Answer to Question #297248 in Management for shan

Question

Based on the article above, Tesco choose to pursue SBU structure across all its business areas for maximising the degree of competitiveness. Advise Tesco based on your opinion on the success of TESCO upon pursuing the selected sturucture as the main tool to overcome competitors

• Tesco SBU structure preferred to overcome competition: why? : address more niche, specific needs
• How? - Tesco focus on specific customer, specialty stores : loaves, fruits, organic products

Answer 1

Using the SBU structure by Tesco allows for diversification, products with a specific focus, and fewer distractions from within the competitive market. Three strategies for establishing a competitive advantage for an organization are; Cost Leadership, Differentiation, and Focus (Cost-focus and Differentiation-focus. For Tesco it has applied the diversification to compete favourably.