OPERATIONS STRATEGY OF TESCO

The Operations Strategy of Tesco



The Operations Strategy of Tesco

Objective of the Report

The objective of this case study is to conduct an analysis of operations strategy of Tesco. The paper will discuss the internal and external environmental analysis of the Tesco. Tesco is one of the few companies that appear to have incorporated this insight in to its international strategy. Tesco has followed a deliberate expansion path, entering relatively few countries, but building scale in those where it has entered.

Overview of Tesco's UK Operations

Tesco is the most recognizable name in the retail industry as it is counted in one of the leading food retailers in U.K, an estimated 15.5% share of the total market. Tesco is also designed to increase their share of non-market. The British supermarket company, Tesco is now the fourth largest retail chain in the world, employing 450,000 people and has a growth rate of 13% annually. Tesco came into existence in 1919. It was Jack Cohen's idea that gave rise to such a huge and gigantic organization. Tesco is involved in grocery and general merchandising retailing. Tesco is considered as the number three largest retailer in the world if we gauge its position in terms of revenue. First store of Tesco started its operation in 1929. Tesco is one of the companies that are listed in London Stock Exchange. Tesco has diversified both geographically and into areas such as retailing of books, clothing, electronics, furniture, finance, telecom and music download (Lowe 2009, pp. 331).

It was Jack Cohen's idea that gave rise to such a huge and gigantic organization. Tesco is involved in grocery and general merchandising retailing. Tesco is considered as the number three largest retailer in the world if we gauge its position in terms of revenue. First store of Tesco started its operation in 1929. Tesco is one of the companies that are listed in London Stock Exchange. Tesco has diversified both geographically and into areas such as retailing of books, clothing, electronics, furniture, finance, telecom and music download.

Strategic SWOT Analysis

Strengths

Tesco is the third biggest food shop retail business in the world, functioning over 4,331 shops mainly inside the USA, Europe and Asia. The business apprehended 30.7% share of the UK food shop retail market in 2010. A powerful financial performance has been shown by the business over the years, which underscores its strategic capabilities. According to, Tesco is a £ 54billion revenue business notes a boost of 14.9% when in evaluation to 2008. The foremost scheme that has been taken up by the business is the product and services customization in agreement with the market demands. Tesco power in the retail grocery effortlessly provides it to compete with businesses for example Sainsbury, ASDA and Marks & Spencer. This has directed to its emblem and economic power to become their strengths (McTaggart 2006, pp. 8).

Weaknesses

Several products were recalled by Tesco in 2009 that has produced in a financial decrease as well as impairment to its emblem ...