Strategic Management Of Tesco

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Established in 1919 by Jack Cohen from a market stall in London’s East End, Tesco has grown and became the leading multinational retailer in the UK with a wide range of products. Tesco’s operations in the UK are the largest within Tesco PLC (Tesco, 2014). The success of Tesco lies in its strategic management. This analysis will look into Tesco’s business in the UK by following a structure of four main parts: Tesco’s value chain management; Tesco’s important stakeholders and its managing them; Tesco’s attempt in competing with other rivals and finally, potential international opportunities for Tesco to get more profit.
“The value chain identifies where the value is added in an organization and links the process with the main functional parts
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With over 310,000 employees, Tesco is continuously listening to them each year, this year Tesco has conducted “What matters to you?” survey. Tesco also gives employees opportunities at each stage of their career. Tesco is introducing a new People Plan to make sure that all colleagues are inspired to perform their best. Employees at Tesco are provided with training and development programs such as Leaders at Tesco, Women in Leadership, Tesco Academy and Fresh food expertise. People can learn and contribute to Tesco as long as they can because there is flexible retirement at Tesco. Those are ways Tesco motivates employees to create the best value for the organization. Goegre (2003, p.37) supported this point that: “When employees are highly motivated to serve their customers and create breakthrough innovations, the company will gain a competitive edge that is extremely difficult for competitors to…show more content…
When shopping at Tesco, customers can compare prices of Tesco products with ones of Asda, Sainsbury and Morrisons. If the products are cheaper there, customers will be given a coupon. Tesco gets the prices for customers to compare from taking daily prices from grocery website, website and using an independent agency to visit Morrison’s store twice a week. (Tesco, 2014). Besides, Tesco takes advantage of technology to attract more customers by introducing their own tablet called Hudl and mobile apps that can be used for online shopping, viewing movies and other Tesco-branded services. Hudl cost about £119 – a competitive price for such a multifunctional equipment. (Forbes, 2013) By taking technology as a platform to develop business, Tesco created a marketing strategy without too much cost. According to Tesco (2014), Tesco wholly owns Dunnhumby which is a world leader in customer insight. Dunnhumby works with worldwide retailers and brands to collect customers’ feedback so that Tesco could supply right products with good prices and promotions. Dunnhumby helps Tesco understand customer more and get their
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