Tesco Strategy Report Essay

The Scope of Activity - Tesco is an international business, but their first supermarket was not until 1958 in Essex where they only sold

When Tesco's purchased Adminstore they were simply told they would be a part of the convenience store market meaning Tesco would raise a percentage of 6% of the convenience food market as well as raising 26% of the grocery store market. Tesco's then argued because the two markets were very similar but they were told by critics that the markets are indistinguishable and that they should never of been entered into the convenience food market. Ever since Tesco's was criticised for this situation many other companies were gaining more profit in both markets due to the raise Tesco's had given

A stakeholder is a person or a group of individual who are interested in the success of a business in delivering successful results and maintaining the activity of the businesses products and services. There are internal and external stakeholders in every company. An internal stakeholder is someone who is internally connected to the business that have personal interests which they may follow. An external stakeholder can be a person or a group of people such as investors, customers, suppliers, people who are predisposed by the business but are not fully in the business.

Tesco has expanded into many other countries over the years, but as the “BRICS” economies are becoming increasingly attractive, an opportunity to venture into these economies seemed to be a ‘rising star’ for Tesco. Tesco’s ‘eye on the prize’ meant that they took their eyes off what made them successful in the first place- their UK stores. Ultimately, expansion into China, India and Thailand has left what was their ‘cash cow’ UK stores to currently become their ‘problem child’. Losing focus on their original investments meant that they “slipped behind in terms of stores, service and innovation.” http://www.bbc.co.uk/news/magazine-17767565 In addition to their struggles to maintain the success of their UK stores, focus on China, Thailand and India had a massive impact on their competitors such as Asda, Sainsbury’s, Lidl and Aldi. During the time that Tesco focused on the new move, it was an opportunity for its competitors to steal Tesco’s 30% market share – Sainsbury’s brought in “By Sainsbury’s” and Asda brought in “Chosen By You”. When Tesco realised their mistake and focused their attention on their UK stores, they invested in the “Big Price Drop Flop” but the £500m campaign only damaged their branding image, as customers thought the quality of their products had dropped. It was a clear step by step process for Tesco losing its place

Tesco operates in 14 different countries. Therefore its performance may be influenced by the local legislation and political factors. There are

In recent years Tesco diversified its business greatly extended its business from food to non-fooditems .Originally Tesco stared

An example of this may be that a new programme area is not financially viable must be given an opportunity to grow with any surplus costs being covered by another programme that is financially more successful.

Supply and Demand change frequently and Tesco 's is currently in a state of disequilibrium. There is an issue that relates to demand due to the desirability of a product, and is unlikely that income will increase enough to cause a change in the demand, therefore Tesco have to create product that are desirable.

This would be a superior advantage as Tesco would be making the best use of its competitiveness. A disadvantage may be that the change will be hard to adjust; therefore Tesco will need experts to help them get started. Over all this procedure will cost a lot.

Fourthly, in order to extract its critical success factors, we have to go deep into its SWOT Analysis that first include Tesco’s Strengths that is primary characterized by the increase in the market share and the availability of an online website: Tesco.com is serving more than 96% of the population in UK. In addition to its strong brand value and brand image coupled with the best quality products and trustworthy goods, Tesco has limited liability in such a way it can never be forced to sell their personal properties in case of any default. Second, its Weaknesses for example Tesco does not provide online discount for its customers while other companies do at least 20%. Another problem is the lack of knowledge in some areas for example tablets

Reflect on your reading for the week, specifically Analytical Exercise 8. Is another form of structural configuration better suited to multiproduct, multiservice companies? If not, is there a form of departmentalization for multiproduct, multiservice companies which would match somewhat the divisional structure configuration?"

Tesco is one of the world’s biggest retail business,and it is the biggest private enterprise in the UK.Besides,international expansion is a significant stage for Tesco supermarket to develop so quickly ,it operates in many countries,such as

tesco can take advantage of its successful international expansion. tesco is in a position to share their know-how and also is able to apply technologies and know-how which will create a competitive edge over its rivals and also step its learning curve.

Profits for Tesco’s operations in Europe, Asia and Ireland increased by 78% during the last fiscal year. The company has a strong brand image, and is associated with good quality, trustworthy goods that represent excellent value. Tesco’s innovative ways of improving the customer shopping experience, as well as its efforts to branch out into finance and insurance have also capitalized on this.

Tesco had achieved measurable success in the UK market which was highly regulated and competitive. Due to regulatory pressures, Tesco focused on its operations and capital investment within UK, which also led to opportunities in the international markets as they were a profitable business.