Tesco Supermarket

Introduction

Tesco is one of the world’s leading supermarket and retailers that is under a British group. Currently, the company is the UK’s largest retailer based on the overview on their domestic and international markets. Tesco has more than 2,000 combined stores of supermarkets, superstores, and conveniences stores in United Kingdom, the rest of Europe, and in Asia that adds to the sales and revenue of the organization yearly. Because of the success of the organization in the industry and the business, many organizations desire the throne of Tesco. With the use of the case studies, organizational reports and other contexts, the organization that operates in either domestic or international market gained some important ideas that can help them drew closer to the core operation of the organization.

TESCO

Tesco currently holds the 30% share in the UK grocery market. The nature and operation of the organization centers in food and drinks that promises the value and finest products. On the other hand, the organization also became a major player in the range of non-food markets including the consumer electrical, clothing, financial services, telecoms, fuel, internet services, and even the music retailing. In addition, the company also offers the financial products such as the insurance and other banking services. Because of the growing number of range of services managed by the organization, there is no doubt that the success and being the leader in the retailing industry can be in their hands.

However, the corporate social responsibility of the organization is not being neglected because of the growing job opportunities they offer. Naturally, the organization needs people to accommodate the offers of the organization in different aspects. And unlike the other organization, the employment within this organization is continuously growing even in the midst of the economic turbulent and financial crunches. The motivation of the organization to hire the people is to serve the widening markets. Therefore, they need flexible and well-trained staff that can recognize the needs and wants of the customers, and if possible gain their trust and surpass their expectations.

Organizational Culture, Structure, and Strategy

With a core purpose to create the value for the customers and earn their loyalty, Tesco craft and shaped their objectives and can be mirrored on their culture, organizational structure, and strategies.

As a well-established organization, it is important for Tesco to pay attention on their respective strategies that can accommodate their growth. Through the integration of the various strategies, the organization can strengthen their core products and services. Because of the advantages they have against their competitors, the organization can drive in the expansion for new markets. The underpinning principle of this strategy is to broaden the scope of the organization to enable the business in a sustainable long-term growth and gaining more advantages.

The idea of expansion became popular among the business entrepreneurs because it allows the business to grow according to the flow of environment in the foreign land. However, the idea of Tesco in utilizing its advantages in expansion does not stop in one expansion or two. They followed the expansion strategies with another that makes the organization expand more and reach the markets effectively by offering the products and services the country truly needs. In addition, the diversification on the products and services of the organization is identified as another success of the organization in their business. The continuous development of the organization in reaching the unsaturated markets is strength of the organization towards the competitiveness and profitability.

The ongoing practices and strategic management of the organization reflected in the five elements in which the retailers and other organizations around the world are attempting to gain.

1. To be a successful international retailer
2. To grow the core UK business
3. To be as strong in non-food as in food.
4. To develop retailing services - such as Tesco Personal Finance, Telecoms and Tesco.com
5. To put community at the heart of what TESCO do.

The Strategy on the New Markets

The reason on why the Tesco is successful in their business venture is not only because on their leaders’ wise decisions but because of the good foundation of research. The expansion of the organization can be traced on their ability to search for the unsaturated markets across the globe and aim to be the first international retailer to reach the market.

Conclusion

The long-term commitment of the organization in the community and environment are important aspects in which the countries are benefited while on the other hand, there is a growth in the group even in the economic downturn.

References:

Gwyne, R.N., (2008). “UK Retail Concentration, Chilean Wine Producers and Value Chains”, The Geographical Journal, 174(2).

Tidd, J., Bessant, J., & Pavitt, K., (2001). “Managing Innovation: Integrating Technological, Market and Organizational Change”, John Wiley & Sons, New York.

Yoruk, D.E., & Radosevic, S., (2000). “International Expansion and Buyer-Driven Commodity Chain: The Case of Tesco”. Accessed 03 Aug 2010, from http://profesores.ie.edu/enrique_dans/TESCO/international%20expansion.pdf