We all know Tesco as a food retailer, and we know that they are in constant competition with other retailers such as Sainsburys and Asda, yet we do not know much about what goes on beyond the shelves and the tills, the marketing plans and the day to day tactics that have to be devised to stay the number one food retailer in the United kingdom today.
Organsiational Analysis: PR Strategy
Tesco Plc employs over 326,000 people and operates in 2,318 stores throughout 12 countries around the world. The company made a profit of £2,029m in 2005 and continue to show increased sales revenue. This report will give a critical and insightful analysis of Tesco's current strategy in order to discover what makes them so successful. It will analyse the relevant theories of corporate strategy and review how they are used by Tesco's strategic management.
Public Relations Strategy of TESCO
To be effective, the public relations professionalof TESCO understand the business goals of their organization and be able to tie PR goals to the attainment of business goals, ensuring the PR goals are realistic and measurable. The PR professionals of TESCO have an evaluation program in place in order to measure the effectiveness of the program or campaign.
The objectives of TESCO public relations campaign are to support the business goals of the organization the campaign is associated with. Mitchell Friedman suggests there is a possibility that PR objectives is considered generic and bland if these objectives are posed in general terms. Therefore, the organization's objectives is very specific.
Competitors and environmental analysis
Tesco, unlike the major competitors have the ability to appeal to all segments of the market. The introduction of their 'finest' and 'value' product lines has attracted customers of all income.
With the introduction of the Community Plan and the £100m invested in sustainable energy, they have adopted an environmental friendly strategy. This will help them achieve a more environmentally conscious image.
Porter's Five Forces
This is a concept devised by Michael Porter, it is used to gain an understanding of the current state of the industry that the company is operating in. The five forces are; the threat of new entrants, bargaining power of buyers, threat of substitute products, bargaining powers of suppliers and the rivalry among current competitors. Following analysis using this technique, management will not have sufficient information to automatically generate a business strategy for the organisation. However, it will give a clear overview of the current market environment and give some direction to further investigations.
Having identified their strategic goals and the state of the industry, the company can begin to devise their corporate strategy. Porter defined three corporate strategies in 1980 that could be used to counter the competitive forces.
Tesco have implemented a differentiation strategy over the past twenty years by diversifying into many different markets and services. Their current differentiation strategy can be seen by their investment into non-food products, telecommunications and personal ...