Among world’s largest retail company Tesco is one of the most successful company which is operating its business in 14 nations employing more than 490000 people. Tesco has a revenue of 54bn GBP and operates 4331 stores around globe which has more than millions of customer visiting weekly (Tesco financial report, 2011). These retail giant was first started 1919 by Jack Cohen who had a stall in east London and used to sell groceries. He sold Tesco tea which was his first own branded product in 1920 and it was named with the initials of his tea supplier Mr. T E Stockwell and his own surname Cohen which together brought the famous name of retail industry now TESCO. Jack went to USA and saw the self service retail store and had a plan to start something like this, so he had lobbing with the parliament and managed to pass the retail price marketing law by which a retailer could set his own price for any product, so with the benefit of the retail price maintenance strategy he started his first self service supermarket in 1956 and from then no one could stop the growth of TESCO, now TESCO has seven categories of retail stores, bank, telecom, petrol stations and gas station, film making, record label, gold exchange ,Tesco tire, technological support etc companies running successfully all over UK and around the globe. At present in 2011 Tesco has revenue of 9192 million gbp in Europe 10278 million gbp in Asia with 2082 stores in Europe and 1419 stores in Asia; it also has a franchise agreement with the Trent (Tata group) in India for supporting their Star Bazaar format ( History, Tesco 2011 ). Vision of TESCO PLC:
Tesco is a business which has been built with tremendous valuable assets of customers, highly motivated employees and several modes of opportunities. So the management of Tesco just continues the growth of the business along with some changes in the strategy for the business as Tesco has always believed “As customer change, So must Tesco” The CEO, Philip Clarke has proposed the vision statement of Tesco in march 2011(Chief Executive’s Review, Tesco 2011), the new CEO confirms that there will be no major change in the business and the core purpose. His visions for Tesco are: * To be the most valued business across the globe. Tesco want to be highly regarded and esteemed by the customers, the people of the community they serve, the employees who puts their loyal efforts for the company, and most importantly the shareholders. * Win locally by applying the skills globally. The CEO feels retailing is more like a local operation so the skills are to be utilized in all the business that Tesco operates so that the customers gets benefitted and Tesco also gains a competitive advantage around the world. * To be an Innovative and a Modern company. Tesco wants to be the most innovative company by adopting all the changes for the customers and give the customer a better and convenient service in all of their business. Online retailing and green retailing are one of the few movements for this initiative.
* Growth Company. Tesco wants to remain as a growing company and wants to continue its growth in UK and all over the world the way it is now. As per the final annual report of 2011 it has been identified that two third of the profit comes from the market based outside UK.
Corporate objective of Tesco:
* To deliver customers with the most value for money and providing the cheapest price possible for any product. * Fulfilling customer demands by obtaining and acting on the suggestions for the innovation, product trait, store facilities and customer service. * Ensuring better return to the stakeholders by efficient investment on the profit making stores and supply chain, in productivity and improvement of technological features. * Build a close relationship with the distribution channel and the suppliers so that there can be a long term...