Strategic Human Resource Management at Tesco Plc

Tesco has increased their market share by increasing their product and service line. Moreover, the main target market of Tesco is the grocery market that covers the majority business of the company.

We all know Tesco as a food retailer, and we know that they are in constant competition with other retailers such as Sainsburys and Asda, yet we do not know much about what goes on beyond the shelves and the tills, the marketing plans and the day to day tactics that have to be devised to stay the number one food retailer in the United kingdom today.

Tesco is one of Britain’s leading food retailers and has 586 stores. From 1992, Tesco has grown greatly and has increased its market share from 10.4% to 15.2%. This increase in customers has also given Tesco a large amount of profit.

Tesco Plc is the 3th company of the global sales of grocery sector than the field

As a mission statement, Tesco’s is simple: ‘We make what matters better, together’ (2015). Tesco is known to be the seller of everything to everyone and it’s vision is ‘To be the most highly valued business by: the customers we serve, the communities in which we operate, our loyal and committed colleagues and of course, our shareholders.’ (2015). The long-term success of this company centers around it’s continuity in aim and it’s adaptability with circumstances. Strategic plans evolve to with the clear competitive intention to be the best.

Tesco are currently leading in the market their like for like sales have increased by 0.7% in its core UK business with a 1.3% growth for foo (Fedor, L. 2017). Tesco currently has many automated hybrid facilities in terms of their operations management but their online presence is increased due to them being UK’s largest retailer with ‘over 3, 500 stores and over 310,000 colleagues’ (Tesco plc. 2017). Tesco’s current business model focuses on four areas: Sell, Insight, Buy and Move. Their strategy is to use the virtuous cycle and develop economies of scale across all of their business functions, ‘by doing the right thing for customers’ (Tescoplc.com. 2017). This means they use a centralized approach when it comes to its consumers as decisions are made at the top and integrated throughout the business.

Despite Tesco being in lead in the grocery market, the company has been in strong competition in the sector for fifteen years as said by (Mintel,2010). The company encounters extreme competition from their competitors who are advancing in the market share.

Tesco follows a multi-channel approach. It was the first retailer to create grocery home shopping in 1997. Its in-store picking model is accompany by a small number of specialized dotcom-only stores that allow Tesco to respond to high customer demand. Click & Collect service of Tesco is a key part of its multi-channel offering and enables customers to pick up their shopping according to their suitability. The company has over 1,750 Click & Collect collection points for general merchandise and over 260 grocery drive-thrus in the UK(marketline,2016).

Tesco is a powerful retail brand globally putting them in the top 100 of the most valued brands. They are known as a company that gives value for money in a wide range of products, Tesco has 6784 stores employs 537,784 people also having innovative business methods. Tesco has also created smaller stores like Tesco Metro, Tesco Express, in local neighbourhoods making shopping convenient for the customers.

As the UK market becomes more saturated over the years, Tesco will be in need of a new marketing plan that will allow them to enter other markets.

As retail industry in the UK has seen a rapid growth, Tesco faces challenging competition. Hence, Tesco must have its own strategies to gain competitive

The human resource management function can be found in almost every organization, unless otherwise outsourced to a third party. It is one of the most important functions within the organization, although many may not realize this. For many people, human resource management includes overseeing supportive and administrative areas like compensation, benefits, recruiting, employee relations, and training and development. However, human resource management today is so much more than that and organizations are recognizing that human resource management has evolved into a strategic role with significant impact into all areas of the business (Anca-Ioana, 2013). This review of strategic human resource management explores what it means for HR to be a

The core strategic advantage for Tesco is the brand value and reputation. The retailer has been able to establish a strong brand name that is famous throughout the world. The company invested in carefully branded packaging that has built it a strong brand image. The company also has a good brand image due to the high quality and trustworthy products and customer services that represent excellent value. According to Jenkins and Williamson (2016), the company has focused more efforts on re-engineering their services and products that have ensured a more efficient delivery of broad range of goods to customers and better management of product lifecycles. The company has been innovative enough to enhance the quality of products and improved the shopping experience

Generally, Tesco are faced with increased fragmentation of consumer markets as it has been driven by increased food choices, various lifestyles, increased discretionary income and greater exposure to brand promotion and communication ( 2001) and that going global in the true sense of the word could be a risky strategy. As has said, "If people think that going international is a solution to their problems at home, they will learn by spilling their blood. ( 2002) If food

Within this essay an in depth analysis will be conducted on the difference between Human Resource Management and Strategic Human Resource Management using contemporary perspectives. Human Resource Management (HRM) is the process of managing human resources in a systematic way. It is a practice devised to maximise the performance of employees and is concerned with the application of management principles to manage organisational personnel while paying attention to the policies and systems of the entity (Delaney & Huselid, 1996). Strategic Human Resource Management (SHRM) is a function of management which entails development of policies, programmes and practices related to human resources, which are aligned with business strategy so as to achieve the strategic objectives of the organisation (Patrick M. Wright, 1992). Its primary purpose is to improve the performance of the business and maintain a culture that encourages innovation and works continuously to gain competitive advantage. In this essay the Resource-Based View, High Performance Management and High Commitment Management perspectives of Strategic Human Resource Management and Traditional and Collaborative