• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Case Study: Tesco and Dobbies. Analyse the benefits to Tesco taking over Dobbies.

Extracts from this document...


Pg. 537 Case Study: Tesco and Dobbies (a) How will James Barnes benefit from the takeover of Dobbies? The sale will net a windfall of 10 million (pounds) for James Barnes (the chief executive of Dobbies). He owns 6.7 per cent of the company and his father and sister own another 2 per cent. (3) (b) (i) Explain the affect on Dobbies' share price of the Tesco bid. In June 2007, Tesco paid 15 (pounds) a share for the Scottish garden centers chain. By observing figure 3 we can see that since the start of April 2007, there is a significant increase in the price of the Dobbies share price. The reason for this is probably because a change in demand, the price of a share always depends on demand. ...read more.


I believe that if they had waited some time more before announcing that they weren't interested, the share price would have increased even more. (4) (c) To what extent will Tesco be able to exploit economies of scale as a result of the takeover? I don't believe that Tesco will be able to really exploit economies of scale, as I don't believe that the real motive of the takeover was to enjoy of economies of scale. I think the principle motive was to diversify, as like this, they reduce risks. Tesco and Dobbies wouldn't be really able to buy in bulk, as they sell really different things, Tesco is in the grocery sector and Dobbies is in the garden sector. ...read more.


due to large competition and as a result they tried to explore new and different opportunities, and this was Dobbies, as they are in an already attractive and growing market. Tesco said that the acquisition of Dobbies would give it access to a market for which it was not catering at present and it reflected a strategy of developing the company's non-food operations. Andrew Higginson, the Tesco finance director, said that the supermarket saw potential to expand the range of environmentally-friendly products in Dobbies, adding that it offered a 'big emerging market' in consumer spending. Overall I believe that Tesco did a good deal taking over Dobbies, asd it is the UK's third largest garden center chain, with 21 store based mainly in Scotland and the north of England. (8) Silvia Sans Y-12 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. Case Study: BMW 's New Oxford Way

    Finally, these changes contributed to savings of more than 6.3 million pounds over a 12 month period. d) Discuss to what extent empowerment is necessary for the success of the Wings system. BMW empowered it employees because it decisions that were delegated would be more successful if employees were empowered.

  2. Walt Disney: Case study

    For demonstration, if the ascribed charges are high sufficient, the clients would gaze for other entertainment. Since Walt Disney presents services, where value is a variable, the purchasers demeanour should be discover and the business procedures modified often to persuade customers.

  1. In this paper, we will study the case of Intel, a semiconductor chip maker, ...

    June 2007, with the goal of building awareness and encouraging the use of more efficient components and power management features to reduce computer-related CO2 emissions. The initiative is unique in that it unites industry, consumers, government, and conservation organizations - securing commitments from manufacturers to produce and sell more energy-efficient product and encouraging consumers to purchase computer with better efficiencies.

  2. Case Study of Reach Out, a business providing therapy to children with autism.

    The diagram below illustrates this kind of structure: ________________ 1. Conflict: Conflict refers to a situation of friction or mutually exclusive goals between two or more parties, such as employees and employers. They are caused by disagreements or incompatibilities between groups and result in lack of cooperation.

  1. Should easyJet further penetrate the market for air travel between the UK and Greece? ...

    Years Payback Period ?Hellas Jet Acquisition? 1 year and 23 days Source: Author Non-finacial Analysis In order for easyJet plc. to decide the best path to its future development, it is necessary to explore also the non-financial factors that influence this decision making process and evaluation.

  2. Questions on Globalisation and International Trade

    and also describe the key differences and similarities of the countries along these dimensions. Relating the differences between the countries along these dimensions to differences in the costs of doing business, the potential for economic development, and business practices would fully answer the question.

  1. Case Study on Alibabas Taobao

    Critical mass would eventually attract revenue-generating activities, such as online advertisements. Taobao also presented itself as very much a Chinese enterprise. For instance, the screen names of online moderators were derived from characters in popular Chinese kung-fu novels. Next, Taobao aimed to be more innovative than Ebay in customer service.

  2. Introduction to e-commerce. Benefits, risks and legislation.

    Hardware devices and how they support e-commerce business: - Mobile devices: It gives the ability to manage commerce using a mobile device, such as a mobile phone, a Personal Digital Assistant (PDA) and a smartphone. Mobile devices have become a part of ecommerce since new applications have been introduced.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work