...ntroduction This report is aimed at critically analysing the macro, meso and micro business environment of Tesco, one of the largest food and grocery retailers in the world, operating around 4,331 stores. Strategic evaluation tools such as PESTEL, Porter’s Five Forces, SWOT and Value Chain analysis have been used by researchers in order to achieve this aim. Tesco – Company Overview Tesco is among the largest food retailers in the world with revenue in excess of £54 billion in 2009 and employing over 470,000 people . They operate approximately 4,331 stores in 14 countries around the world. The company operates primarily in the USA, Europe and Asia and their Head Office is based in Hertfordshire, UK. According to Datamonitor (2010), the commercial network portfolio of Tesco comprises : over 960 Express stores which sell approximately 7,000 products including fresh foods at suitable localities ; 170 Metro stores which sell a variety of food products in town and city centres; and 450 superstores which sell both food and non-food items including books and DVDs. Tesco also provides online retailing services through their website tesco.com and Tesco Direct . In addition, they provide broadband I nternet connections and financial services through Tesco Personal Finance (TPF). Tesco was founded in 1919 and launched its first store in Edgware, London, UK in 1929 (Tesco, 2010); however, over the decades it has evolved to become the market leader within the UK food retail segment (Datamonitor...
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...SWOT, PESTEL, Porter's Five Forces and Value Chain Analysis of Tesco Introduction This report is aimed at critically analyzing the macro, meso and micro business environment of Tesco, one of the largest food and grocery retailers in the world, operating around 4,331 stores. Strategic evaluation tools such as PESTEL, Porter’s Five Forces, SWOT and Value Chain analysis have been used by researchers in order to achieve this aim. Tesco – Company Overview Tesco is among the largest food retailers in the world with revenue in excess of £54 billion in 2009 and employing over 470,000 people. They operate approximately 4,331 stores in 14 countries around the world. The company operates primarily in the USA, Europe and Asia and their Head Office is based in Hertfordshire, UK. According to Datamonitor (2010), the commercial network portfolio of Tesco comprises : over 960 Express stores which sell approximately 7,000 products including fresh foods at suitable localities ; 170 Metro stores which sell a variety of food products in town and city centres; and 450 superstores which sell both food and non-food items including books and DVDs. Tesco also provides online retailing services through their website tesco.com and Tesco Direct . In addition, they provide broadband I nternet connections and financial services through Tesco Personal Finance (TPF). Tesco was founded in 1919 and launched its first store in Edgware, London, UK in 1929 (Tesco, 2010); however, over the decades it has evolved...
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...Introduction of Organization: Assignment is based on two Firms that is BP and Shell. To analyses the strategic business units (SBUs) of BP Solar and Shell Renewables within the alternative energy industry, which are part of British Petroleum (BP) and Royal/Dutch Shell Group (Shell), the world's second and third largest energy companies? Environmental analysis highlights the increasing volatility of the global energy market, which is driven by factors including demographics, urbanisation, income levels, market liberalisation and demand. What Does Macro Environment Mean? The conditions that exist in the economy as a whole, rather than in a particular sector or region. In general, the macro environment will include trends in gross domestic product (GDP), inflation, employment, spending, and monetary and fiscal policy. The macro environment is closely linked to the general business cycle, as opposed to the performance of an individual business sector. (www.investopedia.com ) Major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies. These factors include the economic, demographics, legal, political, and social conditions, technological changes, and natural forces. Factors that influence a company's or product's development but that are outside of the company's control. For example, the macro environment could include competitors, changes in interest rates, changes in cultural tastes, or government...
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...Competitve Analysis for Tesco. Introduction This is a group report for the 221BSS Business Management module. The purpose of this report is to look at an organisation in an industry and complete a stragetic analysis for the chosen organisation. The organisation that we chose was Tesco and we decided to carry out a competitve analysis, recommending a suitable course of action bearing in mind the possible implementation difficulties. Primary Research. There were two parts to the primary research we carried out. We conducted both questionnaires and a focus group. The questionnaires was given out to people at random to find out which supermarkets they visit, why and what would encourage them to start shopping at Tesco. The results came from a variety of people giving an almost equal amount of males and females (see fig.1), although most of the results were from residents in Coventry. As Coventry has two universities a lot of the people who were questioned were people aged 18-30 (see fig.2). The results of the questionnaire showed that the vast majority of people shopped at Tesco and Sainsbury’s (see fig.3). Asda is Tesco’s main competitor and was amongst the supermarkets people least visited despite it being voted the cheapest supermarket for over a decade. This could possibly be because Asda does not satisfy all the main reasons people look for in a supermarket. The results showed the main reason people chose a supermarket was because of its location which may be because...
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...COMPANY PROFILE Tesco PLC REFERENCE CODE: 34972414-9A41-4048-A7B6-1B0017054743 PUBLICATION DATE: 7 Feb 2013 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED. Tesco PLC TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..............................................................................................3 Key Facts...............................................................................................................3 SWOT Analysis.....................................................................................................4 Tesco PLC © MarketLine Page 2 Tesco PLC Company Overview COMPANY OVERVIEW Tesco PLC (Tesco or ‘the company’) is a food and grocery retailer. The company primarily operates in Europe and Asia. It is headquartered in Hertfordshire, the UK, and employed 519,671 people, on an average, in FY2012. The company recorded revenues of £64,539 million (approximately $103,223.7 million) in the financial year ended February 2012 (FY2012), an increase of 6.8% over FY2011. The operating profit of Tesco was £3,985 million (approximately $6,373.6 million) in FY2012, an increase of 1.7% over FY2011. The net profit was £2,806 million (approximately $4,487.9 million) in FY2012, an increase of 5.7% over FY2011. KEY FACTS Head Office Tesco PLC Tesco House Delamare Road Cheshunt Hertfordshire EN8 9SL GBR 44 1992 632222 Phone Fax Web Address http://www...
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...Competitors Strategic Groups Core Competencies Resource Based View Activity Based View Five Forces Model & Value Net SWOT Analysis Adoption Of Strategies Financial analysis & Recommendation 2 2 3 4 5 6 7 8 9 10 11 Industry Overview U.K 11% of all VAT-registered businesses in the UK are retailers. 70% of UK retail is Organized and 30% is Unorganized. The retail sector generates almost 8% of the Gross Domestic Product of the UK. The retail industry employed 2.9 million people, as at the end of September 20. Supermarkets dominate the UK food retail market, with 56.0% of sales. 3 Company overview Tesco¶s is a United Kingdom based international supermarket chain. It is the largest British retailer both by global sales and by domestic market share. Established in 1924. Tesco is the third-largest retailer in the world next to Wal-Mart, Carrefour and is operating around 2,440 stores and employing over 4,00,000 people www.Tesco.com is recognized as the world¶s largest online grocer, with a customer base of little less than 1 million and more than 250,000 orders a week. Tesco¶s market share of UK retailing is 12.5%. 4 Company overview Tesco has moved into areas such as clothes, consumer electronics, consumer financial services, internet services, consumer telecoms and gas stations. Tesco now controls over 30% of the grocery market in U.K. As of March 2008, Tesco have a store in every postcode of the UK. 1960 1970 1980 1960 2000 5 Competitors Competitors ASDA Group...
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...CONTENTS PAGE 1. Introduction 2 2. Strategies of Waitrose 3 3. Value Chain of Waitrose 3 4. SWOT analysis of Waitrose 10 5. Conclusion 12 6. Recommendation 13 7. Reference List 14 Internal sources of competitive advantage in Waitrose 1. Introduction: Waitrose is a chain of up-supermarkets as grocery retailer in the United Kingdom. Waitrose was found by Wallace Waite, David Taylor, and Arthur Rose in 1904. In 1908, "Waitrose" as a grocery store name was formed. Waitrose including 10 grocery stores and 160 employees has been acquired by the John Lewis Partnership that is a famous UK retailer owned by its employees since 1937. (Oppapers, 25th April 2008) In 1955, the first Waitrose supermarket was set up. Now Waitrose is the sixth largest supermarket in UK that has 241 branches, 18,000 stock lines, and owns about 4.3% grocery market share in UK. Waitrose has a very good reputation and image because its products are quality, freshness, provenance, and safety, its good customer service, and good home delivery service that are the reasons why there are lots of loyal customers and new customers. (John Lewis Partnership, 2010) Waitrose supermarket is a luxurious supermarket because it provides...
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...UNIT 17: MARKETING INTELLIGENCE Written By: LO1: UNDERSTAND BUYER BEHAVIOUR AND PURCHASE MAKING DECISION 1.1 Describe the main stages of the purchase decision-making process for an individual consumer (i.e. business-to-consumer) Buyer Behaviour and Decision Making Process Customers go through five stages of decision making process in any kind of purchase. The diagram below summarises it. The above model is essential in making marketing decisions. Customer buying process starts with “Need Recognition”, in which buyer identify a need or a problem (hungry, fever). Some times in these stage customers respond to a marketing stimulus (aroma of chocolate muffins and coffee while passing the coffee shop). The next stage is “Information search” in this stage if the need is very strong then customers do not search a lot of information and buy product or service close to hand, if not then customers obtain information from family, friends, neighbours, advertising, TV, radio, retailers or by handling and examining or even testing. In the third stage “Evaluation of alternative” customers uses the information gathered and chooses between alternative brands, products or services. After evaluation, customer makes the purchase. The last stage is “Post-Purchase Evaluation”, this stage make a customer feel either satisfied or dissatisfied with the purchase, if customer feels satisfaction then they will stick to the brand, product or service in not then they will switch to...
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...Before performing a specific SWOT analysis it is often useful to perform a SCAN (strategic creative analysis), or similar objective setting analysis. Objectives vary between companies. For instance, many companies 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...
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...Content: Background of Tesco---------------------------------------- Marketing objective----------------------------------------- Marketing strategy------------------------------------------ Marketing mix Product---------------------------------------------- Price-------------------------------------------------- Place-------------------------------------------------- Promotion------------------------------------------- Market segmentation--------------------------------------- SWOT analysis------------------------------------------------- PEST analysis--------------------------------------------------- Conclusion------------------------------------------------------ Background of Tesco: Nowadays, Tesco is the third retailers after Wal-Mark and Carrefour around the world. In 1919, Jack Cohen founded the first Tesco that is a market stall in London’s East End. Nevertheless, Tesco has become a big company and operate in 14 countries in the world. Employ over 500000 staff and serve tens of millions of customers every week. We have been committed to providing the best shopping experience. Today we continue to focus on doing the right thing for our customers, colleagues and the communities we serve. Nowadays, Tesco has about 4800 stores around the world and 3054 stores in UK that meant you can see Tesco in each UK city or town. By the way Tesco slogan which is “Every little helps”. Marketing objective: Marketing objective is...
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...Introduction Tesco is a British multinational grocery and general merchandise retailer headquartered in Cheshunt, Hertfordshire, England, United Kingdom. It is the third largest retailer in the world measured by profits and second largest retailer in the world measured by revenues. It has stores in 12 countries across Asia and Europe and is the grocery market leader in the UK (where it has a market share of around 28.4%), Ireland, Hungary, Malaysia and Thailand. Tesco was founded in 1919 by Jack Cohen as a group of market stalls. The Tesco name first appeared in 1924, after Cohen purchased a shipment of tea from T. E. Stockwell and combined those initials with the first two letters of his surname, and the first Tesco store opened in 1929 in Burnt Oak, Barnet. His business expanded rapidly, and by 1939 he had over 100 Tesco stores across the country. Originally a UK-focused grocery retailer, since the early 1990s Tesco has increasingly diversified geographically and into areas such as the retailing of books, clothing, electronics, furniture, toys, petrol and software; financial services; telecoms and internet services. The 1990s saw Tesco reposition itself, from its perception as a down market "pile 'em high, sell 'em cheap" retailer, to one which appeals across a wide social group, from its Tesco Value (launched 1993) to its Tesco Finest ranges. This was successful, and saw the chain grow from 500 stores in the mid-1990s to 2,500 stores fifteen years later. Overview...
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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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...TESCO PLC is a British multinational grocery and general merchandise retailer. It is a third largest retailer in the world. It has stores in 12 countries across Asia and Europe and is the grocery market leader in the UK, Ireland, Hungary, Malaysia, and Thailand. Mission Tesco’s business was built with a simple mission – to be the champion for customers, helping them to enjoy a better quality of life and an easier way of living. This hasn’t changed. Customers want great products at great value which they can buy easily and it’s Tesco job to deliver this in the right way for them. That’s why we’ve chosen ‘Serving Britain’s shoppers a little better every day’ as the new core purpose. As a business, serving customers is at the heart of everything we do – from colleagues in its stores to those of its in supporting roles. In the UK, Tesco serve some 66 shoppers every second, so it’s Tesco goal to ensure every one of those customers experiences just a little better service on each visit. PESTLE Using PESTLE analysis to analyse to business environment of Tesco. Political Many governments encourage retailers to create more career opportunities for the domestic population. So Tesco plays its role in providing employment opportunities, it also increases the demand for its products and diversifies its workforce. Economic Tesco is concerning any changing in policies, such as taxation. Although Tesco is growing internationally, it is still concern the UK market where it has...
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...the company Tesco PLC that is UK’s leading grocery store. The aim of this report is to develop a three-year marketing strategy plan and a one-year tactical communication plan for Tesco. Tesco at some stage has faced difficulty hence by exploring the brand and critically analyzing its marketing strategy, I will then develop a strategy that would turn Tesco’s fortune around. 1.1. Methodology Market research for the brand has been conducted through secondary research by visiting academic websites such as Mintel, Database reports,LexisNexis Database, Business reports, Articles, Blogs and News online. 1.2. History Tesco PLC is a multinational grocery and general merchandise retailer headquartered in Cheshunt, Hertfordshire, England, United Kingdom. It is the third largest retailer in the world measured by profits and second-largest retailer in the world measured by revenues. It has stores in 12 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), the Republic of Ireland, Malaysia, and Thailand. Jack Cohen founded Tesco in 1919 as a group of market stalls. The Tesco name first appeared in 1924, after Cohen purchased a shipment of tea from T. E. Stockwell and combined those initials with the first two letters of his surname, and the first Tesco store opened in 1929 in Burnt Oak, Middlesex. His business expanded rapidly, and by 1939 he had over 100 Tesco stores across the country. (TESCO PLC, 2015) ...
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...SWOT ANALYSIS STRENGTH: Tesco has become the largest brick and mortar grocery chain in the U.K. Tesco had grown from stride to stride to become the largest brick and mortar grocery chain in the U.K. In 1995 it overtook the venerable Sainsbury’s, an entrenched leader in the market since the late 1800s. Since then, there had been no looking back for Tesco. For the fiscal year 2000, Tesco reported sales of £18.7 billion and net income of £1 billion, an increase of 11%. Much of this meteoric growth resulted from a combination of astute real estate planning, excellent location strategy, creative execution of multiple format stores and above all its ability to keep pace with prevailing customer trends. To become a market leader a company has to obtain a proper planning. Location is a very important factor in the success of an organization. It is very important to choose it wisely. If a company has multiple stores its customer accessibility will be increased. It will be very easy for customers to go to the stores if there are many outlets. The level of customer satisfaction will also be increased. Tesco serves its customers with cheap price and best quality.. “Pile it high and sell it cheap” was the slogan that launched Tesco and the company was leaving no stone unturned to offer its customers the best value for their money Tesco introduced a variety of innovative practices that have increased efficiency and reduced operating cost over the...
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