Internal audit of the company can be done through analyzing Strengths and Weakness of the company and external audit can be conducted through analyzing the opportunities and threats existing in the external environment. Thus, SWOT analysis of the company can be done as follows:
Strengths: The company has been showing strong financial performance since many years due to the main strength of the company i.e. customization of its products and services as per the market demands (Hensmans et al., 2013). Thus, the main strength of the company is production of customized products and services as per the needs and requirements of the customers. In addition to this, the company emphasizes on product affordability and ensures that customers get the best products at minimum prices.
Weaknesses: The lack of geographical diversification can prove to be the main weakness of the company as about 75% of its revenue is realized from the UK market. In addition to this, the company has also recently recalled many of its products that has resulted in major financial loss as well as has damaged its brand name.
External audit: Opportunities & Threats
Opportunities: The introduction of services such as online shopping through the launch of company websites i.e. Tesco.com will enhance the sales and revenue growth of the company. Moreover, the company is also emphasizing on geographical diversification to increases its market share in other parts of the world.
Threats: The increase in the number of competitors in the UK as well as in other retail market of the world can prove to be major threat for the sustainable growth of the company in future. The main competitors of the Tesco in UK retail market are Asda, Sainsbury’s and Morrisons and it also faces stiff competition from Wal-Mart in the US market (Hensmans et al., 2013). In addition to this, the global financial crises have resulted in the contraction of the UK’s economy that can result in significant downfall in the company sakes and financial performance.