Ammended Business Strategy

8/8/2019 Ammended Business Strategy

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Business strategy:

Strategy according to Johnson and Scholes define as follows:

"Strategy is the direction and scope of an organisation over the long-term: whichachieves advantage for the organisation through its configuration of resources withina challenging environment, to meet the needs of markets and to fulfil stakeholder expectations".

Strategy sets the way in which a company wants to go . For creating a common

purpose in any organisationgood strategy is a framework of ideas, which developed

by the leadership. It also involves making decisions about direction, communicating

those decisions and allocating the resources to go in that direction. A organisation

strategy should become a touchstone for all decisions.

Chart 1. Process of business strategy

The FTSE UK Index Series is mainly designed to characterize the performance of

UK companies, providing investors with a wide -ranging and complementary set of

indices. It measures the performance of all capital and industry segments of the UK

equity market. ASDA, Tesco, Debenhams, John Lewis, BT group and many more

company are included. Above all of them for business strategy I have chosen

TESCO.

Strategic

Formulation

Strategic

Evaluation

Strategic

Planning

Strategic

Implementation

Strategy

Mission

Vision

Stakeholder

SWOT analyse

Pestal analyse

Value chain

Direction of

competition

Ansoff growth

matrix

Impacts of

manager

Targets

BCG growth

Organic

growth

Product

development

Market

development

Feasibility

retrenchment

Selling the

concepts

Materials

Finance



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Tescoplc is a UK-based international grocery and general merchandising retailchain. It is the largest British retailer by both global sales and domestic market share,with profits exceeding £3 billion. It is currently the third largest global retailer basedon revenue, behind Wal-Mart and France's Carrefour, but second largest based onprofit, ahead of Carrefour. Originally specialising in food and drink, it has diversifiedinto areas such as clothing, consumer electronics, financial services, telecoms,home, health and car insurance, dental plans, retailing and renting DVDs, CDs,music downloads, Internet services and software.

Aims and Objectives of Tesco anda mission statement sets out the general purpose

of a business. It helps employees work towards a common goal. Tesco's Mission

Statement Tesco's mission statement is to Retain Loyal People. To make sure Tesco

achieve their mission statement, they need to know who their loyal cust omers are.That is why Tesco has got a club card service, through which they can award people

by giving them special vouchers and extra points. The Tesco business aim is an

organisation's long-term goal. The Objectives of the Tesco are goals that a firm sets

itself for the next three or five years. They have a timescale, they must be

measurable and they must contribute to the business achieving its aims. How

Objectives Blend in with each other All of Tesco's objectives blend in with each

other. None of the objectives will work without each other.

(www.tescoplc.com)

Corporate strategy

According to Citigroup retail analyst David McCarthy, "Tesco has pulled off a trickthat I'm not aware of any other retailer achieving. That is to appeal to all segments of the market". One plank of this strategy has been Tesco's use of its own-brandproducts, including the upmarket "Finest", mid-range Tesco brand and low-price"Value" encompassing several product categories such as food, beverage, home,clothing, Tesco Mobile and financial services.

Beginning in 1997 when Terry Leahy took over as CEO, Tesco began marketingitself using the phrase "The Tesco Way" to describe the company's core purposes,

values, principles, and goalsT

his phrase became the standard marketing speak for Tesco as it expanded domestically and internationally under Leahy's leadership,implying a shift by the company to focus on people, both customers and employees.

In order to protect its brand image, and given its expansion plans in Thailand, Tescohas recently been employing a policy of launching defamation proceedings. InNovember 2007, Tesco sued a Thai academic and a former minister for civil libel andcriminal defamation. Tesco is insisting that the two pay £1.6 million and £16.4 millionplus two years' imprisonment respectively. They have been alleged to have



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misstated that Tesco's Thai market amounts to 37% of its global revenues, amongstcriticism of Tesco's propensity to put small retailers out of business.

Tesco's main advertising slogan is "Every little helps". Its advertisements in print and

on television mainly consist of product shots (or an appropriate image, such as a car when advertising petrol) against a white background, with a price or appropriate text,e.g. "Tesco Value", superimposed on a red circle. On television, voiceovers areprovided by recognisable actors and presenters, such as James Nesbitt, JaneHorrocks, Terry Wogan, Dawn French, Ray Winstone, Neil Morrissey, Martin Clunes,David Jason and Kathy Burke among others.

Tesco is one of Britain's leading food retailers, with 519 stores throu ghout England,Scotland and Wales. There are also 105 stores in France operated by Catteau, and44 in Hungary operated by Global. Tesco is committed to:

¡ ¡

ering cust

mers the best value¡

r m

ney andthe m

st c

mpetitive prices

providing shareholders with progressive returns ontheir investmentimproving prof itability throughinvestment in eff icient stores and distribution

depots, in productivity improvements and in newtechnology

meeting the needs of customers by constantly see¢ ing,

and acting on, their opinions regarding innovation,product quality, choice, store f acilities and service

participating in the formulation of national foodindustry policies on

£ ey issues such as health, nutrition,

hygiene, saf ety and animal welf are

working closely with suppliers to build long termbusiness relationships based on strict quality and price

criteria

developing the talents of its people through soundmanagement and training practices, while rewarding

them f airly with equal opportunities for all



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Tesco v l es

The e e f tesco is to create al e f or customers to earn their lif etime loyalty.

Their success epends on people the people ho shop ith us and the people ho ork ith them.

If their customers like hat they off er , they are more likely to come ack and shop ith us again. If the Tesco team find hat e do rewarding, they are more likely to

go that extra mile to help their customers.

This is expressed as Tesco alues:

o-one tr ies harder f or customers:

Treat people as we like to e treated:

01 Understand c stomers.

02 Be first to meet t eir needs.

03 Act res onsibly for our communities.

01 Work as a team.

02 Trust and res ect eac ot er.

03 Listen, support and say t ank you.

04 Share knowledge and e perience

05 ...so we can enjoy our work.



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In Tesco, they regularly ask their customers and their staff what we can do to makeshopping with us and working with us that little bit better.

Shopping trip

Tesco have feedback from their customers, they want - clear sales, to be able to get

what they want at a good price, no queues and great staff. they call this their EveryLittle Helps Shopping Trip for customers and use it every day to ensure Tesco arealways working hard to make Tesco name better and better also it is place to shop,at home and abroad.

A great place to work

Theirstaff have told management what is important to them - to be treated withrespect, having a manager who helps them, having an interesting job and anopportunity to get on. Helping achieve what is important to Tesco staff will help themto deliver an Every Little Helps Shopping Trip for the customers.

The way Tesco work

The way above organisation work is how they deliver Every Little Helps to makeTesco a better place to shop and work in. Ituse simple processes so that shopping isBetter for customers, Simpler for staff and Cheaper for Tesco.

Our community

The Tesco have five community promises that express how Every Little Helps comes

alive in the communities they¶re part of. It¶s important that their staff and customers

know that together they can make a difference, and that through Tesco those

differences can really add up.T

hese promises affect the people, customers, their suppliers, the environment and the communities of Tesco work in, and put

Community at the heart of our business.

Strategy

Tesco has a well-established and consistent strategy for growth, which has allowed

us to strengthen their core UK business and drive expansion into new markets.

The rationale for the strategy is to broaden the scope of the business to enable it to

deliver strong sustainable long-term growth by following the customer into large

expanding markets at home ± such as financial services, non-food and telecoms ±

and new markets abroad, initially in Central Europe and Asia, and more recently in

the United States.

The strategy to diversify the business was laid down in 1997 and has been the

foundation of Tesco's success in recent years. The new businesses which have

been created and developed over the last 12 years as part of this strategy now have



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scale, they are competitive and profitable - in fact we are now market leader in many

of our markets outside the UK.

The Group has continued to make good progress with this strategy, which has five

elements, reflecting our four established areas of focus, and also Tesco's long -term

commitments on community and environment. Importantly, the momentum which ithas given the business has allowed the Group to continue to grow well through t he

economic downturn.

The objecti es of the strategy are :

y To be a successful international retailer

y To grow the core UK business

y To be as strong in non-food as in food.

y To develop retailing services - such as Tesco Personal Finance, Telecoms

and Tesco.com

y To put community at the heart of what we do.

Relations with stakeholders

Tesco are committed to having a constructive dialogue with stakeholders to ensure

they understand what is important to them and allow themselves the opportunity to

present their position. Engagement helps them identify new risks and opportunities

to ensure that their long-term strategy is sustainable. In some instances they find

that working with stakeholders in partnership can help deliver shared goals. Tesco

might not be able to satisfy all stakeholder concerns all the time but through

engagement It can do their best to balance competing demands. they know that

customers need to be able to trust Tesco business and they will only trust them if

they do the right thing by all their stakeholders. Tesco programme of engaging with

stakeholders including customers, staff, suppliers, investors, non-governmental

organisations and others, is set out in more detail on their website

www.tescoplc.com/plc/corporate_responsibility_0 9/ ), and in their Corporate

Responsibility Report 2009..



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S ar ehol er engagement

Tesco are committed to maintaining a good dialogue with shareholders through

proacti ely organising meetings and presentations as well as responding to a wide

range of enquir ies. They seek shareholder iews on a range of issues f rom strategy

to corporate governance and SEE issues. Tesco recognise the impor tance of communicating appropr iately any significant company developments.

ur ing the year , the hairman, hief Executive and inance irector met with most

of our leading shareholders to discuss issues relating to the oard, strategy and

governance matters, as well as new developments within the usiness. The

hairman¶s meetings with ma jor shareholders took place independently f rom the

Executive team. In addition to this the ompany Secretary¶s office, Investor

elations and other teams within the usiness engage with shareholders on a

regular asis, and on a wide range of issues.

It is normal that institutional shareholders may e in more regular contact with the roup than others, ut care is exercised to ensure that any pr ice-sensitive

inf ormation is released to all shareholders, institutions and pr ivate, at the same time

in accordance with applicable legal and regulatory requirements.

Competitor analysis is a critical aspect of this step.

har t ompetitor Analyses.

Identif y the actual competitors as

well as substitutes.

Select which competitors to attack or avoid.



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Internal Analysis

The Internal Analysis of strengths and weaknesses focuses on internal factors thatgive an organization certain advantages and disadvantages in meeting the needs of its target market. Strengths refer to core competencies that give the firm anadvantage in meeting the needs of its target markets. Any analysis of company

strengths should be market oriented/customer focused because strengths are onlymeaningful when they assist the firm in meeting customer needs.

Weaknesses refer to any limitations a company faces in developing or implementinga strategy. Weaknesses should also be examined from a customer perspectivebecause customers often perceive weaknesses that a company cannot see. Beingmarket focused when analyzing strengths and weaknesses does not mean that non-market oriented strengths and weaknesses should be forgotten. Rather, it suggeststhat all firms should tie their strengths and weaknesses to customer requirements.Only those strengths that relate to satisfying a customer need should be consider edtrue core competencies.

The following area analyses are used to look at all internal factors affecting acompany:

y Resources: Profitability, sales, product quality brand associations, existingoverall brand, relative cost of this new product, employee ca pability, productportfolio analysis

y Capabilities:Goal: To identify internal strategic strengths, weaknesses, problems,constraints and uncertainties

External Analysis

The External Analysis examines opportunities and threats that exist in theenvironment. Both opportunities and threats exist independently of the firm. The wayto differentiate between a strength or weakness from an opportunity or threat is toask: Would this issue exist if the company did not exist? If the answer is yes, itshould be considered external to the firm. Opportunities refer to favorable conditionsin the environment that could produce rewards for the organization if acted uponproperly. That is, opportunities are situations that exist but must be acted on if thefirm is to benefit from them. Threats refer to conditions or barriers that may preventthe firms from reaching its objectives. (ref: Marketing and Its Environment, pg 44)



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The following area analyses are used to look at all external factors effecting acompany:

y Customer analysis: Segments, motivations, unmet needsy Competitive analysis: Identify completely, put in strategic groups, evaluate

performance, image, their objectives, strategies, culture, cost structure,

strengths, weaknessy Market analysis: Overall size, projected growth, profitability, entry barriers,

cost structure, distribution system, trends, key success factorsy Environmental analysis: Technological, governmental, economic, cultural,

demographic, scenarios, information-need areasGoal: To identify external opportunities, threats, trends, and strategicuncertainties

SWOT Matrix

The SWOT Matrix helps visualize the analysis. Also, when executing this analysis itis important to understand how this element works together. When an organizationmatched internal strengths to external opportunities, it creates core competencies inmeeting the needs of its customers. In addition, an organization should act to convertinternal weaknesses into strengths and external threats into opportunities.



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SWOT Analysis - Strengths

Begin your SWOT analysis by producing a picture of Tesco's strengths usingstrategic marketing reports and other business resources. Specific analysistechniques to employ:

y Determine Tesco's main assets using online business dire ctories, and offlinesources like the company report.

y Visit a Tesco store and look for strengths in Tesco's direct marketing.

Compare Tesco with other stores. As questions like: Does Tesco have thebest product line? Which supermarket group has the the best advertising?

y Look at SWOT analysis case studies for Tesco, and for other companies.These can be found offline and online. Find online sources by pursuing aGoogle search. For offline sources of information use your local university andpublic libraries and ask for help from the librarians in finding what you need.

SWOT Analysis - Weaknesses

In performing a SWOT analysis of Tesco's weaknesses, think about the weaknessesthat other companies share with Tesco. For instance, comparing Tesco with Bri tish Airways might get you thinking about how dependent Tesco is on the UK market(73.8% of 2003 revenues.) Comparing Tesco with Amazon might reveal flaws in itsattempts to move into new markets.

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SWOT Analysis - Opportunities

Some of Tesco's main opportunities are on the internet. Look at the Tesco website,and compare it to the opposition. Ask yourself: What opportunities is Tesco missing?Which opportunities are Tesco exploiting? For instance, compare tesco.com andamazon.com. How do the prices of books compare? Which site has the bestfeatures? What opportunities can Tesco take that Amazon might be missing?

SWOT Analysis - Threats

Having already investigated the strengths, weaknesses and opportunities facingTesco you should have some good ideas about the threats facing it. Concentrateespecially on strategic planning to counter threats from other companies. For instance, investigate how Tesco's financial products compare with those from moreestablished providers. A SWOT analysis of Tesco must consider all the competition

in detail.

PESTLE analysis for Tesco's

What is a PESTLE analysis?

PESTLE stands for Political, Economic, Sociological, Technological, Legal andEnvironmental factors. Examples of each are:

y Political ± tax policies, trade restrictions, tariffs

y Economic ± economic growth, interest rates, inflation rates

y Sociological ± culture, health consciousness, age distribution

y Technological ± ecological aspects, research and development, rate of technological change

y Legal ± health and safety laws, consumer laws and regulations

y Environmental ± recycling policies, pollution

Why use a PESTLE analysis?

The purpose of the PESTLE analysis to assess the industry which an organisation is

in.T

he PEST

LE analysis is used in conjunction with the SWOT

analysis whichassesses the Strengths, Weaknesses, Opportunities and Threats to an organisation.The PESTLE analysis is also seen to assess the Opportunities and Threats to theorganisation.



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PESTLE analysis using as a strategic tool..

Strategic management is about formulating and implementing decisions which allowan organisation to achieve its long term objectives. This can be done ad-hoc,

regularly or continuously scanning. Whether the scanning is of TESCO as an entireorganisation or individual store, a PESTLE analysis should be undertaken.

Strategies are formulated by Chief Executive Officers, approved by the Board of Directors and implemented by Senior Management. The PESTLE analysis is part of the environmental scanning branch of strategic management.

PESTLE ANALYSIS OF TESCO

Tesco is the giant of all supermarkets due to its UK dominance. Retail analystshave identified three main reasons for this.

Chart 4 PESTLE Analysis of Tesco

Due to the nature of the TESCO organisation with particular reference to how it hasbranded and marketed itself, and the current economic climate, the assessment of external factors by a PESTLE analysis has been crucial in TESCO¶s success. Thisis because TESCO has taken into account the implications for consumers,employees, stakeholders, associated organisations and the company¶s missionstatement. Each external factor would have been and continues to be examined andcategorised in terms of whether its implication is negative or positive, large or minor significance, intermittent or continuous impact and so on.

Tescos are

everywhere

sell to

everyone

sell

everything



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The BCG matrix

The BCG matrix method is based on the product life cycle theory that can be used to determinewhat priorities should be given in the product portfolio of a business unit. To ensure long-termvalue creation, a company should have a portfolio of products that contains both high -growthproducts in need of cash inputs and low-growth products that generate a lot of cash. It has 2

dimensions: market share and market growth. The basic idea behind it is that the bigger themarket share a product has or the faster the product's market grows the better it is for thecompany.

Chart 5 the BCG Matrix

1. Stars high growth, high market share

2. Cash Cowslow growth, high market share3. Dogs low growth, low market share

4. Question Marks high growth, low market share



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Dogs

These are products with a low share of a low growth market, which do not generate

cash for the company, they tend to absorb it. Tesco would consider insurance as the

dog category since these items brings low revenue for the company.

Problem Child

These are products with a low share of a high growth market. They consume

resources and generate little in return. They absorb most money as you attempt to

increase market share since these are new products. For an example Tesco

introduce bakery items which are still in the question mark category since it was a

product.

Stars

These are products that are in high growth markets with a relatively high share of

that market and bring grater revenue for the company.T

esco could classify fuel inthis category since it brings much revenue for the store, not only in fuel when the

customers fill in fuel he also purchase other products in the store.

Cash Cows

These are products with a high share of a slow growth market. Grocery products at

Tesco fits in to this category since these sales are mainly taken by the customers

who fill in fuel for their vehicles.

Ansoff matrix:

This well known marketing tool was first published in the Harvard Business Review(1957) in an article called 'Strategies for Diversification'. It is used by marketers whohave objectives for growth. Ansoff's matrix offers strategic choices to achieve theobjectives. There are four main categories for selection.

Chart 6: Ansoff matrix, fieldwork



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Pr oduct Choice is increasing

Choice is not just about deciding where to shop, but also about having a choice of

different products when you get there , and the right information to help chose

between them. Many of our stores stock over 40,000 product lines. Even our little

neighbourhood µExpress¶ stores stock a choice of well over 2,000 lines.

Individual customers tell us they value being able to buy from a wide range; their

favourite brands, regional produce, international cuisine, organic and healthy options

to name but a few. And customers' demands are changing as lifestyles change.

Innovation is therefore essential if we are to keep pace with our c ustomers¶ needs.

We introduced around 8,000 new product lines last year to help do this. Here are just

a few examples of the diversity of choice available through Tesco¶s food ranges:

400 µHealthy Li ing¶ pr oducts.

Many customers look to Tesco to help them live more healthily. We try to do this

through dedicated ranges, through better information on products, and advice instore and online. The µHealthy Living¶ range originally launched in 1985 now contains

over 400 products which are low in fat and sodium.

150 µFree Fr om¶ pr oducts.

The feedback from one customer whose son had severe food intolerances led to the

development of the µFree From¶ range which was launched in 2002. The range now

includes 150 products designed to make life easier for people with fo od allergies and

intolerances.

40 Special healthy Kids snacks.

We have also introduced the 'Kids' range designed for 5 to 10 year olds to ensure

that they enjoy healthy mealtimes. Children's diets actually need more nutrients, not

just a reduced number of unhealthy ingredients, so the Kids range was developed as

a good source of fibre, wholegrain and five -a-day fruit and vegetables.

1,200 Organic pr oduct lines.

Customers from all walks of life told us they wanted to buy more organic food. They

also told us the barriers to buying more were availability and affordability. Over thelast year we have broadened and integrated our organic ranges, and are working

with our suppliers to ensure even more diverse and more affordable organic food.



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Widest Fair-trade range in the UK.

We strongly support Fair-trade. We offer our customers the widest fair -trade range

available in the UK with almost 100 product lines. Fair-trade guarantees that

developing world farmers are paid a fair price that covers the cost of producti on plus

a premium to be spent on community projects such as better healthcare, sanitation,

education or housing.

Di ersif ication

Di ersif ication is a form of growth marketing strategy for a company. It seeks to

increase profitability through greater sales volume obtained from new products and

new markets. Diversification can occur either at the business unit or at the corporate

level. At the business unit level, it is most likely to expand into a new segment of an

industry in which the business is already in. At the corporate level, it is generally and

its also very interesting entering a promising business outside of the scope of the

existing business unit.

TESCO strategy was an active diversification programme through acquisition. Thevigour with which this was pursued, while successfully introducing the company intovaluable new categories, also brought in a lot of peripheral activities.

Market Penetration

A measure of the amount of sales or adoption of a product or service compared tothe total theoretical market for that product or service. The amount of sales or adoption can be an individual company¶s sale or industry while the theoretical marketcan be the total population or an estimate of total potential consumers for theproduct.



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Strategic lanning

Strategic planning helps to f ocus the aims and ob jectives of an organisation. It is

carr ied out in f our stages: here are we now?; here do we want to be?; ow do

we get there? And finally a review of the per f ormance is carr ied out.

Figur e

.1: Types of infor mation at Tesco, Fiel

ork

igure . emphasi es the types of inf ormation which is required f or strategic

planning at Tesco and its directly related to the level of management decision

making and the amount of structure in the decision situations they f ace.

Strategic infor mationin Tesco is used by the high level executives, these

inf ormation are used in order to make s trategic decisions at Tesco. or an example

to expand the business the executives might decide enter ing in to new markets at

this situation they consider the demand f or the product in that par ticular market,

investments, to employ the r ight person and to analyse these dat a proper inf ormation

is required.

Tactical infor mation at Tesco is handled by the f ranchisors and the area managers.

These are semi structured data and this level involves in making efficient use of

resources under the supervision of the head office.

Operational infor mation is used the business mangers and the line managers at

the store, they develop shor t term plans like weekly sales target, standard of service

and to proceed these tasks operational inf ormation is used. These are structured

data by which the staff s are able to proceed with their day to day activities.



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Strategy planning of Tesco

Tesco has a rolling 5-year business plan. There long-term growth strategy has four

elements:

Strong UK core business: Tesco¶s UK business is based on obsession of getting it

right for customers. They continue to offer great value, bring new innovations andgrow market share.

Non-food: Tesco are extending their brand into non-food. They now have over 4%

market share and are developing a good one -stop shop for customers.

Retailing services: Retailing services are a great opportunity for Tesco to bring new

services to the customer. Tesco have developed the best grocery home shopping

system for the customer and Tesco Personal Finance offers great products at good

prices.

International:T

esco¶s strategy of building an international business of scalecontinues to gain momentum. They have made good progress in all markets and

now operate 102 overseas hypermarkets. Tesco are on track to have the same

overseas as in the UK in 2003.

Chapter 3 - Strategy e aluation and selection

3.1 Merger

Tesco is already merged with Esso Petroleum Company, Limited which is a major

brand. Over the last 125 years ExxonMobil has evolved from a regional marketer of

kerosene in the U.S. to the largest publicly traded petroleum and petrochemical

enterprise in the world. Today the companies operate in most of the world's countries

and are best known by our familiar brand names: Exxon, Esso and Mobil. Company

make the products that drive modern transportation, power cities, lubricate industry

and provide petrochemical building blocks that lead to thousands of consumer

goods.



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3.2 Ver tical integration

igure

. : Ver tical integration at Tesco,

ieldwork

Figure . represents the ver tical integration at Tesco and the company uses both

intranets and extranets which are internet -like networks within and outside the

organisation. The suppliers, Esso petroleum and manuf acturers use extranets as a

mean of exchanging inf ormation with the head office which is a backward integration

and the head office and f orward integration to exhibit changes within the store. E.g.

order ing of stocks, pr ice changes of f uel and introducing new products. Then the

store manager makes the changes and transf ers the inf ormation through intranet to

the point of sales. At this stage the sales advisor deals with the customers in order to

sell the company¶s products and services.

Communication (ICT) and the achievement of business ob jectives

Tesco have created excellent communications channels within the business and outside the business which enables them achieve its business ob jectives eff ectively.This makes sense in meeting a range of Tesco ob jectives f or example building strong relationships with customer , becoming the leading market leaders, developing a reputation and to maximi e sales and revenues.

Tesco are continually communicating with diff erent groups of people, these communication per f orms a number of f unctions: Z inf o Z

¨ A public relations f unction - to present a good image of the company.

¨ An inf ormation f unction - to provide var ious groupings with essential inf ormation about the company.

¨ A day to day trading f unction - to transact the business's daily commercialrelationships.



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The impact of ICT In the first decade of the twenty-first century, in Tesco ICT hastotally transformed the ways of communicating within and outside the business:

The use of e-mail to replace many communications that were previously carried outto give information to shareholders and directors by letters, faxes and phones calls.

The use of networked database to replace Tesco's traditional systems of filing andstoring information.

The use of computers to replace a range of standardized operations involving theinterface between Tesco and its customers. For example registering an order,requesting items from stores, maintaining stock levels, ect.

The use of an internet website to create a communication link between Tesco andits global market.

The use of digital methods for much faster communications, involving a range of visual, sound, and other forms of communications.

Tesco based on business processes put a high premium on infor mation and onsharing ICT facilities. ICT has a very important role to play for Tesco achieving itsbusiness objectives. Groups working together in a team will need to shareinformation, and computer terminals of different specialists are linked, so thatinformation is available to all.

Tesco¶s business strategy implementation has operated as follows;

* Grown sales by 91%. I know this because Tesco won in the core UK through the

best all round shopping experience; growing non food market share; being

innovative in retailing services; and growing there international business at a rate

ahead of our major competitors.

* Grown profits by 87%. Tesco have many customers who are satisfied with their

products, therefore purchasing more of their products. In t his case they are supplying

and selling more and therefore making profit.

* Grown UK sales by 66%. I know this because the total UK sales for the fourteen

weeks ending 15th November were up 14.6% including 4.3% from T&S Stores.

Tesco also continue to see some petrol inflation. Non-food goes from strength to

strength. There clothing offer continues to grow at more than six times the market

rate, with sales up 34% in the quarter.



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* 3m new customers. Tesco have expanded their business in many countries and

there fore have gained many new customers.

* Moved from market leader in 1 country to 10. For this I found a quote from Mr.

Gordon Fryett, Chief Executive saying;

Tesco is one of the world's leading retailers operating almost 1,000 stores in 10

countries worldwide including, Ireland, United Kingdom, Hungary, Poland, Czech

Republic, Slovak Republic, Thailand, South Korea, Taiwan and Malaysia.

MILES AND SNOW¶S STRATEGIC TYPES

µMiles and Snow claim to have identified 4 types of strategic behavior with

associated organizational characteristics.¶

Defenders have narrow and relatively stable product -market domains.

Prospectors continually search for product and market opportunities and

regularly experiment with potential responses to emerging environmental trends.

Reactors are those organizations in which strategy -environment inconsistency

exists or in which strategy, structure and process are poorly aligned.

Analyzers operate in 2 types of product market domains ± one relatively stable,

the other changing.¶

Resource allocation

In a business managers are given training on how to become a leader. This is

because if a manager of a company is a well -trained leader then he will have the

skills of controlling the workforce and would assist to steer the company forward into

the right direction. Leadership is the process of influencing group activities toward

the achievement of goals. Leader influence and change the way people think about

what is desirable, possible and necessary. There are four different types of

leadership and management style, which have a different effect. Some are positively

good for the business and some are negatively good for the business.

Management infor mation System

According to the Definition of CIMA (comput ing terminology) A computer system or

related group of systems which collects and presents management information to a

business in order to facilitate control



23 | P a g e

Strategic level at Tesco the E , directors and share holders uses ESS to gather

data f rom inter as well as external sources in order to make strategic decisions.

Example: Trend f orecasting, operating plan, budget f orecasting, profit planning,

human resource planning.

The above decisions are then transf erred to management level where the f unctional

level and area managers at Tesco use SS and SS. These two systems attach

data and analytical models by data analysis tools these systems turns out

unstructured data in to structured data . E.g. Annual budgeting, capital investment

analysis, inventory control, production scheduling, cost analysis and sales region

analysis

At the knowledge level stage, terr itory managers at Tesco uses K S to f acilitate the

creation and integration of new knowledge and AS is used to increase the

productivity of data and inf ormation workers. E.g. engineer ing workstations, graphic

workstation, word processing and electronic calendars

In the operational level the store manager at Tesco uses transaction processing system TPS in order to record routine transaction. E.g. order tracking, order

processing, cash management, payroll and employee record keeping.



CONCLUSION

In conclusion, TESCO have experienced fierce competition, which has resulted in

the Fighting Back strategy. Significant external and internal influences are shaping

the strategic business needs and therefore, HR needs to maintain a proactiveapproach to help meet these needs.

Sophisticated HR has been a characteristic of TESCO, but numerous restructures

have affected this. A key business need is an improved customer focus culture.

Therefore, it needs to adopt multiple roles to drive this change through the long term

and to establish building blocks in the short term. It also needs to maintain its

focuses on competitor¶s strategy and bring changes accordingly.

Although the priorities have been set out, it is important for TESCO to continue to

maintain and increase its market share and customer base and to re -establish its

unique and fundamental strengths.

Bibliography

Kenneth A. Merchant, (2004) Modern Management Control System, Pearson

Education Singapore

Dave, H, Rob, J Carlo, R, Ian, C, Dave, G, (2001) Business Studies (second edition)

Causeway Press Limited

Nigel, S, Stuart, C, Robert, J, (2001) Operations Management (third edition) Pitman

publishing

Thompson and Strickland, (2001), Crafting and Executing Strategy , 12th edition,.

McGrew-Hill: New York,

Robbins, S.P. and Coulter, M. (2005), ³Management´, 8 th edition, Pearson Education

Inc, Upper Saddle River, New Jersey

Taylor, Lumpkin and Dress. (2005), Strategic Management , 2nd Edition, McGraw-

Hill: New York

Ammended Business Strategy

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