Research Proposal On Tesco PLC – Research Proposal Example

Research Proposal on Tesco Plc Company Profile According to Butler , Tesco plc is the fourth largest global retailer after Wal- mart, Carrefour and Metro with branches in 13 countries across Europe and Asia.
According to Datamonitor (2010) the Tesco is projected to experience unprecedented global growth of 7.5 % annually between 2011 and 2015.
As a leading retailer in the UK, Tesco plc enjoys key strengths that include large market share, steady global growth rate, comprehensive supply chain and online stores.
The over diversification of Tesco’s merchandise portfolio act as its weaknesses, which has led to bad debt from credit cards and increased insurance claims (Palmer, 2005).
The saturation of the UK market is also a key weakness of Tesco operations in the country.
Table 1: Revenue excluding IFRIC 13 (financial statistics in £M)
2010
2011
2012
2013
2014
UK
39104
40766
42803
43582
435770
Europe
8724
9192
9866
9319
9267
Asia
8465
9802
10828
10045
10309
US
349
495
-
-
-
Tesco Bank
860
919
1044
1021
1003
Group Revenue Excluding IFRIC 13
57502
61174
64541
63967
64149
Source: Tesco PLC Annual Report and Financial Statements (2013)
Table 2: Trading Profit (financial statistics in £M)
2010
2011
2012
2013
2014
UK
2413
2504
2478
2272
2191
Europe
474
527
529
329
238
Asia
440
605
737
733
692
US
165
186
-
-
-
Tesco Bank
250
264
225
191
194
Group Trading Profit
3412
3714
3969
3525
3315
Operating Profit
3457
3917
4182
2382
2631
Operating Profit Margin
6.0%
6.4%
6.5%
3.7%
4.1%
Source: Tesco PLC Annual Report and Financial Statements (2013)
2. Reason for Interest in Tesco Plc
Blythman (2012) noted that Tesco plc has successfully expanded its market into Asia and the rest of Europe. Vis a vis, the core strategy of Tesco has been global growth through the diversification of its product portfolio (Humby et al.,2007). The project proposal aims to examine the marketing mix of Tesco in light of its declining market share in the UK and the advent of information technology. However, it is further paramount that the identified strengths of the expansion strategy exceed associated risks and weakness of international based market strategy. Critical analysis of Tesco’s declining market share of UK indicated its product development and diversification strategy to be fuelling bad debts. Tesco management has been undergoing extensive management changes since 2013 when over 50 top managers were axed (Butler, 2013). Therefore, the restructuring of the management roles in the stores will evidently impact on the strategic management and current operations of the UK’s leading retail store. Key competitors of Tesco supermarket in the UK include Sainsbury’s, Carrefour, Asda, Morrisons and Cooperative, Waitrose and Aldi supermarkets.
Figure 1: Tesco Supermarket Competitors and their Respective Market Share (Farmers Weekly 2014)
3. The Research Plan
The research project will be principally aimed at examining the strategic management of Tesco Plc that underlines its continued growth and success in Europe and Asia. The research will employ analytical methods in the strategic analysis of the operations and management of Tesco plc. Some of the methods that will be utilized include SWOT analysis, PESTLE analysis, Porter’s five forces analysis, value chain analysis and early warning scans. Pertinent information and statistics will be derived from the official website and annual reports of the company, scholarly journals and recognized online business websites and magazines. The main sections of the final project will include background of Tesco plc, PESTEL analysis, Porter’s 5 forces, critical success factors, SWOT analysis, value chain analysis, Tesco’s strategic options, core competences and company’s culture.

Figure 2: Grant Bar for Research Project
References
Blythman, J. (2012). Shopped: The shocking power of British supermarkets. London: HarperCollins.
Butler, S. (2013). Tesco gets rid of 50 top managers as Clarke steps up pace of change. [online]TheGuardian.Availableat: http://www.theguardian.com/business/2013/jul/31/fifty-tesco-managers-lose-jobs [Accessed 12 Oct. 2014].
Datamonitor. (2010). Company Profile – Tesco. Datamonitor Europe
Farmers Weekly.(2014). Poor supermarket Christmas trading, but good news for UK farmers.[online] Available at: http://www.fwi.co.uk/articles/10/01/2014/142756/poor- supermarket-christmas-trading-but-good-news-for-uk.htm [Accessed 13 Oct. 2014].
Humby, C., Hunt, T., & Phillips, T. (2007). Scoring points: how Tesco continues to win customer loyalty. Great Britain: Kogan Page Ltd
Palmer, M. (2005). Retail multinational learning: a case study of Tesco. International Journal of Retail & Distribution , 33, 23-48.
Tesco PLC, (2014). Tesco PLC Annual Report and Financial Statements 2013. Annual Report. UK: Tesco Plc.