2010-2014 Outline The Main Business Strategy Over This Period. Strategy

2010-2014
Outline the main business strategy over this period.

Strategy:
In 2010, it opened the world's first zero-carbon supermarket in Ramsey, Cambridgeshire

and was awarded Green Retailer of the Year at the Annual Grocer Gold Awards 2012.
Tesco aims to be a zero-carbon business by 2050.
Tescos continuing success depends on it reassessing and formulating clear business strategies.
Tesco aims to improve customer loyalty and its core UK business in order to help it develop the
shopping experience for its customers. It committed 1 billion to an investment programme to
achieve this. Strategies to improve competitiveness were then developed. The driving forces
behind these strategies are price, quality, range and innovation as well as delivering great
multichannel customer service, for example, through its Click & Collect service.
This case study examines Tesco strategies, the reasons behind each component and how vision,
aims
Read
and
cultural
value
interrelate
to
make
the
strategies
successful.
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The core purpose is to create value for customers to earn their lifetime loyalty.
Long-term strategy Tesco has a well-established and consistent strategy for growth. The
rationale for the strategy is to broaden the scope of the business to enable it to deliver strong,
sustainable long-term growth by following customers into large expanding markets at home
such as financial services, non-food and telecoms and new markets abroad, initially in Central
Europe and Asia and more recently in the United States. The strategy has five elements,
reflecting our four established areas of focus plus Tescos commitments on community and the
environment:
To be a successful international retailer;
To grow the core UK business;
To be as strong in non-food as in food;
To develop retailing services; and
To put community at the heart of what we do.
The strategy to diversify the business has been the foundation of Tescos growth in recent years.
It was laid down in 1997, with the fifth element Community being added in 2007. Many of
the new businesses that have been created and developed over the last 13 years as part of this
strategy are now of significant scale and highly profitable in fact we are now market leader in
many of our markets outside the UK. In 1997 our International business generated 1.8% of the
Groups profits and we had only just entered the Retailing Services markets; today these parts of
our business represent 22% and 16% of profits respectively.
2
Importantly, the strategy has given the business momentum to grow well through the economic
downturn. By continuing to invest through the recession in the customer offer, in infrastructure
and in our people we are now well placed to grow faster and improve shareholder returns as the
global economic environment improves.
A strategy is a plan which sets out how a business deploys its resources to achieve its goals. The
companys values set the tone for the decision-making process. In May 2011, Tesco committed
1 billion capital and revenue investment to improve the shopping trip for customers. It set out a
seven part strategy designed to achieve its goals of being highly valued by customers and
enjoying strong long-term growth. The table shows the main elements of this strategy.
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Introduction:
Tesco was founded in 1919 by Jack Cohen from a market stall in Londons East End.
Today it is one of the largest retailers in the world. Tescos core business is retailing in
the UK, which provides 60% of all sales and profits. Tesco has the widest range of food
of any retailer in the UK. Its two main food brands are its Finest and Everyday Value
ranges, each sell over 1 billion per year.
Tesco owed its foundation to Jack Cohen in 1919, an insignificant booth in East End of
London which sold surplus groceries. At the present, Tesco is the owner of more than 6,700
outlets all over the world and offering service to tens of millions of persons every week
(Tesco, 2013).
It became the third biggest retailer all over the world with outlets presenting in 14 territories
worldwide, with the inclusion of China, India, Malaysia, Korea, America, Ireland and
Slovakia (Tesco, 2013).
In its wide-ranging scope of products and services, Tesco offers fresh foods as well as
groceries items, electronics, clothes, household items as well as financial services. Tesco
aims at expanding its business range and diversifying globally to pursue a solid and
sustainable long-term development (Tesco Plc., 2013e)
Basing on the formerly assessment, an amount of advices are advisable for Tesco in terms
of how it might maintain and set up a sustainable competitive advantage in its primary
market in the United Kingdom and also in its other global markets, for now and in the
upcoming time.
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The position of Tesco as a leading global brand is clearly illustrated by its expansion of
operations into 12 countries including China, Czech Republic, India, Malaysia, Ireland, Hungary
and Poland. In 2013 Tesco employed in excess of 530,000 colleagues. This level of success does
not happen by chance. Tescos leaders have always set high standards and clear goals, never
settling for anything less than the best.
Tescos Every Little Helps philosophy puts customers, communities and employees at the heart
of everything it does. It prides itself on providing a great shopping experience for every customer
it serves, whether in stores, online or in its many other service provisions.
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Conclusion:
Tesco is one of the largest retailers in the world. This success has not come about by chance but
is the result of effective leadership and management. The setting of a clear vision is central to
Tescos success, supported by a commitment to establishing and monitoring specific objectives
and devising strategies to ensure these are achieved. All aspects of the business are regularly
monitored and, when necessary, plans are adapted to ensure targets are ultimately met. At the
heart of all Tesco does is a commitment to being a responsible retailer. This is demonstrated
through its focus on its Three Big Ambitions and The Essentials to show how it is using its
scale for good. Every decision taken considers these areas to ensure customers, communities,
suppliers and staff are treated fairly and with respect. Tescos values underpin all that Tesco does
and, in turn, keeps customers satisfied with their shopping experience and loyal to the brand.
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The Purpose of the Statement of Cash Flows

The statement of cash flows, as its name implies, summarizes a companys cash flows for a
period of time. The statement of cash flows explains how a companys cash was generated during
the period and how that cash was used. Even if the statement of cash flows seems to be a
replacement for the income statement, the two statements have two different objectives.
The income statement measures the results of operations for a period of time. Net income is
the accountants best estimate at reflecting a companys economic performance for a period. The
income statement provides details as to how the retained earnings account changes during a period
and ties together, in part, the owners equity section of comparative balance sheets. The statement 2
of cash flows provides details as to how the cash account changed during a period. The statement of
cash flows reports the periods transactions and events in terms of their impact on cash. Also, this
financial statement provides important information from a cash-basis perspective that complements
the income statement and balance sheet, thus providing a more complete picture of a companys
operations and financial position. It is important to note that the statement of cash flows does not
include any transactions or accounts that are not already reflected in the balance sheet or the income
statement. Rather, the statement of cash flows simply provides information relating to the cash flow
effects of those transactions.
Users of financial statements, particularly investors and creditors, need information about a
companys cash flows in order to evaluate the companys ability to generate positive net cash flows
in the future to meet its obligations and to pay dividends. In some cases, careful analysis of cash
flows can provide early warning of impending financial problems.
2011-2012
Groups business strategy, its

growing global leadership, its position as one of the rising companies at the top of the FTSE 100 and the
intensely competitive sector in which
it operates, and has concluded that they provide a set of comprehensive and robust measures of
managements effort and success in creating
shareholder value.
2014

2010-2014 Outline The Main Business Strategy Over This Period. Strategy

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2010-2014

Outline the main business strategy over this period.

In 2010, it opened the world's first zero-carbon supermarket in Ramsey, Cambridgeshire

Read more: http://businesscasestudies.co.uk/tesco/vision-values-and-businessstrategies/introduction.html#ixzz3IvQywRHV

Read smore: http://businesscasestudies.co.uk/tesco/vision-values-and-businessstrategies/conclusion.html#ixzz3IvTpWM4d

The Purpose of the Statement of Cash Flows

Groups business strategy, its

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