Tesco, the global merchandise as well as grocery retailer is one of the constituents of the FTSE 100.Following the leader Wal-Mart, Tesco is the second largest retailer of the world in respect of profit and by revenue it stands third after Wal-Mart and Carrefour. …
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Being one of the leader the vision of the firm depicts the goal of the company i.e. what exactly Tesco wants to achieve in the long run and to which direction the company is growing its business. The mission is the area to which the company wants to operate their businesses and the target customer for the company to serve. The mission gives the idea to build their foundation stone on which the company device strategies and implement them (Nwagbara, 2011, p.62).
The core and foremost value of Tesco is to take care of the people for whom the company serves i.e. their customers. The only value of the firm is to earn lifetime loyalty of the people of the society and create value for them (Nwagbara, 2011, p.62). The company has a strong belief that no one in the industry tries so harder as Tesco to reach out to their customer and serve them with their needs (Polytechnic Institute of New York University, 2011, p. 1). The socially responsible company always maintain healthy relationship with the neighbourhood and always trying to meet the demands of the customers and be the responsible member of the society. Great quality of product with wide range of products is the major advantage of Tesco to maintain its brand image in the market for its core competencies.
Stakeholder Analysis Stakeholders are individuals or companies who has stake in the company. Investors are the main drivers of a business. Tesco with its well governed policies in business and its sustainable growth in the market gives confidence to the investors to get back competitive return for their investment on Tesco and their shareholdings. The transparency of the company is the major reason for building trust of the company amongst the shareholders. The shareholders also have the belief on the company that it will implement strategies for the long term development of the company keeping in the mind the interest of the shareholders. Blackrock Inc holds the major share of the company with its 5.48% of issued share capital followed by Legal & General Investment Management Limited with around 3.99 % share and 3.02 % of the total share by Berkshire (Tesco Annual Report and Financial Statements 2011, 2011, p. 58). By benefiting the stakeholders of the company like shareholders, staffs, customers and other related people the company maintains the high quality products and in turn increase the value of the firm. The company constantly meet the growing need of the customers with the wide range of product line and differentiate itself from the competitors in the market. The image building potential and loyalty towards the stakeholders facilitates the process of
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The author states that though the financial conditions of Tesco at UK are in good state but the increasing debt in the overseas market can be difficult to deal if not evaluated in the right time. The financial state should be improved by the firm to grow even faster. The profit margin is needed to be benchmarked with the past growth strategies.
This paper presents brief report on the strategic formulation of Tesco and gives detailed analysis of both the internal as well as external environments. In order to analyze the business environments, various business analysis tools such as SWOT, PESTEL, porter’s Five Force analysis etc will be included in the paper.
The strategy framework is the key to assess any business performance. Estimating the risks and the value tradeoffs provides a method to design concrete proposals, which adds value to the proposal and also reduces the overall risk. The plan of action for implementation requires effective planning. The research uses a methodology of reviewing various sources that have discussed the strategic operations of Tesco. The report will also recommend some strategic measures that Tesco can implement to enhance its position in the industry.
From large to small retail outlets, Tesco has a total of more than 2,200 sales outlets, which offers customers a one-stop shopping experience for all their needs. In the United Kingdom, the Tesco work force exceeds 280,000. When all the business operations across the world are taken into consideration, the total work force of Tesco is approximately 460,000.
As the leading retail and Food Company in the UK, Tesco also has branches in France, China, India, USA, Republic of Ireland, Slovakia, Poland, and Hungary. As a food and associated products retailer, Tesco also deals in car and health insurance, game, clothing, books, videos, music, and electrical goods.
1 billion annually (Tesco Plc, 2012). The giant retailer’s current position as a prominent worldwide trademark is well illustrated by its international growth into twelve countries, with a total work force of over 530, 000 employees as per 2013. Indubitably, such as a high level of accomplishment does not materialize coincidental but rather is influenced by a series of strategies, goals, objectives and practices put in place by an organization.
It seems like tomorrow borders between national markets will be erased once and for all, leading to the united global market - a field of battle for the customer for large corporations.
This paper analyses the strategy of Tesco, which has led the company to the position of number one retailing company in the UK.
The author states that Tesco launched the different programs to ensure customer satisfaction, and loyalty. It launched their Fruit and Veg Pledge – they offered at least five fresh fruit and vegetable products at half price every week during the whole of the year, extended their range of whole foods to include an even wider choice of pulses.
ysis and Porters five forces model; analysis of the internal environment using two strategic models (the Resource-based model and the value chain analysis); analysis of the PR crisis that have affected Tesco; and analysis of Tesco’s business and corporate strategy. This
16 Pages(4000 words)Essay
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