Event Management by TESCOEvent Management by TESCO

1. Prospective Plans of TESCO

2. Event Management of TESCO

3. SWOT Analysis of TESCO

4. Recommendations

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Executive Summary

This report is about exploring the company profile for any renowned name of the UK.

Then a strategic analysis of that company will be done on the basis of its aim,

current placing, future prospects & SWOT analysis. In the second half, event

management of that company will be done to know in detail whether its event

management confirms the aims and objectives of the company or not. On the basis

of all this, some recommendations will be given to the company. For the purpose,

TESCO which is the market leader of UK retail industry is selected as a case study.

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ContentsIntroduction...........................................................................................................................................3

Case Study of Tesco...............................................................................................................................3

Overview of company............................................................................................................................4

Aims & Culture of Tesco........................................................................................................................5

The aims of Tesco..............................................................................................................................5

Prospective plans for Tesco...................................................................................................................6

SWOT analysis of Tesco.........................................................................................................................7

Strengths...........................................................................................................................................7

Weaknesses.......................................................................................................................................7

Opportunities....................................................................................................................................8

Threats...............................................................................................................................................8

Event Management by Tesco..............................................................................................................10

Recommendations for Tesco...............................................................................................................11

Conclusion...........................................................................................................................................11

References...........................................................................................................................................12

Appendix A..........................................................................................................................................13

Appendix B..........................................................................................................................................14

(Words: 1943 excluding executive summary, TOC, References & Appendices)

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Tesco: A Case Study

Introduction

This report will critically illustrate a brief on the strategic management of a company

especially in the context of event management. Tesco is chosen as a case study

organisation for this report. The main portion regarding the company is divided into

two distinct parts. The first part is concerned with the company profile, its current

strategies & standings, culture & aims, future prospects; and the second half will take

care of its event management strategies alongside its reconciliation with the

company’s culture & aims.

Case Study of Tesco

TESCO is selected as a case study for this report. TESCO is the biggest retail stores

in the UK. Sainsbury actually became the market leader for a while but again

TESCO took over the market leader position. Currently, there is a strong competition

between TESCO, Sainsbury & ASDA to be on top. Moreover, TESCO is expanding

its operations outside the UK market which can aid in company’s tactics to survive in

international market as well. TESCO is also a publicly listed company so it provides

a complete picture of all business scenarios which are possible and so can be very

informative. Last but not least, being a public listed company, its records are easily

available through internet sources and its financial information can be accessed

through annual report. The financial information in the annual report can also be

reliable because it is audited and so guide to accurate results.

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Overview of company

TESCO is one of the major players of food retail industry in the world with its

revenue exceeding £70 billion in 2011-12 and 500,000 people working in TESCO.

They have approximately 4500 stores not only in the UK but in 14 different countries

around the globe. It has its operations in USA, Europe & Asia with head office based

in the UK (TESCO Annual report 2011). TESCO has a commercial network

comprising on more than 960 express stores which offer more than 7000 products

including fresh food, metro stores which operates in towns and city centres with a

variety of food products & super stores which do not only offer food but also non-

food articles e.g. books & DVD’s. To compete in the e-commerce world, TESCO is

also offering online retail services through its website and TESCO direct. Further the

group has some other operations in different fields as well i.e. TPF (TESCO personal

finance) and internet broadband services. Besides, its main share in food retail

market where it is a market leader (datamonitor, 2010). The comparative positioning

of Tesco’s market share with respect to some other leading players in the market

has been shown as follows (Euromonitor, 2010):

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Aims & Culture of Tesco

Culture of Tesco is set to have more value and regard towards its staff and

customers. Its environment is friendly for workers to have better coordination and

increased customer services.

The aims of Tesco1. The main aim of Tesco is to create those values for customers that can earn

Tesco with their lifetime loyalty. By giving customers more importance and

providing them with better services, Tesco has achieved more sales growth

as compared to any of its competitors last year (Tesco Annual report 2011).

2. Tesco has the high aim to provide a good neighbourhood to society by

contributing positively to it. That is why, contribution to society is included in

their balanced scorecard approach and they have plans to promote that aim

by providing better environment, contribution to the community, healthy

livings, more jobs, and career opportunities.

3. Another important aim of Tesco is to take care of their employees. They know

that if they will take care of the employees, ultimately good services will be

given to customers. Tesco wants to have a better work atmosphere which can

be achieved by teamwork, coordination and more facilities for employees.

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Prospective plans for Tesco

In future, Tesco is planning to grow more by opting the following:

1. Online Retailing

Tesco was the pioneer in providing online services 11 years ago to its customers.

Now even the means of e-shopping is changed. Customers want to buy the things

on the basis of what and where they want. To tackle that aspect, Tesco is also

increasing its level of e-services. In the near future, customers of Tesco can use their

smart phones to scan the barcodes of grocery items online and order them to get

delivered at home (Tesco Annual report, 2011).

2. Leader in green retailing

Now the consumer is more conscious about saving the environment and he

promotes those companies for the purpose who are trying to keep the green

environment. Tesco seems to be the leader in that category as well. Its 2020 target

is to have carbon footprint on all of its items which is already done on a noticeable

portion of its product. The 2050 target of Tesco is to have zero carbon business.

These parameters have increased the credibility of a company in the eye of its

customers. In this regards, Tesco also set standards by its actions e.g. Tesco Green

cards (Tesco Annual report, 2011).

3. Retain position in UK

Tesco is the market leader in the UK retail food industry with almost 30% share of

the market. Tesco future prospect includes retaining the market leader position in the

UK with more increase in market share (Tesco Annual report, 2011)

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4. Worldwide growth

The main concern for Tesco is that its existence in outside UK is not so great. Tesco

plans to increase its worldwide growth especially in central Europe to ensure more

profits (Tesco Annual report, 2011).

SWOT analysis of Tesco

SWOT analysis identifies the strength, weakness, upcoming opportunities &

concerned area of work for business (Hales, 2001). It is based on internal and

external scanning of the business. For internal and external scanning Porter five

forces and PESTEL analysis are most commonly used (Benssoussan & Fleisher

2003). The SWOT analysis of TESCO is conducted as follows:

Strengths Tesco is ranked as the 3rd biggest grocery retail chain in the world with

operations in Europe, USA and in Asia as well (Datamonitor, 2010). It is the

market leader in the UK food retail industry with 30.7% market share

(Euromonitor, 2010)

Tesco has shown improved performance in the recent past which shows its

strategic abilities. It recorded revenue up to £67.6bn with a growth of 8.1%

(Tesco Annual report, 2011) Company has achieved better sales trend by

strongly following the market demand

Tesco’s has aimed to give the best quality at most affordable rate, moreover

the company tried to remain equipped with latest scenarios e.g. e-grocery.

Due to the reason, Tesco has recorded a remarkable growth of around 50% in

the Tesco Direct sector (Tesco Annual report, 2010)

Its current scheme of the Tesco Club card and the Green Club card has

gained and retained many customers to it.

Weaknesses In spite of geographic dispersion in more than 14 countries, the main

segment of the company’s operations rest with UK retail sector where it

recorded 66% of its revenue from that sector in 2010-11 (Tesco Annual

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report, 2011). This can be regarded as a key weakness due to the risk of

the single market.

Opportunities The company can enter into the new market of India and China through

expansion and joint ventures. It has signed agreements with Tata group in

India and agreement of setting up shopping malls in China in a joint venture

with Anshan, Fushan and Qinhuangdao can be seen as new opportunities

(Daily mail, 2010).

The retail food sector is expected to rise to £145 billion in 2014 which can be

taken as one of the opportunities (Euromonitor, 2010).

Threats Global recession wave has reduced the UK economy by 2.4% till 2008.

Although it is now on the increasing trend but its progress is on the slow side

in G-7 countries. Tesco’s main dependence on UK market can bring some

problems for it (economywatch.com, 2011).

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Intense competition from ASDA, Sainsbury & Morrison’s and their consistent

growth can be seen as a big threat for Tesco’s market leader position.

Although currently there is a lot of difference between market share of Tesco

& Sainsbury (which is holding second place) but yet Tesco needs to maintain

its share to remain a market leader.

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Event Management by Tesco

Tesco has conducted many events which are in line with their existing aims and

objectives; some events highlights and their impact on Tesco’s underline aim are

given hereunder:

1. Tesco Mum of the year 2013

Tesco conducted Mum of the year 2013 with the cooperation of Sparks and Fuse.

This is an event which is conducted by Tesco every year in recent times. It is usually

arranged on Sundays to give chance to maximum people to make their holiday.

Tesco also makes someone from celebrities as guest to give the award. That award

promotes the betterment towards society by encouraging mothers to have a more

balanced attitude towards their kids (Sparke and Fuse, 2012).

2. Tesco Charity Triathlon

Tesco was the corporate sponsor for Charity Triathlon arranged on June 25, 2011.

This event was sponsored by Tesco to help fundraising in support of ‘Help for

Heroes’. Such events promote healthy physical activities in the society alongside

fundraising for needy groups of the society. It gives a strong message to society

about the positive contribution of Tesco towards it (Breeze, 2012).

3. Tesco team building event

In 2011, Tesco managed another event for its colleagues in the UK with the help of

White Star. It was called as team building for Tesco UK and aimed to have many fun

activities e.g. circus, juggling & Diablo through low wire walking on it to provide the

workers a break and also provide them a chance to socialize in a good manner for

increased teamwork. Moreover, it was equipped with workshops and games also in

between that specifically targeted for building teamwork among colleagues

(whitestarevents.co.uk).

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4. Tesco Recruitment presentation

Tesco managed a recruitment presentation in Sep 2011 as well for the service

leavers to welcome in the retail industry. It was regarding jobs in the management

side of Tesco and targeted to increase the potential of society by providing more

opportunities to it (Human Race Event Management, 2011).

These all events conforms the underlying aims of Tesco and contribute its goal to

achieve its values. Tesco aims are to take care of society, employees, and give

greater value for customers. The events managed by Tesco recently as above

mentioned contributes to these all three aims narrated its aims section.

Recommendations for Tesco

The events managed by Tesco are successful ones and contributes to its aims as

well but some suggestions are recommended for Tesco after reviewing these events.

These are:

a) Usually Tesco takes help of event management specialized companies in

conducting these events. The company can formulate a department especially

for event management rather outsourcing it to others. Their own department

can understand the underlying values in a better way and can work on a

theme which is suitable for achieving core aims and objectives in an

appropriate manner (Bowdin, 2011).

b) Secondly, Tesco should promote and advertise its events in a good manner

so everyone from inside and outside entities can be aware of its contribution

towards its stakeholders (Getz, 1997).

ConclusionThe report can give the conclusion that Tesco is a market leader in the UK retail

industry. It is not only growing and developing its strength with the passage of time

but also contributing to the society in a well manner with its positive events managed

for all stakeholders.

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References

1. Bowdin, G., McDonnell, I., Allen, J., O'Toole, B. (2001) ‘Events Management’, Butterworth Heinemann

2. Benssoussan, B.E. & Fleisher, C.S. (2003) ‘Strategic and Competitive Analysis: Methods and Techniques for Analysing Business Competition’, Pearson Education, UK

Breeze, K. (2012). Tesco recruitment presentation – retail management, Career Transition Partnership, [online]. Available at: https://www.ctp.org.uk/events/details/Tesco+Recruitment+Presentation-411692 (Accessed: 21 July 2012)

3. Daily Mail (2012), “Tesco starts Pounds 1bn price war”, Daily Mail, Jan 18, 2012. p.7

4. Datamonitor (2012), ‘company profile’ – Tesco’ Data monitor Europe.

5. Economy Watch (2010). The Economy of the UK, GB, British Isles, The Economy Watch, 30 June 2010

6. Euromonitor (2012) ‘Industry profile- food retailing’ Euromonitor 2012

7. Getz, D. (1997) ‘Event Management and Event Tourism’, Cognizant Communication Corporation

8. Hales, C. (2001) Managing Through Organization: ‘The Management Process, Forms of Organization and the Work of Managers’, Routledge; UK

9. Human Race Event Management, (2011). Tesco Charity Triathlon, [online]. Available at: http://humanrace.co.uk/tesco-charity-triathlon-2011 (Accessed: 20 July 2012)

10.Sparke and Fuse, (2012). Tesco Mum of the Year 2013, [online]. Available at: http://www.sparkandfuse.com/2012/07/23/tesco-mum-of-the-year-2013/ (Accessed: 23 July 2012)

11.whitestarevents.co.uk., available [online] at: http://www.whitestarevents.co.uk/index.php/2011/01/07/tesco-uk-team-building/ (Accessed: 20 July 2012)

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Appendix A

Porter Five forces analysis

Threat of substitutes (low):

This threat is low in case of TESCO as it is providing all the food items of daily

usage but it is not on the low side of its non-food items

Threat of entry of new competitors (low):

In the food retail industry, there is a chance of small chains of convenience

stores exist but it does not threat TESCO a lot as it is already offering high quality at

low prices because of the economies of bulk buying and also by opening express

stores in local vicinities.

Further it needs heavy capital investments to give a strong competition to

companies like TESCO.

It needs considerable time, resources, and planning authorizations so it can

be a barrier to new entrants.

Intensity of competitive rivalry (very high)

The rivalry is on the high side in food retail industry. Currently TESCO is

facing a high degree of competition from Sainsbury, ASDA & Morrison’s. Even

Sainsbury took over as market leader for a while in the early part of the last decade.

All the above mentioned three companies hold a considerable share of market and

the point of fear is that their growth rate is on the move. Moreover companies like

Somerfield & Co-op have attracted a marked share of consumers in rural areas.

In the time during the recession, some companies like ALDI & LIDL have

recorded massive sales growth through big discounts.

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Bargaining power of buyers (High)

In the wake of high competition in retail food industry, buyer can get its

required items from anywhere in the town which makes him the king. Companies

have to give low prices, discount offers, quality products at the buyer’s convenience

and so they have a greater bargaining power.

Bargaining power of suppliers (Low)

As TESCO is a big name and maximum suppliers wants to do business with

TESCO, so it makes them on the fairly lower side in terms of negotiations regarding

quality of supplies, rate of supplies and payment terms. It seems apparent from the

age of payable ratio of TESCO as well.

Appendix B

PESTEL Analysis

Political:

China’s adoption of the WTO can be a tempting move for big companies

including TESCO. They can make their way to the most profitable market of the

world.

Increased globalization is the shape of the WTO or EU has paved the way for

TESCO to get into new markets.

Economic

UK suffered a great deal in the mid of the last decade as like the global

recession wave took over. UK is expected to have an economic growth of around

1.75. Although it is almost slowest in G-7 countries but at least it is expanding again.

The Purchasing power of the customer has been hurt a lot in the recent past

although things are on the right track again and it is expected that the market will

regain its position in mid 2012 but lack of confidence from a customer is not

prompting them to spend more on items like prepared meals or premium products.

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Social

A Major portion of the UK population is getting comprised of retired and old

age people rather than youngsters. They have lesser intentions to go to

supermarkets and buy food, further lesser use of internet in that class is also not

helpful even to provide them the online facility of shopping.

Because of the more health consciousness, consumer wants more hygiene

food of the best quality. This can lead to the increased demand of organic food. As

TESCO has already included that in its products so it can boost its sales.

Technological

With more use of internet, the concept of online shopping is increasing in the

society. Internet users among the UK’s population is estimated 70% of its total

volume. This has promoted the use of online services in the retail food industry as

well. TESCO has tried to combat the situation through its website and ‘TESCO

direct’ services.

Environmental

Government is promoting the reduced packaging culture to save the

environment. The proportions of people who are using reusable bags or trying to

switch into that category are increasing which can be beneficial for TESCO in

reducing its cost of making plastic bags available.

Government levy of ‘fat tax’ to reduce the advertisement of junk food was an

important factor to take care in marketing strategy of TESCO.

Customer wants carbon footprint data on the products of the company (Wood,

2009). Due to that, TESCO had to respond and add carbon footprint on its items.

Legal

VAT is expected to rise 20% more that can affect the non food items of

TESCO.

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The government's policies for monopoly controls and reduction of buyers'

power can limit entry to this sector with such controls as license requirements and

limits on access to raw materials.

Due to Report of Low Pay Commission, recent years have resulted in

increase of minimum wages by 15.5%. This has increased the operating cost of

TESCO.

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