Running Header: TESCO – INVENTORY MANAGEMENT, SWOT ANALYSIS, &
PESTEL ANALYSIS
Tesco – Inventory Management, SWOT Analysis, & PESTEL Analysis
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Tesco – Inventory Management, SWOT Analysis, & PESTEL Analysis
Tesco – Inventory Management, SWOT Analysis, & PESTEL Analysis
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Introduction
Tesco represents biggest of the retailers in United Kingdom. The company undertakes operation across fourteen different nations al across the globe as well as aids many thousands of the customers on a daily basis (Evans & Mason, 2018; Tesco PLC, 2018a). The company chiefly operates across four different set of store formats which includes Metro, Express,
Extra, and Superstore (Evans & Mason, 2018; Tesco PLC, 2018a). Over the recent times, it in addition has expanded to format the e-commerce platform Tesco grocery shopping in an online medium (Evans & Mason, 2018; Tesco PLC, 2018a). In essence, core value at Tesco lies in creating value to its customer for purposes of earning the respective lifetime loyalties.
The overall vision with Tesco lies in being the growth company (Evans & Mason, 2018;
Tesco PLC, 2018a). As per studies, trends, and market situation, it can be noted that Tesco can be regarded in being best amongst all of the retailers (Evans & Mason, 2018; Tesco PLC,
2018a). In addition to the long history concerning the company as well as its large sized scale, sustained success pertaining to Tesco in a heavy manner relies over the innovative form of operations strategy, effective operations design as well as efficient operations management (Evans & Mason, 2018; Tesco PLC, 2018a).
Inventory Management
Tesco uses and integrated concept pertaining to lean management that was initially pioneered at Toyota (Tesco PLC, 2018a; Tesco PLC, 2018b; Evans & Mason, 2018; Hanson et al.,
2016). In effect, Tesco brought about the continuous form of replenishment system. In comparison to the conventional form of replenishment systems and this continuous form of replenishment system relies over point of sale related datasets that offer information in the real time basis (Tesco PLC, 2018a; Tesco PLC, 2018b; Evans & Mason, 2018; Hanson et al.,

Tesco – Inventory Management, SWOT Analysis, & PESTEL Analysis
2016). By way of the said system, Tesco gets equipped with replenishing of goods many
3 times over single day on the basis of orders (Tesco PLC, 2018a; Tesco PLC, 2018b; Evans &
Mason, 2018; Hanson et al., 2016). This continuous form of replenishment system can be stated to be innovation as well as growth concerning the system of supply chain at Tesco
(Tesco PLC, 2018a; Tesco PLC, 2018b; Evans & Mason, 2018; Hanson et al., 2016). The same benefits in reducing the inventory holding, cutting the costs, enhancing the overall availability concerning he products as well as guaranteeing of food quality (Tesco PLC,
2018a; Tesco PLC, 2018b; Evans & Mason, 2018; Hanson et al., 2016). The same could be considered in driving Tesco to reform the system of supply chain as the pull system. In contrast to the push system that gets influenced from retailers, pull system aid in replenishing the products in a continuous as well as timely manner as per the demands concerning its customer (Tesco PLC, 2018a; Tesco PLC, 2018b; Evans & Mason, 2018; Hanson et al.,
2016).
In the specific context that is retail industry which has always been highly competitive, the availability at an overall level represents one with high significance (Tesco PLC, 2018a;
Tesco PLC, 2018b; Evans & Mason, 2018; Hanson et al., 2016). The same could in addition decide in case the customer will come back as well as where the customers shall go. In effect,
Tesco essentially combines the availability by way of lower price as well as letting them in becoming two of the unified competitive advantages by way of creating the effective system for supply chain (Tesco PLC, 2018a; Tesco PLC, 2018b; Evans & Mason, 2018; Hanson et al., 2016). Over and above this, Tesco also uses cross docking operations as well as employs collaborative planning, forecasting & replenishment (“CPFR”) for supporting the inventory management (Tesco PLC, 2018a; Tesco PLC, 2018b; Evans & Mason, 2018; Hanson et al.,
2016).

Tesco – Inventory Management, SWOT Analysis, & PESTEL Analysis 4
Tesco uses this crossdocking approach and the same in a direct manner loads the products of same store to the trailers rather than the approach of distribution centres (Tesco PLC, 2018a;
Tesco PLC, 2018b; Evans & Mason, 2018; Hanson et al., 2016). In effect, cross docking approach in a skilful manner avoids overall needs for storing and hence reducing inventory holding (Tesco PLC, 2018a; Tesco PLC, 2018b; Evans & Mason, 2018; Hanson et al., 2016).
SWOT Analysis
On the basis of detailed assessments, the SWOT analysis is presented as follows (Tesco PLC,
2018a; Tesco PLC, 2018b; Evans & Mason, 2018; Hanson et al., 2016) –
Strengths

Strong brand value and huge customer base

Superior product / service quality

Sustained value delivery to the customers
Weakness

The large sized scale of the company makes it difficult for swiftly bringing about organization wide changes

Financial challenges and other various issues in recent times that has made it difficult for the company to retain its earlier superiority
Opportunities
 The company’s large-scale operation, competence, and competence offers the company with an ability to expand geographically

The e-commerce platforms offer the company radically enhance and
Threats

Increasing levels of competition both locally and at a global level

The increased growth and importance of e-commerce platforms makes the company susceptible to face increased levels of challenges

Tesco – Inventory Management, SWOT Analysis, & PESTEL Analysis transform the scale and extent of its and complexity arising from services
5 integration of many different market sectors.
PESTEL Analysis
Political
The company has significant presence in United Kingdom, and also presence across many different nations. In this context, the company has balanced presence there in the political risk well distributed. Moreover, the current Brexit issue does have a potential to affect the company’s operations (Tesco PLC, 2018a; Tesco PLC, 2018b).
Economical
In current economic environment, recession in the past and the forecasted economic downturns have potential to affect the business performances. However, the company has balanced presence across various nations there in the economic risk well distributed (Tesco
PLC, 2018a; Tesco PLC, 2018b).
Societal
As a retailer, the social, demographic and affiliated factors are important and needs to be focussed and considered by companies to succeed in respective markets. Tesco, given its sustained success, indicates the company seriously considers these factors (Tesco PLC,
2018a; Tesco PLC, 2018b).

Tesco – Inventory Management, SWOT Analysis, & PESTEL Analysis
Technological
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The company employs varied technological tools and techniques spanning all aspects of its business like that of operations, supply chain management, distribution, retailing platforms, etc. and continuously changes them as per changing trends leading to its success (Tesco PLC,
2018a; Tesco PLC, 2018b).
Ethical
Sustainable operations are very important aspect in current times, and the company had undertaken and continues to undertake various efforts / initiatives to ensure sustainable operations (Tesco PLC, 2018a; Tesco PLC, 2018b).
Legal
The company has faced various legal issues in the past and continues to do so specifically on account of the particular nature of the industry. Based on past experience, the company plans and implements various control measures to manage and prevent them (Tesco PLC, 2018a;
Tesco PLC, 2018b).
Conclusion
The discussion and assessments presented in this report indicate the sustained challenges faced by the company, and its continued efforts to manage and continue its success and growth.

Tesco – Inventory Management, SWOT Analysis, & PESTEL Analysis 7
References
Evans, B., & Mason, R. (2018). The lean supply chain: managing the challenge at Tesco .
Kogan Page Publishers.
Hanson, D., Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management:
Competitiveness and globalisation . Cengage AU.
Tesco PLC. (2018a). Tesco PLC. Retrieved from: https://www.tescoplc.com
Tesco PLC. (2018b). Tesco PLC Investors Relations. Retrieved from: https://www.tescoplc.com/investors/