A Case Study on Strategic Management

Running head: A CASE STUDY ON STRATEGIC MANGEMENT
A case study on strategic management
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1A CASE STUDY ON STRATEGIC MANGEMENT
Executive summary
The study intended to give a case study of Tesco Company. The company, being the most
extensive retail brand in the grocery market has been securing its place over the years.
However, due to certain issues, such as new entrants in the markets, competition with
existing competitors and poor strategic management, the profit margin of the company is
presently has been lowered. Therefore, a case study has been discussed in order to identify
the core issues that the company is presently facing and in addition to that, the suggestive
measures to address the issue are given as recommendations.

2A CASE STUDY ON STRATEGIC MANGEMENT
Table of Contents
Background of the company......................................................................................................3
Operation issues of Tesco..........................................................................................................4
Customer service....................................................................................................................4
Logistic costs..........................................................................................................................5
Organizational dispute...........................................................................................................5
External threats.......................................................................................................................5
High cost of product delivery.................................................................................................6
A teaching note..........................................................................................................................6
References................................................................................................................................10

3A CASE STUDY ON STRATEGIC MANGEMENT
Background of the company
Established in the year of 1919, Tesco started its journey as a market stall. In the year
of 1929, it opened its first retail store in the United Kingdom (Tescoplc.com 2014). The
company since then started achieving growth. The company became the leading brand by
offering quality goods at an affordable price. Therefore, the company has been able to build a
quality relationship with its customers. The company has gained the trust of its consumer,
which helped it being the largest leading brand, not only in the United Kingdom but also in
the whole world (Bizforum.org 2015). According to the market survey, Tesco currently
operates in twelve countries across the world. As per the records, the company presently has
530000 employees over its 2291 stores in different locations around the globe.
In the United Kingdom itself, the company has established over 780 stores (Bbc.co.uk
2014). The company every week satisfies around 10 million consumers across the country by
serving quality products. Tesco secures the highest position in the in the grocery retail
industry like ASDA and so on. The company mainly offers products out of which 30 % is the
grocery products in the United Kingdom only. However, the company has expanded its
product range and now offers garments, electronic goods, fuel energy, and financial services.
In the entire business sector, Tesco has become the largest group to be delivering goods as
well as services. In all part of the United Kingdom, the company has employed around
310000 workers over 780retail stores (Bbc.co.uk 2014). As per the statement of the Chief
Executive Officer of the company, it pulls 65% (Bbc.co.uk 2014) of the whole profit from its
business in the United Kingdom as it is based in the United Kingdom.
The company provides different channel services to the consumers. In the year of
1997, Tesco secured its place the first retailer, which served home-based shopping services to
its customer and pulled a significant amount of profit in their business. Since then, Tesco has