Strengths

The main strengths of Tesco is its strong online shopping services. Tesco uses variety of
marketing strategies to provide products with low prices and promotion events to increase its
market share. Tesco.com is included. It has the biggest online shopping services of grocery in the
world with 850,000 online regular customers in the UK. Tesco.com also has good development
because they offer access to almost 60,000 DVD titles and games.

Weakness
The weakness of Tesco is its product recalls because it may destroy company’s reputation. It
is very easy for Tesco to be involved because of the shortage of quality control since Tesco has
so many manufacturers worldwide. Starting from 2009 to 2011, there were three recall cases
every year due to lack in quality and safety standards. (OneSource, 2011b)

Opportunity
The opportunities of Tesco mainly comes from Asia. Tesco has great growth in S. Korea and
Thailand, Malaysia and India. Tesco has more than 100,000 employees and rose 11 billion
dollars sales in these countries(OneSource, 2011). The Asian market has a huge potential of
supermarket business. In the country report of IEU (2010), China’s GDP has kept increasing by
average 10% every year. That is, Tesco has great opportunities and possibilities to take up this
big market.

Threats
The threats of Tesco might be the unnecessary and useless advertisements. According to the
Grocer (ref), the majority British retailers spend money on TV, press, cinema, radio and outdoor
advertising by 17% to £1.73 billion. However, Tesco only spent £102 million on advertising,
which was the smallest in percentage terms (ref). The biggest surge in advertising was recorded
by Marks & Spencer, growing spend by 59% to £62 million (ref).

3.2 Leadership and Organizational Development

In 1997, Terry Leahy was introduced as CEO of Tesco, and under his lead, Tesco had a great
evolution. On the one hand, he decided to redecorate the store and improved the service and
product quality to get rid of the company image as cheap and low. On the other hand, he changed
organization chart to rebuild the company, but also used a new growth strategy model to push its
retail price to compete with other supermarkets. The principle of this model was to keep the
gross profit ratio steady, but in the same time, using the marginal growth sales volume to invest
into the company.

Conclusion
Since Tesco has a good foundation of its online shopping center and related services, it can
take use of this basis to open the cash back credit cards systems for customers to make them feel
convenient to pay for the goods. Also, they can combine their own promotions with NGOs to
have more positive corporate image, such as donating their almost-expired-food so that the poor
and the homeless could get full and the company does not have to waste the food.