Being a global grocery store and merchandising retail store, Tesco continues to consolidate its position as the world’s number three retailer after Wal-mart and Carrefour of the US and France, respectively. The Tesco company emerged in 1924, with its first store being opened in London, five years later. The same company has continued to grow, after that it opened up in 1956, its first supermarket. From then, the company has continued to realize growth and expansion, growing organically during the second phase of the 20th century.
The growth during this epoch reached its apogee when in 1977, the Tesco company decided to reduce the prices of its commodities in lieu of Cohen’s rather antithetical policies. This resulted in Tesco company realising a 4% growth in its market share after every two months. Strategic directions and development methods that have been adopted by Tesco. Up to the moment, the Tesco company has been focusing on making innovations and facilitating conditions that can encourage the same. This is geared towards making the employees free enough to engage in efforts to come up with innovative ideas.
The rationale behind this notion is that the rank and file of an entire organization has the ability to generate productive ideas. To this effect, the Tesco company as organization ensures that there is an open line through which the opinions and views of the employees can be solicited (Humby and Hunt 2007, 75). The effect that this approach has on the returns of the Tesco company is that it has realized a stable base of employees who are loyal. This is because the employees, courtesy of the practice, are left with the feeling of being totally integral to the company and being appreciated by the management board.
This has bolstered the cause of Tesco company’s growth and expansion, due to low employees turnover. The low employees turnover becomes inevitable for Tesco company since employees take to remain loyal to the company, and thus saving it from needing to recruit new employees. At the same time, the Tesco company takes to target the desired goal by making regular consultations with the clients on the quality of goods produced by the Tesco company. This exercise has been very instrumental in helping the Tesco company channel its synergies towards efficiency and customer satisfaction.
Forces that are promoting the food retail industry’s globalisation. According to Harris and Dennis (2002, 177) there are several forces that ensure the global adoption of the Tesco company food retail. In the first case, the company makes it its responsibility to ensure that its operations are attune to the indigenous tastes and preference of the local market. To this effect, Tesco company takes it upon itself to tamper its operations with the indigenous culture, regulations and delivery chains.
This feat has been instrumental in placing the Tesco company in the map. At the same time, Tesco company builds brands that enable it as a company to forge longterm relationships with its clients. In the same vein, the company maintains its ability to fix its focus on the targeted countries, even in the face of going global. This, the company takes to achieve by establishing brands that are unique and of high standard. In the same wavelength, Tesco company has ensured these prospects by establishing brands that are nation or state- specific.
In order to thoroughly entrench itself into the global market, Tesco company ensures that it carries out designs that are multi formatted. According to Baker (2002, 90), this has been important to Tesco company, given the fact that it has been established that there is no single format that has been able to consolidate its position in the global market. How Tesco strategy in the US may help it realize competitive advantage. In the US Context, Tesco company has tried to achieve an edge over its peers by taking to mitigate the extent of the shopping costs.
Another feather in Tesco company’s cap exists, courtesy of the fact that the deficit does not fall on the shoulders of the suppliers. Rather, the Tesco company sorts out the situation through the enhancement of the efficiency and the adoption of simpler processes in the course of the company’s operations. Hooley, Saunders and Piercy (2004, 67) maintain that this means that clients are able to realize relatively less costly shopping expeditions, from the Tesco company. Unlike Tesco company, its peers even after reducing the shopping price, still leave financial weight to fall squarely on the suppliers.
The suppliers on the other hand try to settle the deficit by exacting higher prices to the retailers who then impose extra costs on the consumers. This cycle becomes the epitome of the adage, borrowing from Peter to pay Paul. In about the same vein, Tesco company is trying to build a niche for itself in the American context by opening up many stores that support the issuance of hard discount (Tapp 2002, 122). To crown this effort, Tesco company has remained responsible for the invitation of British companies that can bolster the interests of the same. Some of these companies are the Big Kahuna Wine a label of Fresh and Easy.
This company has been influential in dragging a huge clients’ base to Tesco company scores, owing to the quality wine and delicious poultry meat it serves. Conclusion. It is important for any company that seeks to emulate Tesco company to take to stock, the fact that the latter has, apart from the aforementioned practices, ensured that it dabbles its operations with the concept of capability. To this cause, the Tesco company ensures the employment of skills, and not scale. This, for the Tesco company portends ensuring that the skills are elicited from its rank and file and the systems processes.
Therefore, even small scale companies are inexcusable when it comes to (under) performance. References. Baker, M. J. Tesco company and marketing mix, New York: Prentice Hall, 2002. Harris, L. and C. Dennis, Tesco company and e business, London, SAGE, 2002. Hooley, G. , J. A. Saunders and Piercy, N. , Tesco company marketing strategies, New York: McGraw Hill, 2004. Humby, C. and P. Hunt, Tesco company and customer loyalty, Harvard, Harvard University Press, 2007. Tapp, A. , The principles of database and direct marketing, Michigan, Michigan University Press, 2002.