Introduction Tesco PLC (or “Tesco”) is an international retailer. Based in the United Kingdom, where it is the leader in the grocery retailing, the company is considered to be world’s third largest retailer in terms of gross sales. The company was originally a UK-focused retailer that specialised n food and drink but eventually it has diversified both by products and geographically. It is now into clothing, electronics, telecoms, financial services, health, car and dental insurance as retailing and renting DVDs, and software (Tesco, 2010a). Geographically diversification has resulted to its retailing and associated activities outside the United Kingdom including that of China, The Czech Republic, India, Japan, Malaysia, Poland Hungary, the Republic of Ireland, Slovakia, South Korea, Thailand, Turkey, and the United States (MSN, 2010a). This paper evaluates the company’s competitive environment, financial performance using ratio analysis, the corporate strategies being pursued by the company using relevant frameworks. Discussion and Analysis The Competitive Environment – Industry Analysis Macro Environmental Analysis The significant macro trends in for the past five or more years along with the telecommunication industry, and the much felt recession in the economy, not only in UK but in many parts of the world and which came about as result of the financial crisis. The emerging trends of Internet and telecommunication have effected many changes, which can only have produced undeniable marks in business particularly in keeping the world economies running. These developments have enabled more business entities and many people as to interact to each other. Companies found themselves expanding and diversifying in not only products and services but also geographically. These developments, believed have in fact driven business activities globally are supported by the increasing number of world internet users as by researchers. With the global online population online will grow to about more 2 billion by 2014 , or more than 40% from 1.6 billion in 2009 (Enright, 2010). The Global financial crisis of 2008 and onwards has affected many British and American people. The US, UK and other governments needed to have bailout plans that would have to help solve the problems caused by financial crises that produced loss of many employments. Loss of jobs means lower power of the consumers to spend and to keep the economy running (Samuelson and Nordhaus, 1992; Dornbusch, and Fischer,1990). It could also mean less trust for the financial system to encourage investors to take risks in putting once again their investments which suffered losses because also of the crisis. Industry Analysis – Five Forces Using the five forces model by Porter (1980) the following are the derived results. The threat of availability of product substitutes is high because retail products generally cater to basic needs and the effects of recession would cause people to look for low price products and bringing competition to more on prices and thereby affecting attractiveness of the industry. The bargaining power of buyers is high because of the nature of the products – food, groceries, clothing – (Tesco, 2010a) and because of the low switching cost in changing brands for some products in the industry. The intensity of rivalry by competitors as evidence