Monday, October 7, 2019
Business Strategy of Tesco Essay Example | Topics and Well Written Essays - 7000 words
Business Strategy of Tesco - Essay Example Whereas the mission of the firm is the business where the company wants to operate and the customer base the firm will serve. These are the foundation stone of the company according to which the company implement its different strategies. TescoÃ¢â¬â¢s vision statement is: Ã¢â¬ËWe talk about Every Little Helps a lot, but it's not just a catchphrase or marketing slogan, it represents everything we stand for. For our people and our customers, it's how we run our businesses from China to ChorleyÃ¢â¬â¢ (Our vision and values, 2009). Core competence is the competitive advantages that a company posses to differentiate itself from the competitors which gives them an extra edge to be the market leader. These services or products should be: valuable, rare, imperfectly imitable and not strategically substitutable (Hitt, Ireland, Hoskisson, 2009, p. 18). The core value of Tesco is to take care of the customers. Earning lifetime loyalty of the customer and to create value for the customer i s their only value (Nwagbara, 2011, p.62). The company believes that no one in the industry tries as harder as they do to reach to the customers (Polytechnic Institute of New York University, 2011, p. 1). Being responsible to the community and the society in which they operate they always try to maintain good neighbourhood and always try to be a responsible member in the society. The brand image for its great quality products with diversified product line is the core competencies for the firm. TescoÃ¢â¬â¢s Mission statement is single phrases which says it all and lets the world know the reason for their presence in the market: Ã¢â¬ËCreating value for customers to earn their lifetime loyaltyÃ¢â¬â¢ (Mission statement for Tesco PLC, 2011). b) Stakeholder Analysis The sustainable... Center of discussion in this paper is Tesco as the global merchandise and grocery retail company. In respect of profit Tesco is considered to be the second largest retailer after Wal-Mart and by revenue it is the third largest after Wal-Mart and Carrefour. Tesco have its presence in over 14 countries including Asia, North America and also at Europe. Tesco headquarter is located at Hertfordshire and is the leading grocery market leader at UK capturing 30 % of the total market share. Apart from the core business areas the company is also located at Ireland, Malaysia and Thailand. Worldwide Tesco operates in over 2318 stores with 1878 stores located at UK only. With the success of self-service store of grocery Tesco was born from the amalgamation of Cohen and T.E. Stockwell. After a strong start the company stated expanding its business ranging from small retail stores to large supermarkets. With the diversification in household goods the brand became very popular in the mind of the peo ple. Tesco then entered into the petrol stations for selling fuels at a very competitive price and then also expanded into banking, financial services and products. The sustainable growth and well governed business policies of Tesco gives the belief to the investors to get a competitive return of their investments and their shareholdings. The main reason behind gaining the trust of the shareholders is due to the transparency in the company operation and they expect the implementation of robust strategies by the company in every business processes for the long term growth of the organization along with the shareholders.