TESCO MARKETING

Tesco Marketing

Tesco Marketing

Introduction

The basic objective of this paper is to analyze an organization its current position and future prospects (Leathy, 2004, pp.15). Tesco is the third largest in the world and the largest retail chain of UK which employees more than 440,000 people across the globe. The company operates in around 13 markets with 280,000 in the UK. The management module of Tesco has received immediate and tremendous attention and focus and thus, everything at the organization is managed in a smooth manner (Martinell, 2003, pp.577-590). During the last year, Tesco's profits have increased by 20%, which takes the company to form and maintain a record in UK business by acquiring 2 billion. In this paper, we are taking an international organization that is Tesco U.K. Paper will ensure to clear, and identify Tesco's superior performance, through financial performance, competitive positioning, branding and value creation etc (Lindgreen & Hingley, 2003, pp. 328-349).

About Tesco Organization

The organizational structure of Tesco came into existence in the year 1919. The successful idea of Jack Cohen gave rise to such a gigantic and huge organization. The company is engaged in the retailing of general merchandise and grocery. In terms of gauging the company's position according to its revenues and profits, the company is regarded as the third largest retailer globally. There are 13 countries outside UK in which the company performs- Japan, Slovakia, Republic of Ireland, Hungary, Turkey and Poland in Europe, and Czech Republic; South Korea, Malaysia, China, Thailand and India in Asia. The U.S. Tesco's strategy for managing human resource of the organization revolve around challenging unwritten rules, work simplification, performance management linked to achieving steering-wheel targets and rolling out core skills to all head-office employees. This shows that how the business of the company closely related with performance management (Leathy, 2004, pp.15).

Tesco Is Well Positioned for Profitable International Growth

Tesco is the only U.K. food retailer with an international growth platform. In contrast to more-challenging domestic markets, international markets are a bigger revenue pool, and offer more promising growth prospects as they are growing faster and are more fragmented with fewer scale competitors. In international markets, local scale is a key driver of operating margin. 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. As a result, operating margins in international markets have quickly matched those enjoyed in the U.K. market (Desjardins, 2005, pp.4-6). Tesco is well positioned for profitable growth internationally, with superior strategy and execution compared to other companies in our coverage. Furthermore, forecasts suggest that 17% EBIT CAGR in 2006. Investor sentiment seems to overly focus on execution risk of U.S. market entry, and the option value is not reflected in forecasts or valuation. Tesco outperforms with a £5.30 price target (Hammett & McMeikan, 1994, pp.4-6).

Brand Value

Tesco has a strong brand value. It is the value of the brand of Tesco that enables it to gain competitive advantage over ...