• Industry analysis• Company description• Unique services of the

Company. Competitions. • Domestic, international,

global, legal, regulatory hurdles face by the organization.

• Impediments, obstacles, weakness – SWOT analysis

• How is government policy and liberalizing?

• Effect of government policies on business of organization

• Homogenous and heterogeneous products

• Market type. • Markup on cost and price• Profitability

Agenda

• The UK grocery market was worth £177.5 billion in the year to March 31st 2015, an increase of 1.7% in 2014. • IGD forecasts that the UK grocery market

value will be worth £200.6bn in 2020, a 13.0% increase in 2015.

The size of the UK grocery market

What channels make up the UK grocery market?

• Hypermarkets and superstores 

• Small supermarkets

• Discounters• Other retailers• Online

What channels make up the UK grocery market?

Grocery Market Share by retailers

• The market share of Tesco, Asda, Sainsbury's and Morrisons is the lowest for a decade– Britain's "big four" supermarket chains - Tesco, Asda, J

Sainsbury and Wm Morrison - are suffering from falling sales as they are squeezed by Aldi andLidl Stiftung & Co. KG (German global discount supermarket chain).

Company Description and Overview

• Tesco PLC is a British multinational grocery and general merchandise retailer headquartered in Hertfordshire, England, United Kingdom. Tesco is Britain’s leading food retailer both by global sales and by domestic market share. • 30% of the grocery market in UK is controlled over by Tesco. • Tesco is the third largest retailer in the world next to Wall-mart, Carrefour, and is operating around 2, 440 stores and employing over 4, 00, 000 people. • Tesco has a store in every postcode of the UK as of March 2008.

• Tesco was founded in 1919 by Jack Cohen as a group of market stalls. The first Tesco store was opened in 1929 in Burnt Oak, Edgware. Tesco was floated on the London Stock Exchange in 1947 as Tesco Stores (Holdings) Limited.

• www.Tesco.com is recognized as the U.K.'s most successful online grocery retailing model with a customer base of little less than 1 million and more than 250,000 orders per week.

• Tesco is operating in the fields of clothes, consumer electronics, consumer financial services, internet services, consumer telecoms and gas stations.

Major Competitors• ASDA• J Sainsbyry PLC • WM Morrison supermarkets• Wal-Mart• Carrefour• BP PLC

Competitor Analysis

SWOT Analysis• A company that offers value for money (Brand value), convenience, a wide range of products, and locally-sensitive management• Tesco Online

• Dependence on UK market• Lack of experience in some markets that it intends to enter, such as its own brand smart phones and tablets

• Expansion into markets such as digital entertainment through their 80% investment in Blinkbox • Online shopping• Further International growth

• The effect of town planning and consumer intolerance for out-of-town stores, as well as concern for the livelihood of small shops• Wal-Mart/ Ashda challenge

Key areas of government policy

that affect businessFiscal Policy

The government can influence Fiscal policy to affect some aspects of businesses like Tesco.These include:• Taxation Rises• Inflation Rises• Less Revenue for BusinessesLegal changes - European Regulations and Customs LawThe European Union plays a massive role in regulating business activity. However, not all the legislation is good for businesses. 1. Increase in “red tape” (bureaucracy) to allow for new import laws - 20072. Customs law of other countries can make the process complicated when Tesco deal with foreign customers.

Homogenous Products

• Food & Beverage• Wine• Mobile phones• Electronic devices

Heterogeneous Products

• Tesco Family Dining LTD• Core Cafes• Giraffe Restaurants• Decks and Euphorium bakeries

Market type - Tesco fights monopoly accusations

• Economist Andrew Simms has written “Tescopoly”, a 372-page book on how Britain's largest supermarket rose to prominence. "There's a deep irony," Simms told Channel 4 News online, "in the way that loosely regulated economies - the US and the UK in particular - lurch towards monopolies under the free market. "In fact they end up with just the opposite - such as a monopoly like Tesco.“ It is a view that Tesco rejects completely. The company told Channel 4 News online that, with an overall 13 per cent share of the UK retail market, it could never be described as a monopoly.

• Competition commission carries out probe of Tesco claiming that there is monopoly in UK grocery market.

• Tesco is now calling on the Commission to use the research tool known as the SSNIP test, which it believes could dramatically alter the findings of the inquiry. Tesco's defense comes in response to the Commission's initial "emerging thinking" document released in January.

Market type - Tesco fights monopoly accusations

Markup on cost/price

• A markup is added onto the total cost incurred by the producer of a good or service

• in order to cover the costs of doing business and create a profit.

• Average markup price Tesco charges is between 100% and 165%.

Profitability of the Company• Tesco is having an incredibly hard time in the market. The reason

Tesco has been having such a rough time is relatively easy to understand.

• The UK and Europe are very closely related on an economic level.• Unfortunately, neither economy hasn't been doing very well as of

late.

10 years Financials