...MarketLine Case Study Tesco plc Case Study How Tesco Became the UK's Largest Retailer Reference Code: ML00001-041 Publication Date: December 2011 WWW.MARKETLINE.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED TESCO PLC CASE STUDY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00001-041/Published 12/2011 Page | 1 OVERVIEW Catalyst Tesco is the largest retailer in the UK and dominates the UK food and grocery market, accounting for almost a third of all grocery sales. This case study examines the factors that have led to the growth of the company as the UK’s number one retailer. Summary In 1995, Tesco overtook Sainsbury’s to become the UK’s largest retailer. Since that time the company has grown from strength to strength, widening its lead year on year. The unrivaled success of the Tesco Clubcard in building customer knowledge and generating loyalty has been fundamental to the rise of Tesco. The company has created a powerful brand and a number of valuable sub-brands including store, product and service brands. Tesco’s grocery product brands tend to center around a three-tier branding system, allowing the company to appeal to a mass market. Tesco has been a forerunner in the price competitive environment of the UK food and grocery market, utilizing its economies of scale to lead price wars with other supermarkets. The company has grown inorganically, buying out various independent grocers...
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...Tesco Group work A) Make groups of 3 to 4 students. Each group makes a company profile on the English retailer Tesco. Word count: 1.000-2.000 Your written company profile is your notes for the oral exam. Use the below articles and links: Tesco profits fall for first time in almost 20 years Tesco offloads Japanese operation Last orders for your local How to build a better Tesco - retail empire strikes back Tesco links: http://en.wikipedia.org http://www.tesco.com/ http://www.tescoplc.com/ > About us http://www.tescoplc.com > News > Key facts In your company profile you focus on the following aspects: Corporate history Line of business Number of stores, employees and international markets Competitors http://en.wikipedia.org Market position in the UK http://en.wikipedia.org Problems in the UK and abroad Criticism from customers and the public in the UK New store formats New strategy Make sure your group answers the following questions in the process. 1) Make a brief summary of the history of Tesco. 2) Describe the company's range of goods and services. 3) Why do you think that the company has run into so many problems recently? 4) Account for the elements in Tesco’s new strategy. Finally make a SWOT-analysis of Tesco. B) Group Work Find a relevant video clips on Tesco. Make 3 to 5 questions...
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...requirements of Tesco. Tesco is one of the major retailers in the world. They function in 14 different countries around the world. Some of them are UK, Slovakia, China, India or Hungary. Only in UK Tesco employs 300,000 people in over 2,900 stores. Tesco sells different ranges of product; groceries, clothes, furniture, technical equipment and many more. Whoever wants to shop at Tesco doesn’t have to even leave the house to do it. They offer online shopping option so customers can buy their everyday shopping and get it delivered usually the same day. Tesco’s main aims and objectives is to maximise the sales and profits and maintain they place in the market. They want to offer the best possible, deals and prices for their customers and meet their needs in order to stay the leading supermarket in UK. Human Resources Management Human Resources Management is the management of the organisation’s workforce. Its main role is to attract, select, recruit and train employees. Its main aim is to make sure that the organisation get the right people to work which can enable every firm to make profit and become successful. Human Resource Planning Human Resources planning is a process of looking at the current workforce and planning what is going to be needed in the future. The process helps to identify future gaps in workforce and develop strategies to fill them in. Internal factors to consider when planning human resources Organisational Needs * New product/services Tesco is a company...
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...is because, It is important that a business meets the needs of its consumers. Without it they would not know what service/product to provide. The definition is 'the process of gaining Information about customers, competitors and market trends'. Validity and reliability Surveys Tesco carried out a number of research techniques in order to evaluate their overall value for money, quality price, choice of branded goods and service labels. They gathered this information by using surveys this helped the business identify long-term preferences and differences between consumer groups. The business surveyed around 11,000 of its consumers over a year to find out the important measure. One of the questions that their consumers were asked was their social class. Social class is a more complex concept that incorporates a number of attributes such as education, job and income. Tesco only measured social class using only a measure of income therefore, validity will be low than if they chose to measure using income, job and education. Tesco would want to create a question that offers consistent responses when asked multiple times as this shows reliability. A question I would chose is ‘ Tesco club card Tesco introduced the club card scheme to benefit both themselves as an organisation and their consumers, the reason for this was because they believed that there potential consumers deserved to be treated with loyalty the club card done by allowing customers to save money by giving them...
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...response to local needs, which include those of final and intermediate customers, competitors and the macro-environment and leads to superior performance (Narver & Slater, 1990). Due to the retail industry’s direct contact with the market and customers, it makes sense to look at market orientation as a concept to assess the success of Tesco. Market orientation is of even greater interest when entry into emerging markets is undertaken by a Western retailing firm, suggesting that a close understanding and response to customer needs is vital. Tesco’s management places an emphasis on customer needs through the ‘Tesco Values’ philosophy, expressed as two values – “no one tries harder for customers; treat people how we like to be treated.” The values are disseminated through an internal marketing strategy, which includes distribution of company newspaper to employees. However, these values emanate from the UK and recognition of a need for country-specific practices and local can be secondary to corporate unity. Tesco has a reputation for innovative information solutions, and its ‘Clubcard’ loyalty scheme and web sites are central to this. Tesco is the UK’s largest retailer and therefore has a significant customer base on which analysis can be performed. Because many of those customers return at weekly or similar intervals, Clubcard data and relationships are both deep and wide. Accordingly, Clubcard has significant potential to influence consumer behaviour in the UK. Staff are...
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...core activities of the organisation of your choice. How the components are used to achieve the overall objectives / goal of the organisation. So a component might be IT department, HR department and so on. ● Then evaluate the performance objectives used by each. List the performance objectives and highlight the deferent ways it interlink with each other to accomplish a goal. ● Critically examine - Examine both internal and external factors influencing the Organisation performance objectives in relation the Organisational goals. ● Suggest ways in which the performance could be improved. With the above research and evaluation you should be able to recommend a better way forward. 2. Logistic Operations of Sainsbury & Tesco 2.1. Introduction To survive in the global market you need to adopt proper strategies and theories properly and effectively to ensure success. Global market is a competitive market where you cannot strive forward if you don't have proper planning and strategies. Logistics is an important factor in business which is all about flow of goods information and resources. Logistics can be defined as "The process of planning, implementing and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements."(Brook, 1993) Logistics is about Storage, warehousing & materials handling, Packaging & unitisation, Inventory...
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... p3/p4 2.1 The profile of Warren Buffett 2.2 Skills lead to success 3Marketing strategies of Tesco p4/p5/p6 3.1 The overview of marketing and marketing mix 3.2 Four P’s strategies of Tesco 3.21 Product 3.22 Price 3.23 Place 3.24 Promotion 4 Organisational culture of Tesco p6 5Employee motivation strategies of Tesco p6/p7 5.1 Definition and Importance of motivation 5.2 Theories of motivation 6 Conclusion p7 7 Reference list p8/p9 8 Appendix p10 1. Introduction In 1919, Jack Cohen built a small shop in the east of London. Afterwards, Tesco was born because of the combination of Jack Cohen and a tea supplier called T.E.Stockwell (Time100, 2012). Since then, Tesco has a steady growth. Now, Tesco is a leader in the UK retailer field which own 2979 stores and employ about 300,000 staffs in the Britain, accounting for more than 30% market share (Tesco, 2012). What’s more, Tesco is also honoured as the world’s third largest grocery retailer with 520,000 employees in 14 countries catering for different customers worldwide (Tesco, 2012). In 2011/2012financial year , the group sales and the profits before tax up to £72bn and £3.8bn respectively. Tesco is aim to provide value for customers...
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...employee and verity of skills despite the problem of unemployment. It is also need to be done because of the changes in technology, marketing, and management. Need for new skills and new categories of employees. Demographic changes like the changing profile of the workforce in term of age, sex and education is a reason to do human resource planning. Human resource planning is necessary to do because of the changes in organisation design, organisational structure, and government policies in respect to reservation, child labour, and working conditions etc. Pressure from trade unions and labour laws are also reason for human resource planning. (Cited at CITEHR website, 25/10/12) How human resource planning can be used? Human resource planning can be used to quantify the jobs for producing product and services. It is duty of human resource planning to determine future staff mix. Human resource planning assesses the level of staff to avoid unnecessary costs. It reduces delays in acquiring staff and prevents shortage/excess of staff. Human resource planning quantifies people and positions that are required. It also complies with legal requirements.(cited at all expert website, 25/10/12) 1. Recruitment process: Recruitment process of Tesco: Recruitment is a process of selecting the right people for the right job. Recruitment involves attracting the right standard of application to apply for...
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...operational issues all contribute to the overall success or failure of Tesco. The legislations set in place by the government is the law and must be followed otherwise Tesco could fall under many legal problems resulting in the closure of the organization. The many various acts are there to not only prevent Tesco from performing illegal acts but also to protect them as well, as this ensures that they are not falsely accused and protects Tesco from any other individuals or organizations who have violated any legal areas against Tesco. The ethical issues allow Tesco to remain morally and legally successful if they behave appropriately. If Tesco follow the codes of practice correctly then they won’t have any problems arising with the ASA and the OFT. If the ASA or the OFT get involved for inappropriate conduct of the codes of practice Tesco could receive heavy fines, this could disrupt Tesco’s profit margin as these fines would be an added expense. The operational issues are yet another issue which contributes to Tesco’s overall success, as these are what relate to how Tesco operates their procedures and policies within the organization. If all 3 of these areas fail to function according to legislation and government bodies Tesco cannot, and will not be successful. One main example of Tesco not morally and legally operating would be a newspaper article which was published earlier in the year stating that Tesco had sold the information; they had collected on their Club Card...
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...relationship management (CRM) initiatives undertaken by Tesco, the number one retailing | |company in the United Kingdom (UK), since the mid-1990s. The company's growth and its numerous customer service efforts | |are discussed. The case then studies the loyalty card scheme launched by the company in 1995. It examines how the data | |generated through this scheme was used to modify the company's marketing strategies and explores the role played by the | |scheme in making Tesco the market leader. The case also takes a look at the various other ways in which Tesco tried to | |offer its customers the best possible service. Finally, the company's future prospects are commented on in light of | |changing market dynamics, the company's new strategic game plan, and criticism of loyalty card schemes. | |Issues: | | | |»Examine how the information gathered through CRM tools can be used to modify marketing strategies and the benefits that | |can be reaped through them. | Tesco ensured that all its customers received magazines that contained material suited to their lifestyles. The company had worked out a mechanism for determining the...
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...This was a period of time that people tried to figure out what might affect the productivity and efficiency, like from motivation. It produced a variety of theories researching people’s psychological desires; around what do they need in different levels, such as Maslow’s Hierarchy of needs. However, this time we try to focus on two-factor theory. Employees in an organization are either satisfied or dissatisfied with their job based on whether they are motivated or not on their job. However, the kind of motivation employees get determines their output level. Thus, a high level of satisfaction could lead to high output whilst high level of dissatisfaction with the job could lead to low output. However, the opposite of job satisfaction is not dissatisfaction, but rather a simple lack of satisfaction. In the same way, the opposite of job dissatisfaction is not satisfaction, but rather “no dissatisfaction” (Herzberg, Mausner, & Snyderman, The Motivation to Work, 1959). Now, it would interest managers to know the level of employee’s satisfaction and the factor(s) causing such satisfaction/ dissatisfaction. (Herzberg, Mausner, & Snyderman, The Motivation to Work, 1959) proposed that in understanding the relevant attitude of employees, it is possible to best understand such an employee’s motivation to work. That is, if searched by managers, they should get reasonable information on motivation of workers based on the internal concept of attitude which originates from a state...
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...Vision, values and business strategies S T R AT E G Y Introduction Tesco was founded in 1919 by Jack Cohen from a market stall in London’s East End. Today it is one of the largest retailers in the world. Tesco’s core business is retailing in the UK, which provides 60% of all sales and profits. Tesco has the widest range of food of any retailer in the UK. Its two main food brands are its Finest and Everyday Value ranges, each sell over £1 billion per year. The position of Tesco as a leading global brand is clearly illustrated by its expansion of operations into 12 countries including China, Czech Republic, India, Malaysia, Ireland, Hungary and Poland. In 2013 Tesco employed in excess of 530,000 colleagues. This level of success does not happen by chance. Tesco’s leaders have always set high standards and clear goals, never settling for anything less than the best. Tesco’s ‘Every Little Helps’ philosophy puts customers, communities and employees at the heart of everything it does. It prides itself on providing a great shopping experience for every customer it serves, whether in stores, online or in its many other service provisions. Tesco’s core values include a commitment to using its scale for good by being a responsible retailer. In 2010, it opened the world's first zero-carbon supermarket in Ramsey, Cambridgeshire and was awarded Green Retailer of the Year at the Annual Grocer Gold Awards 2012. Tesco aims to be a zero-carbon business by 2050. Tesco’s continuing success...
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...Customer Relationship Management (CRM) TESCO For almost two decades, Tesco was seen to be one of the most successful retail organizations in the world, with a pioneering Clubcard-based loyalty scheme and the development of a strategic CRM providing the company with the basis for true customer insight and greater brand engagement. The scheme is based upon the Tesco clubcard which rewards customers by giving them one loyalty point for every pound spent with the company. These points can then be redeemed either for products in store or with a wide range of other organisations including leisure attractions, hotel, museums between others. Each of the transactions is linked to individual customer profiles. Purchasing habits and behaviour patterns are then used as the basis for segmenting customers on the basis of need and target them with campaigns and advertisements. Internally, the information is used by the company's management teams for making a series of decisions about new products development, pricing strategies, promotions between others. The success of the Clubcard gave customers a sense of being recognised. "They loved that they were known". In mid-2009 the company re-launch of the scheme allowing customers to double the value of their Clubcard vouchers against a range of Tesco products both in-store and online. The company announced in April 2012 a review of its strategy which involved recruiting 8,000 new staff across the UK to improve service, a doubling of its...
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...INTRODUCTION Tesco is one of the largest food retailers in the world, operating around 2,318 stores and employing over 326,000 people. It provides online services through its subsidiary, Tesco.com. The UK is the company's largest market, where it operates under four banners of Extra, Superstore, Metro and Express. The company sells almost 40,000 food products, including clothing and other non-food lines. The company's own-label products (50 percent of sales) are at three levels, value, normal and finest. As well as convenience produce, many stores have gas stations, becoming one of Britain's largest independent petrol retailers. Other retailing services offered include Tesco Personal Finance. 1.0 EXTERNAL ENVIRONMENT -PESTEL FRAMEWORK 1.1 Political Factors Operating in a globalized environment with stores around the globe (Tesco now operates in six countries in Europe in addition to the UK; the Republic of Ireland, Hungary, Czech Republic, Slovakia, Turkey and Poland. It also operates in Asia: in South Korea, Thailand, Malaysia, Japan and Taiwan), Tesco's performance is highly influenced by the political and legislative conditions of these countries, including the European Union (EU). For employment legislations, the government encourages retailers to provide a mix of job opportunities from flexible, lower-paid and locally-based jobs to highly-skilled, higher-paid and centrally-located jobs (Balchin, 1994). Also to meet the demand from population categories such as students...
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...Tesco Tesco is the largest British multinational retailing store headquartered in Cheshunt, Hertfordshire, England, United Kingdom. It is the second largest retailer in the world (just behind Wal-Mart which is a multinational retail store as well – but it’s American) and the third largest retailer in the world if measured by revenues only. It lags just behind Wal-Mart (again!) and Carrefour which is a European multinational retail as well. David Reid is the chairman and Philip Clarke. Tesco is in the tertiary sector and is the grocery market leader in the UK. Its ownership is based on a lot of shareholders who have purchased the company shares through the stock exchange. There are Tesco stores in 13 countries which are: Thailand,Slovakia,China,India,Malaysia,Czech Republic,Poland,Hungary,Ireland,Korea,Turkey, The Uk and USA. Tesco is currently very huge and there are future plans it would expand into more countries. Tesco entered the USA in autumn 2007 and it is trying to break into India. The majority of Tesco's stores are still in the UK (where it first began). 2,033 out of 3,409 Tesco stores are situated in the UK. Tesco employs 530,000 people and has millions of customers each WEEK! Tesco is a public limited company therefore it is known as Tesco PLC and can sell shares on the stock exchange market/to the public. The minimum value of shares to be issued (in UK) is £50,000. Tesco being a public limited company has a lot of benefits as well as drawbacks. Many...
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