Response to the following problem:
Risky business
In its 2006 OFR, Tesco plc identifies more than twenty forms of risk that the business must consider. These cover a wide range and include competition, financial, environmental, product safety, terrorism and currency risks. The risk posed by competitors is described as follows: The retail industry is highly competitive. The Group competes with a wide variety of retailers of varying sizes, and faces increased competition from UK retailers, as well as international operators, here and overseas. Failure to compete with competitors on areas including price, product range, quality and service could have an adverse effect on the Group's financial results. We aim to have a broad appeal in price, range and store format in a way that allows us to compete in different markets. We track performance against a range of measures that customers tell us are critical to their shopping trip experience. We constantly monitor customer perceptions of ourselves and our competitors to ensure that we can respond quickly if we need to.