TESCO

TESCO



TESCO

Introduction

In today's competitive environment, strategic management plays a vital role for organisation's success and future stability. Successful organisations are able to sustain and obtain its resources and capabilities which leads to competitive advantage, strategic management is referred to process of evaluating organisation resources, evaluating external an internal environment and developing strategies accordingly to sustain in a competitive environment with edge (Harrison & St John, 2009, p.4).

(Hill & Jones, 2007, pp.6-7) Argues that strategies are not developed, under consideration of organisation. Managers develop strategies for their companies in order to retain customers and add potential customers from their competitors. And in this tough competition winner is the one, who implemented best strategy. This gives such organisations competitive advantage over their competitors. They further discussed the organisation may attain sustained competitive advantage by implementing strategies, which gives them above average profit.

Therefore, the organisations with better and profound strategies can have a distinction over their competitors.

Discussion

TESCO Plc

In 1919, TESCO was founded by Jack Cohen in East End of London, from small market stall. Now, TESCO operates globally in 14 countries with more than 500,000 employees (TESCO Plc, 2013a).

Business units

TESCO primarily operates in retail business in UK. However, TESCO expanded its business internationally to 14 countries and operating online and UK. TESCO also diversified business in the banking sector and mobile business with O2 in UK and Ireland (TESCO Mobile, 2013) & (TESCO Bank, 2013).

Strategies

TESCO has adopted different strategies in UK and globally to sustain a competitive edge over competitors. For UK, TESCO aimed to give customers the best shopping trip. To achieve this statement they believe that more staff will lead to better service. Also, they believe the better signage will also leads to customer satisfaction (Annual report, 2012, pp 10-11).

Also, they used quality product under their own brand name Everyday value, this quality product helps TESCO to retain its customers and strengthen the ties more strongly. TESCO is willing to open more click and collect spots for its online orders' delivery. TESCO is improving its stores by providing retail services, in departments such optician, pharmacy, customer restaurant and phone shop. Clothing market has a huge share in the UK and industry, it is also planned to give more area for clothing at TESCO (Annual report, 2012, pp 13).

TESCO also expanded its business to China 4 year before and struggling to establish its business successfully (Annual report, 2012, pp 14). In US markets Fresh & Easy stores, they introduced new prepared products with different products and they also appreciated their customers with friend loyalty cards, thanks for their customers (Annual report, 2012, pp 15).

For value addition to their current and new customers TESCO banks was also fully owned in 2008, providing transition and insurance products to its customers and adding more value to its customers with credit cards (Annual report, 2012, pp 16).

TESCO also has various joint ventures in different businesses, in UK TESCO ventured in the telecommunication industry with 50% shares and various ventures in the ...