TESCO

Scenario Based HR Planning

Scenario Based HR Planning

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 through scenario based HR planning.

Organization Selected

The organization selected for this paper is TESCO. Tesco came into existence in 1919. It was Jack Cohen's idea that gave rise to such a huge and gigantic organization. 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 (Wright & Snell, 1998, 756). 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.

Tesco's plc has an ultimate product ranges few are Groceries, Telecoms, Financial services and Consumer goods. The total Revenue of company is up to 2009 is £ 54.3 billion and Operating income was £ 3,128 million up to 2009. Tesco's net income is £ 3,090 million up to 2009. Over all have the approximate + 440,000 employees worldwide and nearly 2300 stores up to financial year of 2009. Tesco has some subsidiaries like Tesco Ireland limited, Tesco Stores limited and Tesco Personal finance are main business lines (Palmer, 2004, pp1075).

SWOT Analysis of Tesco

SWOT analysis of an organization reveals strengths, weaknesses, opportunities and threats that an organization deals with. With the help of analysis of strengths and opportunities one can predict how positively an organization is performing and by having a look at weaknesses and threats one can anticipate how negative organization's response is towards the threats (Nancy, 2010, pp88). Similarly, SWOT analysis of Tesco would aid in predicting the current state of Tesco. Following is the SWOT analysis of Tesco:

Strengths

Market share of Tesco is increasing

High return on investment

Online presence

Strong brand image

Focus on product affordability

Extensive know-how of retail industry

Skilled top management

Weaknesses

Heavy debts

Recalling of product due to low quality

Opportunities

Prospects of international growth

Threats

Fall of overseas return

Threat of new competitors such as Wal-Mart and others

International expansion

Worldwide recession

Intense competition in domestic market

Detraction created by small retailers

Identifying Long-Run Business Scenario

Key Rivals in Industry

Store environment has been marked as a very important event in size ...