The impact of brexit and Covid-19 on Tesco’s financial performance

Full Answer Section

• Operating costs and margins (refer to Ioannidis, A., & Christopher, M., 2019; PwC, 2021)
• Inventory management and stock availability (refer to Christopher, M., & Holgate, C., 2011; Food and Drink Federation, 2022)
• Supplier relationships and sourcing strategies (refer to Hines, P., & Tracey, P., 2018; Chartered Institute of Procurement & Supply, 2020)

2. Literature Review

The literature review will explore the following key areas:

• Impact of Brexit on UK Retail: This section will examine how Brexit, with its increased trade barriers and customs complexities, has affected the UK retail sector in general (refer to PwC, 2020; Retail Economics, 2021). It will analyze the potential for increased costs, supply chain disruptions, and changes in consumer behavior due to Brexit.
• Impact of Covid-19 on Global Supply Chains: This section will explore how the Covid-19 pandemic disrupted global supply chains, leading to shortages, price fluctuations, and logistical challenges (refer to Ivanov, D., et al., 2020; McKinsey & Company, 2020). It will analyze how these disruptions may have specifically impacted Tesco's supply chain.
• Financial Performance Measurement in Retail: This section will define key financial metrics used to assess a retailer's performance, such as revenue, profitability, margins, and return on investment (refer to Goddard, J., 2018).
• Supply Chain Resilience Frameworks: This section will explore frameworks for measuring and enhancing supply chain resilience (refer to Sodhi, M. S., & Tang, C. S., 2018; Resilience360, 2023). It will identify strategies that retailers can adopt to build a more resilient supply chain.

3. Research Methodology

This research will employ a mixed-methods approach, combining both quantitative and qualitative data collection methods:

• Quantitative Analysis: Financial data from Tesco's annual reports (refer to Tesco PLC, Annual Reports) will be analyzed to assess changes in revenue, profitability, and other relevant financial metrics before, during, and after Brexit and the Covid-19 pandemic. This will allow for an objective evaluation of Tesco's financial performance.
• Qualitative Analysis: Semi-structured interviews will be conducted with key stakeholders within Tesco, such as supply chain managers and procurement specialists. These interviews will explore their perceptions of the impact of Brexit and Covid-19 on Tesco's supply chain resilience. Additionally, industry reports and news articles (refer to The Guardian, Financial Times) will be reviewed to gain insights from external sources.

4. Data Analysis Plan

Quantitative data will be analyzed using statistical software to identify trends and relationships between the events (Brexit and Covid-19) and Tesco's financial performance. Qualitative data will be transcribed and thematically analyzed to identify recurring themes and insights from interview responses and industry reports.

5. Expected Outcomes

This research is expected to contribute to a deeper understanding of the combined impact of Brexit and Covid-19 on Tesco's financial performance and supply chain resilience. The findings will provide valuable insights for Tesco and other retailers facing similar challenges.

• Financial Performance: The research will identify how Brexit and Covid-19 have affected Tesco's revenue, profitability, and operating costs. This can inform future financial planning and decision-making.
• Supply Chain Resilience: The study will identify the specific challenges faced by Tesco's supply chain due to these events and potential strategies for building a more resilient supply chain moving forward.
• Industry Insights: The research will contribute to a broader understanding of the impact of these events on the UK retail sector, potentially informing industry-wide strategies for risk mitigation and adaptation.

Sample Answer

Tesco, the UK's largest supermarket chain, has faced significant challenges in recent years. This research proposal aims to analyze the impact of two major events - Brexit and the Covid-19 pandemic - on Tesco's financial performance and supply chain resilience. By drawing on relevant academic literature and industry reports (referencing the provided list as much as possible), this study will investigate how these events have affected Tesco's:

• Revenue and profitability (refer to Jones, P., & Temperton, P., 2020; Reynolds, L., et al., 2023)