EVALUATION OF COMPANY'S STRATEGY

Management Report 2 - Evaluation of the Company's Strategy



Executive Summary

This report contains the company overview and details of strategic options available to the business you are now required to independently evaluate the existing strategy of the business and make recommendations to the Board of Directors as to the future development of the business' strategy carried on Tesco Plc, which is largest retailer in UK. It also discusses the strategies being adopted by the company in order to increase the profitability.

Table of contents

Background of the Organization4

Analysis and critical evaluation5

Analysis of the organisation's strategic direction6

BCG Matrix6

Star6

Cow7

Question Mark7

Dog7

Ansoff Matrix8

Market penetration8

Product Development8

Market Development9

Diversification9

Critical evaluation of the organisation's strategy10

Recommendations12

Conclusion13

Management Report 2 - Evaluation of the Company's Strategy

Introduction

The strategies aiming at the customer value are of particular importance to the organizations. Tesco is a leading retail store in the world with several branches all over the world. The company has been engaged in providing quality products to its customers along with the quality services that it provide to its customers. The paper has been presented on investigating the important question of how Tesco seek to deliver customer value thereby attracting new customers along with the retention of its old customers. As the company has been focusing on introducing various policies that seeks to deliver customer value, Tesco is considered to be the first organization in the world of retail market that introduced grocery shopping through the online channels for its customers. The strategy of shopping online by visiting the company's website is a part of seeking customer value and providing them with every ease possible while shopping.

Background of the Organization

The retail giant achieved 14% growth in the revenue coming from its online retailing business. The online retailing profit for the year 2010 was £136m. Tesco Online employees around 20,000 people, and has become the 3rd largest online retailer, only behind Amazon UK and Argos. The company was founded in 1919 by Jack (later Sir Jack) Cohen, selling groceries from a stall in London's East End. “Tesco” as a brand first appeared five years later. Growth since the early days has occurred both organically and by acquisition, and today the total number of stores exceeds 3,700. Today, although Tesco remains focused on grocery items, following the Continental hypermarket model, it has also diversified into consumer electronic goods, clothing, DVDs and CDs, furniture, telecoms, and even insurance and other financial services (Tesco PLC).

Analysis and critical evaluation

The grocery market has changed into the supermarket-dominated business over the last 30 years. Majority of big chains have stamped their authority because of their effective competence, one stop shopping and key marketing-mix expenses. This compelling power had a huge effect on the undersized conventional shops, for instance slaughterhouses, bakeries etc. The bargaining power of suppliers force signifies the control of dealers, which could come under the influence of the main chains of grocery and the fright of losing their business to the other big supermarkets. In response to this, the merchants whose bases are in the UK can ...