Answer to Question #295261 in Marketing for Avinash Kunalan

Question

1)

Based on the article above, Tesco choose to pursue SBU structure across all its business areas for maximizing the degree of competitiveness. Advise Tesco based on your opinion on the success of TESCO upon pursuing the selected structure as the main tool to overcome competitors. (50 marks)

2)

Advice TESCO on the changes or improvements which ought to be done as to the retailing related sector in order to overcome the pandemic situation as faced by the world now strategically beside their current practice in the industry. (50 marks) 

Answer 1

1) The Tesco business strategy believes in expanding into a combination of acquisitions of new stores, retail services and adapting to the needs of consumers. The main aim of the Tesco business model is to serve the customer not just in the UK but around the world and make them happy. The company enters foreign markets mainly through joint ventures with local firms, acquisitions and Greenfield investments (Mosley & Barrow 2013). The company aims at being the market leader in the foreign country it enters within a period of five years. If Tesco uses another strategy of differentiation, than it has to try to offer services and products with unique features that customers value. Tesco will be able to create brand loyalty for their offerings, and thus, price inelasticity on the part of buyers. Its four outstanding strategies are: non-food approach, retailing services, international strategy, and a strong UK core business.

2) Tesco’s finance team played a critical role in the company’s immediate response to the crisis, working with colleagues to support the rapid implementation of vast operational changes. The business more than doubled its capacity for online grocery shopping – in April, it became the first UK retailer to fulfil one million online grocery orders in a week. At the peak of the crisis, Tesco recruited almost 50,000 new temporary staff to support its workforce already on the shop floor, in distribution centres and working as delivery drivers. It wasn’t just behind the scenes that Tesco’s finance team was making a difference, however. Team members also took to the shop floor.