Thursday, September 26, 2019

Tesco Management Case Study Example | Topics and Well Written Essays - 4750 words

Tesco Management - Case Study Example The company is a new entrant in the American market and has only about 53 stores all of them located in USA. Any organization irrespective of size or motive (profit or not-for-profit), whether it is publicly owned or not will be affected by many factors and influences. These might be external and internal. This paper is divided into two parts and the first one will analyse the external and internal influences on TESCO. The second part of the paper will discuss the topic of globalization with reference to the above mentioned company. In the process it will take the following three issues into consideration. It will analyse how globalisation influences policies and decision making in TESCO. It will then critically evaluate the effectiveness of the organisation's response to those issues and finally provide some areas for improvement in the response of the organisation. The paper will begin with a short history and development of the company. As with most organisations TESCO started off as a single grocery stall in 1919. The shop was started by Jack Cohen who named the shop TESCO in 1924. The inspiration behind the name was a tea supplier called T E Stockwell. Cohen used the T E and S, the first three letters of the name and CO to form the word. The company began to grow rapidly and soon had a headquarters in North London in the year 1932 and also became a private limited company in the same year. The company went public in the year 1947. Expansion continued mainly though acquisitions of other stores. The company also began building superstores and also entered the retail petrol sale in UK. The current name of TESCO Plc was taken in 1983. The company's first overseas expansion was in 1995 to Hungary. The Company entered the Asian market two years later. Its internet portal and shopping facility is launched in 2000. TESCO entered the highly competitive market in the year 2007 only. Internal influences: The internal factors are those which can be controlled to a large extent by the company management and staff. Internal influences include, the management strategy, the human resources of the company, the marketing strategy, the level of technology, the organisational culture etc. Management strategy: The overall strategy formulated and practiced by the management will have a great influence on the company. If the policies are not properly taken, it will have a negative influence and correct ones will have a positive influence. It is also said that implementation of the strategy is more important than the strategy itself. "A study of 275 portfolio managers reported that the ability to execute strategy was more important than the quality of the strategy itself." (Kaplan and Norton 2001, p.1). The management strategy of TESCO can be easily understood and reviewed from what the company calls its steering wheel. The basic vision of the company with regard to customer service is the words 'every little helps' that appears in most of the company's pages. Their strategy is classified into five sections namely customer, community, operations, people and finance. Customer strategy includes great service by the staff, eliminating the need for queuing, providing a wide variety of goods that customers can get his needs under one roof, offer the lowest possible prices and obtain lifelong customer

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