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1. Aim and Methodology

1.1 Tesco PLC (Tesco) is an organisation that has thrived in today's turbulent and uncertain business environment, becoming a successful, high-performing organisation with ‘world class' status.

1.2 Many organisations look to their practices to gain competitive advantage over this high-performing rival. But what can Tesco do to retain their ‘world class' status?

1.3 This report answers this question by researching Tesco's business performance over the last 3–5 years, and undertaking an analysis of their business environment including a PESTLEE analysis to examine the overall impact of the external environment, a Competitor Analysis to identify the competitive pressures within their industry, and a SWOT analysis to appraise their current position.

1.4 It identifies how Tesco can overcome threats, maximise opportunities and makes recommendations that, when implemented, will ensure they remain ‘world class'.

1.5 The following research assisted in writing this report:

• Online Supermarket Customer Survey (OSCS) to assist the business environment analysis (See Appendix 1).
• Information on ‘www.tescocorporate.com' for historical and corporate information.
• Internet sites and newspaper articles to ascertain current issues faced by Tesco, media opinions and data regarding market share, monopolies etc.
• CIPD course materials for theory of business environment analysis.

2. Findings and Analysis

2.1 History

2.1.1 Founded by Jack Cohen in 1919, Tesco began its upward move in the supermarket industry in the late 1970's. This growth went hand-in-hand with another expanding supermarket chain, Sainsbury, with both rivals emerging as industry leaders. Explosive growth in the introduction of superstores ensued throughout the 1980's but it wasn't until 1995 that Tesco first took the lead.

2.1.2 The ‘superstore explosion' ended, with most of the best sites gone and the government began tightening planning controls...