This is a report on the research of the various management strategies adopted by Tesco to enhance its profitability, customer service and carve a market niche. Tesco is an international retail company dealing with grocery and general merchandise with its headquarters in the UK. …
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The company started trading its shares to the public in 1947 to boost its capital base. In the late 1950s, Tesco took over the ownership of numerous of grocery stores within the UK, among them being Harrow Stores Ltd, a 200-grocery chain. Moreover, Tesco has implemented strategies to penetrate the international market through acquiring already established stores. With the coming of e-commerce, Tesco has developed strategies to harness this great potential. In 2010, the company started a mobile phone based website to allow customers make purchases from their smart phones. However, the strategies adopted by the company have not always gone down well with different stakeholders. Early this year, the business has proposed to tailor its deals according to the income of the nearby shoppers. Clarkson (2012) asserts that 75 percent of the Tesco’s shoppers are opposed to a new strategy by Tesco to base its deals on the income of nearby shoppers. 1.2: RESEARCH METHODOLOGY The research uses a methodology of reviewing various sources that have discussed the strategic operations of Tesco. I relied mostly on internet sources to carry out this research. 1.3: Findings 1. Tesco has relied on a strategy of acquisition of its competitors 2. Tesco has continuously adopted strategies to penetrate into the international market 3. Tesco has a strategy of diversifying the products it offers to customers 4. Technology has fuelled the growth of Tesco, with adoption of e-commerce and mobile-commerce 1.4: Recommendations 1. Tesco should carry out a market research before implementing a strategy to avert what dissatisfaction among customers. 2. Tesco should continue increasing its express stores 3. Tesco should continue making stronger brands as this...
This paper approves that key implementation issues and risks faced by the company are as follows - Tesco is planning to enter new global markets. The strategy adopted by Tesco is to protect the brand image and promote expansion plans. It has been in controversy over the treatment of customer and staff. Additionally, it’s approach in foreign business has been criticised. Tesco’s biggest criticism has been that it has been creating a monopoly in the market over products. Furthermore, the company had aggressive planning in building new stores. Tesco has adopted information systems to increase its sales through ecommerce.
This report makes a conclusion that the retail business of Tesco is highly competitive and it needs technological support and innovative solutions for getting competitive advantage. The innovative solutions Tesco can introduce are - new format stores and creating a novel online shopping experience. What’s more, implementation of technologically advanced online solutions is not expensive and takes 6-8 months. For sustained competitive advantage, the company should have command over price by delivering value added competitive products and services. For example - it can introduced health foods for different age groups. The process of production of health foods will take 6 to 7 months. It needs to work on internal advantages and reduce weaknesses to create a platform for innovation, research & development. The company should also be able to organize the process of implementation along with globalization and diversification.
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(Current Business Strategies At Tesco Essay Example | Topics and Well Written Essays - 5750 Words)
“Current Business Strategies At Tesco Essay Example | Topics and Well Written Essays - 5750 Words”, n.d. https://studentshare.org/business/1398545-current-business-strategies-at-tesco.
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.
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.
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.
According to the paper marketing strategies are integral to maintaining a competitive edge as a product or particular brand must “measure up to a threshold of acceptable quality and be consistent with buyer behaviour, preferences and expectations”. The marketing strategy determines the strategic objectives of the business and also centres it as a market-oriented system designed to fulfil consumer needs.
Tesco Table of Contents 1. The company 3 3. Porter’s five factor framework for competition 4 3.1 Bargaining power of Buyers 4 3.2 Bargaining power of suppliers 4 3.3 Competitive Rivalry 5 3.4 Threat of substitutes 5 3.5 Threat of new entrants 5 4. Competitive strategies 5 5.
Tesco and its activities Tesco is a multinational enterprise that runs its business in general merchandizing and grocery with the help of retail chain of stores spread all over the world. The company is the second largest retailer in the world in terms of net earnings and the third largest in terms of revenue earnings among all the retail merchandisers (Kerzner 27).
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.
Last February 26, the company announced a total annual turnover of 33.974 billion and reported a pre-tax profit of 1.962 billion. It is estimated that in every 8 UK retail sales, 1 is spent on Tesco. Tesco is currently one of the world recognized retailers.
These laws and concepts which can be used to look at the internal operations of the firm are contained in a field called microeconomics. Meanwhile, the dependency of businesses in the overall business climate is the topic of a more integrative field called macroeconomics.
According to the report since global strategy brought a wide variety of business strategies, a high level of adaptation called for a challenge to the local business environment and here organizations have opened new possibilities for developing a single strategy. Tesco is located in the UK and is the one of the biggest retailers in the world.
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