Note: Sample below may appear distorted but all corresponding word document files contain proper formattingExcerpt from Essay:
Tesco's Value Chain Analysis
Value chain is defined as the special links that exists between the key value adding activities as well as their interfaces with all of the supporting activities (Lynch,2003). The concept of value chain has for along time been implied as a very strategic tool for evaluation purposes and is used for the purpose of distinguishing the various strengths as well as weaknesses that exists within the value chain process as noted by Audrestsch (1995).
Tesco's cost leadership strategic management initiatives are indicated in its agile and lean inbound logistics functions. According to Abeysinghe (2010), Tesco employs is leading market position as well as economies of scope as its main bargaining powers in order to achieve a relatively lower cost from its numerous suppliers. The other factors is the constant upgrading of the company's ordering system, in-store processes as well as approved vendor lists in order to induce efficiency and effectiveness into its inbound logistics operations at all levels.
The company has often been praised for its effective utilization of Information Technology systems in order to facilitate its low cost energy initiative/strategy. Tesco (2010) indicated that the firm invested close to £76 million in the process of streamlining its various operations via its Tesco Digital program, a third generation Enterprise Resource Planning (ERP) solution that its relies on. This saw the company realize a £550 million in crease in profitability in their FY2009 as a result of the introduction of the system. This ERP solution has seen the reduction of stock holdings within Tesco.
The company holds key leadership positions in both the online and offline consumer food retail segments. This is attributed to the effective and efficient outbound logistics. According to Mintel (2010), Tesco has managed to develop a wide range of store types and formats that are placed strategically in order to achieve a maximum level of customer exposure. These formats comprise of Express, Superstores, Metro, Homeplus as well as Extra and are segmented in order to serve target population.
Marketing and Sales
The use of Loyalty programs like the Tesco Clubcard is currently being introduced via IT advances which are effective in dissuading the clients from migrating to other retailer/competitors. The company even introduced the Greener Living scheme in order to provide its clients with advice in matters environmental.
The company has for the last few years been pursuing an improved dual strategy of differentiation and cost leadership, a strategy that has shift being made towards customer service. According to Keynote (2010) this particular strategy is implemented via the development of various self-service financial services, kiosks as well as focus in promotions as well as direct marketing.
Tesco's Business domain
CHAIN/NETWORK SWOT ANALYSIS
Strong Financial Performance
Leader in e-commerce retail
Market leader in the UK as well as Europe
Strong brand image
Increasing market share
Lacks elaborate developments in areas that are non-food
High transportation costs
The large amount of fuel used in transportation causes pollution concerns
Overdependence on the UK market
Strategic partnership with other companies
Opening of new stores
Expansion to other global markets
Tough competition from Carrefour, Wal-Mart and ASDA
Fluctuations in taxes
Rising cost of raw materials
The fishbone diagram is utilized in operational management in order to help in understanding the main relationship and issues that exists between the different problems that affect a company in the cause and effect format. The work of Slack (2002) highlighted the application of the diagram in the operational management and is a suggestion that the tool is very critical in the process of highlighting the causes as well as sub-causes of system inefficiencies within a company's operational domain. These inefficiencies can be identified and be eliminated in order to improve efficiency. In the case of Tesco, it can be positively suggested that a change of strategy be effected in order to reduce the operational costs. The fishbone diagram below summarizes the main causes.
Reports indicates that the FY2011 was Tesco's worst performance in 20 years (Hawkes,2011).It reported profits of close to of £3.8bn but it admitted that there is a need for the company to perform better in its UK operations.It is however worth…[continue]
"Tesco's Value Chain Analysis Value Chain Is" (2012, February 14) Retrieved October 28, 2016, from http://www.paperdue.com/essay/tesco-value-chain-analysis-is-77996
"Tesco's Value Chain Analysis Value Chain Is" 14 February 2012. Web.28 October. 2016. <http://www.paperdue.com/essay/tesco-value-chain-analysis-is-77996>
"Tesco's Value Chain Analysis Value Chain Is", 14 February 2012, Accessed.28 October. 2016, http://www.paperdue.com/essay/tesco-value-chain-analysis-is-77996
Tesco UK -- Strategic Report Tesco's Strategic Position (UK Market) Tesco's Competitive Strategy - Diversification Domestic U.K. Market Non-food Goods and Services Retailing Services International Expansion Evaluation of Tesco's UK Strategy Tesco's growth curve over the last quarter century has involved a revolution in its strategy and image. The company's initial success was grounded on the "Piles it high, sells it cheap" approach (Liptrot, 2005). The company realized that this strategy caused serious disadvantages among certain profitable market
Tesco Was Tesco's decision to enter the U.S. market a good decision? Why? Tesco did made as inspiring decision to enter the U.S. market because the U.S. market could easily help Tesco penetrate a status in the global market. Tesco has thus build up its database of knowledge while also simultaneously franchising and internationalising in the U.S. market, it is important to note that experience and training happen to be learned from
Tesco is one of the world's most eminent chains of stores in the international food retail services that started as small scale domestic retailer and with its sustainable growth strategy, emerged as an international corporate giant. Tesco's operations adhered on the lines of sustainable strategic management that marketed itself with a strong sense of community service and socially responsible business practices. Tesco, instead of aggressive investments, penetrated international markets by partnering
TESCO is a transnational grocery and all-purpose merchandise dealer with its headquarters in Cheshunt, United Kingdom. It is among the three largest retailers across the world, coming third after Wal-Mart and Carrefour, when measured in terms of revenues. It is also the second largest, coming second to Wal-Mart when rated in terms of profits. It is the leading grocery distributor in UK and has multiple stores in fourteen countries across
Tesco PLC Case Study Tesco is the third largest retailer globally behind Wal-Mart and Carrefour, and as of March 2011, operates 4,811 stores across 14 countries including Asia, many European countries, UK and the U.S. Tesco is also the leading food, sundry and grocery retailer in the UK and has established itself as the leading provider of ancillary services through the retail channel to Western Europe (Hackney, Grant, Birtwistle, 2006). Tesco
Supply Chain Management increasingly positioned a key strategic enabler helping organisations ADD VALUE push boundaries performance" ( e-business shortens supply chain) the Report yo submit largely work-based thoughts, ideas, views, opinions words. Supply Chain Management Supply Chain Management is increasingly been positioned as a key strategic enabler helping organisations to add value and push the boundaries of performance The modern day buyers are more and more pretentious; the organisational staff members are
Wal-Mart Corporation Mission and Vision Statement Analysis Linking Wal-Mart's Mission and Vision to Their Strategic Goals ands Objectives Assessing the Link Between Wal-Mart's Financial Performance And Its Strategic Goals Wal-Mart Competitive and Marketing Analysis Wal-Mart Marketing Analysis Selecting An Appropriate Strategy (low cost, differentiation or niche) For Maximizing Organization's Return on Shareholders Potential Wal-Mart Merger & Acquisition Strategy Incentive and Reward Strategies for Wal-Mart Employees Evaluating How Current Strategies Define Ethicacy Levels at Wal-Mart Wal-Mart Ratio Analysis Income Statement Analysis,