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TESCO UK - Assignment Example

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Tesco Plc. All organizations are open systems; they exist within a dynamic and complex environment having a variety of interchanges with it, both receiving inputs and outputs. Companies try to control the nature of their output but very few of them can control more than a few of the inputs they receive…
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TESCO UK
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"TESCO UK"

Download file to see previous pages Company Profile TESCO is a well diversified company working in many different ventures; it has over the years created a great deal of value in the eyes of their customers. “Tesco operates 923 stores and employs 240,000 people, giving us access to a population of 260 million across our nine markets. Over the past five years, we have expanded from our traditional UK supermarket base into new countries, products and services, including a major non-food business, personal finance and internet shopping. The increasing scale and internationalization of our sales and purchasing operations makes a significant contribution to our efficiency and profitability, as we progress towards our long-term goal of becoming a truly international retailer” (Global Sources). Tesco is a huge British retailer having strong business operation around the globe. It is considered as the third largest retailer globally based upon the revenue that it generates. It was started in the year 1919 by Jack Cohen as a simplified grocery store until 1924 when the Tesco brand was initially launched in 1924. Its first store was opened up in 1929 in Burnt Oak, Edgware, Middlesex. In 1947, it was introduced into the London Stock Exchange and made public and this floatation started the great success story of Tesco plc which has now emerged as one of the top most renowned supermarket chain in not just United Kingdom but the entire world. The first supermarket under the name of Tesco was opened in 1956 in Maldon. Since that time period, the company has operated such smoothly that it has created standards and is nowadays considered as a benchmark for many of its industry competitors. Over the years, the company took over many other supermarkets to make itself a leader in the United Kingdom region (tescoplc.com). Environment Analysis The environment may be divided into three layers: the macro environment; industry or sector; competitors and markets. All these layers interact with each other within themselves. When considering the macro-environment factors for TESCO the basis of analysis to be used is the PESTEL analysis. This model uses broad headings such as: Political, Economic, Social, Technological, Environmental and Legal; to analyze an organization’s macro-environment. Macro-Environmental Analysis Political Each and every company in which TESCO operates has a different political risk because of the fact that different countries have different political policies which can be either beneficial or can be harmful for TESCO’S operations. For TESCO to operate in different countries, the political influence depends upon the stability of the current government. TESCO Lotus in Thailand has delivered strong growth during the year 2008-09 despite Thailand’s weakening economy and the uncertainty involved with the stability of the Thai government. TESCO’s operation in UK, Ireland and few other countries; with respect to competition have been continuously scrutinized by the competition authorities. TESCO’s management has kept itself up to date with respect to any changes in the political uncertainties and has kept them in mind when developing their long-term strategies. TESCO has remained cautious to future changes and has engaged itself with governmental and non-governmental organizations to keep ahead with respect ...Download file to see next pagesRead More
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