Key Issues Currently Facing Tesco

Styles · 21 Sep 2006 at 21:03

Hi,
My mate has just come round after being given a test essay to write as she's just started going to uni. She is so worried about it that it's really upsetting her and I don't really know how to help her. She is studying Accounts & Finance and she has to do the following:

'Produce a short report advising a business professional of the key issues currently facing Tesco'.

I'm not asking for any help with the actual project I would just like to know what sort of things the key issues would be? I would consider them things like The Tesco monopoly on themarket or things like that? Or would it be better to consider things like disabled access, although that wouldn't only be Tesco. Also my mate said they mentioned something about farming so I don't know if there are any issues to do with farming?

Any help would be excellent so i can guide her in the right direction becuase I really don't know what to suggest.

Thank you

Cybermyk · 21 Sep 2006 at 21:12

Supply, demand, seasonal variations, stock rotation, shelf space allocation, overheads and profit. It's just the usual stuff for a shop really. You might want to throw in the current trends for cheap clothing and healthy foods.

Biohazard · 21 Sep 2006 at 21:13

phone them and ask, or their head quarters.

[DOD]Asprilla · 21 Sep 2006 at 21:15

Tesco also has issues with it's current strategy of branching out from it's core businesss and trying to offer non-traditional lines.

e.g. they started selling jewellery which was apparently a complete disaster.

big_white_dog84 · 21 Sep 2006 at 21:18

Competition
Interference from governmant bodies who are attempting to restrict the free market

Randell Floyd · 21 Sep 2006 at 21:19

The last batch from our great leader Terry was:

* Monoploy in the UK is a great issue due to the fact that keeping the city happy is key, and not being able to expand in the UK is a major factor.
This is time is being delt with in a few ways. The major one being out big investment in moving into Europe, and were very careful what countrys we try and crack. Wal-Mart proved that you cant just walk into say Germany and throw money around, as they ended up loosing millions upon millions and moving out.

* The second is the non-food market. This Monday sees the launch of out 'Arogs' catalouge, that looks like taking us past Argos as the largest outlet, this is made easy thanks too our vast sq ft of Tesco in the UK, our buying power and the somewhat leading team of big wigs!

* The farmers issue is the current backlash on the price we pay farmers. Steping back from a either sides view it's in very simple terms farmers being used too charging too much for their stock and now Tesco being able to force the price of purchasing right down to near silly prices. This is term is killing UK farming of sorts, too Tesco thats no major problem as the world one big suppiler.
Also the fact that people want more UK famred stock, so theres a massive Meat and Poultry winter launch, with all our new lines for upmarket shoppers being from the UK, same with a load of British able produce.

Thast in short, but if theres any thing you/she needs to ask please ask away.

Ex-RoNiN · 21 Sep 2006 at 21:20

big_white_dog84 said:
Competition
Interference from governmant bodies who are attempting to restrict the free market

More precise, Tesco has outgrown itself and the market and is about to turn into a monopolistic monster, with its market share around the 25% market for its core business.

Styles · 21 Sep 2006 at 21:26

Randell Floyd said:
Thats in short, but if theres any thing you/she needs to ask please ask away.

Thanks mate. I don't know what to suggest I'm studying Computer Systems & Networks so this is a little out of my area of expertise.

Freeman · 21 Sep 2006 at 21:29

A bit OT but man am i glad i chose Game Development rather than Accounts at college >.<

Styles · 21 Sep 2006 at 21:31

Tell me about it seems like it wouldn't be my thing at all.

Cybermyk · 21 Sep 2006 at 21:36

I got my AAT passed 5 years ago, never did any accounts work after it and I've been in IT for 7 years or so anyway. It's a good career if you get all the exams under your belt and find a good company. IT work is just easier for me.

Styles · 21 Sep 2006 at 21:37

what's this about a catalogue that is going to be launched on monday i can't find anything about this?

Violent-J · 21 Sep 2006 at 21:38

[DOD]Asprilla said:
Tesco also has issues with it's current strategy of branching out from it's core businesss and trying to offer non-traditional lines.

e.g. they started selling jewellery which was apparently a complete disaster.

I'd imagine so, tesco value jewellry.. keke

Cybermyk · 21 Sep 2006 at 21:42

Tesco Catalogue Info

[TW]Fox · 21 Sep 2006 at 22:01

Freeman said:
A bit OT but man am i glad i chose Game Development rather than Accounts at college >.<

Yea but what can you do with a Game Development degree other than... join the queue of 800,000 other guys who want to spend their working day playing games?

Christo · 21 Sep 2006 at 22:05

1. The NO.1 ISSUE - Tesco is expanding into the US west coast market at the moment - they have invested vast sums, it has huge potential upside, but also downside.

2. Government intervention - avoidance of. Tescos has a firm grip on the market and even more so is an issue with the 'metro' stores, they hold a huge amount of unused property within the centres of towns - they may be forced to sell some of these assets.

3. Increased competition - ie the rivival of Sainsburys, this year Sainsbury's have out performed Tesco both on the stockmarket and increased profit gains.

ps 50% of Tesco's profit now comes from abroad. And need to expand abroad to counter Tesco UK market saturation.

Jet · 21 Sep 2006 at 22:12

How to break China would be their main issue at the moment I think.

http://news.bbc.co.uk/1/hi/business/3893469.stm

Freeman · 21 Sep 2006 at 22:18

[TW]Fox said:
Yea but what can you do with a Game Development degree other than... join the queue of 800,000 other guys who want to spend their working day playing games?

Go on to a million and 1 other jobs in that area, games development can get you ready for thousands of jobs.

And if you think games development is playing games all day, how wrong you are

Sweetloaf · 21 Sep 2006 at 22:21

Tesco have rather bizarrely become their own competitor, we have about 4 or 5 of them in various forms, within 10 miles of each other :confused:

big_white_dog84 · 21 Sep 2006 at 22:22

Ex-RoNiN said:
More precise, Tesco has outgrown itself and the market and is about to turn into a monopolistic monster, with its market share around the 25% market for its core business.

They have achieved this market share by giving the consumer what they want more efficiently than anyone else.