In this assignment I am going to outline the history of Tesco. Explain things went wrong in the past and what their plan. I will also talk about international Tesco
Tesco is a British multination grocery in United Kingdom. It is the third largest retail in the world measured by revenue and the second largest measured by profit. It has stores in 14 countries across Asia, Europe and North America. It has market share around 30%.
The company has founded in 1919, since the early 1990s Tesco has increasingly diversified geographically and into areas such as the retailing of books, clothing, electronics, furniture, petrol and software.
In 1997 Tesco set out a strategy to grow up and diversity with new product and services in existing and new markets. The strategy enabled them to deliver strong and sustained growth over the last 14 years. The strategy has seven part and applies to five of business segment – the UK, Asia, Europe, the United State and Tesco Bank
In 1997 Tesco international businesses generated 1.8% of the Group profits. Today they represent 25%
In 2008 – 2011 Tesco has better performance over 3 years
There are two new strategic goals both which reflect the way that Tesco has developed over the last decade and their areas of emphasis for the future.
The first strategy is to be a creator of highly valued brands. This gives Tesco more meaning with their customers
The second strategy is to build team so that they create more value. As Tesco continues growing and diversity they need more leaders to run the many business and support functions within the Group.
The core purpose of Tesco is to be creating value for customers to earn their lifetime loyalty and their values is no one tries harder for customers and treats people how they like to be treated. They have also set a new vision which is Tesco to be seen as the most highly valued business in the world. Valued not only by customers, but by the communities, staff and shareholders.
Tesco's UK profits have fallen for the first time in decades. The supermarket giant hopes to boost its flagging domestic operation with a £1bn investment. Five things went wrong in Tesco which are:
Firstly, there wasn't much leeway if things went wrong - and it slipped behind in terms of stores, service and innovation
Another thing Tesco is charged with neglecting is its own-label food ranges. Gray argues Tesco seems to have been stuck in a time warp, while its competitors have constantly reinvented themselves
Moreover, Gray says "Tesco went on an acquisition and diversification spree, but at the same time it under invested in existing stores in the UK and lost its focus on food,"
Furthermore, Tesco expansions in markets such as India and China has led them to neglect their business in UK
Last things get wrong in Tesco is it’s rapidly shift away from food business into different areas such as banks, cars and clothes.
"There is a suggestion Tesco has gone too far away from its core business and needs to get back to basics," says Quinn.
Tesco has announced an increase in sales of 7.4% across the Group, and a £1 billion commitment to the plan to reinvest in the UK business to get back strong and leading and to make Tesco better for customers.
Philip Clarke Tesco new chief executive talked in his interview about six points plan for the UK business to turn
First, a better service which means Tesco has decided to hire extra 20,000 staff with 8,000 already in the process of being recruited into existing stores. Tesco problem was there was not enough staff to stack the shelves. This led to gaps on shelves.
Second, better stores, Philip Clarke, the chief executive, has said "he needs to put "the love" back into the shops, because they are too "clinical". Some of this just comes down to nicer lighting, less garish signs."
Third, value for money, better prices and promotions. Mr. Clarke says it will in fact increase this, cutting prices on many lines. But he