Corporate Strategy and Performance on Tesco PLC

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Abstract

In this study we try to explore the concept of “Topic” in a holistic context. The main focus of the research is on “Topic” and its relation with “Subtopic”. The research also analyzes many aspects of “topic” and tries to gauge its effect on “subtopic”. Finally the research describes various factors which are responsible for “topic” and tries to describe the overall effect of “Topic” on “Subtopic”.

Table of Contents

Chapter 1: Introduction

Tesco

Tesco Plc - Brief Business Summary

The British Group, Tesco Plc is considered as the king of supermarkets in Britain (yahoo finance, 2007). Its business is related to the small grocery stores under the Tesco Metro brand name, big supermarkets outside cities (Tesco Extra) and 24-hour stores. Its stores are not limited to food sector but also to provide books, CD/DVD/mini-discs, hi-fi and household appliances, household equipment, flowers, wine, apparel and many other items. In January 2003, Tesco takes over its key competitor in the British Territory, T & S Stores. Currently, it employed 270,800 fulltime employees worldwide. Tesco has adapted rapid technological changes to boost its sales. Such as its on-line sales site - Tesco.com, is now heavily contributing to its profits in recent years. The Group currently holds almost 1,988 stores in the UK and 1265 stores outside UK (Annual Report, 2007). Today, its market capitalization has reached £36.60 bln. (Reuters, 2007)

British Operations

The British operations of Tesco's stores are divided into five formats, and are differentiated by size and the range of products sold. (Annual Report, 2007)

Tesco Extra - hypermarkets that stock all of the product ranges that are available at Tesco and are mostly out of the town with free car parks. (Totalled 147 in Feb, 07).

Tesco superstores - standard large supermarkets, stocking groceries plus a much smaller range of non-food goods than Extra and mostly located in suburbs of cities or on the edges of large and medium-sized towns. (Totalled 433 in Feb, 07).

Tesco Metro - Smaller than Tesco superstores but bigger than Tesco Express in size and are mostly located in city centres and on the high streets of small towns or villages). (Totalled 162 in Feb, 07.

Tesco Express - neighbourhood convenience shops in busy city centre districts and small shopping precincts in residential areas, and on petrol station forecourts, with stocking mainly food with an emphasis on higher-margin products. They also provide financial services: a joint venture with the Royal Bank of Scotland enables it to offer life insurance and general insurance (home, car, pet, and travel), credit cards and advantageous loan ...