TESCO PLC.docx - TESCO PLC: LEVERAGING GLOBAL KNOWLEDGE ON...

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TESCO PLC: LEVERAGING GLOBAL KNOWLEDGE ON CULTUREI. POINT OF VIEW TESCO PLC was founded in 1919 and launchedits first store in Edgware, London, UK in 1929. The firm isheadquartered in Cheshunt, Hertfordshire, England, UnitedKingdom. It is the third largest retailer globally in terms of revenueearning after Wall-Mart and Carrefour and in fact, the second-largest in profit making after Wall-Mart. Tesco is involved in cash &carry activities and preserves various stores including warehouses,department stores, discounted stores, hypermarkets andsupermarkets in more than 12 countries in Europe and Asia.Additionally, Tesco is concerned as the grocery market leader in theUK. The company have a substantial market share of around 30%.Tesco has expanded since then by a combination of acquisition ofnew stores, retail services and by adapting to the needs ofconsumers. Tesco’s primary aim is ‘to serve the customer’. Keepingexisting customers happy is important, as they are more likely toreturn. This is more cost effective for the business than acquiringnew ones. Tesco gain high loyalty from the UK people through twolanguages that are “Treat people how we like to be treated” and“Listen, support, and say thank you”. Though still essentially UK-based, Tesco has diversified geographically and into widely-separated market sectors: retailing book, clothing, electronics,furniture petrol and software, financial services, telecom andinternet services, DVD rental, and music downloads. In the UKTesco now has over 2,200 stores ranging from the large extrahypermarket style stores to small Tesco Express high street outlets.Tesco’s original product range of grocery and general merchandisehas diversified to include banking, insurance services, electricalgoods as well as telephone equipment and airtime. This movetowards ‘one stop shopping’ means customers can meet all theirpurchasing needs from one place. Tesco has also expanded itscustomers base through its Tesco.com website which attracts onemillion regular users. However, this company has evolved tobecome the market leader in the UK food retailing industry overthe decades. This paper examines and also assesses the strengths,weaknesses, opportunities and threats posed by the internal andexternal environment of this firm. The unique strategies adopted bythis firm in order to attain a competitive edge are evaluated. Thepaper briefly examines and identifies the main problem why thebusiness has not been compatible with other branches such as theUS and France. Finally, this paper provides an implementation planand contingency plan that can help the business in operating. II.

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Term
Fall
Professor
Leonor
Tags
Hypermarket, Tesco PLC

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