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This is a report on Tesco PLC which is one of the largest grocery and general merchandising retailer in the UK and in other countries around the world. Tesco is the third largest retailer in the world; the first two largest retailers are wall-mart which is also known as Asda in the UK and Carrefour which is a French international retail organisation.
Tesco is a highly reputable organisation which has been growing over the last 8 decades and is still growing. In this report I have use a rage of model and tool to demonstrate what TESCO is all about. Tesco's has over 4,330 stores around the world but mainly around the UK. In this report I have used the strategic tools like PESTEL, Porters Five Forces, SWOT analysis and a value chain analysis. On the Tescoplc.com website allot of resources are available to the public as Tesco is a public limited company, this has contributed allot of help in doing my report.
Tesco initial was founded by Jack Cohen early in the 1920's. The brand was initially named when jack Cohen bought a shipment of tea from T.E.Stockwell and by using the initials of T.E.Stockwell Cohen added the first two letter of his surname to create the brand TESCO.
Tesco first started by selling food and drinks and over the year has diversified its product range from clothing, insurance, telecommunications and retailing and renting DVD's to online services like music download and software. The organisation has also diversified geographically as it is a well known brand around the UK which was the primary focus to the rest of the world and is now operating in 14 countries around the world.
Tesco is on the London Stock Exchange as FTSE which shows Tesco is one of the 100 most capitalised organisations in the UK. In 2009 Tesco had revenue of £54 Billion and employs over 472,000 employees worldwide. Tesco provides financial services called Tesco Personal Finance (TPF) as well as providing broadband internet connections. The position of Tesco's in regards to shares with other market leaders have been put into a PIE chart below.
The primary stage of the value chain is where the opportunity arises to create value for the business. The first stage is known to be upstream for activities. Inbound logistics is where products are bought from the supplier and are and are handled and transported to the shelves. Tesco adds value by maintaining the level of choice while it is also improving the efficiency of distribution system. Quality control measures are taken to remove the damaged goods and reducing the cost which may be incurred to its consumers.
In the day to day running of the stores Tesco has to maintain its service levels by selling the products and services and making sure they are open for business in accordance to their trading hours. Tesco would have to also make sure products are available on shelves for their day to day business, this is done overnight daily. In order to keep their competitive advantage Tesco may have to consider opening more hours or even opening metro and express stores. To do this Tesco must seek permission from the council and sometimes this may not be possible, this would take away their competitive advantage.
Outbound logistic is the third stage of the value chain and Tesco add value by providing deliveries to customers. Tangibles such as parking facilities, trolley collection, staff at till and systems are also used to gain the competitive advantage by saving time of consumers if done properly. The implementation of trolley deposit stations and keeping them orderly helps customers to get to and from the stores premises allot quicker as well as making these facilities available to use.
Marketing and sales
The marketing and sales side of the value chain is more downstream. The Tesco club card provides discounts and help to keep customers loyal. Tesco also advertise on the radio, newspapers as well as TV adverts to attract customers with their pricing and promotions available. In regards to selling environmentally friendly products there are some constrains however Tesco can take advantage of this by providing products that are environmentally friendly which could help attract new customers.
'Most businesses are now aware of the threat of climate change and of the need to reduce their energy consumption and carbon emissions but many do not see these issues as business priorities in the current economic climate. However, Tesco has demonstrated that successful businesses can grow and simultaneously cut their emissions in absolute terms with a positive impact on the bottom line. We urge other businesses to be inspired by Tesco's achievement and take similar action.'