• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13
  14. 14
  15. 15
  16. 16
  17. 17
  18. 18
  19. 19
  20. 20

Tesco analysis

Extracts from this document...


History Tesco was founded about 1919 by a person call Jack Cohen in London's East End. In this year as well he Jack Cohren started was selling groceries in the markets of the East End. After about 5 years the name TESCO started to appear on labels because Jack Cohen brought a large shipment of tea from a company called T.E. Stockwell. Due to this he put the first two letters of the supplier of tea along with the first two letters of his surname and this spelt out TESCO. The first Tesco store opened in 1929 and now it has 1,800 stores just in the UK and its present felt in 12 countries. Tesco now is the largest British retailer, both by global sales and by domestic market share, and the fourth largest retailer in the world behind Wal-Mart of the United States, Carrefour of France, and The Home Depot of the United States. Tesco used to only sell food but now it has moved into areas such as clothes, consumer electronics, consumer financial services, selling and renting DVDs, compact discs and music downloads, internet service and consumer telecoms. Introduction Tesco over the years is UK's most popular retailer with over 13 million customers a week, number of non - food products/services available has gradually increased, Tesco.com is the world largest home delivery service in the world and it is operating in 12 different countries with further expansion in other countries. The reason for all these success mentioned above is all down to one thing, which is the approach taken by Tesco on customer focused. Tesco is unique in this way because many retailers would tend to focus only on profits. However, Tesco as well as making profits would like to "create value for customers, to earn their lifetime loyalty". ( Tesco Interim report, 2005) This can be seen in Tesco mission statement and the way this is achieved is through corporate strategy. ...read more.


The main thing is being innovative and looking at how to improve things constantly as well as considering the environment impact of its action. This again will reinforce the competitive position as Porter, 1998 suggested "companies achieve competitive advantage through act of innovation". It is very difficult for a supermarket like Tesco to produce the same success again therefore Tesco must continue to re -invent itself to stay ahead in this market. The Supporting Activities The company's infrastructure is based on decisions of management which help communication and control. Support functions such as accounting, administration, public relation and marketing. There are many people who deal with investigation and sourcing products for example, for non food products there are over 100 people. Tesco "employs over 260,000 people", (Tesco, 2006) which is a huge cost especially in terms of minimum wage. The other costs which are involved are recruitment, training and development. Other things such as planning, public affairs, quality assurance are all time consuming. Technology development is important because it allows Tesco to be able to adapt to its changing environment. Tesco on line shopping is a huge success along with other things like financial service, mobile phone, clothes and electrical goods. Tesco recognizes regional differences when it comes to procurement. They have established dedicated buying teams In the UK. Tesco have also made arrangements not only with large producers or manufacturers of goods, but also individual farmers. Their Fairtrade policy ( Tesco CR , 2006) ensures that the farmers receive a fair price and that consumers pay a fair price. Long term relationships with suppliers are important, with over 1500 suppliers working with Tesco for five years. Tesco works with suppliers and encourages them to develop regional offices in line with Tesco's own distribution centres. In Tecso it can be seen that "the value chain for competing in a particular industry is embedded in larger streams of activities.." ...read more.


Account Watch, Watford :IGD, pp4 Tesco , (2002) Account Watch, Watford :IGD, pp4 Tesco , (2002) Account Watch, Watford :IGD, pp22 Appendix 7 Appendix 4 Tesco plc - Value Chain Analysis - Primary Activities Inbound Logistics - transportation - storage - suppliers - working with suppliers to extend growing seasons - processors - packaging - Lowering warehouse inventories - New stores - collaboration - Regional road shows to promote contacts with potential suppliers Operations - environmental strategy - improving heating and ventilation - exchanging information with suppliers to produce efficiencies - quality products - on time - effective processes - management - cost, quality, speed, dependability, flexibility Outbound Logistics - transportation - storage - suppliers - 30 distribution centres (6 dedicated to non food) - Promoting local produce Marketing & Sales - advertising - public relations - special offers - club cards - presentation of products - store layout and convenience - 100 people dedicated to sourcing non food products Service - customer service - contact centre - legal team - risk assessment to manage labour standards - cost control - listening to customers - responding to customer needs Appendix 5 Tesco plc - Value Chain Analysis - Support Activities Firm Infrastructure - functional departments - accountancy - administration - business relations - research and development - public relations & marketing department Human Resource Management - recruitment - training and development - graduate trainees - no discrimination based on ability - benefits and pension scheme - human rights policy Technological Development - computerization - refrigeration processes - online shopping - innovation and investment in new lines - product safety - health and safety Procurement - buyer power - negotiation skills - bulk purchasing - local suppliers - dedicated buying teams in Scotland, Wales and Northern Ireland - individual farmers - consideration for ethical issues - Leveraging suppliers assets - Long term partnerships - Over 1500 suppliers working with for 5 years or more - Supermarkets Code of Practice - Encouraging suppliers to develop regional offices - Quality control Appendix 6 Tesco plc - PESTLE ANALYSIS Appendix 8 Tesco plc - SWOT Analysis 7 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management 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 University Degree Management Studies essays

  1. Strategic Management - CARREFOUR CASE ANALYSIS

    major changes in buying habits tie in nicely with Carrefour's ability to take advantage of such changes when entering new markets. o TECHNOLOGICAL * Technological advances in data storage, information systems, the internet, and other forms of communication continue at a rapid pace.

  2. Balfour Beatty. The purpose of this report is to identify and select a UK ...

    When growth is high, demand for construction increases, when growth rates fall and the economy heads toward recession, firms cut back on new projects, this could hit Balfour hard despite their healthy order book. - Depreciation in the exchange rate makes the exporting sector more competitive, boosting the sector, leading to companies like Balfour to increase investment.

  1. Analysis of Agora supermarkets of Bangladesh and the potential for online marketing.

    As Agora has a large chain of retail shop we can easily turn into online shopping to provide customer hassle free shopping by saving their time. Nowadays, customers are used to self-service options, which are more convenient and fast. In the develop countries like Bangladesh the advent and use of

  2. Legrand Company Analysis. Legrand is the global specialist in electrical and digital building infrastructures.

    To take just two examples, C´┐Żliane scenario switches and Watt Stopper presence detectors can achieve energy savings of up to 50% in living and working areas. We also offer a special range dedicated to the comfort and safety of the elderly and disabled, providing them with effective communication tools. 4.

  1. PEST analysis of uk mobile network industry

    3.12 Spectrum Liberalisation; proposals by the office of communications (Ofcom) on the management/allocation of spectrum, has been a major issue of concern for the mobile network operators. Spectrum is a scarce resource important for wireless technology and in May

  2. ITC - diversification strategy

    Also in terms of core competencies, they have tried to utilize their distribution reach, supply chain management & brand building capabilities. 8.3.4 Form of diversification As discussed, mostly it is organic related growth. It made only few acquisitions - one in the agri business division worth mentioning is that of

  1. E-Business Evaluation of Tesco.com

    He begins TESCO selling surplus groceries from a stall in East End of London. At the time, it was not known as TESCO. TESCO was named after their first own brand product Tesco Tea from the initials of TE Stockwell, who was a partner in the firm of tea suppliers, and CO from Jack?s surname.

  2. Billabong Case Study. This report provides an analysis of Billabongs current situation and both ...

    Billabong must adapt to this strategy as seen by Quiksilver, Roxy, DC and a few other beach/skate wear brands who are showing great profit figures and stability within the same industry. Billabong should look to open further online and retail sites in countries where their product is selling, and duplicate Quiksilver?s strategy of aggressive marketing expansion.

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