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Tesco

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Assignment
Strategic Planning
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Table of Contents Executive summary 3 1. RECENT PAST: Strategies deployed and resulting outcomes- recent Strategic development history. 4 Introduction:- 4 Strategic Development History:- 4 Growth Strategy:- 7 Organic Growth:- 7 External growth (Acquisitions):- 7 Product series Strategy:- 8 Tesco Finest Range:- 8 Tesco Average Range: 8 Tesco Value Range: 8 Store Formats strategy:- 8 2. CURRENT: Current Strategic Situation:- 9 PEST Analysis:- 9 PORTER’s Five Forces:- 11 SWOT ANALYSIS:- 13 3. FUTURE: Strategic Direction for the future:- 16 Strategic 1: Tesco should expand in South East Asian developing country:- 16 Strategic 2: Tesco should alliance with Star Bucks or Caffe Nero:- 17 Strategic 3: Tesco should introduce books section in back to school section:- 17 Strategic 4: Tesco should launch micro Tesco chain in UK:- 17 Conclusion:- 18 References:- 19

Executive summary

The main purpose of this work is that to analyse the strategic growth of Tesco plc. After the brief study of Tesco’s history it has been analysed that Tesco works on many different strategies. Regarding to the growth strategy Tesco adopted two main strategies one in organic growth and second one is external growth. It adopted different strategies in different times depend on the market requirement. In recession period Tesco offered low cheap product and did not focus on the quality of product but with the passage of time it change its strategy to value of customer. However Tesco has also different strategies in product chain. It offers expensive as well as cheap product. The main purpose of Tesco is to target all type of customer in the market. Tesco is leading retailer in UK’s market it occupied 30% share of UK’s market. (Euromonitor, 2010)
In the last section of the assignment some future strategic suggestion has been given for Tesco. This make unable after briefly study of Tesco’s strategic history and did the analysis of current situation of the Tesco. Different tools have been used to analyse the current situation of the Tesco and found out the internal and external condition of Tesco for better future strategic suggestion.

1. RECENT PAST: Strategies deployed and resulting outcomes- recent Strategic development history.
Introduction:-
Tesco is a large British super market chain and a large food retailer chain in the UK. Tesco has more than 340,000 Employee worldwide and its profit reached in 2010 before tax is £3.5 Billion. Tesco’s core value is to create the best value to the customer and growth of the company. (The Times.2008) Tesco begins by Jack Cohen's return from the First World War in 1919. He invested £30 on surplus food and opened a small stall in London's East End. Unlike Sir Alan Sugar, Sir Jack Cohen stuck with food retail. He consolidated his success by joining forces with T.E. Stockwell, and the name Tesco was born. The first shop with "Tesco" emblazoned above the window was opened in 1929.(Jack Cohen)in 1930 Tesco became a private limited company and listed in stock exchange with the share price of 25p in 1947.(Tesco plc, 2010)
Strategic Development History:-
Tesco has a good and well established constant growth strategy which helps it to strengthen its core UK business and the expansion into new markets. (Tesco plc, 2010) Tesco core UK business is significant within the group, with over 340,000 employees and over 2,200 stores. Tesco is gaining 70% of sales and profits from UK’s market.(Tesco plc, 2010)
In the past Tesco was growing with merger or acquisition strategy of it new rivals but after passing some time it became more strong and got enough funds then it starts growing organically. (Tesco plc, 2010)
1990s
During this period many strategies changed by Tesco. In this duration Tesco compete many its competitors but it could not compete to the Sainsbury. In the mid 1990s British economy hit by recession and Tesco sold low price and poor quality products and Tesco profit margins were under pressure but Sainsbury’s announced recorded earning and M&S was labelled the most admire retailer. After phase of recovery Tesco embarked on a growth strategy. After 1997 Terry Leahy (Leahy) took over as CEO of Tesco and he change the strategy by Value Retailer strategy. (David Pendleton, 2004)

* 1990-1994
In 1991 Tesco become biggest independent Britannia’s petrol retailer. Tesco also launched different products in this era like it launched Tesco Express, Tesco organic range, Tesco value launched. In 1994 first Tesco express launched and in this year Tesco becomes the first retailer to offer customers a service commitment at the checkouts through ‘One in Front’. (Tesco plc, 2010) * 1995-1999
After 1995 Tesco focused on the quality and customer demand and in 1996 it did first major price investment for customer. Tesco in this year also expands in Poland and the Czech Republic and Slovakia and it introduces ‘Customer Assistants’ to make shopping even easier for customers. In 1997 it entered in Republic of Ireland. In this year Tesco Personal Finance (TPF) is launched and Terry Leahy becomes Chief Executive of Tesco. In 1999 Tesco entered into South Korea and it launches a new on-line bookstore and on-line banking as well. (Tesco plc, 2010)
2000s
In this duration Tesco continue its expansion strategy but there is some different in this strategy is that its works on 4 strategies rather than one strategy and the strategies is that core UK business, non-food, retailing services (personal finance and online grocery sales) and international. (Tesco Annual report, 2010) * 2000-2004
In 2000 Tesco launched www.Tesco.com. And provide the home delivery facility and online shopping. (Tesco plc, 2010). In 2001 Tesco launches ‘Customer Champions’ in many stores and implements a new labour scheduler to further improve service for customers and this year Tesco becomes the leading organic retailer in the UK. Tesco enter in China, Turkey, Japan and Malaysia and Tesco becomes leading organic retailer in the UK. In 2004 it also launched different type of products like own-brand Fair-trade range, Tesco Broadband and Tesco.com becomes first major British supermarket to enter music download market (Tesco plc, 2010) * 2005-2010
In 2005 Tesco exits the Taiwanese market in an asset swap deal with Carrefour involving stores and operations in the Czech Republic. A study of consumer attitudes to the top nine UK supermarkets and food retail chains, carried out by brand market research consultancy Mill ward Brown, found that while Tesco remains the most popular brand in its sector, it is not keeping customers loyal.(guardian, 2006) in 2008 its announces that is plan to establish cash and carry business in India. It also acquires the 36 hypermarket in South Korea from homer ever Discount Brands Tesco. In 2009 it launches www.tesco.com/clothing . And 2010 Tesco opens the world's first zero-carbon supermarket in Ramsey, Cambridgeshire and Tesco opens its first 'Life space' mall in Qingdao, China (Tesco plc, 2010)
2011:-
In 2011 Tesco analyse that only the low price strategy is not enough to satisfy and fulfil the requirement of the customer. Now Tesco also focus on the value of customer. As “CEO of Tesco’s UK said: “division has said consumers are changing the way they define value and that retailers cannot afford to just focus on offering products at the lowest prices”.( Brasher, 2011) this statement show that Tesco also changing its strategy from low cost as well focus on the low customer value. CEO of Tesco also said that he is not in the "race to the bottom" and that "not just the cheapest wins", since how the consumer "defines value is changing". Tesco UK CEO Richard Brash also explain the new strategy of Tesco is that Tesco is focusing on both the apprehensions of UK consumers, through value, internal cost cutting, and improving value, while also remaining focused on their "aspirations" by helping them to do better through living healthy lives, protecting communities and looking after the environment . (Brash, 2011) It can be observed that after the detail study of last 20 year of Tesco history that Tesco always keep expansion strategy in its all previous life and it still on expansion strategy. In the start it followed the acquisition strategy for the expression but now Tesco also grow organically. First it just focus on the low price strategy but did not focus on the product quality but after getting enough position in the market it also focus on the quality and customer value and it is increasing its position in the market. Tesco always keep these three things in its strategy. 1. You have to sell every where 2. You have to sell every thing 3. You have to sell every one
Growth Strategy:- Organic Growth:-
In 1919 Tesco was establish. At that time it was only very small single store. But with the passage of time it expands organically. The main strategy behind it that Tesco always keep its employee motivate and well-trained that is why it always remain aware of the customer demand and needs. This help to Tesco grow organically.(Schmitt, 1999) External growth (Acquisitions):- In the start Tesco grow organically but after financial strong it change its strategy and grow externally like acquisition. It adopted this strategy to penetrate the international market. (Emerald)

Product series Strategy:- Tesco has different product strategy which depends on the purchasing power of the customer. (Tesco plc, 2010)
Tesco Finest Range:- This type of products targets those people who have high level of income who prefer to the quality of the product rather than the price of the product. (Tesco plc, 2010)
Tesco Average Range: This type of product targets those people who have middle level of income. Who is pricing as well as quality conscious people. (Tesco, 2010)
Tesco Value Range:
This type of product targets those people who have low level of income. Those customers who are very price conscious. They prefer on cheapest product rather than the quality of product. (Tesco plc, 2010)
Store Formats strategy:-
We have four different store formats, each stores size depend on the nature of the locations and customer needs and demands.
Tesco Express (up to 3,000 sq ft)
Tesco Metro (approx. 7,000-15,000 sq ft)
Tesco Superstore (approx. 20,000-50,000 sq ft)
Tesco Home plus (approx. 35,000 sq ft to 50,000 sq ft)
Tesco Extra (approx. 60,000 sq ft and above)

2. CURRENT: Current Strategic Situation:-
In this section analyse the current strategy situation of the Tesco. For carried out this purpose the different tools is used to examine the Tesco internally and externally and also define the factors which can be influence on this industry in which the Tesco is fall.
This is current market share of Tesco plc in UK’s market.(Euromarkets, 2010) To analyse the current strategy of Tesco, three different tools are used which is that * PEST analysis * Porter’s five forces * SWOT analysis
PEST Analysis:-
PEST analysis is a powerful tool for analysing a business and in particular understanding market growth and decline. PEST is an acronym for Political, Economical, Social, and Technological factors, which are used to assess the market for business or organizational unit. (Chapman, 1996)
Political:-
Tesco is UK based internationally retail chain. Tesco has its large portion in the UK. So that UK’s political stability, instability of the UK’s government can effect on Tesco. Armstrong and Kotler also said that “marketing decisions are strongly affected by developments in the political environment” (Armstrong & Kotler, 2006)
Due to the increase of oil prices and vat in the UK has effect on the profit of the Tesco in the grocery items. The headline number shows a robust performance from Tesco and demonstrates its strategy of driving growth through international expansion continues to pay dividends. (Guardian, 2010)
China made an agreement with the WTO to free flow foreign trades by removing the other barriers to encourage the western companies in which Tesco is also including.(Straits Times, 2010) it open new horizon for Tesco to enter into the China market.
Economical:-
As Tesco is UK based retail chain and economy condition of UK is in recession till 2008 so it also reduces the purchasing power of the people. But UK’s government also reduce the interest rate to help in this recession (Euromonitor, 2010)
In the recession people prefer to eat in home rather than eat out which increase the profit of Tesco in food chain (Guardian, 2010). So that it can be analysis to see the graph of Tesco’s food chain. Which show that Tesco raise its profit even in Recession.(Euromonitor,2010) Above graph shoe the Tesco’s food chain profit which increasing even in recession.

The Above graph show the GDP growth of UK economy which is decreasing in the following years. (Mintel, 2009)
Social:-
History of Tesco shows that Tesco is very social as it extremely responding to the customer demand and its need. this show the progress of Tesco. As the changing of living styles of UK’s people women is more take interest in shopping and convince to go to the retail stores. In this condition brand loyalty is a key factor for success (Boulding et al, 2010).
Technological:-
Online retail shopping is effecting on the operation of the super market. It has been analyse that 50 % UK’s people subscribe the internet option and also estimate that it will be increased to 75%. (Office for the National statics, 2010)
Mobile technology is also becoming common for to purchase the food retailing etc. Tesco introduce this technology since 2009 by this customer can purchase the wine directly from the mobile phone (Evans & Tomlinson, 2010)
Tesco is also using the “CLUBCARD”. This card is used to develop the powerful CRM system to keep up to date with the customer demand and need. (Tesco plc, 2010)
PORTER’s Five Forces:-
Porter’s Model is actually a business strategy tool that helps in analyzing the attractiveness in an industry structure. It let you access current strength of your competitive position and the strength of the position that you are planning to attain (Admin, 2009)

Threat of Substitution:-
Tesco has number of different products, some products have high threat of substitution and some have low threat of substitution.
In food retail market threat of substitution is low because there is small chain of off-licence, organic shops and convenience stores. And Tesco offers high quality product with low prices.(Financial Times, 2009) and Tesco also launched Tesco express stores in local towns so that it can help to reduce the threat of substitution
And in non food item threat of substitution is high because due to recession people mostly prefer to the cheap item and there is also lot of substitution especially in clothes items like Prime Mark, Next, etc.
Threat New entrance (new competitors):-
Thread of new entrance is low because of number of factors. First of all a huge investment is requires to enter in this industry and second main thing is that there is already number of brands who has captured the market e.g. Tesco, Sainsbury’s, Asda and Morrison’s.
There is also many other barriers to enter into the UK’s market. Like Government requirement is high and it also takes much time as well as resources so that there is low threat in UK for new competitors.
Threat of Industry rivalry:-
Tesco is facing intensive competition from its main competitors like Asda, Sainsbury’s, and Morrison’s. The percentage of market share is show in diagram below. Although Tesco has largest market share in the market but still competitors also has major portion of market share and they are threat for Tesco. Bargaining power of supplier:-
Bargaining power of supplier is relatively low because of there is huge number of suppliers in the market. And the position of Tesco is very strong in the market that is why Tesco can negotiate with the buyers to get the goods in lowest price as it can possible.
Bargaining power of buyer:-
Bargaining power of buyer is relatively high because there is slightly differentiation between the products and switching cost is very low. So that buyers can easily switch from one brand to another brand. And mostly customer goes to low price and comparison of price is also easy this show that high bargaining power of buyers.
SWOT ANALYSIS:-
Examine the company‘s internal and external environment is essential is the purpose of the strategic planning. The Swot analysis which is including strength, weakness, opportunity and threat investigate the both internally and externally. (Nieschlag et al. 2002)
Strength of Tesco:- * Long history started from 1919. So Tesco has lot of experiences. * Tesco has been ranked third world largest grocery retailer in company. It running almost 4,331 stores which is situated in America, Europe, and Asia.(Euromonitor, 2010) * Tesco show the strong financial performance from many years. In 2010 Tesco show profit £3.5 billion which is increase from £2.9 billion in 2009. Which show the financial strength of the Tesco.(Tesco annual report, 2010)

* It has Strong brand name and as well it also financially very strong. This can be assumed by the profit of 2010. Britain's biggest retailer posted underlying pre-tax profits of £3.4bn for the 12 months to the end of February, a 10.1% rise on the previous year. (Guardian, 2010) * Tesco currently operates in 13 countries and it is very possible it will expand into further countries (Tesco Poly, 2010) this show that Tesco does not depend on only one type of market it has spread in different countries which it reduces the risk. * Tesco has a customer retention strategy which is attaining by the Tesco Clubcard, drawing by the Dunn Humby (2008). This club card is used to developed the powerful CRM system which is named Crucible and Zodiac
Weaknesses of Tesco:- * As Tesco has entered in number of different markets so it is difficult for it to focus on the all market. * Many products has been recalled by Tesco which causes the financial loss and as well its damage the Tesco brand (Mintel, 2010) * As Tesco operations mostly spread on the UK market and more than 75% revenue recorded from the UK market (Tesco plc, 2010) which show the lack of geography distribution diversification that reflect the weakness of Tesco. * Tesco has also high transportation cost.

Opportunities of Tesco:- * The popularity of the Tesco.com is increasing rapidly .it is recorded that in 2010 the user of tesco.com has been increased over 1 million. (Guardian, 2010) this popularity show the opportunity of Tesco for the new customer which will increase the profit of Tesco in future. * Tesco already expand internationally. It almost penetrate into 14 different countries so it has lot of experience that how to penetrate into new market. So it can enter into more different countries. * Tesco financially is very strong so it has capability as well capacity to enter into new industry.
Threat of Tesco:- * The global financial crisis hit the UK economy very worst. It is calculated that in 2010 UK economy contract by 2.4% and it also estimated that it will more contract by 4.2% in future.(Poulter, 2010) so the Tesco mostly penetrate into UK market and its 75 % revenue generated by UK market. So it can worse effect on the Tesco’s financial position. * Tesco’s huge portion penetrates into UK market but there is huge competition in the grocery market in UK. Either Tesco is a market leader from since 15 years.(Guardian, 2010) but it facing a intense competition by its competitors who they also trying to gain the market share. Tesco has 4 major competitors Asda, Sainsbury, Morrison, and Lidl.

3. FUTURE: Strategic Direction for the future:-
After deep analysis of Tesco in the previous two parts some recommendations take into consideration in order to show some possible routes to Tesco for future strategy. This future strategies can be achieved by getting the opportunity of Tesco and make it into strength.
Strategic 1: Tesco should expand in South East Asian developing country:-
Tesco already entered into almost 14 countries and it also in contract to enter into some more new countries. Tesco has great opportunity to enter into South East Asian developing countries, like Pakistan, Sri Lanka, and Bangladesh. Pakistan is an ideal condition this time to enter into developing courtiers. Because in Pakistan there is already lot of big companies has entered and they built a trend of superstore in different big cities of Pakistan like Lahore, Islamabad, Karachi, Faisalabad and Sialkot.
Hyperstar super store:- This the biggest super store in Pakistan at this time. Hyperstar has been expand internationally it start from Middle East by Majid Al Futtaim (Hyperstar, 2009)
Metro’s Cash & Carry:-
Metro is a German chain which has been started in 1964 and then it come to Asian countries like Pakistan, China, Japan, India and Vietnam in 1996. It has big store in Pakistan and making business very progressively. (Metro PK, 2007)
Makro super store:-
This is another big chain of super store in Pakistan it also has big market share in market. It has different size of store depend on the location of the store.(Makro,2009)
All above research show the market situation of Pakistan. Now in Pakistan people like to go into big superstore for shopping. Tesco has already enough experience for internationally expansion and also have very good budged for expansion so it can utilize its strength by entering into Pakistan. It can be help full to maximize the wealth of Tesco.

Strategic 2: Tesco should alliance with Star Bucks or Caffe Nero:-
Tesco should alliance with Starbuck or Caffe Nero to open the coffee units into Tesco Extra. Because there is no specific entertainment at this level so if they start this coffee unit it’s definitely increase the sale volume of Tesco Extra.
This type of Alliance also has been adopted by Sainsbury. In some different Sainsbury’s stores Starbucks opened the coffee unit and it really helps to increase the wealth of Sainsbury. (Eurofood, 2000)
Strategic 3: Tesco should introduce books section in back to school section:-
Tesco has a back to school section in which it offer different product for the primary to secondary school’s children. It offers stationary, uniform etc but it does not has book section for primary to secondary school’s children.(Tesco plc, 2010)
So Tesco should offer a book section for school children it can be very help full for children who come in Tesco to buy the stationary and other things they will also take interest to buy the books. So it can also be help full to increase the profit of Tesco and could more facilitate the people.
Strategic 4: Tesco should launch micro Tesco chain in UK:-
The smallest store of Tesco is Metro but it still unable to catch the street customer. So Tesco should launch Tesco Micro. The size of this store should be lesser then the Tesco Metro and it should be situated at adjoining streets in local residence areas so that Tesco can also catch those customer whose feel difficult to go into Tesco Metro.
Tesco Micro also helps to secure the sustainable competitive advantages and it also help to maximize the profit of Tesco.

Conclusion:-
After the brief research it has been calculated that since Tesco launched it focus on the expansion strategy. It adopted two expansion strategies one is the organic growth and second one is the external growth. Tesco applied this strategies very successfully either it also faces some problems while to diversify into international expansion because Tesco is UK based company and when it entered into multi countries it faced some cultural problems as well. But it faces this problem to adopt the customer focus strategies. Tesco show £3.5 billion profit in 2010 which show the brand loyalty of Tesco and it also occupied the 30% UK’s market share. So Tesco is in position to expand more and diversify into different countries as I suggested in recommendation that Tesco should expand into south east developing countries to maximize the wealth. Some recommendation is also related to more convenient to the Tesco’s existing customer in the UK’s market. If Tesco adopted these strategies it could be help for to maximise the wealth of Tesco.

References:-
The Times News papers (2008) Recruitment and selection at Tesco MBA Publishing ltd 2008
Tesco PLC (2010) Tesco Careers [online] available from http://www.tesco-careers.com/home/about-us/visions-and-values [5 March 2011]
Sir Jack Cohen (2010) History of Tesco, [online] available from http://www.free-encyclopedia-online.com/business/tesco/history.htm [5 march 2011]
Farquhar P. H (1989) “Managing Brand Equity, Marketing Research, Vol. 1, Sept, pp.25-34
David Pendleton (2004) Tesco's 'Steering Wheel' Strategy [online] available from http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy/Tesco's%20'Steering%20Wheel'%20Strategy.htm [7 March 2011]
Tesco Annual report (2010) A business for New Decade. [online] available from http://ar2010.tescoplc.com/~/media/Files/T/Tesco-Annual-Report 2009/Attachments/pdf/tesco-annualreport.pdf [8 March 2011]
Tesco plc, 2010. Tesco plc. [Online] Available at: http://www.tescoplc.com/ [11 March September 2011].
Robert Nieschlag,Erwin Dichtl and Hans Hörschgen (2002) Marketing strategy. Norderstedt Germany,Druck und BIndung.
Guardian News (2010) Tesco rings up record profits [online] available from http://www.guardian.co.uk/business/2010/apr/20/tesco-rings-up-record-profits-again
[10 March 2011] Mintel (2010) TescoBrandImage [online] availablefrom http://www.mintel.com/search?q=tesco&x=0&y=0 [10 March 2011]
Robert J.Chapman (1996) Simple Tool and Techniques for Enterprise Risk Management, John Wiley & Sons Ltd, England (2006)
Guardian News (2010) Tesco: what the experts say [online] available from http://www.guardian.co.uk/business/2010/oct/05/tesco-what-experts-say [11 March 2011]
Office for National Statistics (2009), ‘Internet Access Households and Individuals’, Office for National Statistics, (29 August), [online] available from http://www.statistics.gov.uk/pdfdir/iahi0809 [11 March 2011]
Tomlinson, H. & Evans, R. (2010), “Tesco stocks up on inside knowledge of shoppers’ lives” .Guardian News (20 sept, 2010) [online] available from http://www.guardian.co.uk/business/2005/sep/20/freedomofinformation.supermarkets
Admin (2009),“Porter’s Five Forces Mode” [online] available from http://notesdesk.com/notes/strategy/porters-five-forces-model-porters-model/ [12 March 2011]
Shaily (2011), Restaurant Performance Index declines in January, [online] available from http://dawnwires.com/investment-news/restaurant-performance-index-declines-in-january/ [13 March 2011]
Eatoutmagazine (2010), RESTAURANT INDUSTRY WILL RETURN TO GROWTH IN 2010I, [online] available from http://www.eatoutmagazine.co.uk/online_article/Restaurant-industry-will-return-to-growth-in-2010/6241 [13 March 2011]
Bha Org (2010), Sponsors sought for World Skills 2011 hospitality show case [online] available from http://www.bha.org.uk/2011/03/18/sponsors-sought-for-world-skills-2011-hospitality-showcase/ [13 March 2011]
METRO PK (2007) METRO Cash & Carry International [online] available from http://www.metro.pk/servlet/PB/menu/1005405_l2/index.html
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...TESCO Tesco plc is a major food retailer especially in the u.k. It has got many shops in all part of the world. Tesco started its life in 1919 .Jack Cohen is called as the founder of tesco.In 1919 he started Tesco from the surplus groceries from a stall in the East End of London. He made a profit of £1 from sale of £4 on his first day. Now it operates all around 2300 stores. Tesco the name come from a shipment of tea from a MR T. E Stockwell and jack Cohen name. The initials and letters combined to form TES-CO. Tesco brand is first appeared five years later in 1924.In the year 1930 he build a headquarters and warehouse in north London, In 1932 Tesco become a private limited company. Tesco started expanding after, in 1950 the retailer bought 70 Williams stores and 200 harrow stores, followed by 97 Charles Philips store and the Victor value chain in the early 1960s.In 1961 Tesco Leicester enter the Guinness book of records as the largest store in Europe,1968 Tesco opened its first superstore in crawley,west sussex.In 1970 Tesco build a national store network to cover the whole of the u.k, which it continues to expand to this day, while also diversifying to other products.In1974 Tesco opened its first petrol stations, and is become uk’s largest independent petrol retailer. In 1987 Tesco successfully completed a hostile takeover of supermarket rival Hilliard for £220m. Tesco started......

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Tesco

...environmentally and socially responsible in conducting their business. In the business community, CSR is alternatively referred to as “corporate citizenship,” which essentially means that a company should be a “good neighbor” within its host community. About Tesco Plc Tesco public limited company is a British multinational grocery and general merchandise retailer. It’s headquarter is situated in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues and the second-largest measured by profits. It has stores in 14 countries across Asia, Europe and North America, Malaysia, the Republic of Ireland, Thailand and is the grocery market leader in the UK capturing around 30% of the market share. The company was founded in 1919 by Sir Jack Cohen as a group of market stalls. The Tesco name first appeared in 1924, after Mr. Cohen purchased a shipment of tea from T. E. Stockwell and combined those initials with the first two letters of his surname, and the first Tesco store opened in 1929 in Burnt Oak, Middlesex. His business expanded rapidly, and by 1939 he had over 100 Tesco stores across the country. Originally Tesco focused on UK grocery retailers, but since the early 1990s Tesco has...

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Tesco

...Market share * Major supermarkets have been losing ground to discount retailers Aldi and Lidl since the recession struck. * Tesco has been struggling to turn around the performance of its UK stores despite a £1bn overhaul. * Tesco’s sales in the 12-week period were 4 per cent lower than a year earlier. Aldi’s sales grew by 29.5 per cent and Lidl’s by 18.3 per cent. They now occupy 4.8 per cent and 3.6 per cent of the market respectively. * Lewis, who joins Tesco from consumer goods giant Unilever on October 1, faces the challenge of wooing customers back to stores. http://www.thisismoney.co.uk/money/markets/article-2735944/Tesco-suffers-drop-market-share-sales-fall-4-cent.html#ixzz3T8RRhQtC  http://www.bbc.co.uk/news/business-28978540 Why Teso lost customers? * The retailer had lost focus on the core retailing principles - best prices, highest quality and stores that people like shopping in. * Mr Clarke famously pulled Tesco out of "the space race", halting the expansion of hyper-stores and instead focusing on a different strategy of making Tesco "all things to all people" with a strong digital bent. * The launch of Tesco's own tablet, the Hudl, proved very successful - giving Tesco an automatic way of influencing how people shopped online. * Mr Clarke allowed Tesco to lose its reputation as the cheapest of the "Big Four" retailers, a crown it lost to Asda. High price: expensive than Asda by 6% * When it came to tackling the......

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Tesco

...Z01_JOHN2020_09_SE_EM18.QXD 10/13/10 9:09 Page 658 CASE STUDY Tesco: from domestic operator to multinational giant Michelle Lowe and Neil Wrigley This case considers the emergence of Tesco plc as one of the world’s leading multinational retailers. In a remarkable 10-year period, Tesco has transformed 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......

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Tesco

...COMPANY PROFILE Tesco PLC REFERENCE CODE: 34972414-9A41-4048-A7B6-1B0017054743 PUBLICATION DATE: 7 Feb 2013 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED. Tesco PLC TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..............................................................................................3 Key Facts...............................................................................................................3 SWOT Analysis.....................................................................................................4 Tesco PLC © MarketLine Page 2 Tesco PLC Company Overview COMPANY OVERVIEW Tesco PLC (Tesco or ‘the company’) is a food and grocery retailer. The company primarily operates in Europe and Asia. It is headquartered in Hertfordshire, the UK, and employed 519,671 people, on an average, in FY2012. The company recorded revenues of £64,539 million (approximately $103,223.7 million) in the financial year ended February 2012 (FY2012), an increase of 6.8% over FY2011. The operating profit of Tesco was £3,985 million (approximately $6,373.6 million) in FY2012, an increase of 1.7% over FY2011. The net profit was £2,806 million (approximately $4,487.9 million) in FY2012, an increase of 5.7% over FY2011. KEY FACTS Head Office Tesco PLC Tesco House Delamare Road Cheshunt Hertfordshire EN8 9SL GBR 44 1992 632222 Phone Fax Web......

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Tesco

...Assessing the performance of tesco TESCO plc is a United Kingdom based group specialised in food retailing, it operates as a grocery and general merchandising chain in the United Kingdom and across the world. So far, it is the largest British retailer in term of sales and market share with, according to Thomson one banker, a total net income of £ 2,161.00 for the year 2009. It is also the third largest global retailer group in term of revenue after the American group Wal-Mart and the French group Carrefour. With a main activity of food global retailer, it has diversified his activity into clothing, home, financial services, car insurance, health, telecoms and internet services and software. However in this report we are focusing on its clothing unit which operates online. So to better know this Tesco clothes retailing, this report will bring an overview of the company and will analyse its current strategic position, the same as its fitness with the other business units. This report will also analyse the Tesco clothes retailing’s macro environment, the competitive environment, the strategic capability and also the future strategic options. Tesco clothes retailing’s brief overview: The Tesco clothes retailing company is among the biggest clothing retailer by volume in the United Kingdom as it was ranked at the third place in 2008 and had to juggle this place with Asda Direct online retailer behind Mark & Spencer and Primark (Hall, J.). Tesco clothes retailing is......

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Tesco

...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......

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Tesco

...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 every week. We’re not simply about providing great quality food at affordable prices. We provide more choice than ever to more customers, whether it’s through our expanding international operations, innovative retailing services or our growing non-food offer. It doesn’t matter how people choose to shop with us or what they choose to buy, our core purpose remains the same – to create value for...

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Tesco

...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 VALUES ......................................................................................7 4-VISION AND MISSION …........................................................................7 5-STRATEGY .............................................................................................8 6-PROFIT AND LOSS IN TESCO ..............................................................9...

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Tesco

...Tesco Tesco is a British multinational grocery and general merchandise retailer headquartered in Cheshunt, Hertfordshire, England, and United Kingdom. It is the second-largest retailer in the world measured by profit and third-largest retailer in the world measured by revenues. It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), Malaysia, the Republic of Ireland and Thailand. Tesco Aims * To Maximize their profits * To Provide goods/services that is cheap and affordable to the public or consumers * To maximize their sales * To grow and maintain the number one retail company in UK Tesco Objectives * To increase market share * To do better than their competitors and remain the market leader * Offering customers the best value for money and the most competitive prices Growth strategies for Tesco Tesco’s use Ansoff’s Matrix because they are using different ways in order to make sure that the Business is meeting its customer needs. Tesco’s use market penetration to keep their customers loyal, they also use product development to introduce new products to their customers, they use market development to try and get customers to buy existing products and Tesco have expanded their Business by opening a store in South Korea. Market Penetration/Relationship Marketing The way Tesco have tried to get Customers to stay loyal is by......

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Tesco

...Concept 3 1.2 Brief Background of Tesco PLC 3 Main Products and service range offered 4 Markets Served 5 Tesco’s Main Competition 5 1.3 Key Issues faced by industry players and Tesco PLC 5 2.0 Marketing Mix 6 2.1 Product Mix 6 2.2 Place Strategy 8 2.2.1 Current strategies used in distribution 8 2.3 Price Strategies 8 2.4 Promotion Mix 9 3.0 Technological Impact 10 3.1.1 Tesco and CRM (Customer Relationship Management) 10 4.0 Conclusion 12 Executive Summary The main objective of this report is to critically analyze the Tesco PLC’s overall operational scope based on a retailing perspective, since they are indeed the UK’s largest multiple retailer and across in Central Europe, it is the author’s main objective to study the marketing mix strategies and the components of the business as well. The technological factors as well the customer relationship management that Tesco has incorporated into their business in order to gain reputation and an established brand reputation is also what fascinated the author to conduct this research because Tesco has proven themselves in terms of the diversification of their services and the further expansion of their stores across the globe with an effective marketing strategy associated with it. Furthermore the highly advanced Information Technology and IT systems that has given Tesco a competitive advantage over the competitors on an international platform and has helped Tesco in maximizing the overall supply......

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