Nobody downloaded yet

Tesco Plc Strategy Analysis - Coursework Example

Comments (0) Cite this document
Tesco Plc Strategy Analysis (Name) (University) (Course) (Date) (Tutor) Tesco is one of the largest supermarket retail stores in the world, operating around 2,318 stores and employing over 300, 000 people. It is based in the UK but operates stores in the rest of Europe, USA and Asia…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.1% of users find it useful
Tesco Plc Strategy Analysis
Read TextPreview

Extract of sample "Tesco Plc Strategy Analysis"

Download file to see previous pages It also operates financial institutions as a joint venture with the royal Bank of Scotland (Data Monitor, 2004). Mullins (2010) says that a marketing strategy primarily focuses on effectively allocating and coordinating marketing resources and activities in order to accomplish firm’s objectives within a specific product market (Mullins & Walker, 2010). The critical issue that concerns the scope of a marketing strategy is specifying the target market(s) for a particular product or product line (Mullins & Walker, 2010). This is followed by the motivation to seek competitive advantage and synergy through a well-integrated program of marketing mix that is custom made to the needs and wants of potential customers in the market segment (Mullins & Walker, 2010). Michael Porter identifies three generic strategies and these include: the cost leadership strategy, the differentiation strategy and the focus strategy (Mullins & Walker, 2010). These strategies are based on strategic scope and strategic strength of a firm. The strategic scope is used to mean market penetration while strategic strength is used to mean the firm’s sustainable competitive advantage (Mullins & Walker, 2010). Tesco uses the cost leadership strategy in its operation. With this strategy a company aims at becoming the lowest-cost producer in the industry (Stephane, Girod, & Rugman, 2005). It is a strategy that is often associated with large-scale businesses that offer generally standard products that comprise of little differentiation and are perfectly acceptable to majority of the market customers. This strategy is aimed at gaining market share by cutting costs so that a firm can offer lower prices and in the process gain market share (Stephane, Girod, & Rugman, 2005). High volume is leveraged to create low costs by getting the best prices from suppliers and more efficiently utilizing fixed costs. In order for any company to use this strategy it must be cost conscious in every aspect of the business (Kim, Nam, & Stimpert, 2004). This strategy therefore is characterized by tight budgeting, elimination of waste and thin personnel staffing. Scholars agree that this strategy is often adopted when there are many providers, growth is flat and providers are trying to steal the market share from each other by lowering prices (Kim, Nam, & Stimpert, 2004). Last year in September Tesco began a new strategy where it began to put its focus on permanent low pricing as opposed to its previous specific price promotions. This was as a result of its losing a great percentage of its market share to its competitors such as Sainsbury, Asda and Wal-Mart (Poulter, 2011). Market segmentation refers to the process of dividing the total market for a product or service into groups with similar needs such that each group is likely to respond favorably to a specific marketing strategy (McDonald & Dunbar, 2004). There are many variables to which a market can be segmented and these include the following: behavioral, demographic, psychographic and geographic segmentation. Behavioral segmentation is a strategy based on customers’ needs and subsequent reaction to those needs or towards the purchase of intended product or services (McDonald & Dunbar, 2004). Demographic segmentation considers aspects such as age, gender, education, income, occupation, size of the family etc. psychographic segmentation is all about diving people according to their lifestyles and values and how ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Tesco Plc Strategy Analysis Coursework Example | Topics and Well Written Essays - 750 words”, n.d.)
Tesco Plc Strategy Analysis Coursework Example | Topics and Well Written Essays - 750 words. Retrieved from
(Tesco Plc Strategy Analysis Coursework Example | Topics and Well Written Essays - 750 Words)
Tesco Plc Strategy Analysis Coursework Example | Topics and Well Written Essays - 750 Words.
“Tesco Plc Strategy Analysis Coursework Example | Topics and Well Written Essays - 750 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Tesco Plc Strategy Analysis

Management Environment: Tesco Plc

...Management Environment: Tesco Plc The Organisation The organisation under evaluation is Tesco Plc Head Quartered in United Kingdom. This organisation would be evaluated in terms of Business Transformation enabled, Organisational Structure and Challenges, PESTE Analysis, Operational Challenges faced and Fayol’s Management Principles as follows. Part 1 The Business Transformation Process in an Organisation The Process of Business Transformation is considered as a key managerial initiative undertaken by the organisational managers through the effective integration of components related to human resources, technology and the existing organisational...
11 Pages(2750 words)Coursework

Tesco Plc

... market. This report seeks to analyze the annual report of Tesco Plc for the year 2011 to investigate the way it accounts for its social, ethical and environmental impact. The report further compares the performance of the company with other companies in terms of environmental policies. Another aspect that is considered in this report is the nature of reporting that the company uses and recommendations for future strategies to improve on the presentation of the company’s stakeholder’s strategy. 2. Business Review of Tesco Plc in 2011 Tesco is the most dominant retailer in the United Kingdom with a market share of about thirty percent. The company has a presence in several countries. It reported revenues in excess sixty billion... in the...
9 Pages(2250 words)Essay

Tesco Plc Financial Analysis

.... From the point of view of Tesco plc, the surplus in working capital implicates operation inefficiencies. The money which is owed by customers to Tesco plc and that, which is held in inventories cannot be employed to settle any obligation of the firm. Therefore, if a firm operates in a slow collection, it will be indicated as increase in working capital. It is evident from the comparison of working capital. To do this one should manage the working capital. The management of WC occurs in two stages: ratio analysis and or by use of strategies and techniques. In the consideration of strategies and techniques...
8 Pages(2000 words)Coursework

Environmental audit Tesco Plc

...analysis that identifies key drivers that influence the company’s strategic decisions. The internal business environment is analysed on the basis of availability of resources that influence productivity, delivery and service. The objective of the assignment is to reveal the influence of both internal and external business environment on company’s current and future strategies (TESCO, 2013, pp.3-9). Introduction & Background of the Company The company chosen for study is Tesco Plc which is the biggest multinational general merchandise and grocery retailer in United Kingdom. The company operates in over 2,315 stores globally with over 1,875 stores in UK....
7 Pages(1750 words)Coursework

TESCO PLC be expensive (Quelch & Bartlett, 2006). Bibliography Hensmans, M., Johnson, G., & Yip, G. (2012). Strategic transformation changing while winning. Basingstoke, Palgrave Macmillan. Dubrin, A. J. (2009). Essentials of management. Mason, OH, Thomson Business & Economics. Fernie, J. 2005. International retailing. Bradford, Emerald Group Publishing. Great Britain. 2007. Tesco plc and the Co-operative Group (CWS) Limited: a report on the acquisition of the Co-operative Group (CWS) Limited's store at Uxbridge Road, Slough, by Tesco plc. [London], Stationery Office. Mcloughlin, D., & Aaker, D. A. (2010)....
4 Pages(1000 words)Essay

PEST and SWOT Analysis of Tesco Plc

...28 March 2007 Internal and External Analysis of Tesco Plc Microenvironment Core Competencies When John Cohen founded Tesco, he envisioned a retail outlet which will become a leader in the industry because of its low cost strategy. Thus, the retail giant based its operation on a "Pile it high, sell it cheap" approach (Tesco Plc 2006). Founded in this philosophy, the retailer has grown to be a global brand which still sticks to this strategy. In the core of the company's operation is its quest of providing customers with products at the least possible price. This has become the core competency of the...
6 Pages(1500 words)Case Study

Marketing Strategy at Tesco plc

...Marketing Strategy at Tesco plc Table of Contents Table of Contents ii Introduction Part One: Literature Review Conundrum Focus 2 Market Choices 2 Value Proposition 3 Key Relationships 3 Part Two: Analysis of Tesco plc 4 Customer Conundrum: Getting Loyalty and Satisfaction 5 Laser-Like Customer Focus 5 Market Choices: Crafting a Business Strategy 6 Value Proposition: Clear, Concrete, and Concise 6 Managing Key Relationships Well 7 Conclusion 8 Reference List 9 Fig. 1: Tesco's Steering Wheel 12 Introduction This paper critically analyses the marketing strategy at Tesco...
7 Pages(1750 words)Essay

Tesco Plc

..., first taking into consideration the organization's top management and its corporate - and business level objectives and strategies, and then moving on to analyze each of the company's functional level objectives and strategies. Analysis of the internal environment was, for the most part, concerned with issues of strategy implementation - the design of structure, control systems, and management style - all of which were viewed as consequences of the strategy adopted. On a positive note few of the most effective strategies formulated and implemented so far by...
9 Pages(2250 words)Essay

Financial Forecasting TESCO Plc

...Financial Forecasting – TESCO Plc Table of Contents Introduction 3 Income ment Projection 3 Computation of Additional funds needed 5 Forecast of financial position 5 Ratio Analysis 7 Conclusion 8 Reference 10 Bibliography 11 Tesco Plc. 2005. Annual report and financial statements 2005. 11 Annexure- 12 Introduction The financial statements reflect the performance of a company for the year. With the help of the information presented in the financial statements, the ratios are computed which can be compared with the past figures to highlight any improvement or deterioration. A fall in the profitability ratio indicates inefficient cost management. To correct...
6 Pages(1500 words)Essay

Tesco PLC. Company Analysis

...2010, p.1). This was spearheaded by good leadership under CEO Terry Leahy who emphasized on innovation and customer satisfaction (Quelch 2010, p.2). Issues and objectives One of the main issues that are of great concern is inability of Tesco plc to penetrate in United States market despite the market having only few competitors such as Raphs, Vons, Albertsons and Stater Brothers. This is despite the company’s strategies to send 50 managers to learn more about the market and come up with appropriate procedures to penetrate them The main objective is to analyze if it is important for the company to go ahead with the market penetration process or it’s supposed to withdraw from the market as...
4 Pages(1000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Coursework on topic Tesco Plc Strategy Analysis for FREE!

Contact Us