...Z01_JOHN2020_09_SE_EM18.QXD 10/13/10 9:09 Page 658 CASE STUDY Tesco: from domestic operator to multinational giant Michelle Lowe and Neil Wrigley This case considers the emergence of Tesco plc as one of the world’s leading multinational retailers. In a remarkable 10-year period, Tesco has transformed itself from a purely domestic operator to a multinational giant – with subsidiaries in Europe, Asia and North America – and in 2009 had 64 per cent of its operating space outside the UK. Examining market entry into Asia in more detail, the case compares ‘success’ in Thailand and South Korea with ‘failure’ in Taiwan. It also considers ‘a high risk gamble’ in Tesco’s entry into the US market, long considered to be a graveyard of overambitious expansion by UK retailers. ● ● ● Introduction In April 2009, Tesco, the UK’s largest retailer and private sector employer of labour, announced annual sales for 2008/09 of almost £60 billion (x66bn or $90.2bn) together with profits of £3 billion (x3.3bn or $4.5bn). After a dramatic decade-long transformation from purely domestic operator to multinational giant, Tesco now had a remarkable 64 per Source: Getty Images. cent of its operating space outside the UK, was developing increasingly strong businesses across 11 Asian and European markets, had a rapidly expanding ‘start-up’ subsidiary operating in the western USA, and had announced its entry into the Indian market. Moreover, as signalled in both the title of its Annual Report...
Words: 5448 - Pages: 22
...Z01_JOHN2020_09_SE_EM18.QXD 10/13/10 9:09 Page 658 CASE STUDY Tesco: from domestic operator to multinational giant Michelle Lowe and Neil Wrigley This case considers the emergence of Tesco plc as one of the world’s leading multinational retailers. In a remarkable 10-year period, Tesco has transformed itself from a purely domestic operator to a multinational giant – with subsidiaries in Europe, Asia and North America – and in 2009 had 64 per cent of its operating space outside the UK. Examining market entry into Asia in more detail, the case compares ‘success’ in Thailand and South Korea with ‘failure’ in Taiwan. It also considers ‘a high risk gamble’ in Tesco’s entry into the US market, long considered to be a graveyard of overambitious expansion by UK retailers. ● ● ● Introduction In April 2009, Tesco, the UK’s largest retailer and private sector employer of labour, announced annual sales for 2008/09 of almost £60 billion (x66bn or $90.2bn) together with profits of £3 billion (x3.3bn or $4.5bn). After a dramatic decade-long transformation from purely domestic operator to multinational giant, Tesco now had a remarkable 64 per Source: Getty Images. cent of its operating space outside the UK, was developing increasingly strong businesses across 11 Asian and European markets, had a rapidly expanding ‘start-up’ subsidiary operating in the western USA, and had announced its entry into the Indian market. Moreover, as signalled in both the title of its Annual Report...
Words: 5448 - Pages: 22
...OPERATIONS AND PROJECT MANAGEMENT OPERATIONS AND PROJECT MANAGEMENT OPERATIONS AND PROJECT MANAGEMENT OPERATIONS AND PROJECT MANAGEMENT OPERATIONS AND PROJECT MANAGEMENT www.ibscdc.org 1 Efficient Project Management at TransWorks Information Services Pvt. Ltd., an Indian-based BPO Company This is a real life case taken from a service industry; it discusses the real life problem faced by a BPO Company. It focusess on the problems faced by the calling agents and the management as a whole, many a times it so happens that the management perceives a problem in a different angle and the solution eludes them; this causes a lot of frustration on the part of employees and management resulting in mass attrition. The real concern today for any call centre company is its high attrition rate; the basic reason being the discord between the management and the employee. The employees look out for a congenial and empathetic management and shift to the other competing companies when offered a good work environment. This case study throws light on one such aspect where a mass attrition was avoided by the top management by strategic and lateral thinking. Pedagogical Objectives • How a manager dealt with such a challenging project with support of his team of 14 fresh trainees • How he managed to save the project and bring about some wonderful changes to glide through the difficult times • How innovation and teamwork can change things for an organisation. Industry Reference No. Year of...
Words: 6098 - Pages: 25
...Developing Countries Offer Retailers Something They Can't Find Elsewhere: Growth Retail is exploding in developing markets and those markets have become the driving forces fueling global growth in retail sales and space. Over the 10-year history of A. T. Kearney’s Global Retail Development Index (GRDI), an annual research project designed to help global retailers prioritize which countries to enter, the population of developing markets increased 11%, while retail sales per capita has almost doubled, retail space has more than tripled and Internet access grew by nearly 500%. Clearly, developing markets hold significant potential for retail growth, but picking which markets are prime for development has been a tough learning experience. Initially many global retailers focused their developing market expansion aspirations on China, which gained acceptance into the World Trade Organization (WTO) in 2001. As the decade unfolded, retailers were drawn to the potential of Southeast Asia, the BRIC nations (Brazil, Russia, India and China) and Eastern European markets like the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Rumania, Slovakia and Slovenia following their joining the European Union (EU) in 2004. But over the 10 years of retail growth tracked by our research, five nations have consistently ranked in the Top 10: China, India, Russia, Vietnam and Chile. Almost everyone understands China’s size and therefore its market potential. More difficult is establishing...
Words: 1074 - Pages: 5
...Z01_JOHN2020_09_SE_EM18.QXD 10/13/10 9:09 Page 658 CASE STUDY Tesco: from domestic operator to multinational giant Michelle Lowe and Neil Wrigley This case considers the emergence of Tesco plc as one of the world’s leading multinational retailers. In a remarkable 10-year period, Tesco has transformed itself from a purely domestic operator to a multinational giant – with subsidiaries in Europe, Asia and North America – and in 2009 had 64 per cent of its operating space outside the UK. Examining market entry into Asia in more detail, the case compares ‘success’ in Thailand and South Korea with ‘failure’ in Taiwan. It also considers ‘a high risk gamble’ in Tesco’s entry into the US market, long considered to be a graveyard of overambitious expansion by UK retailers. ● ● ● Introduction In April 2009, Tesco, the UK’s largest retailer and private sector employer of labour, announced annual sales for 2008/09 of almost £60 billion (x66bn or $90.2bn) together with profits of £3 billion (x3.3bn or $4.5bn). After a dramatic decade-long transformation from purely domestic operator to multinational giant, Tesco now had a remarkable 64 per Source: Getty Images. cent of its operating space outside the UK, was developing increasingly strong businesses across 11 Asian and European markets, had a rapidly expanding ‘start-up’ subsidiary operating in the western USA, and had announced its entry into the Indian market. Moreover, as signalled in both the title of its Annual Report...
Words: 5448 - Pages: 22
...retail never attracted the interest of large corporations. That was till they realized that retail in India is a USD 320 billion dollar industry, growing at CAGR 5% and contributing to 39% of the GDP2 (See exhibit 1 for projected market size of retail in India.). It might seem almost nonsensical that this important sector of the country’s economy has been overlooked by corporate giants. One cannot blame them though. Indian retail has been a traditionally unorganized sector, dominated by counter-stores and street vendors (See Exhibits 2 and 3 for pictures). While retail employs a large sector of the population, most of these people are uneducated, unskilled individuals that regard retail as the preferred career alternative to agriculture. They never had the means nor will to develop the sector or expand their business. Retail never enjoyed the support of the Indian consumer. A miserly population that barely had the means to make end meet never treated shopping as a form of leisure. While individual retailers saw small gains, lack of infrastructure, an unattractive Indian consumer and absence of regulation never provided the scale that retail giants could capitalize on. Meanwhile, the government preferred to look the other way while this unorganized retail sector provided a meager standard of living to millions in a country where poverty plagued the majority of the population. The unorganized retailers survived on thin margins and...
Words: 10715 - Pages: 43
...revenues of approximately €150 million and gross profits of around €30 million. Keane had been given responsibility for managing Gale’s imminent entry into the shoe polish business. This had been a very stable market with limited competitive activity for the last 15 years or so. It was anticipated that Gale’s emergence would ‘shake things up’ appreciably. Shoe polish technologies were of two types, namely liquid and wax. Total sales in the market were around 60 million units annually, with both liquids and waxes retailing at €2 for a 75 ml container (or the equivalent). Liquid polish accounted for 40 million units and wax accounted for 20 million units each year. Over 90 per cent of all polishes were purchased in supermarkets and hypermarkets by householders during their regular shopping trips. The market leader of the liquid segment was ShuShyne, which controlled some 80% of sales. ShuShyne was a product owned by Lind Company. Like other liquid brands, ShuShyne was packaged in a plastic bottle container with a sponge applicator attached at the top to facilitate application. All users had to do was to spread the liquid onto the shoes with the sponge and leave them to dry by themselves in a matter of minutes. Hence, customers bought liquid polishes because they were convenient to use, providing a quick, easy, no-mess cleaning operation. This resulted in an adequate, although not outstandingly good, shine. Customers also benefited from the fact that the liquids covered...
Words: 1049 - Pages: 5
...probiotic yogurts in general. But Danon nevertheless considered probiotic yogurt a good business opportunity and began working to tackle those challenges. Danone attempted to raise awareness of the vitality of probiotic yogurts to show how they positively affect the digestive system, and help those who have digestion problems. To achieve these goals, Danone developed advertising campaigns and PR activities including 360 campaign, whereby the company used all available communication tools to reach its target market. Accordingly, Danone designed television, radio and print ads; held press conferences; issued press releases; printed point of purchase materials, flyers and brochures; and organized sampling in large supermarkets, universities and hypermarkets. All these communication tools carried a consistent message to the consumer stressing that the product is 100 percent natural and guarantees to...
Words: 4113 - Pages: 17
...Introduction The 1991 reforms marked a paradigm shift in India's policy vis-à-vis foreign capital. The 19 years of reforms era has seen progressive liberalization of the policy particularly with respect to Foreign Direct Investment (FDI) whose role in economic development is acknowledged by policy makers. India cautiously opened up to FDI with the hope that it could act as a catalyst for growth as it is believed to fill up the critical gaps of capital and technology and also be a facilitator for transfer of managerial and technical skills, for employment generation and export promotion. Keeping with the policy of progressive liberalization the Government of India has now initiated a debate of allowing FDI in multi- brand retail. 100% FDI in wholesale cash-and-carry trade was opened in April 2006 followed by further liberalizing by allowing 51% FDI in single-brand retail in 2008. The impact of this has been an FDI flow of Rs. 7799 crore into the retail sector. The issue of FDI in multi- brand retail had been put on the backburner for so long as it had a direct impact on the strong 1.3 crore small retailers in the unorganized sector. The giant multinational retail players are pushing for the opening up of India's retail trade as the growing middle class with rising disposable incomes means huge market potential. Even domestic retailers such as Future Group, Reliance, Birla, etc are lobbying hard for FDI. By initiating the current debate the Government has made its intention...
Words: 3579 - Pages: 15
...Walmart Organizational Management Name Institution Affiliation Organizational Context Wal-Mart Stores Inc. or Walmart is a multinational retail organization that has numerous chains of large discount warehouse and general stores. The company was formed in 1962 by Sam Walton as a family-owned business. It was incorporated in 1969 and traded on the Stock Exchange of New York publicly in 1972. Since then this organization has grown strength to strength winning various accolades. In 1988, it was ranked as the most profitable retail business in America outselling competitors such as K-Mart and Sears in the retail business (Fishman, 2006). It was founded on Sam Walton’s quest for providing goods and services at relatively low or discounted prices. The Walmart principles have been hinged on cost-cutting while at the same retailing goods at consumer-friendly prices. The organization too, has been hailed for its global standard efficiency and business innovations. It was one of the first corporations that integrated use of computers in its operations in all its branches. The mission statement reflects on the founder’s business model of passing savings to his clientele and amassing profits through volume sales. This principle has made consumers feel more welcome and their needs taken care of over the years. The cost-cutting initiatives embraced by the company operations have been as a result of this old age philosophy Walmart has spread its wings world over opening up over 8...
Words: 3464 - Pages: 14
...Restructuring the small-scale retail sector in Singapore Loo Lee Sim Introduction Performance of the retail sector Singapore's retail sector has been in the doldrums over the last few years. The retail sales index shows sales increasing very slowly over the past three years (Figure 1). Except for festive periods (Christmas and Chinese New Year) and the period of the great Singapore sale (June/July), sales have been poor. Compared to sales, the supply of retail space has been increasing more rapidly. Figure 2 shows that a great deal of retail space has come on-stream over the last few years. By the end of 1997, an estimated 185,880 square metres were released (Urban Redevelopment Authority, 1997). The amount of retail space released over the last few years has led to a steady fall in the occupancy rate and this will be aggravated by another 195,170 square metres coming onstream from 1998-2001(Urban Redevelopment Authority, 1997). In addition to the glut in retail space, a decline in tourism will also affect the retail sector adversely. Tourist arrivals for the first quarter of 1998 declined by nearly 20 per cent compared to the first quarter of 1997. Arrivals from the Asian region have fallen as a result of the currency crisis. The haze, caused by fires in Indonesia and Malaysia, has also deterred visitors from Europe, the USA and elsewhere. In view of the gloomy prospects facing the retail sector, it is timely to review the measures taken by the Singapore Government to restructure...
Words: 5106 - Pages: 21
...1964 by Otto Beisheim. It is a German global diversified retail and wholesale/cash and carry group based in Düsseldorf. It has the largest market share in its home market, and is one of the most globalised retail and wholesale corporations. It is the fifth-largest retailer in the world measured by revenues (after Wal-Mart, Carrefour, Tesco and Kroger). Metro Group has 280.000 employees, from 180 nations, with over 2.200 outlets in 32 countries in Europe, Africa and Asia. With this force, Metro Group is one of the most important international retailing companies. In Metro AG portfolio we can find some internationally strong sales brands like: * Metro Cash & Carry - the world's market leader in cash & carry; * Real Hypermarkets – purchased by Auchan; * Media Markt and Saturn - Europe' s leader in consumer electronic retailing; * Galeria Kaufhof - the system leader in the department store business. When doing business, Metro AG goes after important values such as: * Responsibility towards our customers, stockholders and the public; * Innovative strength is one key to success; * Further development and modernization of the retail sector - both, at the national and at the international level. 1.2 History Starting from 1996, to 2000 Within a period of only ten months, METRO AG is formed through a merger of the retail companies Asko Deutsche Kaufhaus AG, Kaufhof Holding AG and Deutsche SB-Kauf AG. The group goes on the stock market in the...
Words: 5612 - Pages: 23
...Sir Richard Branson’s setbacks: from Virgin Cola to Virgin Brides The demise of the domestic carrier Little Red joins a string of the entrepreneur’s failures from makeup to bridalwear to alcohol • Virgin Atlantic axes Little Red * Share * * * inShare0 * Email * ------------------------------------------------- * ------------------------------------------------- Gwyn Topham, transport correspondent * ------------------------------------------------- The Guardian, Monday 6 October 2014 18.19 BST Sir Richard Branson hands out free cans of Virgin Cola in downtown Tokyo. Sales of the brand lost fizz against the might of Coca-Cola and Pepsi.Photograph: EPA Sir Richard Branson has made a fortune from a string of business ventures that bear his signature brand, including Virgin Trains and Virgin Media. But Little Red joins a series of failures that have seen Branson fail to break into lucrative markets including soft drinks and alcohol. Virgin Cola Launched in 1994, Virgin Cola was initially available only on Virgin planes and in Virgin cinemas before Branson sought wider distribution. “It tasted better than Coke. For one wonderful year we had the dream of Virgin Cola being the brand on everyone’s lips.” Instead, Branson claimed, “swat teams and bagfuls of money” sent from Coke’s Atlanta headquarters gobbled up his drink, whose market share peaked at 0.5% in the three years it was on sale in the US. In 2012, the UK producer went bust and no one else...
Words: 8829 - Pages: 36
...http://realityviews.blogspot.in/2011/12/detailed-analysis-fdi-good-or-bad-for.html Detailed Analysis FDI Good or Bad for India Who will benefit in India if FDI is allowed in Multi Brand this is Kirana Business Few days back the Union Cabinet of India overcame years of indecision to allow up to 51% FDI in multi-brand retail. Government also increased the FDI limit in single-brand retail to 100% from 51% Government says it will benefit India. Traders fear the move. Opposition parties oppose the move as they know they will benefit if they support the traders. No one is touching the real issues and accepting the truth that today or tomorrow FDI, big global corporations will enter into India directly or indirectly. Today world is becoming a global village. Foreign Investment in India is governed by the FDI policy announced by the Government of India and the provision of the Foreign Exchange Management Act (FEMA) 1999. The foreign investors are free to invest in India, except few sectors/activities, where prior approval from the RBI or Foreign Investment Promotion Board (‘FIPB’) is required. In franchising and commission agents’ services, FDI (unless otherwise prohibited) is allowed with the approval of the Reserve Bank of India under the Foreign Exchange Management Act. Examples of Such Business - Pizza Hut or Nike or Spencer 100% FDI is allowed in wholesale trading. Wholesalers do the business with the Retailers. Wholesalers never do business with Consumers...
Words: 12116 - Pages: 49
...Background Wal-Mart Stores, Inc. is a public corporation that runs a chain of large discount stores and a chain of membership required warehouse stores. Sam Walton founded the company in 1962, and since then Wal-Mart has become a global company with annual sales of $405 billion for the fiscal year of 2010 (Wal-Mart Corporate). In 1992, Sam Walton passed away and many doubted the future of the company under the leadership of David Glass, CEO and Don Soderquist, COO. The Company suffered in April, 1993 when the growth of the company had fallen under 10% since 1985. At the same time their stock price fell 22-26% destroying nearly 17 billion in market value (Wal-Mart Corporate). Glass and Soderquist had their work cut out for them, they needed to come up with a strategy to keep their competitive advantage in the industry. The following analysis will explain Wal-Mart's competitive advantage in discount retailing, whether they will be able to sustain their position in the discount retailing industry, and the effectiveness of their diversification into the food industry. What is Wal-Mart's competitive advantage and the sources of its competitive advantage in discount retailing? Wal-Mart’s main competitive advantage in discount retailing has always been providing the lowest possible prices on brand name goods to customers (Bradley 4). The “everyday low prices” approach is the biggest reason why Wal-Mart has become the leader in the retail industry. There are a number...
Words: 4124 - Pages: 17
