Tesco PLC: Fresh & Easy in the United States
Case Assignment Questions
1. Why has Tesco been so successful?
Tesco’s success can be attributed to the efforts of its leaders over the years. Between Jack Cohen and Terry Leahy, the adoption of newer techniques in the grocery and convenience store industry gave Tesco a competitive advantage. The two learned how to introduce new styles of managing for the enjoyment of the consumer. The two leaders shaped the path for success when they gave consumers a more positive experience in the Tesco stores all over the world. Jack Cohen started off as a small grocery stall owner but quickly expanded into the owner of a few grocery stores in the UK after WWI. His travels to the US revealed a different kind of approach to consumers; consumer-centricism. Consumers had to choice to walk through the store and look at the products offered. By adopting this approach in his own stores, Cohen attracted more customers that led to more stores. Self-service was a huge hit in the UK and Tesco thrived on opening new types of stores as well. Tesco Express was a store that was much smaller yet was tailored to the needs of local neighborhoods. Cohen had started the company off with success and innovation. Terry Leavy took over the reins in the 1990s, after a huge financial downturn in the 80s. His plan was to stay on track with Cohen’s tailoring approach which head led the company to big success before. Leavy believed that different types of stores that fit different communities were the key. People had different needs in different areas, city life and suburban life were very different and Tesco had to work with both. Leavy had coined this tailoring approach “The Tesco Way” because Tesco focused so much on different target groups by designing different types of stores to meet consumer needs. Tesco Express, Tesco Metro, Tesco Superstore, Tesco Extra, and Tesco Homeplus were all examples of how...