...would want to increase market share. But Tesco is under investigation by the monopolies commission, therefore they might be better concentrating on objectives like "increase sales revenue". The following discussion provides a general overview of the strengths, weaknesses, opportunities and threats surrounding Tesco. Use it as a basis for conducting your own, specific, SWOT analysis of Tesco (or similar companies.) It is a teaching resource for students or managers that can be used to provide inspiration for any specific SWOT analysis. Threats to Tesco First, let's take the T in SWOT and look at possible threats to Tesco. Examples of possible financial threats are fluctuations in the stock market and tax increases. Remember, if the objectives of Tesco are not threatened by these factors then they are not threats. But, as most companies would be worried about a tax increase, a general, continuing objective might be to decrease the tax burden. Other objectives may take precedence, and make the tax threat insignificant (for a period). The biggest, most obvious, threat is: * Online and offline innovation by other supermarkets aimed directly at taking customers from Tesco. Examples of specific threats that might affect Tesco in the future, are shown in the left margin. The biggest threat is probably that of takeover, like the Morrison group purchasing the Safeway chain or Asda being taken over by Walmart. Opportunities for Tesco Now consider the O in SWOT. There...
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...TESCO PLC is a British multinational grocery and general merchandise retailer based in Welwyn Garden City, Hertfordshire, United Kingdom. Jack Cohen founded Tesco in 1919. Currently it is a biggest grocery market leader in the UK with a market share of around 31%. Tesco Plc is the second and third biggest grocery retailer worldwide measured by revenue and profit respectively. Initially, a retail grocery store in United Kingdom since 1990s by Tesco Plc has differential geographically and in areas as the retail sale of clothes, toys, books, gasoline, electronic, software, furniture, telecommunications, internet service and financial services. In 1990 saw the Tesco Plc reattached transferred than to be a down market high volume low cost retailer, to that addressed in several group in society, offering products ranging from “Tesco Value” data in “Tesco Finest” This enlargement of the recourse was winning and saw the chain grow 500 stores in the middle of 1990s to 2500 fifteen year beyond. Tesco Plc is listed on a stock exchange market and is included in FTSE 100. Market capitalization is around £18.100.000, such as at April 2015, 28th greatest from any company with a primordial listing on London Stock Exchange. The key issue company can face when choosing to operate under the cost model is that due to low profit margins grocery retailers become more vulnerable to external circumstances, such as financial crisis or natural disaster, and does not have sufficient capital to cover...
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...ITERNATIONAL BUSINESS AND STRATEGY ANALYSIS, TESCO By Basheer Mohamad Hassan Alkhatib Student Number:@00406850 This Assignement is submitted for Professor Dr. Alistair Benson Salford University August, 3rd, 2014 Contents 1. Introduction 2 2. Analysis of the International Market 2 2.1 PEST Analysis: Tesco in Brazil 2 2.2 Market Specific Issues 4 3. Industry Analysis: Brazil 4 3.1 Competitive Rivalry in the industry 5 3.2 Bargaining Power of Suppliers 5 3.3 Bargaining Power of Customers 5 3.4 Threat of New Entrants 5 3.5 Threat of Substitutes 6 4 Company Analysis: Tesco 6 4.1 Resource Based View: Tesco 6 4.2 SWOT Analysis: Tesco 8 5. CAGE Analysis 9 6. Conclusion 11 7. References 12 1.Introduction Tesco Plc is the second largest retailer in the world and currently operates in over 6000 stores worldwide (Tesco Annual Report, 2014: n.p). This report analyses Tesco as an organisation and proposes a potential market for international expansion. The aim of this report is to analyse the international market’s environment and then indicate a potential strategy for Tesco to enter the market. The report initially works towards the analysis of the new market’s macro environment to understand key aspects linked with the proposed business market. This is followed by an internal analysis of Tesco and an overall external analysis of the retail industry in the new market. A strategic approach to enter the new international market is then presented...
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...the retail environment a selected organisation faces In this assignment I will identify what competitive factors and changes Tesco faces in the retail sector and how it might respond to these under the following headings; retail environment using PESTEL, and competitive environment based on overcoming barriers to entry, pricing, new markets and mobile population. In this assignment I will be talking about how Porter’s five forces are being used by Tesco. By using PESTEL we can see the changeable environment in which Tesco functions. PESTEL Political Tesco operates in 14 different countries. Therefore its performance may be influenced by the local legislation and political factors. There are certain rules and regulations which must be followed by Tesco. Employment law is one of the laws which must be adhered to otherwise Tesco may be prosecuted for this. Tesco offer a variety of jobs like high flexible, low paid, highly skilled, high paid and local based jobs. Tesco also offer jobs to students, elderly people, disable people and mixed race people. The reason behind this is so that they follow the employment legislation and don’t break no laws. Tesco has been able to move over into China which has allowed them to break the barrier and move into the world’s most profitable market with over 1.3 billion people according to the Straits Times 2010. Tesco signed a settlement in 2009 which qualified them to set up stores in shopping malls in China. They opened 18 new markets in china...
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...(2) In this next point I hope to determine in detail all the characteristics of the UK economy, government fiscal and monetary policies and how each one effects on the Tesco PLC organisation. I plan to give a clear and comprehensive look into each of the factors which build the UK economy and analyse and evaluate with strong evidence of application to theory throughout the report. The UK has a democratic, parliamentary system of governance known as the Westminster system. The structure of the administration ensures that there is an adequate separation of powers between the executive branch, led by the prime minister, the bicameral legislature and the judiciary, and that there is a system of checks and balances in place. The current population of the UK is 64.1 million. The UK was one of the largest macroeconomics in the world. It was seen to be one of the strongest and most stable economies before 2007, however post 2008 economic deceleration began and the GDP growth rate fell to 0.7%. In 2008, the economy entered into a recession, with a predicted negative growth rate of -4.5% for the following year. (Data monitor Statistics) The current conservative government’s main economic aims are Economic growth with more goods and services produced in the economy, alongside low inflation, little unemployment with a Fair distribution of income. (HM Treasury) Taxation comes in two forms direct taxation (taxation on income and profits) and indirect taxation this is taxation on expenditure...
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...TESCO plc RELATIONSHIP MARKETING LECTURE: STUDENT: Shiilgee 2011 Question 1. How might the four types of relationship be applied by Tesco Plc and critically examine what benefits might occur from their pursuit of those relationship marketing strategies. Customer Relationship Tesco is in meeting customer needs, customizing service, ensure low prices, better choices, constant flow of in store promotions enables brands like Tesco to control and retain their customer base. Trust is a key variable in the establishment of a relationship and is the main antecedent to commitment. Trust is defined as “confidence in an exchange partner’s reliability and integrity” (Morgan and Hunt 1994) Tesco is high trust are highly valued by exchange participants. Thus, exchange participants are more willing to commit to a relationship. High trust in the sales consultant increases commitment to the sales consultant. Relationship commitment is defined in the literature as “an enduring desire to maintain a valued relationship” (Morgan and Hunt 1994, 23). The concept of commitment is new to business-to-business research, however, it has long been part of the social exchange literature (Morgan and Hunt 1994) Tesco’s commitment captures the to maintain a relationship with a particular vendor and reflects...
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...to all the people that helped to gave us the chance to go for this programme. Without forgeting a special Thanks to our English Teatcher M.EL FOUADI KAMAL for this opportunity. Last, but not least, we would like to thank our parents and family for supporting our stay in LONDON financially and emotionally. INTRODUCTION ...................................................................................................2 SECTION 1 : TESCO……………. .........................................................................4 1-BUSINESS DESCRIPTION…………. ......................................................5 2-HISTORY .................................................................................................6 3-CORE VALUES ......................................................................................7 4-VISION AND MISSION …........................................................................7 5-STRATEGY .............................................................................................8 6-PROFIT AND LOSS IN TESCO ..............................................................9...
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...MarketLine Case Study Tesco plc Case Study How Tesco Became the UK's Largest Retailer Reference Code: ML00001-041 Publication Date: December 2011 WWW.MARKETLINE.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED TESCO PLC CASE STUDY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00001-041/Published 12/2011 Page | 1 OVERVIEW Catalyst Tesco is the largest retailer in the UK and dominates the UK food and grocery market, accounting for almost a third of all grocery sales. This case study examines the factors that have led to the growth of the company as the UK’s number one retailer. Summary In 1995, Tesco overtook Sainsbury’s to become the UK’s largest retailer. Since that time the company has grown from strength to strength, widening its lead year on year. The unrivaled success of the Tesco Clubcard in building customer knowledge and generating loyalty has been fundamental to the rise of Tesco. The company has created a powerful brand and a number of valuable sub-brands including store, product and service brands. Tesco’s grocery product brands tend to center around a three-tier branding system, allowing the company to appeal to a mass market. Tesco has been a forerunner in the price competitive environment of the UK food and grocery market, utilizing its economies of scale to lead price wars with other supermarkets. The company has grown inorganically, buying out various independent grocers...
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...The global retail landscape is changing in some dramatic ways. Retail sales are currently improving. At the same time, competitiveness of both the U.S. retail and global marketplace is escalating. Whereas category dominant retailers were once the store of choice for a variety of products, chains like Wal-Mart, Carrefour, METRO Group, Tesco and Target have taken over in most categories ranging from toys to jewelry. As the world’s leading retailer, Wal-Mart has a formidable history of providing greater value to consumers than its competitors, in part due to its innovative supply chain management. French-based Carrefour, the world’s second largest retailer, operates five different formats in 30 countries (but not in the United States).1 Based in Germany, METRO Group is ranked fourth in global sales after Wal-Mart, Carrefour, and Tesco, and it operates four different types of retail formats in 32 countries (Table 1). Costco is the sixth largest retailer in the U.S. and the ninth largest in the world.2 It has developed a unique retailing strategy that has allowed it to outperform other warehouse club stores such as Sam’s Club. A critical component of their strategy is value-based pricing. They generally do not markup merchandise more than 14 %, compared to most supermarkets and department stores who markup products 25 and 50 %, respectively. They also create a lot of excitement by offering limited assortments of prestigious merchandise, such as Waterford Crystal,...
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...|TABLE OF CONTENTS | | | | | | | |Page no. | |Chapter 1 | |2 | |Chapter 2 | |3 - 8 | |2.1 | |3 | |2.2 | |3-4 | |2.3 | |4 | |2.4 | |4-5 | |2.5 | |5-6 | |2.6 | |6-7 | |2.7 | ...
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...Vision, values and business strategies S T R AT E G Y Introduction Tesco was founded in 1919 by Jack Cohen from a market stall in London’s East End. Today it is one of the largest retailers in the world. Tesco’s core business is retailing in the UK, which provides 60% of all sales and profits. Tesco has the widest range of food of any retailer in the UK. Its two main food brands are its Finest and Everyday Value ranges, each sell over £1 billion per year. The position of Tesco as a leading global brand is clearly illustrated by its expansion of operations into 12 countries including China, Czech Republic, India, Malaysia, Ireland, Hungary and Poland. In 2013 Tesco employed in excess of 530,000 colleagues. This level of success does not happen by chance. Tesco’s leaders have always set high standards and clear goals, never settling for anything less than the best. Tesco’s ‘Every Little Helps’ philosophy puts customers, communities and employees at the heart of everything it does. It prides itself on providing a great shopping experience for every customer it serves, whether in stores, online or in its many other service provisions. Tesco’s core values include a commitment to using its scale for good by being a responsible retailer. In 2010, it opened the world's first zero-carbon supermarket in Ramsey, Cambridgeshire and was awarded Green Retailer of the Year at the Annual Grocer Gold Awards 2012. Tesco aims to be a zero-carbon business by 2050. Tesco’s continuing success...
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...Case Study Terry Tesco’s Long Shelf Life Question # 3 The first weakness he mentioned was his “Irish Temper”. Explain and justify whether Terry Leahy has a bad temper or not. Answer: Terry Leahy doesn’t have a bad temper but he was demanding and ambitious that made him aggressive because according to him he had to deal with five, ten or thousand individuals who want to do something else. However, underneath Leahy was charming and warmhearted with good liverpudlian sense of humor. He had had an aggressive management style but this was ignored by his supervisors as according to one of his deputy chairman who supported his appointment says that: “An CEO has to have a spiky side to him. You can’t be nice to everybody all the time.” Question # 4 Is Terry Leahy really modest? How do you remain modest in spite of the success and the accolades? Does this man have no ego? Answer: Terry Leahy was a humble and modest person. His brothers left school at the age of 16. He admired his parents as they really work hard for him so that he could do his A-levels. Leahy has seen hard times in his life. According to him: “It’s undoubtedly the case that if you have nothing behind you or if you’ve seen hard times it develops in some people anyway, an insecurity and the basic motivation to put the past behind you.” Question # 5: What type of self concept does Terry Leahy have and how does it affect the business success? Does Terry Leahy Posses a Theory X and Theory Y attitudes? Answer: ...
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...8 8.0 Chapter Headings 9 9.0 Time Schedules 10 INTERIM REPORT: 1. Working Title An analysis of the relationship between corporate social performance and corporate reputation. The case of Tesco and its child education policies. 2. Background information: I chose to research in this area as I am interested in the PR area of business and the importance of reputation building to a company. I find it interesting that supermarkets are beginning to target children through their PR strategies and would like to find out their motives. 3. Nature of submitted work: Report. 4. Aims and objectives: AIM: To examine the impact of child education-based PR strategies carried out by British supermarkets. OBJECTIVES: - To investigate current issues surrounding PR strategies of UK supermarkets aimed towards child education. - To uncover opinions of the use of child education policies from the supermarkets, the schools and the general public. - To discover the extent to which Tesco’s reputation is based on its child education policies. 5. Initial literature review: Text Books: - Chun, R., Vinhas Da Silva, R., Roper, S. (2002) Corporate Reputation and Competitiveness. London: Routledge. This book gives a review of how reputation is managed at the present time, how useful it can be, and...
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...Walmart SWOT Analysis Strengths Scale of operations. Walmart is the largest retailer in the world with more than $400 billion in revenue and 10,130 stores. It makes Walmart the giant that no other retailer can match. Due to such large scale of operations, the corporate can exercise strong buyer power on suppliers to reduce the prices. It can also achieve higher economies of scale than competitors because of its size. Higher economies of scale results in lower prices that are passed to consumers. Competence in information systems. The corporate achieves significant cost savings because of its extensive information systems that tracks orders, inventory levels, sales and other related information in real time. All this information can be instantly accessed, analyzed and decisions made at each store. Effective management of supply chain and logistics is one of the most important factors for Walmart success. Wide range of products. Walmart can offer wider range of products than any other retailer. It sells grocery, entertainment, health and wellness, apparel and home related products among many other categories and offers both branded and own label goods. Wide range of products attracts more customers to Walmart stores. Cost leadership strategy. This strategy has helped Walmart to become the low cost leader in the retail market. This strategy requires selling products ant the lowest price possible and providing a no frill services to achieve higher economies of scale and attract...
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...Table of Contents 1.0 Introduction 2 2.0 Introduction of Porter Five Forces Framework 2 2.1 Threat of substitutes 3 2.2 Risk of entry by potential competitors 3 2.3 Bargaining power of buyers 4 2.4 Bargaining power of suppliers 4 2.5 Intensity Of Rivalry 5 3.0 Porter Five Forces on Chosen Organization 5 3.1 Threat of Substitutes 6 3.2 Risk of Entry By Potential Competitors 6 3.3 Bargaining Power of Buyers 6 3.4 Bargaining Power of Suppliers 7 3.5 Intensity of Rivalry 7 4.0 Conclusion 8 5.0 References 9 1.0 Introduction The word strategy came from the Greek word “strategos”, which mean a general. According to Capon (2008), “strategy in an understanding of the external environment and the resources available to compete in the external environment.” Meanwhile, Shekar (2009) defined strategy as “a systematic approach to positioning the business in relation to its environment to ensure continued success and total security.” Strategy and change management simultaneously adapt to the current situation so that the business can run in continuous success, both in short and long-term. 2.0 Introduction of Porter Five Forces Framework According to Henry (2011), Porter five forces framework is “a tool of analysis to assess the attractiveness of an industry based on the strength of five competitive forces.” In this framework, Porter argues that in order for a company to get greater income depends on this five forces, the stronger each forces will result...
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