Tesco Plc Company Strategy Report
Added on 2020-10-22
11 Pages3179 Words177 Views
Company StrategyReport
ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Discussing strategic capabilities including resources and competence.......................................1Strength, weakness and resources................................................................................................2TASK 2............................................................................................................................................3TOWS and strategic suitability....................................................................................................3Feasibility acceptability...............................................................................................................5CONCLUSION................................................................................................................................6REFERNCES...................................................................................................................................7
INTRODUCTIONTESCO Plc. is one of the biggest supermarkets of UK operating within the retail industryof country and having many competitors like that of Sainsbury, ASDA, Morrison’s and manymore. This retailing industry under which company is been operating and functioning is havingoligopoly market structure as all of them are forming collusion and then operating withinmarkets so that no one could be making higher profits. Tesco Plc. Is British multinationalcompany which is selling and promoting about all types of products like that of groceries andgeneral merchandise retail. In the world Tesco is third largest in terms of profits of retail industryand 9th largest in terms of revenue. The company at present is having about 6000+ shops in allaround world like that of Europe and Asia and is leader in UK.The current report will be covering discussion of strategic capabilities with resources andcompetence with use of strategic tools and value chain and comparing it with key competitors offirm. Further report will be covering SWOT1 analysis will be covering from 2017-2022 withgiven justification and feasibility acceptability as well.TASK 1Discussing strategic capabilities including resources and competenceTesco Plc. is the most profitable firm in retail industry which is forming major marketshare of UK with having about 28.4% of total market share. The company was founded in year1919 by Jack Cohen which he rapidly expanded the business in 1939 and having about 100+supermarkets in UK (Quirke, 2017). So at the starting stage company was only operating asgrocers which they both geographically and operationally expanded their markets in variousfields like that of books, clothing, furniture, petrol, software, financial service, telecoms andmany more. Then after this company started to restructure itself which included to bring aboutvarious products at very low cost and in more quantity of products which was in 1990. Then in1993 company started launching or offering good quality of products which was according torange of their brand value. This made firm to be included within most successful and increasingchain growing from 500+ stores 1990 to 2500+ in 2005. After this company also was listed onStock Exchange of London2 which is at present constituent of FTSE 100 index. In year 2015 the1Strength, Weakness, Opportunities and Threats analysis2It is the stock exhange which is located in London with having market capitalisation of US$ 6.06 trillion and is thethird largest stock exchange in world.1
market capitalisation of worth £18.1 billion and this made company 28th largest with the primarylisting of stock exchange.Tesco is having its subsidiaries like that of including stores, banks, mobile, family diningand booker group. The overall economic contribution of company is around £37.3 million whichindicate performance of Tesco Plc. for the year 2016-17 with having employment to about74300+ which is full time job supported and UK supply chain. Tesco Plc. Paid about £1.2 billiontax for the same year which shows that they are doing very good for including to as revenue ofcompany.Strategic capabilities-The organisation is having stakeholders who are been considered to as most importantfactor for company so they Tesco should be including viewpoints of stakeholders. It is essentialfor company that they are been able to grow their production level, increasing base of customers,marketing for sponsor development and thus making progress into markets (Lyon, and Toffel,2018). So there are many strategic capabilities of company like that of having long and shortterm HR strategies or policies which would be helping company in growing within markets.Strength, weakness and resourcesTesco is having many strength and weakness which is making company grow withinmarkets and then finding a way to involve into best companies of retailing industry. The strengthand weakness of company will be as follows:Strength-Tesco is very much powerful company on global retailing brand with having 100 mostvaluable brand of world. They are known to as offering value to their customers in form ofquality, convenience and money to all its customers as they company is having wide range ofproducts and services (Lakshmi and Rao, 2017). At present company is having about 6784 storeswhich shows that company is been utilising their innovative models of business like that ofTesco Express and Metro. Other than this strength of Tesco will be including like that of increasein global operations3 which includes like that of online operations and joint partnership incountry like that of China. Weakness-3 Global operations would be meaning any company when they are been operating outside the host country in termsof dealing with clients and earning foreign exchange.2
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