Corporate Strategy of Tesco
{draw:frame} An evaluation of Tesco’s competitive position within the food industry market. Corporate strategy ASB-4004. December the 14th 2009. Shahbaz Ansari- abpa40, 500 200603
Word count- 3300 excluding references, appendices, and tables. Contents page Introduction P3 History P3 Business strategy P3 Corporate strategy P3 Company values P3 Value chain P4 Joint Ventures and Mergers and Acquisitions P4 PESTEL analysis P5 Competitors P7 Figure 1: Tesco’s main competitors P7 Figure 2: Ansoff matrix for Tesco’s marketing strategy P8 Figure 3: Tesco’s sub-bran poisition in the United Kingdom P9 Figure 4: Tesco’s competition in the UK P10 Figure 5: Tesco’s internal competition P10 Core competencies P11 Human Resource P12 Recommendations P13 Conclusions P14 References P15 Appendices P17 Appendix 1: Retail Competitors Analysis by Mintel P17 Appendix 2: Leading UK food retailers, market shares, 2008 P18 Appendix 3: Tesco UK store formats, 2008/09 P 19 Introduction The company that our group has chosen to analyse is Tesco. Tesco was founded in 1919 by Jack Cohen who began his new venture by selling surplus groceries from a stall in the east end of London; One his first day he made £1 profit and £4 of sales (Tescoplc.com [history]). Tesco has come a long way since then and is now one of the largest food retailers in the world, operating around 2,318 stores and employing over 326,000 people. Not only has Tesco managed to monopolise the food sector, they have also diversified into a number of other sectors, some of which being insurance, mobile networks, clothing, and electronics. However, this report shall have a focus of the food sector in the United Kingdom. Albeit that Tesco has 2,200 stores locally, it is categorised as operating in a globalised environment. Currently Tesco has stores in seven European countries; the United Kingdom, Poland, Hungary, Turkey, Slovakia, Czech Republic, and the Republic of
Word count- 3300 excluding references, appendices, and tables. Contents page Introduction P3 History P3 Business strategy P3 Corporate strategy P3 Company values P3 Value chain P4 Joint Ventures and Mergers and Acquisitions P4 PESTEL analysis P5 Competitors P7 Figure 1: Tesco’s main competitors P7 Figure 2: Ansoff matrix for Tesco’s marketing strategy P8 Figure 3: Tesco’s sub-bran poisition in the United Kingdom P9 Figure 4: Tesco’s competition in the UK P10 Figure 5: Tesco’s internal competition P10 Core competencies P11 Human Resource P12 Recommendations P13 Conclusions P14 References P15 Appendices P17 Appendix 1: Retail Competitors Analysis by Mintel P17 Appendix 2: Leading UK food retailers, market shares, 2008 P18 Appendix 3: Tesco UK store formats, 2008/09 P 19 Introduction The company that our group has chosen to analyse is Tesco. Tesco was founded in 1919 by Jack Cohen who began his new venture by selling surplus groceries from a stall in the east end of London; One his first day he made £1 profit and £4 of sales (Tescoplc.com [history]). Tesco has come a long way since then and is now one of the largest food retailers in the world, operating around 2,318 stores and employing over 326,000 people. Not only has Tesco managed to monopolise the food sector, they have also diversified into a number of other sectors, some of which being insurance, mobile networks, clothing, and electronics. However, this report shall have a focus of the food sector in the United Kingdom. Albeit that Tesco has 2,200 stores locally, it is categorised as operating in a globalised environment. Currently Tesco has stores in seven European countries; the United Kingdom, Poland, Hungary, Turkey, Slovakia, Czech Republic, and the Republic of
References: Armstrong, M (2005) (9th Edition) A Handbook of Human Resource Management Practice Kogan Page, London Assen, M., V., Van den Berg, G., and Pietersma., P Balchin A. (1994) Part-time workers in the multiple retail sector: small change from employment protection legislation?, Employee Relations, Vol. 16 Issue 7, pp.43-57. Beardwell, J and Claydon, T Bradley, F. (2003) “Building competitive brands”, Strategic Marketing in the customer driven organization, 1st Edition, London: John Wiley & Sons Ltd Press Kotler, P and Keller, K., L Kollewe, J. (2004) cited at http://www.independent.co.uk/news/business/news/tesco-raises-stake-in-korean-venture-544724.html Marchington, M. & Wilkinson, A. (1996) Core Personnel and Development IPD Publishing, London. Mintel report Mintel International Group Ltd (2008) Food Retailing, UK, November 2008 (Nov 2008). http://0-academic.mintel.com.unicat.bangor.ac.uk/sinatra/oxygen_academic/search_results/show&/display/id=395621/display/id=280627 Mintel International Group Ltd (2009) Food Retailing, UK, _November 2009 _(Nov 2009) http://0-academic.mintel.com.unicat.bangor.ac.uk/sinatra/oxygen_academic/search_results/show&/display/id=395621/display/id=280627/display/id=395621 Mullins, L (2005) (7th Edition) Management and Organisational Behaviour Prentice Hall, Pearson Education, Edinburgh Office of national statistics cited in http://www.statistics.gov.uk/cci/nugget.asp?ID=12 Palmer, A. & Worthington, I. (1992) “Marketing: an overview”, The Business and Marketing Environment, 1st Edition, London: McGraw Hill Press. Porter, M., E (1980) cited in Johnson, G Tesco press release. (2009) Tesco introduces “buy one get one free- later” in global zero- carbon push, cited in http://www.tescoplc.com/plc/media/pr/pr2009/2009-10-16a/. Tesco press release Walker, R (2008) cited in http://www.businessweek.com/globalbiz/content/may2008/gb20080515_424119.htm Appendix 1: Retail Competitors Analysis by Mintel. Appendix 2: Leading UK food retailers, market shares, 2008 (Source: Food Retailing 2008, Mintel Website) Appendix 3: Tesco UK store formats, 2008/09