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Business development strategy is vital to guarantee the long-term success of a company. Tesco is the largest Supermarket Company in Britain with a market share of 27%. It operates 2291 stores worldwide and employs almost 300,000 people. Tesco operates on the Moto "Every little helps". This is reflective of the company`s commitment to its customers as well as its employees. Over the years Tesco has seen change in all aspects of its business which it has countered with its flexible Organizational Structure and Culture. Tesco has introduced the Steering Wheel strategy, which addresses not only the strategy towards its customers but also towards its employees, the Environment and operations. Staff are selected with a rigorous Recruitment and Selection Procedures, their work performances are increased with well defined Performance management programs. Employees performance is measured with their quarterly and yearly appraisals and accordingly rewarded in the form of yearly bonuses, employee discounts and great health care benefits. Tesco Leadership Framework focuses on three key themes to guide appropriate behaviour in employees. Tesco sees it as a priority to develop leadership at every level in every part of the business. Tesco Market Leadership is due to the fact that its main focus is on customer satisfaction and it is continuously offering new services and products with changing market demand on very competitive prices. This report will analyse the overall Business strategy of Tesco and how it has expanded to be the market leader, the challenges that it had to face and strategies implemented to overcome those challenges.
Tesco was founded 1919 by Jack Cohen. The first stall was seen on the streets of East London. The name Tesco is derived from the partnership between Jack Cohen and Tea-Importer T E Stockwell. Using his Market stall in east London as a base Jack opened the first Tesco store in 1932, and officially Tesco was founded as a Private Ltd Company. During the early years, the company followed motto of "Pile It High, Sell It Cheap", with little emphasis on quality. Tesco business only revolved around the cost factor of the products (Seth, Randall 1999: 23-51).
By the Mid-50's tesco saw a drastic increase in its store fronts. The first Supermarket was opened in 1956. This is the point where the supermarket giant started to face problems. As up till this time Jack Cohen saw tesco as a one man operation run by himself. But the increased number of stores and tesco bad reputation on quality started to become a hindrance for the future growth of the company. The late 20th century saw the start of a new retail culture in which cost was not the only factor affecting a stores performance, quality and customer service were on the forefront for a successful business. By now tesco was seen as a competitor against the well established Asda and Sainsbury brands, Tesco was suffering due to the lack of a Management philosophy, Planning and Organizational Structure (Seth, Randall 1999: 23-51).
In 1969 Jack Cohen Stepped down as acting Chairman from Tesco Plc. As a new management team stepped in, Tesco was on the verge of a shutdown due to the high prices and low quality of goods. The new management team realized that they needed a complete overhaul of tesco strategy and corporate behaviour. A new scheme "Checkout" was introduced, which was aimed at reducing shelf prices and increasing the quality in an attempt to improve tesco`s deteriorating reputation (Seth, Randall 1999: 23-51).
The "Checkout" scheme worked and with the new management and the takeover of Hillard, Tesco was on the way to catching up to big brands like Sainsbury and Asda. Tesco`s Market share was on the rise and with new innovation and schemes introduced in the 1990`s tesco was now one of the front runners in the giant supermarket brands. As the Guardian noted
"A decade ago Tesco was the modern equivalent of a music-hall joke. But now it is Tesco which is laughing- all the way to the bank....at the end of the seventies Tesco began discarding the `Pile it high sell it cheap` philosophy on which the chain had been built...then it discovered what much of the British industry has been learning; that people are often prepared to pay for better quality, are often more concerned with service than with price and there`s often more profit in worrying about quality and service than in bribing customers with low prices. The transformation of tesco is a remarkable success story" (Powell 1991).
Tesco And the 21st Century:
Leahy was named chief executive officer in 1997. Tesco came up with a four-pronged growth strategy. The company directed its expansion efforts on its core U.K. business, retailing services, international operations, and non-food business. The non-food side of the company's growth strategy presented the most difficult challenge to Leahy because the company was starting from scratch. Further. Tesco aimed to make its non-food business as strong as its food business, which, considering the massive size of its food business, called for an colossal amount of growth. In 2000, Tesco launched its e-commerce business, Tesco .com, one of several new business developments that became the driving force of the company's financial growth during the early years of the 21st century. The company's grocery home-shopping service developed into the largest of its kind paving the way for its retailing services segment. The company began stocking electronic products, toys, sports equipment, cookware, and home furnishings in its stores. The company's market share in Britain increased steadily and Tesco outperformed all its rivals, increasing its share of the market from 15.4 percent in 1998 to 28 percent in 2004 (MarketWatch 2010). As the company further expanded in its four target areas, it held considerable sway both in Britain and abroad. Tesco stood as a genuine retail giant, one whose stature only promised to grow more intimidating to competitors as the decade progressed. In 2004, one out every eight pounds spent in Britain went into Tesco's bank account; the company's expansion program represented more than half of all the new supermarket space planned for the United Kingdom (Tesco 2009).
There are four parts to the Tesco Strategy (Tesco 2009):
1. Core UK business: Tesco continue to increase market share through their policy of getting cheaper, offering better value and providing more choice and convenience for their customers.
2. Non-food business: Tesco currently has over a 4% market share of a market worth £75bn in the UK, where their goal is to be as strong in non-food segment as they are in food. Non-food products include but are not limited to electrical, home entertainment, clothing, homeshop, cookshop and furniture.
3. Retailing services: As consumer demands change, Tesco responds by providing new products and services. Their e-commerce business has grown rapidly. Both tesco.com and Tesco Personal Finance demonstrate the ability to extend the Tesco brand. Tesco Personal Finance continues to grow and develop excellent products offering value and choice
4. International: Tesco has been successful in opening up new growth markets in Central Europe and Asia. The proportion of total Group space outside of the UK was 47% at the half year. Tesco now operates in Hungary, Poland, Czech Republic, Slovak Republic, Thailand, South Korea, Taiwan and the Republic of Ireland. Their Current strategy is to grow into the Asian markets.
Tesco Purpose & Values can be seen from their steering wheel approach (Tesco 2009):
FIG 1: Tesco Steering Wheel (Tesco 2009)
No one tries harder for customers:
Understand customers better than anyone
Be energetic, be innovative and be first for customers
Use Our strengths to deliver unbeatable values to our customers
Look after our people so they can look after our customers
Treat people how we like to be treated:
All retailers, there's one team â€¦ The Tesco Team
Trust and respect each other
Strive to do our very best
Give support to each other and praise more than criticise
Ask more than tell and share knowledge so that it can be used
Enjoy work, celebrate success and learn from experience
FIG 2: SWOT ANALYSIS TESCO
"Organizations are intricate human strategies designed to achieve certain objectives" (Argyris 1960).
The basic components of an organization can be defined as having the following characteristics.
They have a defined purpose and goal
They are composed of people
They have some degree of structure
They operate in context of an external environment
They develop their own culture
Organizational Structures are designed by people in the managerial positions in an organization. This reflects the intensions and values of company managers rather than that of the stakeholders or employees. This is to promote the interests of an organization as a whole. The structure of an organization cannot be considered as permanent and is prone to change as the organization grows and is affected by external factors (Cole 2002: 42-65).
Organizational Structure is created keeping in view a number of factors which include but are not limited to product, geography, work, etc.
Organizational Structures can be based on following categories (Cole 2002: 42-65)
By Common Function: This gives all staff from top to bottom the opportunity to devote their energies to ensuring the success of their own functional group. This in turn has the advantage of the development of experience and expertise. Career paths are well defined in this approach. This approach also has a downfall, as it creates conflict between different functional groups. The success of common function approach depends on the centralized organization system to function properly.
By Product or Service: In this approach the managerial divisions are made according to the products, each manager is responsible for his line of product. The advantage of this structure is that it enables the product groups to concentrate on their segment of the business. It frees senior officials to concentrate on cooperate issues. The individual groups create their own culture, but if this culture is not kept in check, a product group could divert from the overall company objective in a focus on their own assigned products.
Geographically-Based Structure: In this form of structure the control is assigned according to regions. Each region has its own individual operating units. This is necessary for large organizations that function in a wide area. This has the advantage that different regions can draw knowledge of customers, market trends and local culture from their regional offices. Some complications can arise due to the difference in opinions between local and head offices.
Matrix Structure: This is relatively a new concept created to cater for advanced operations of large organizations which primarily work on project basis and don't fall in to any of the pre-defined structure. These kind of structures pull from different structures to form a matrix structure which could serve the need of an organization.
Centralization and Decentralization:
Centralization/Decentralization is a concept in a organization as to the amount of control that is passed on to the lower management or to regional offices (in a Geographically-Based Structure). An organization in which full control resides with the central management is known as a Power Culture and can only be found in small entrepreneurial companies.
A Decentralized company is defined as the one in which authority to commit people, money and materials is widely diffused throughout every level of structure. And accordingly a centralized company relinquishes very little control, and main authority resides with a key group of top managers (Cole 2002: 42-65).
Tesco Organizational Structure:
Tesco Organizational Structure can be classified as a Decentralised Structure. Tesco Employs a Flat Hierarchical Structure. The company has a basic framework for its product pricings, recruitment and selection and terms, with an integrated degree of flexibility. This means that line managers down the line have been delegated power to make decisions keeping with in the overall framework. This style of structure allows employees who are in direct interaction with customers and suppliers alike to adjust to the changing business environment, get feedback from customers and implement changes to cater for these needs in a relatively small time frame. This also helps take excess responsibility of the top management and helps them concentrate on the overall operations of the company. The increased level of responsibility assigned to store and regional manager gives a greater sense of involvement in the business and capability to bring about a change, this in turn motivates employees and gives a better understanding of the company`s overall business strategy.
Tesco has divided its operations into four business units. The Core UK unit is responsible for all food items for the UK market. The international unit is responsible for all of its international operations and ventures. The Non-Food Unit handles all Non-Food items such as electronics, fuel and all other items not covered by the core UK unit. And finally the Retailing Services unit which manages telecom Services the Tesco direct website and all offerings of tesco finance services. i.e. Tesco Car and home insurance (Tesco 2009).
This kind of business approach helps tesco expand on all fronts of its business units with minimal affects from individual business units. This focused approach helps bring region specific offering with a taste of local culture. All aspects of marketing and design are custom to the market region and product requirements, which translates into customer satisfaction. For example Tesco Express which is meant for the urban areas has a small and environment friendly foot print that fits in with the surrounding area and culture rather than challenge the existing practices of the region. These strategies has given Tesco an edge over its competitors and aids in the company`s continuous expansion.
Organisational culture is the "set of belief, values and learned ways of managing of an individual organisation" (Lynch 2006: 811). Organisational culture is the basic assumptions and beliefs that are shared by members of an organisation, that operate consciously and define in a basic taken-for-granted fashion of an organisation's view of itself and its environment. It is useful to consider the culture of an organisation as consisting of four layers: values, beliefs, behaviours, and taken-for-granted (Lynch 2006).
Values may be easy to identify in an organisation, often written down as statements concerning the organisation's mission, objectives or strategies (Johnson, Scholes and Whittington, 2005: 200).
Beliefs are more specific, though they are issues that people in an organisation can surface and talk about, such as the belief in that the organisation should not trade with certain countries, or that professional staff should not have their professional actions appraised by managers (Johnson, Scholes and Whittington, 2005: 200).
Behaviours are the day-to-day activities in which an organisation operates and can be seen by people both inside and outside the organisation, for example, work routines, how the organisation is structured and controlled (Johnson, Scholes and Whittington, 2005: 200).
Taken-for-granted assumptions are the core of an organisation's culture, which are the aspects of organisational life that people find difficult to identify and explain; they are referred to as the organisational paradigm, "A set of assumptions held relatively in common and taken for granted in an organisation" (Johnson, Scholes and Whittington, 2005: 200).
Organisational culture has the potential to enhance organisational performance, individual satisfaction, the sense of certainty concerning how problems are to be handled, and other aspects of life. If an organisational culture gets out of step with the changing expectations of external stakeholders, it can hamper effectiveness (Hellriegel, Jackson and Slocum, 2002: 493).
Employees in contemporary organisations have encountered the challenge of dealing with difficulties presented by constant change. Organisations have been under mounting pressures for the past two and half decades to change continuously but not when it is deemed necessary to change, attributing this to a combination of forces that ensues from within and outside their environments.
Tesco Organizational Culture:
Tesco Values are reflective of the company`s mission statements,
"Ensuring community, corporate responsibility and sustainability are at the heart of our business.
Being a good neighbour and being responsible, fair and honest.
Considering our social, economic and environmental impact as we make our decisions." (Tesco, 2009)
Tesco strategy is based on six elements. This Strategy is made to succeed abroad and to provide a common cultural base for all stores. First all stores have to beÂ flexibleÂ because each market is unique. Indeed the employees must be like this because each person is different and their needs too. Each employee must adapt to each situation. They must know how to control all possible situations. Then they have to actÂ localÂ because local customers, local cultures, local supply chains and local regulations require a tailored offer delivered by local staff. Third they must maintainÂ focusÂ because we understand that customers want great service, great choice and great value. Indeed it is possible that an employee have a lack of concentration at the end of the day. Again this could harm the firm. Fourth they have to useÂ multi-formatsÂ because no single format can reach the whole of the market. Fifth they must developÂ capabilityÂ because they make sure they have capability through people, processes and systems. That mean if it decides to invest in a project, first it checks whether it has the capacity to do it. If it's not the case, it trains or hires people before it starts to invest. Finally they must buildÂ brandsÂ because brands enable the building of important lasting relationships with customers. In conclusion all these values enable the firm Tesco to insure customer's satisfaction. It also allows the business to develop loyalty of its customers and it allows the company to be unique (Tesco 2009).
Performance Management and Motivation:
"Organisational success is determined by the performance of its employees" (Currie 2006: 161).
Performance management is a term that is relatively new, given the fact that organisations have been interested in employee performance. Performance management is one of the strategic processes which, when effectively performed, helps employees know that their contributions are recognised and acknowledged. Performance management is an ongoing process of communication between a supervisor and an employee which takes place throughout the year, in support of accomplishing the strategic objectives of the organisation. The communication process includes clarifying expectations, setting objectives, identifying goals, providing feedback, and evaluating results (Currie 2006).
The main purpose is to, improve the performance of all employees across the whole organisation; employee development, therefore, is a key issue. In other words; performance management is through development. In order to improve performance it is imperative for the organisation to have a set of effective development programmes which are available to everyone (Currie 2006). Performance can be improved using goals and rewards.
The underlying concept of motivation is "some driving forces within individuals by which they attempt to achieve some goal in order to fulfil some need or expectation." This concept gives rise to the basic motivational model.
Figure 7: A simplified illustration of the basic motivational model (Mullins, 2005: 471)
There are a number of competing motivational theories that attempt to explain the nature of motivation, and that they may all be at least somewhat true, and help to explain behaviour of certain people and certain times. Motivation theories can be divided into two groups: content theories and process theories. The content theories include: Maslow's hierarchy of needs model; Alderfer's modified hierarchy model; Herzberg's two-factor theory; and McClelland's achievement motivation theory (Mullins 2005).
Maslow's hierarchy is usually shown as ranging through five main levels, from, at the lowest level, psychological needs, through safety needs, love needs, and esteem needs, to the need for self-actualisation at the highest level.. The hierarch of needs may be shown as a series of steps, but is often displayed as a pyramid (Mullins, 2005: 480).
Figure Describing Maslow's Hierarchy of Needs
Figure 8: Maslow's hierarchy of needs model (Herrington, 2006).
The pyramid display is an appropriate form of illustration since it implies a thinning out of needs as people progress up the hierarchy. The five hierarchies are: Physiological needs [physical survival needs], safety needs [need for safety and security], love needs [social needs - belonging], esteem needs [need for self esteem], and self-actualisation needs. When a lower need has been satisfied, it no longer acts as a strong motivator; the needs of the next higher level demand satisfaction and become the motivating influence (Mullins, 2005).
Performance Management and Motivation In Tesco:
A range of processes and techniques are placed within all Tesco stores and in the Tesco offices, which allow individual employees to know how well they are doing, and for managers to be able to monitor how well their subordinates are performing.Â Â Â Performance monitoring provides information, which is of value for identifying future training or promotion opportunities, and areas where insufficient skills or knowledge could be deemed a threat to an employee's efficiency.
Â Tesco's managers exercise control at an individual and organisational level through:
Planning by setting objectives and targets.
Establishing performance standards.
Rectifying mistakes and taking action.
Monitoring actual performance.
Comparing performance against targets.
The performance of the individual in Tesco is consistently being measured against objectives and targets, which have been agreed jointly by managers and employees.Â
The process employed at Tesco follows the SMART criteria. This means that it should be Smart, Measurable, Agreed, Reliable and Time-related.Â
To gauge the actual performance of employees a monitoring process is implemented which measures performance and then links these performance measurements against the achievement of objectives/targets. Measurements may be made as indicators such as output, sales and profits over a specified period.Â Â On the personnel level employees are assessed according to their behaviours, which measures an employee's approach and attitude towards his or her job. Essentially, this focuses on the process of the job, on what an individual actually does.Â
Motivation describes the extent to which an individual makes an effort to do something.Â Â Tesco's are likely to improve performance in terms of customer care, attendance rates, cooperation and quality of tasks performed if they can find ways of increasing the willingness of their employees to perform tasks with greater effort.Â Â Tesco's have managed to achieve this through a variety of means, which have been aimed at increasing an individual's job satisfaction and are highlighted by a different theoretical basis.
Job satisfaction at Tesco's is achieved through the working environment, and is influenced by factors such as target setting, responsibility, independence, teamwork, interaction and achievement.Â Â For example the Slough branch Tesco supermarket has an electronic department, therefore they may be set a realistic target during the Christmas period, such as selling fifteen stereo systems and ten television sets with a built-in video player and if this was to be achieved Tesco's may offer the employees of that department a bonus or seasonal gifts.Â Â Therefore employees become further motivated by such incentives and begin to work with greater effort individually and as a team.Â Â Â
Motivation is also generated at Tesco by offering employees a pay increase, promotion or simply by the status and satisfaction associated with possessing a new skill and using the most up-to-date machinery and equipment.Â Â Â
Tesco department and store managers use both financial and non-financial means to motivate employees, such as pay rise or extra benefits.Â Â In doing so, Tesco aim to minimise labour turnover, attract new recruits and create an effective, productive working environment.Â
Tesco recognises that in order to remain the UK's leading retailer they need to be the UK's favourite employer.Â Â Tesco's employee satisfaction equation aims to show employees that rewards can be achieved through good performance.
Employee satisfaction =Â ProgressionÂ Â Â Â Â Â Â +Â Â Â Â Â Â Â PackageÂ Â Â Â Â Â Â +Â Â Â Â Â Â Â Experience
Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (Internal promotionÂ Â Â Â Â Â Â (Salary, bonusÂ Â Â Â Â Â Â Â Â (Rewards and
Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â recognition)Â Â Â Â Â Â Â Â Â Â Â Â Â Â and benefits)Â Â Â Â Â Â Â Â Â working conditions)
Tesco's annual awards and management bonus schemes provide recognition and rewards, and the emphasis it places upon internal recruitment and promotion provides the opportunity for advancement.
"Leadership is the accomplishment of group purpose which is furthered not only by effective leaders but also by innovators, entrepreneurs, and thinkers; by the availability of resources; by questions of value and social cohesion" (Gardner 1990: 38).
Leadership can be looked at in many ways and there are many interpretation of its meaning. It might be interpreted in simple terms, for example, 'getting other to follow' or 'getting people to do things willingly', or explained more specifically, such as 'the use of authority indecision-making' (Mullins 2005: 281).
Leadership creates an environment in which people are motivated to deliver and move in the direction of the leader. It is related to motivation, interpersonal behaviour and the process of communication. This means that leaders need to tackle the situation within which work is performed but not by the need to concern themselves with the tangible behaviour they display(Mullins 2005).
Organisational viability depends to a certain extent on effective leadership, and effective leaders participate in both professional leadership behaviours, such as, establishing a mission, creating a process for realising goals, aligning processes and procedures, etc., and personal leadership behaviours, for example, building trust, caring for people, and acting morally (Mastrangelo, Eddy and Lorenzet, 2004). These authors also indicate that leadership behaviours and actions are important determinants of effectiveness.
Good leadership involves the effective process of delegation and empowerment, and the leadership relationship is not restricted to leader behaviour which results in subordinate's behaviour, adding that leadership is a dynamic process. Good management leadership helps to develop teamwork and the integration of individual and group goals, and aids intrinsic motivation by emphasising the importance of the work that people do (Mullins, 2005: 282).
Leadership In Tesco:
The. These link to nine critical success factors, which break down further into various levels of assessment. This framework helps to identify those employees with the potential to be the 'best leaders of the future'.
Training and Development:
Training and development is a major area of the personnel function of special relevance to the effective use of human resources. The importance of training as a central role of management has long been recognised by leading scholars. One contribution a manager is expected to make is to give others vision and ability to perform, and a basic operation in the work of the manager is to develop people and to direct, encourage and train subordinates. Training is necessary to ensure an adequate supply of staff who are technically and socially competent, and capable of career advancement into specialist departments or management positions. Accordingly, there is a continual need for the process of staff development, and training fulfils an important part of this process, and training should, therefore, be viewed as an integral part of the process of total quality management. In fact, training has become the focus of a major attention in various countries of the world, as evidenced by the wealth of literature discussing various issues relating to training and its impacts on human resource development. Its importance is particularly amplified in areas relating to development and management (Mullins 2005).
The purpose of training is to improve knowledge and skills, as well as to change attitudes. This can lead to several potential benefits for both individuals and the organisation, maintaining that training can: increase staff confidence, motivation and commitment; provide recognition, enhanced responsibility, and the possibility of increased pay and promotion; give a feeling of personal satisfaction and achievement, and broaden opportunities for career progression; and help improve staff availability and quality (Mullins 2005).
Training and Development In Tesco:
To serve its widening markets Tesco needs flexible and well-trained staff that can recognise the needs of the customer. Tesco's employees work in a wide range of roles in both store and non-store functions, such as: Customer Assistants on the shop floor either directly assisting customers or preparing orders for delivery to customers who have ordered online, Department Managers leading a team of Customer Assistants, Warehouse employees who help catalogue and store clothing, food or brown goods in Tesco Distribution Centres, etc. Tesco recognises that increasing knowledge, improving skills and job satisfaction of employees are all vital to the continued growth of the company.
Tesco's aim to expand and diversify requires the business to have the right people, in the right place, at the right time.
Tesco employs people from a wide range of backgrounds and all employees have the opportunity to grow and develop. Tesco regularly evaluates the performance of its employees in order to anticipate any possible skills shortages. This helps managers and employees decide whether they have the correct knowledge, skills, understanding and resources to carry out their job effectively. Through annual reviews and career discussions, employees are able to apply for training suited to their needs.
Tesco has a flexible and structured approach to training and development, which adapts to individual employee needs. This allows people identified as having the potential and desire to do a bigger or different role to take part in training to develop their skills and leadership capability. Tesco offers employees both on-the-job training and off-the-job training
Development is about helping the person grow and extend their abilities. Tesco takes a shared responsibility approach to training and development. The trainee is primarily responsible for his or her development. Both the trainee and the line manager contribute to the programme.
The Trainee identifies and agrees to development needs, attending workshop and development days, collects evidence of achievements and uses the feedback they receive to improve performance and review their development plans.
Line managers help put together the Personal Development Plan, provide guidance to the trainee reviews performance regularly to ensure the trainee gets the best from the training and provides feedback.
Recruitment and Selection:
Recruitment is the process finding and engaging the people that the organizations requires. Selection is part of the process which helps decide which applicants are should be assigned to which roles (Armstrong 2009: 515-520). There are four stages of recruitment and selection
Recruitment and Selection In Tesco:
Tesco`s Recruitment and Selection process starts with Workforce Planning. This is a process to analyse the likely Human Resource requirement for Tesco in the near future keeping in view the company`s new ventures and products. This early requirement analysis process helps the company to address its staffing demands with sufficient time and flexibility. Tesco first priority is to fill vacant positions from within the company.
Tesco advertises its job opportunities through its online website and newspapers. Applicants are then required to fill in the job application form which the HR department reviews and shortlists applicants who fall under the required job category. The next stage is a psychometric test, which allows the company better understanding of the applicants strengths and weaknesses, and aptitude for the required role.
The Applicant then has to attend a one day exercise in one of the company`s many assessment centres. And finally before selection the applicant has an interview with his manager, in which he can ask questions concerning his job roles or the company. Tesco Employs a very rigorous selection process which helps to attract and retain employees that are a perfect match for the job requirements.
In order for business development to continue to be successful, it must be sustained. Currently, Tesco has a number of business development areas in which it could focus. The growth of the non-food business unit holds great promise, as it could take advantage of the growing demand for these products. Tesco has an opportunity in the International market to increase its market penetration in the United States and the rest of North America by following its current strategy of entering underserved markets. This strategy has proven successful to this point, and will likely continue to be successful due to American food retailers' reluctance to enter these areas.
With Tesco and its management, organizational performance is reaping the fruit of success with the apparent results of effective HR strategies that goes hand in hand with the powerful marketing strategies that are put into operations. Today, as Tesco operates globally, the need to focus on international and strategic planning of HRM is necessary. Managing the diversified members of the labor force as well as the target market requires further involvement of the company to future feasibility studies and marketing probing. But with the existing resources of Tesco today, its operations will continue to flourish as it proves the assumption that effective HR strategies as well as practices serve as a competitive edge among other businesses both domestic and worldwide in operations. The competitive advantage of Tesco is credited to the suitable strategic plans of its administration including its HR. Indeed, effective HR strategy will result to a competitive advantage.
Further, Tesco is well on top of the retailing, as well as the Internet shopping industry now. Seventy-nine years after it was founded, Tesco is now well on its way of becoming an international brand. Adding up to its laurels, Tesco's e-retailing arm is one of the most revered dot com shopping initiatives in the 1990s. However, with the continuing upsurge of internet technologies and the emergence of strong competitors, Tesco will need to undergo brand positioning and differentiation strategies to create and/or further its competitive advantages over other upcoming e-retailing companies. Moreover, while Tesco's long-term strategies for growth have been successful, there still is a need for further scenario planning to predict and be prepared for the changing times ahead.
In sum, HR strategies or HRM in general, is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques. It is about understanding, researching, applying and revising all human resource activities in their internal and external contexts as they impact the process of managing human resources in enterprises throughout the global environment to enhance the experience of multiple stakeholders, including investors, customers, employees, partners, suppliers, environment and society.