MARKETING

Marketing



Marketing

Introduction

In today's world where entrepreneurship and owning your own business is considered as the latest fashion to acquire wealth and status we see a lot of new businesses launching every month and every year but only few of them are able to maintain their position in the cutthroat competition and rivalry. Maintenance of the success of the business totally depends on the strategies a business owner adopts to operate it and strategies are the nub that decides the success or failure of an organization. The basic objective of this paper is to analyze an organization its current position and future prospects.

Selected organization

The core objective of this paper is to perform the analysis of an organization and to determine in which state they currently are. The selected organization for performing this analysis is Tesco.

About Tesco

Tesco came into existence in 1919. It was Jack Cohen's idea that gave rise to such a huge and gigantic organization. The company operates in 12 countries across North America, Asia and Europe. The headquarters is located at in Hertfordshire. The company employs around 492,500 people. Tesco is involved in grocery and general merchandising retailing. Tesco is considered on 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. Tesco is operating over 3,700 stores globally and employing over 440,000 people. Tesco operates in 13 countries outside the UK - Republic of Ireland, Hungary, Czech Republic, Slovakia, Turkey and Poland in Europe; China, Japan, Malaysia, South Korea, Thailand and India in Asia, and the U.S.

The company operates through store formats in the retailing business ranging from small retail stores to large hypermarkets. The company has built multi format retail stores consisting of Tesco Express convenience stores, Tesco Metro city centre stores and Tesco Supermarkets. Customers can buy general merchandise, grocery items, as well as, non-food items such as electric appliances. By the end of year 2011, the company was operating in 14 countries with 5,385 stores located in North America, Asia and Europe. The business of Tesco is based on five business segments including, the Tesco Bank, the US, Asia, Europe and the UK. The largest market of Tesco is the UK. The company was operating 2,700 stores by the end of 2011, in UK.

Analysis of company situation

Chairman of Tesco, Lord MacLaurin, has elaborated the company's performance in a very detailed and comprehensive manner. The company has experienced increase in sales by 15% in the current business year, In the United Kingdom, sales enhanced by 4.5%, mainly because of the new stores. Group profit before tax was up by 11.1% to £750m.

The concerns around Tesco's prospects in the United Kingdom have been overplayed, and its international prospects underappreciated. In spite of superior strategy, execution, economics and prospects, Tesco ...