FACING THE FUTURE

Facing the Future



Facing the Future

Introduction

The analysis of the business environment is vital for any company. The company being analyzed in this case study is the renowned one i.e. Tesco PLC, which is recognized as a large company and competitive firm. Therefore, the company should consider initiating special interest in the environment outside in all areas: globalization, corporate social responsibility, and technological development (Warhust 2001, Pp 57-73). As a result of fluctuations in the business conditions and economic times, the company should begin to review the extent to which their organization fits with the external situation and the extent to which the management contributed to overcome the deficiency in the performance of their activities. The definition of the enterprise as a system interacts with the open social environment in which it operates requires, as part of the process manager - the inclusion of environmental analysis, both in the evaluation of the management carried out as in the definition of objectives and the projected goals. The environment itself can be considered under different angles: global, technological, social, cultural policy, legal, economic, etc.

Company Profile

The company that we have chosen to conduct strategic analysis is Tesco. Tesco PLC (Public, LON: TSCO) is an international seller. The company is engaged in retail and related activities, in the United Kingdom, the Republic of Ireland, Hungary, Poland, the Czech Republic, Slovakia, Turkey, Thailand, South Korea, Malaysia, Japan, China, and the United States, (Srivivasta, Bartol and Locke 2006, Pp. 1239-1251). The company also provides retail banking and insurance services through its subsidiary of Tesco Personal Finance PLC (formerly Tesco Personal Finance Group Limited) (FPT). The company has two business segments, retail and financial services. Services of retail channels include online shopping company, tesco.com and Tesco Direct, Telecommunications, Tesco Personal Finance (TPF), and business consumer research. Today it is the third largest global retailer based on revenue, behind Wal-Mart and French Carrefour, but the second largest based on profit, ahead of Carrefour. In 1919, Tesco Plc was established by Jack Cohen, by utilizing the bonus which he achieved for his services in the World War I army. Then in 1924, he purchased a tea consignment from the company TE Stock well. He decided to put the initial three alphabets of TE Stock well, and the initials of his name Cohen collectively to name his brand 'TESCO'. In 1929, Cohen opened the very first Tesco store in Edgware, London (Scheve, Kenneth and Slaughter 2001, Pp. 168-175).

Tesco has been one of the largest food retailers in the UK and already enjoys significant benefits with an established customer base. The company has increased focus on fresh food and its quality. Improved technical standards, additional specialist staff training, closer relationships with suppliers and significant changes to merchandising strategy of some key products are helping to deliver a stronger range and better shopping experience for customers. These and other initiatives enabled the company win the 'Fresh Produce Retailer of the Year' Award in ...