...Wrigley, Neil; Lowe, Michelle and Cudworth, Katherine The Internationalisation of Tesco - new frontiers, new problems Wrigley, Neil; Lowe, Michelle and Cudworth, Katherine, (2014) "The Internationalisation of Tesco - new frontiers, new problems", Johnson, Gerry; Whittington, Richard; Scholes, Kevan; Angwin, Duncan and Regner, Patrick, Exploring Strategy: Text and cases, 657-661, Longman Scientific & Technical © Staff and students of the University of Worcester are reminded that copyright subsists in this extract and the work from which it was taken. This Digital Copy has been made under the terms of a CLA licence which allows you to: * access and download a copy; * print out a copy; Please note that this material is for use ONLY by students registered on the course of study as stated in the section below. All other staff and students are only entitled to browse the material and should not download and/or print out a copy. This Digital Copy and any digital or printed copy supplied to or made by you under the terms of this Licence are for use in connection with this Course of Study. You may retain such copies after the end of the course, but strictly for your own personal use. All copies (including electronic copies) shall include this Copyright Notice and shall be destroyed and/or deleted if and when required by the University of Worcester. Except as provided for by copyright law, no further copying, storage or distribution (including by e-mail) is permitted without the consent...
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...such as Samsung Group in South Korea (Samsung-Tesco Home plus), and Charoen Pokphand in Thailand (Tesco Lotus), appointing a very high proportion of local personnel to management positions. It also makes small acquisitions as part of its strategy for example, in its 2005/2006 financial year it made acquisitions in South Korea, one in Poland and one in Japan.[75] In late 2004 the amount of floorspace Tesco operated outside the United Kingdom surpassed the amount it had in its home market for the first time, although the United Kingdom still accounted for more than 75% of group revenue due to lower sales per unit area outside the UK. In September 2005 Tesco announced that it was selling its operations in Taiwan to Carrefour and purchasing Carrefour's stores in the Czech Republic and Slovakia. Both companies stated that they were concentrating their efforts in countries where they had strong market positions. The following table shows the number of stores, total store size in area and sales for Tesco's international operations. The store numbers and floor area figures are as at 23 February 2008 but the turnover figures are for the year ended 31 December 2005, except for the Republic of Ireland data, which is at 24 February 2007, like the UK figures. This information is taken from the 2007 final broker packPDF (94.2 KB). The information in the table was taken from Tesco Preliminary Results 2008/09 Additional Information.[76] Tesco re-entered the Irish market in 1997 after the...
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...from 3 major perspectives namely, operations strategy, operations design and operations management. Firstly, it will show an introduction. The second section will analyze Tesco’s formats and international expansion at corporate strategy level. And then, based on the customer-centric conception, it will discuss the low price policy, cost control, loyalty card strategy, supply chain management, delivery system management and inventory management at the business unit strategy level and functional strategy level. Following this, it will make a comprehensive conclusion and show the strengths and weakness of Tesco’ operations management. Finally, the article will give some appropriate recommendations to Tesco’s sustainable development. Keywords: operations strategy, operations design, operations management 1. Introduction Tesco was established by Jack Cohen in London in 1919. Today Tesco is the biggest retailer in UK. It operates in 14 countries across the world and serves tens of thousands of customers every day. The company mainly operates 4 types of store formats in terms of Express, Metro, Superstore and Extra, respectively. In recent years, it also expands its...
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...Marilynn Black Tesco Case Ashford University BUS620: Managerial Marketing (NAC1244A) Dr. Susan Sasiadek 11/05/12 Tesco is one of the world’s leading retailers with over 2100 supermarkets, in Europe, US and South East Asia. The group has interests in grocery, non-food items, financial services and telecommunications. It is committed to reducing prices for customers and offering the best value. It seeks to help customers spend less. In 2007, sales were £42,633.4 (mill) and it experienced sales growth of 21.9%. Tesco has over 400,000 employees (Tesco plc, 2010). Tesco Company has attributed an increase in performance and productivity to the use of this model (Tesco plc, 2010). Tesco is an international retailer with a global presence in over 14 countries and a major share of the UK retail market and a consumer base exceeding 260 million people (Child, 2002). Considering the utter size and operations of the organization, it is essential that it deploys a strong strategic performance management structure in order to improve and reinvent itself continuously. The recent financial crisis put Tesco under the pressure when its customers by seeking reduce its expenses switched to cheaper alternative supermarkets as Lidl, Asda and Aldi. According to the has poor results in this market segment, and in order to maintain their market share, the company has tackled the problem by releasing 400 low -cost new ranges of food and products on their shelves. Tesco had to change...
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...HOLY ANGEL UNIVERSITY Angeles City CASE STUDY: Submitted by: Aquino, Pauline Catherine Catajan, Nikka Camille Garcia, Mary Fe Yza Maniago, Lizette D. Nepomuceno, Anna Bettina S. Submitted to: Mrs. Maria Cristina Naguit September 01, 2014 Summary Tesco is the largest British retailer and is also the world's third largest grocery retailer with outlets across Europe, USA and Asia. The business began in 1919 with one man, Jack Cohen, selling groceries from a stall in the East End of London. Jack bought surplus stocks of tea from a company called T.E. Stockwell. T.E. Stockwell and Cohen combined their names to brand the tea Cohen originally sold TESCO tea. In 1929, the first Tesco store opened in north London. Tesco has expanded since then by a combination of acquisition of new stores, retail services and by adapting to the needs of consumers. Tesco has net profits (before tax) of around £3 billion. Tesco's primary aim is 'to serve the customer'. Keeping existing customers happy is important, as they are more likely to return. This is more cost effective for the business than acquiring new ones. In the UK Tesco now has over 2,200 stores ranging from the large Extra hypermarket style stores to small Tesco Express high street outlets. Tesco's original product range of grocery and general merchandise has diversified to include banking, insurance services, electrical goods as well as telephone equipment and airtime. This move towards 'one stop shopping' means...
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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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...Case Study of Tesco * Submitted by, Binoy Introduction Tesco was started by Jack Cohan. It was 1st opened at Edgware, North London in 1929. Initially Company had grown and reflected in Retailing. The company floated on the Stock exchange in 1947 with an initial price of 25 pounds. Strategies Implemented 1. The company makes the use of stamps that could be exchanges for cash or goods. So company could build customer loyalty. 2. Cohen’s another strategy was ‘Pile it high and sell it cheap’. 3. After that, they moved to out of towns and started store with more attractive interiors. 4. Another strategy that they had take up that they have started stores at petrol bunks. Overall they made a turn over of 1billion pounds in 1979. 5. In 1980’s they had started new stores and new initiatives to start some other business also. 6. In 1985 they announced healthy eating options with nutritional information and advice on some of branded foods. 7. In 1990’s they moved to undertake other major supermarkets as well. 8. They deal with pharmacies and make tie up with the Royal Bank of Scotland to provide EMI schemes to the customers and also overcome the profit of Levi’s outlet. 9. In the new century they have moved up with Shopping via Internet and home delivery 10. In 1933 through to its finest products as well as a brand called “Free from” for customers with special diatory needs. 11. They also expand their business in Japan...
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...Tesco Case 1. In 2007, Tesco decided to open a new chain of Fresh and Easy neighborhood grocery stores. In general, a Fresh and Easy is a general-merchandise retailer. It is a grocery store that sells high-quality fruits and vegetables, fresh meats, prepared meals under the store brand, and household staples carrying manufacturers’ brands. It’s size falls in between the size of a convenience store and the size a supermarket, and it also uses the strategy of a discount store by offering its products at lower prices. A Fresh and Easy is a mix between a convenience store and a supermarket that is able to offer its products at a low price. Since a Fresh and Easy combines the features of a few different retail stores and is fairly new, it must focus its marketing efforts on making its unique brand a household name. Also because of this, Fresh and Easy has a large amount and variety of competitors such as Target, Publix, and 7-11, and was on the right track by launching its first-ever ad campaign. Its marketing has to be devoted to advertising its name in as many places as possible to draw in people to its stores. Fresh and Easy must also market the competitive advantage it has to each type of retailer. It has products fresher than items at discount stores, it offers lower prices than a supermarket, and it offers more brands than a convenience store. Fresh and Easy is trying to fill a gap in the U.S. retail stores and has to continue to promote its name and uniqueness of fresh...
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...sTUDY ON tESCOUNLOCKING HUMAN RESOURCE MANAGEMENT CHAPTER 14: STRATEGIC HRM 14: Case study: Employee relations at Tesco Tesco is the largest multiple retail grocery supermarket stores group in the country, with over a quarter of the grocery retail market. It has a longstanding union recognition agreement with USDAW, the shop workers’ union, and the union claims density in stores of between 60−70 per cent. In 1998 the company signed a partnership agreement with the Union of Shop, Distributive and Allied Workers (USDAW), although this is currently under review, and has just signed a partnership agreement with the administrative arm of USDAW (SATA) for Tesco’s 600 call centre employees. In the mid 1990s Tesco began to see the benefits of trying to secure employee commitment through the process of involvement and communication, and established an Involvement Director who ensures compliance with legal developments in the employee relations field, including consultation and information. It was also concerned that existing union/management arrangements were not conducive to getting the best from staff. The changing external context and particularly the election of a Labour government committed to a partnership approach also influenced the company’s thinking in moving forward. The company saw annual pay negotiations with USDAW as symptomatic of adversarial-style industrial relations and wished to move away from this and the annual ballot on acceptance/rejection of any deal struck...
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...TESCO CASE STUDY ASSIGNMENT Training & Development October 29, 2013 HOW TRAINING AND DEVELOPMENT SUPPORTS BUSINESS GROWTH. 1. Explain the difference between training and development. How have changes in customer expectations affected Tesco and its need to train staff? Training is the process of instructing an employee in their new job so that she/he understands their role and responsibilities and learns to perform the tasks assigned to them so they can perform with ease and efficiency. Training makes an employee more productive for the organization and is concerned with their immediate improvement. Development is an ongoing process that continues beyond training. The focus of the development process is on the person themselves where the focus of training is on the organization. Development is concerned with the making the employee more productive for the future of the organization. Training is for short-term goals of the organization while Development is for the long-term goals of the organization. Customer expectations have changed to ‘one-stop shopping’. Tesco’s original product range of grocery and general stores have diversified to include banking, insurance services, electrical goods, and telephone equipment and airtime. This means customers can now have all their purchasing needs met in one place. Tesco’s aim to expand and diversify means they need to have right employees in the right place at the right time. As Tesco opened new stores in new...
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...Tesco goes Global Tesco goes Global International Business International Business Hugo Friedrich Hugo Friedrich ACP IBOM 2014 Spring Session ACP IBOM 2014 Spring Session Summary Introduction 3 Tesco’s international expansion began in developing countries 3 Tesco’s winning Strategy 3 Tesco’s know how for Joint Ventures 4 Innovate for winning a crowded market 5 Conclusion 6 References 6 Introduction Tesco is a multinational grocery and general merchandise retailer based mainly in the UK, Ireland, Europe and Asia founded in 1919 by Jack Cohen. Its turnover was € 80 billion in 2008. Tesco is the first group of British distribution (1,500 stores just in the UK) and the 3rd World group. Its work revolves around three areas: distribution in the UK, international distribution and financial services. This case is about Tesco’s International Growth Strategy, we will see why they decided to expand internationally, how they did it in developing and developed countries, which were the risks and which answer gave Tesco. Tesco’s international expansion began in developing countries When a firm decides to expand internationally, it has to take decisions like which market to enter, when and which entry mode to use. Tesco respected one of the most important rules in international Business, to not internationalize until they do not have a good position and control of their situation on their own market. As the company...
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...MANTRA FOR FUTURE SUCCESS IN RETAIL INDUSTRY? A CASE STUDY OF TESCO’S SUCCESS IN KOREAN RETAIL INDUSTRY Dipanjay Bhalerao Assistant Professor, Indira Institute of Management, Pune Email: dipanjay.bhalerao@indiraiimp.edu.in INTRODUCTION Today’s exponentially growing retail market of around USD 15 trillion (2011) is worth watching as lots of new practices and strategies are being adopted by the retailers around the world. Today there is an increasing need for every giant company to look for the emerging economies for growth. But in that growth pursuit are they slipping from the home grounds or the established markets! Also when the retail company enters into new established markets for expansion, they need to do something innovative which also suits those markets. So what should the retailers do to balance the growth of the established & emerging economies for the expansion! What provokes this thought is Tesco’s rare success in the Korean market. Why to call it rare! As Korea is the retail market where the Retail Giants like Carrefour had bowed to the knees in the battle of retail with the Korean retailer E- Mart, Lotte, the Market Retailer of Korea. Knowing such a market back ground Tesco did something, which stormed the market & brought Tesco into the big league of Korea. Before going into what Tesco did, let’s learn about Tesco and the Korean retail battle ground in light of the global retail scenario. Tesco History Tesco was founded in 1919 by Jack Cohen from a market stall...
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...Task 1 Tesco is a well-known retail supermarket in the UK as well as almost in the world as it has become the third largest retailer in the world. It has stores 12 countries across Europe, Asia, and North America. Retailing is really a competitive industry as the competitors are in all over the world, such as ASDA, ICELAND, Sainsbury’s, Waitrose, German Aldi, US Warmart, and many other local retailers. The success is the effective leadership and management. Tesco’s leaders have always set high satndards and clear goals, never setting anything less than the best (The times 100). As a global company, Tesco always looks at and respects the strengths from other competitors and tries to learn and bring them on board as quick as they can to become they own strengths. Tesco has employed both the differentiation strategy and the low price strategy in the past. According to Poter (2008), cost leadership means having the lowest cost per unit among its rivals in the highly competitive industries, which in the case, returns will be low but nonetheless higher than others. The differentiation strategy is to be outstanding in this industry with a number of dimensions that are broadly valued by customers, employees. Tesco sells a no frills commodity and it is way above a standard business in this industry. In turn, it keeps customers satisfied with their shopping experience and loyal. Loyalty is what benefit do you create for somebody and in return for the benefit hey will repay you...
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...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...
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...on Tesco plc Tesco is the biggest supermarket in the United Kingdom; it now takes every £1 of every £8 spent in UK shops. The company has become increasingly dominant and has expanded into the convenience store and hypermarket sectors of retailing. Because of this Tesco has recently received a lot of criticism over its activities, which is of great interest to all of Tesco’s stakeholders. Friends of the Earth (FOE) are a pressure group who point to Tesco’s policies of buying up large amounts of land in order to build new stores, the history of fighting battles with local authorities over planning and how it has bought the company’s brand into the high street through its purchase of small convenience stores. The opposition voiced by FOE is summarised in its report that ‘calling the shot: How supermarket get their way in planning decisions’. FOE is a stakeholder that is capable of exerting considerable influence over its customers’ interests. Many local governments have expressed concern about the future impact of major supermarkets on their communities, but they are often unable to do anything about these concerns because the planning system and the strength of the supermarkets are against them. Tesco also face resistance from smaller pressure groups, a good example of this is an online group called ‘Tescopoly’, which is aimed at exposing and limiting what they see as the market-distorting power of the company’s business. This campaign group points to cases where Tesco has...
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