...Wrigley, Neil; Lowe, Michelle and Cudworth, Katherine The Internationalisation of Tesco - new frontiers, new problems Wrigley, Neil; Lowe, Michelle and Cudworth, Katherine, (2014) "The Internationalisation of Tesco - new frontiers, new problems", Johnson, Gerry; Whittington, Richard; Scholes, Kevan; Angwin, Duncan and Regner, Patrick, Exploring Strategy: Text and cases, 657-661, Longman Scientific & Technical © Staff and students of the University of Worcester are reminded that copyright subsists in this extract and the work from which it was taken. This Digital Copy has been made under the terms of a CLA licence which allows you to: * access and download a copy; * print out a copy; Please note that this material is for use ONLY by students registered on the course of study as stated in the section below. All other staff and students are only entitled to browse the material and should not download and/or print out a copy. This Digital Copy and any digital or printed copy supplied to or made by you under the terms of this Licence are for use in connection with this Course of Study. You may retain such copies after the end of the course, but strictly for your own personal use. All copies (including electronic copies) shall include this Copyright Notice and shall be destroyed and/or deleted if and when required by the University of Worcester. Except as provided for by copyright law, no further copying, storage or distribution (including by e-mail) is permitted without the consent...
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...itself from a purely domestic operator to a multinational giant – with subsidiaries in Europe, Asia and North America – and in 2009 had 64 per cent of its operating space outside the UK. Examining market entry into Asia in more detail, the case compares ‘success’ in Thailand and South Korea with ‘failure’ in Taiwan. It also considers ‘a high risk gamble’ in Tesco’s entry into the US market, long considered to be a graveyard of overambitious expansion by UK retailers. ● ● ● Introduction In April 2009, Tesco, the UK’s largest retailer and private sector employer of labour, announced annual sales for 2008/09 of almost £60 billion (x66bn or $90.2bn) together with profits of £3 billion (x3.3bn or $4.5bn). After a dramatic decade-long transformation from purely domestic operator to multinational giant, Tesco now had a remarkable 64 per Source: Getty Images. cent of its operating space outside the UK, was developing increasingly strong businesses across 11 Asian and European markets, had a rapidly expanding ‘start-up’ subsidiary operating in the western USA, and had announced its entry into the Indian market. Moreover, as signalled in both the title of its Annual Report (Value Travels) and the prominence given in that report to its international profile, the firm was publicly expressing its confidence that it had mastered the art of international expansion, so long a weakness of UK retailing. Tesco’s emergence as the world’s third largest retailer, operating 2025 stores and employing...
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...itself from a purely domestic operator to a multinational giant – with subsidiaries in Europe, Asia and North America – and in 2009 had 64 per cent of its operating space outside the UK. Examining market entry into Asia in more detail, the case compares ‘success’ in Thailand and South Korea with ‘failure’ in Taiwan. It also considers ‘a high risk gamble’ in Tesco’s entry into the US market, long considered to be a graveyard of overambitious expansion by UK retailers. ● ● ● Introduction In April 2009, Tesco, the UK’s largest retailer and private sector employer of labour, announced annual sales for 2008/09 of almost £60 billion (x66bn or $90.2bn) together with profits of £3 billion (x3.3bn or $4.5bn). After a dramatic decade-long transformation from purely domestic operator to multinational giant, Tesco now had a remarkable 64 per Source: Getty Images. cent of its operating space outside the UK, was developing increasingly strong businesses across 11 Asian and European markets, had a rapidly expanding ‘start-up’ subsidiary operating in the western USA, and had announced its entry into the Indian market. Moreover, as signalled in both the title of its Annual Report (Value Travels) and the prominence given in that report to its international profile, the firm was publicly expressing its confidence that it had mastered the art of international expansion, so long a weakness of UK retailing. Tesco’s emergence as the world’s third largest retailer, operating 2025 stores and employing...
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...Tesco PLC Company Profile Reference Code: 1674 Publication Date: Aug 2004 www.datamonitor.com Datamonitor USA 245 5th Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: usinfo@datamonitor.com Datamonitor Europe Charles House 108-110 Finchley Road London NW3 5JJ United Kingdom t: +44 20 7675 7000 f: +44 20 7675 7500 e: eurinfo@datamonitor.com Datamonitor Germany Kastor & Pollux Platz der Einheit 1 60327 Frankfurt Deutschland t: +49 69 9754 4517 f: +49 69 9754 4900 e: deinfo@datamonitor.com Datamonitor Hong Kong 2802-2803 Admiralty Centre Tower 1 18 Harcourt Road Hong Kong t: +852 2520 1177 f: +852 2520 1165 e: hkinfo@datamonitor.com ABOUT DATAMONITOR Datamonitor is a leading business information company specializing in industry analysis. Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services. The company also advises clients on the impact that new technology and eCommerce will have on their businesses. Datamonitor maintains its headquarters in London, and regional offices in New York, Frankfurt, and Hong Kong. The company serves the world's largest 5000 companies. Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitors...
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...itself from a purely domestic operator to a multinational giant – with subsidiaries in Europe, Asia and North America – and in 2009 had 64 per cent of its operating space outside the UK. Examining market entry into Asia in more detail, the case compares ‘success’ in Thailand and South Korea with ‘failure’ in Taiwan. It also considers ‘a high risk gamble’ in Tesco’s entry into the US market, long considered to be a graveyard of overambitious expansion by UK retailers. ● ● ● Introduction In April 2009, Tesco, the UK’s largest retailer and private sector employer of labour, announced annual sales for 2008/09 of almost £60 billion (x66bn or $90.2bn) together with profits of £3 billion (x3.3bn or $4.5bn). After a dramatic decade-long transformation from purely domestic operator to multinational giant, Tesco now had a remarkable 64 per Source: Getty Images. cent of its operating space outside the UK, was developing increasingly strong businesses across 11 Asian and European markets, had a rapidly expanding ‘start-up’ subsidiary operating in the western USA, and had announced its entry into the Indian market. Moreover, as signalled in both the title of its Annual Report (Value Travels) and the prominence given in that report to its international profile, the firm was publicly expressing its confidence that it had mastered the art of international expansion, so long a weakness of UK retailing. Tesco’s emergence as the world’s third largest retailer, operating 2025 stores and employing...
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...Acknowledgements : First of all we would like to introduce our selfs, BIALLACH Safae and EL YOUNSI nahide, a 3rd year students in SUP DE CO MARRAKECH. In the third year the internship is a part of the program at our school. But for the two of us, we didn’t do an internship because we shose to go for a summer school programme in LONDON, UNITED KINGDOM for two weeks at the LONDON SCHOOL OF BUSINESS AND FINANCE (LSBF). The objectives during this journey were to improve our level in English language, to Discover a new culture, to visit a lot of places that we wanted to see and also to meet a lot of different people from different countries. Studiying in LONDON was a wonderful experience that we wont forget. for that, we would like to give some thanks to all the people that helped to gave us the chance to go for this programme. Without forgeting a special Thanks to our English Teatcher M.EL FOUADI KAMAL for this opportunity. Last, but not least, we would like to thank our parents and family for supporting our stay in LONDON financially and emotionally. INTRODUCTION ...................................................................................................2 SECTION 1 : TESCO……………. .........................................................................4 1-BUSINESS DESCRIPTION…………. ......................................................5 2-HISTORY .................................................................................................6 3-CORE...
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...212583_TESCO_REVIEW 30/4/08 07:25 Page FC1 More than the weekly shop Annual Review and Summary Financial Statement 2008 212583_TESCO_REVIEW 30/4/08 07:25 Page IFC2 — —— ——— n oduc tio h o –t ncia e ——— — ——— ure —— ——— ——— 1 2 4 5 Intr pict big Tesc Fina g l hi ’s hts hlig nt view s Re ive’ ecut f Ex s Chie tegy cros stra th a Our > grow rong > St p Grou the w s… evie team in r rong t year e, s The eopl at p ers… e hop… lead > Gr to s ting way ea one ons > Cr than dati ore foun > M the … owth ying e gr > La utur f for ors rect of Di d ent Boar atem Our l St t ncia epor Fina t rs’ r emen mary ecto ir tat Sum ry D al S i mma nanc > Su ew y Fi Revi mmar ss > Su sine tion a Bu form and and r in ndar esto ale Inv c ion > rmat cial How to find out more online info inan er > F ——— Every year, more and more hold ——— hare s —— Chai rman eme Stat 6 6 8 10 12 16 20 24 26 28 28 30 34 36 —— ——— ——— information is available for our shareholders, staff and customers. www.tesco.com/annualreview08 ——— —— 212583_TESCO_REVIEW 30/4/08 07:26 Page 1 Most people know something about Tesco. After all, we are the UK’s largest grocer and we’ve been serving customers for the best part of a century. What you might not know, is that Tesco is also the world’s third largest grocery retailer with operations in 12 international markets, employing over 440,000 people and serving millions of customers...
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...This article was downloaded by: [Manchester Metropolitan University] On: 18 November 2011, At: 08:18 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK The International Review of Retail, Distribution and Consumer Research Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/rirr20 Failure in international retailing: research propositions Steve Burt , John Dawson & Leigh Sparks a a b c Institute for Retail Studies, University of Stirling, Stirling FK9 4LA, UK E-mail: s.l.burt@stir.ac.uk b The University of Edinburgh Management School, 50 George Square, Edinburgh EH8 9YI, UK E-mail: john.dawson@ed.ac.uk c Institute for Retail Studies, University of Stirling, Stirling FK9 4LA, UK E-mail: leigh.sparks@stir.ac.uk Available online: 15 Apr 2011 To cite this article: Steve Burt, John Dawson & Leigh Sparks (2003): Failure in international retailing: research propositions, The International Review of Retail, Distribution and Consumer Research, 13:4, 355-373 To link to this article: http://dx.doi.org/10.1080/0959396032000129471 PLEASE SCROLL DOWN FOR ARTICLE Full terms and conditions of use: http://www.tandfonline.com/page/terms-andconditions This article may be used for research, teaching, and private study purposes. Any substantial or systematic reproduction, redistribution, reselling...
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...Employees £495m Number of stores 293,676 Selling space (sq ft, % of Group) 164 Employees 4,134 Selling space (sq ft, % of Group) 36.7m sq ft 35.4% 1.7m sq ft 1.6% tesco Bank Revenue* £919m Employee figures represent the average number of employees during the year ± 230 employees across asia and Europe work in locations other than those listed Employees * Revenues are sales excluding vaT and exclude the impact of iFRiC 13 (customer loyalty schemes) † Revenue for Europe includes France; revenue for asia includes india 1,274 GDP growth: Economist intelligence unit europe Revenue*† Revenue* (£m) Stores GDP growth Employees (% real change pa) £9,192m Number of stores 1,082 Employees± Republic of ireland Poland Hungary Czech Republic slovakia turkey 2,332 2,156 1,649 1,355 996 700 130 371 205 158 97 121 13,344 24,932 21,157 12,812 9,105 8,038 -0.8 3.8 1.2 2.3 4.0 8.1 89,559 Selling space (sq ft, % of Group) 30.2m sq ft 29.2% asia Revenue*† £10,278m Number of stores 1,419 Employees± india in india, we have an exclusive franchise agreement with Trent, the retail arm of the Tata Group. we are supporting the development of their Star Bazaar format. 104,071 Selling space (sq ft, % of Group) 35.0m sq ft 33.8% Revenue* (£m) Stores Employees GDP growth (% real change pa) south Korea thailand China malaysia Japan 4,984 2,844 1,141 794 476 354 782 105 38 140 23,131 38,395...
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...professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven economy to a demanddriven economy • To identify all the possible reasons for Korean Air ’s turbulent times and assessing whether they are controllable or not • To critically evaluate Korean Air ’s transformation efforts - in terms of growth, productivity and cost cuts, especially the efficacy of '10,10,10' goal in a family-run business • To identify various challenges to Korean Air in...
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...Tesco Value travels Annual Report and Financial Statements 2009 Introduction Financial highlights Chairman’s statement Tesco at a glance Chief Executive’s Q&A Report of the Directors Business Review Long-term strategy Markets served and business model International Core UK Non-food Retailing Services Community People Resources and relationships Group performance Key Performance Indicators Risks and uncertainties Financial review General information Our Board of Directors Corporate governance 2 3 4 5 6 6 6 7 8 12 16 20 24 28 30 32 36 38 40 41 42 44 Directors’ remuneration report Financial statements Statement of Directors’ responsibilities Independent auditors’ report to the members of Tesco PLC Group income statement Group statement of recognised income and expense Group balance sheet Group cash flow statement Reconciliation of net cash flow to movement in net debt note Notes to the Group financial statements Five year record Tesco PLC – Parent Company financial statements Independent auditors’ report to the members of Tesco PLC 50 65 66 67 68 69 70 71 71 72 124 126 136 Go online Every year, more and more information is available for our shareholders, staff and customers online. Welcome to tesco plc 1 Value travels – Tesco is about creating value for customers to earn their lifetime loyalty. We understand that this is more important than ever as our customers around the world are looking to us to help them spend less. So whether they are looking...
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...earnings per share**† 14.76p Full year dividend per share UK Revenue± Trading profit Asia Revenue± Trading profit Europe Revenue± £42.8bn 66% of Group £2,480m 66% of Group £10.8bn 17% of Group £737m 20% of Group £9.9bn 15% of Group Revenue growth± Trading profit growth Revenue growth± Trading profit growth Revenue growth± +5.0% Employees (1.0)% Stores +10.5% +21.8% Employees Stores +7.3% Employees 300,373 2,979 Market position Multiple formats include Loyalty scheme dotcom 1st Hypermarkets, superstores, supermarkets, convenience Clubcard – around 16 million active members First grocery home shopping service 1997 117,015 Market position Multiple formats include Loyalty scheme 1,719 94,409 Market position Multiple formats include Loyalty scheme dotcom dotcom 1st or 2nd in all except China Hypermarkets, supermarkets, convenience Clubcard in Malaysia and Thailand, Family Card in South Korea, Legou Tesco Membercard in China – over 20 million active members across Asia South Korea 2002, planned launches in at least one major city in each market in the next few years 1st o Dep supe hype Club activ Repu 2011 2012 in ea Fascia brands include: Fascia brands include: Fascia brands include: * In India, we have an exclusive franchise agreement with Trent, the retail arm of the Tata Group. We are supporting the development of their Star Bazaar format....
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...Retailing in the 21st Century Manfred Krafft ´ Murali K. Mantrala (Editors) Retailing in the 21st Century Current and Future Trends With 79 Figures and 32 Tables 12 Professor Dr. Manfred Krafft University of Muenster Institute of Marketing Am Stadtgraben 13±15 48143 Muenster Germany mkrafft@uni-muenster.de Professor Murali K. Mantrala, PhD University of Missouri ± Columbia College of Business 438 Cornell Hall Columbia, MO 65211 USA mantralam@missouri.edu ISBN-10 3-540-28399-4 Springer Berlin Heidelberg New York ISBN-13 978-3-540-28399-7 Springer Berlin Heidelberg New York Cataloging-in-Publication Data Library of Congress Control Number: 2005932316 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer-Verlag. Violations are liable for prosecution under the German Copyright Law. Springer is a part of Springer Science+Business Media springeronline.com ° Springer Berlin ´ Heidelberg 2006 Printed in Germany The use of general descriptive names, registered names, trademarks, etc. in this publication does not...
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...Annual Report and Annual Report and Financial Statements Financial Statements 2015 2015 “ think the store is I genuinely trying to improve performance and there is evidence of progress.” Ipswich “ hen I shop in Tesco W now there is an overall better feel.” “ lease keep the P prices low, the shelves well stocked and the tills manned with enough staff.” “ ontinue to work on customer C service – it makes a big difference.” Newton Abbot Aylesbury “ he store is of vital importance T to the local community, long may it continue to be so.” Maldon London In this report: Strategic report Chairman’s statement CEO introduction Three priorities Our business model Key performance indicators Financial review Environmental and social review Principal risks and uncertainties Corporate governance Financial statements Other information Page 2 3 5 8 10 12 18 22 26 72 146 FINANCIAL HEADLINES £69.7bn £1.4bn £961m £(6.4)bn 9.42p £(8.5)bn Group sales Group trading profit Underlying profit before tax Statutory profit/(loss) before tax Underlying diluted earnings per share Net debt (13/14: £70.9bn) (13/14: £3.3bn) (13/14: £3.1bn) (13/14: £2.3bn) (13/14: 32.05p) (13/14: £(6.6)bn) The champion for customers Our business was built with a simple mission: to be the champion for customers – to help everyone who shops with us enjoy a better quality of life...
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.......................................................................... 6 Summary 1 Opportunities and Threats to Retailers ......................................................... 6 Introduction................................................................................................................................... 7 A New Way of Shopping ........................................................................................................... 7 Definitions ................................................................................................................................. 8 Key Growth Drivers ...................................................................................................................... 8 Expansion of the Internet...
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