Question 1Based on the article above, Tesco choose to pursue SBU structure across all itsbusiness areas for maximising the degree of competitiveness. Advise Tesco based onyour opinion on the success of TESCO upon pursuing the selected sturucture as themain tool to overcome competitors.Answer should be with relevent examples. Thank you in advanced QuestionTesco: International Strategic Business UnitsJack Cohen founded Tesco Plc (TSCO.L) in 1919. After expanding into every avallablemarket in the United Kingdom, Including developing new store formats for small areas(Tesco Metro) and a superstore format (Tesco Extra), new product lines such aselectronics and home goods, and an environmentally-aware range of foods, thecompany began to expand internationally. The first expansion was in 1995, when Tescoopened a store in Hungary. Poland, the Czech Republic, Slovakia, Northem Ireland, theRepublic of Ireland, Taiwan, Thailand, and South Korea followed this initial expansion inthe 1990s. Today, Tesco serves a total of twelve intenational markets, plus all areas ofthe United Kingdom.Tesco has chosen to pursue a strategic business unit (SBU) across all of its businessareas in order to maximize the degree of competitiveness within the individual marketareas. Tesco operates using four strategic business units Core UK, which handlesUnited Kingdom grocery operations, International, which handles international holdings,Non-Food, which handles sales of electronics, home goods and other non-food itemssold in Tesco Extra and other stores, and Retailing Services, which manages financialservices, the Tesco.com web site, and Tesco Telecoms services.A focus on the International strategic business unit, currently the focus of a lot ofbusiness development and change, provides insight into the company use of the SBUas a whole. The stated strategy of Tesco's International SBU includes elements offlexibility, local operations including customers, cultures, supply chains and regulations,focus on a few countries, multi-format offerings in order to meet the needs of the localmarket, capability in people, processes and systems, and brand-building to createlasting customèr relationships.All aspects of the store's marketing and design were custom-tailored to the marketregion in which they were opening. The name, Fresh and Easy, was intended to takeadvantage of Californian culture and values. Their product offerings within the store,with a strong emphasis on fresh fruits and vegetables, natural and organic foods, wereintended to not only appeal to the tastes of the local culture but also to fill a gap in thecurrent supermarket offerings within the region. The locations, which are primarilyurban, small footprint locations in city centers and underserved neighborhoods, areIntended to not only take advantage of the chance to enter an underserved market butalso to fit the market needs of the surrounding areas and to integrate seamlessly intothe neighborhoods. These alterations to the core product (a small supermarket along the lines of a TescoExpress) have allowed for a successful entry into the Californian market, as Tesco haveadapted to the local culture rather than attempting to import an unaltered product into anarea. Tesco's successful adaptation of their business practices to the new market hasspurred reaction from their competitors, who almost immediately began improving theirown fresh foods offerings and acquiring space for their own small footprint, in-city formatstores in order to compete.The strategic business unit organisational structure provides Tesco with flexibility toexpand its operations in many different directions, it can expand its electronics line inthe Non-Food SBU without disturbing the policies, practices or resources devoted to theInternational or Core UK SBUS, which allows it a large degree of flexibility andcustomisation capability within the organisation. It also allows the company to besuccessful intemationally, as it can choose its market entry strategy to account for theneeds of the new market, rather than simply mimicking the existing competitors or usingthe home country marketing, branding and business operation techniques. Tesco hasbeen exceptionally successful at international business development, as is the marketleader in five of its twelve international market areas.In order for business development to continue to be successful, it must be sustained.Currently, Tesco has a number of business development areas in which it could focus.The growth of the non-food business unit holds great promise, as it could takeadvantage of the growing demand for these products. However, this business unit'seffectiveness may be compromised by current economic conditions. Sales of non-foodproducts are largely driven by consumer confidence ratings, which are currently at alow. This means that the sale of large durable goods and luxury items, in particular, maybe considerably depressed as consumers try not to make unnecessary purchases dueto economic anxieties. Thus, continued development in the non-food strategic businessunit may be counterproductive until the economic outlook improves. Before undergoingany further development in this area, a careful risk assessment should be undertaken.

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A Small  Introduction about Supply Chain Management

Supply chain management can be characterized as…