Acquisition has been one of the strategies that the organisations in different parts of the world use to expand their market share, increase their customer base, enter into a new market, capitalise on the opportunities from the markets and for several other reasons. …
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Besides this, organisations also acquire other firms in order to reduce their costs, improve their profitability, and strengthen its position in the market (Johnson, & Turner, 2010).
Acquisition has been one of strategies that have been used by organisations for so many important purposes (Verbeke, 2013). Acquisition helps organisation to grow and enter markets where it is not already present. This report analyses one of the retailers of United Kingdom, Tesco. The report identifies and analyses the acquisition that the company has undergone from the year 2003 to 2009. The report also discusses reasons and objectives of these acquisitions. The report then also assesses whether the acquisitions have been able to achieve their objectives or not and whether these acquisitions have been successful or not. At the end, the report provides the conclusion of the overall topic.
TESCO ACQUISITION STRATEGY IN HISTORIC PERSPECTIVE
Tesco has been growing over the years. The company is not only penetrating itself in the markets where it is operating but the company is also adapting the market development strategy. The company has used different strategies to expand its offerings in other markets. Acquisition or acquiring another firm is one of the strategies that the company has acquired to not only expand its offerings in new markets but also to penetrate in the markets where it is already operating (Hill, & Jain, 2007). ...
The objective of this acquisition was to introduce and start telecom division in Japan. The idea of this acquisition was to offer mobile as well as home phone services so that the services could harmonise with the existing Internet service offered by the company. (BBC, 2004). So the aim was to further capitalise on the opportunities prevailing in the market with a new product. Such a strategy is known as product development as the company offers the new product in the same market. Acquiring Kipa in Turkey In addition to acquiring C Two Network, the company had also acquired most of the shares of Kipa which is Turkish supermarket chain. The idea was to enter Turkey and further use this acquisition as the base to capitalise on the opportunities in Turkey. With the passage of time, the company had grown its number of stores in Turkey (Tescopoly, 2007). Acquisitions in 2004 Acquisition of Adminstore Tesco acquired Adminstore which included 45 stores of Cullens, Europa and Harts in different parts of London (BBC, 2004). The idea was to capture a higher market share in London and to reduce the competition. Acquiring Fre’c In the year 2004, 25 stores of Fre’c were also acquired by Tesco in Japan. This allowed the company to strengthen its position in the competitive market of Japan (Finch, 2004). Even though Japan has been a difficult and a challenging market for the firms from Britain, however there are many opportunities for companies in Japan as it is one of the biggest markets for retailers. Therefore to capitalise on these opportunities Tesco acquired Fre’c. Acquisitions in 2005 Acquriring Safeway /BP Tesco had acquired 21 remaining stores of Safeway/BP as their partnership was dissolved with Morrison in the year 2005. (Tran, 2005)
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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 report includes the Corporate Social Responsibility response of the organization. By using the foreign market current strategy (FMSS) Tesco’s entry will be facilitated and that will create a competitive advantage against the German competitors. Tesco PLC, the company was founded in the year 1919, by Jack Cohen.
The paper will involve a careful analysis of information taken from various sources that are relevant to Tesco's activities and expansion over the past nine decades that it has existed. The research will focus on some primary sources like the Tesco Annual Report of 2011. The paper also draws insights from the Tesco Website about various elements of the organisation. Additionally, secondary sources like books and journals are used to provide a deep insight into the company.
of the corporate management strategies on three supermarket chains of UK, namely, Sainsbury, Morrison and Tesco. For the assessment of the financial viability of the retail chains, their five year annual reports would be analysed and the findings of the study would indicate the most viable investment.
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.
An Overview of Tesco Company Tesco was established in 1919 and inaugurated its first store in London, UK in the year 1929. Nevertheless, over the years, the company has evolved to lead the market within the United Kingdom retail food segment. Presently, Tesco is one of the principal food retailers in the globe, running 2, 318 stores while creating employment for over 326, 000 people.
This was the start of great things for the company. Even as everything else crumbled into pieces during the war, Tesco was at the onset of its prosperity, thriving in the midst of adversity.
It was in the 1940s when Tesco came to Britain to introduce self-service stores, About 20 years after, Tesco had become a familiar name, not only for groceries, but also for fresh food, clothing, and other household goods.
The acquisition process may involve what is known as a company takeover. This is usually fulfilled by acquiring adequate shares of the targeted company’s stocks to force a sale. There are very successful examples of acquisition strategies that
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