues of the firm.
Here are those-
 Ensuring fair business practices within the firm is necessary.
 Ensuring employee engagement is an important factor for the firm to reduce poor
customer service (Arvidsson, 2018).
 Negative publicity of the firm should be stopped.
 The unfair business practice of the firm should be monitored.

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Conclusion

It is not possible that every organisation will work without facing any issues and therefore,
challenges and business problems are common in the business world (Harrington, 2021). The
current issues that Tesco is facing can be solved with proper employee engagement models.
Further, ensuring monitoring is also important for Tesco to solve issues.

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References

Arvidsson, S. (2018) Challenges in managing sustainable business: Reporting, taxation, ethics

and governance. Cham, Switzerland: Springer Nature.

Carry, J. (2021) “A study on the challenges faced by HR professionals,” Journal of

Contemporary Issues in Business and Government, 26(02). Available at:
https://doi.org/10.47750/cibg.2020.26.02.054.

Eden, C. (2020) “Analyzing cognitive maps to help structure issues or problems in Tesco,”
European Journal of Operational Research, 159(3), pp. 673–686. Available at:
https://doi.org/10.1016/s0377-2217(03)00431-4.

Fai, F.M. and Morgan, E.J. (2019) Managerial issues in international business. Basingstoke
England: Palgrave Macmillan.

Harrington, S. (2021) “The challenges faced by grocery industry in Logistics,” Journal of

Contemporary Issues in Business and Government, 26(02). Available at:
https://doi.org/10.47750/cibg.2020.26.02.076.

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Robertson, P. (2021) “Documenting common issues and problems with a WCT,” New Horizons
in Standardized Work, pp. 121–138. Available at: https://doi.org/10.1201/b10507-9.

Rosshow, M. (2020) “Leigh, Laurence Brian, (26 May 1935–22 Aug. 1974), managing director,
Tesco Stores (holdings) ltd,” Who Was Who [Preprint]. Available at:
https://doi.org/10.1093/ww/9780199540884.013.u156679.

Willum, D. (2021) “ECJ 3 June 2021, case C-624/19 (Tesco Stores), gender discrimination,
Discrimination General,” European Employment Law Cases, 6(2), pp. 127–127. Available
at: https://doi.org/10.5553/eelc/187791072021006002014.

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