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Doctor Name: Ahmad abu ziedPrepared By:Omar Qudah, Farah Khasawneh, Duha Mousa“Tesco PLC: Leveraging Global Knowledge”
Tesco Case Summary1.1 Company BackgroundTesco is the largest British retailer and is also the world’s third largest grocery retailer withoutlets across Europe, USA and Asia. The business began in 1919 with one man, Jack Cohen,selling groceries from a stall in the East End of London; his first day’s profit was £1 and sales £4.Jack bought surplus stocks of tea from a company called T.E. Stockwell. T.E. Stockwell and Cohencombined their names to brand the tea Cohen originally sold – TESCO tea. In 1929, the firstTesco store opened in north London.Tesco has expanded since then by a combination of acquisition of new stores, retail services andby adapting to the needs of consumers. Tesco’s primary aim is ‘to serve the customer’. Keepingexisting customers happy is important, as they are more likely to return. This is more costeffective for the business than acquiring new ones.In the UK Tesco now has over 2,200 stores ranging from the large Extra hypermarket style storesto small Tesco Express high street outlets. Tesco’s original product range of grocery and generalmerchandise has diversified to include banking, insurance services, electrical goods as well astelephone equipment and airtime. This move towards ‘one stop shopping’ means customers canmeet all their purchasing needs from one place. Tesco has also expanded its customer basethrough its Tesco.com website which attracts one million regular users.Tescoannounced record-breaking sales of more than £1bn a week and better than expectedannual profits of more than £3.4bn for the 53 weeks to 28 February 2010, despite the impact ofthe global downturn.- Tesco became market leader through improving operation such as distribution, marketing, landacquisition and product innovation.

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