Strategic management Tesco
Strategic Management Research Essay - Tesco
The report below provides an insight into the supermarket company Tesco, with emphasis on the company’s internal analysis of resources, competence and competitive advantage, whilst also considering its external environment.
Tesco are the chosen company for this report as they are the market leader within the supermarket industry, Tesco controls over 30 percent of the UK grocery market, a figure which is almost double the combined share of nearest rivals Asda and Sainsbury’s. This provides the report with an excellent basis for analysis of competitive advantage. The statistical evidence for the company’s performance over the last five years can be seen in the table and graphs, within in the appendix.
Tesco Chairman Sir Richard Broadbent states that Tesco’s core competencies are that “it has outstanding operational effectiveness; it understands deeply what it means to orientate a business around the customer; it is passionate, and successful, about developing talent from within; and it manages a complex operating environment with great team work.” (TescoPlc, 2013). Tesco state that their core values and strategic objectives are meeting customer needs through innovation and change and treating colleagues with a culture of trust and respect (TescoPlc, 2013).
When Tesco competes to gain a competitive advantage, it is not just the environment that distinguishes them from their competitors but their internal strategic capabilities (Oxtoby et. al, 2002). For Tesco to gain an advantage over its competitors, it must use its resources and capabilities that enable it to manage a superior performance compared with its competition (Bolivar-Ramos et. al, 2012).
It must have distinctive core competencies, which are the skills, and abilities by which resources are deployed through activities and processes that allow it to deliver the value to the customer (Grewal and Slotegraar, 2007). For these recourses to be used in order to
The report below provides an insight into the supermarket company Tesco, with emphasis on the company’s internal analysis of resources, competence and competitive advantage, whilst also considering its external environment.
Tesco are the chosen company for this report as they are the market leader within the supermarket industry, Tesco controls over 30 percent of the UK grocery market, a figure which is almost double the combined share of nearest rivals Asda and Sainsbury’s. This provides the report with an excellent basis for analysis of competitive advantage. The statistical evidence for the company’s performance over the last five years can be seen in the table and graphs, within in the appendix.
Tesco Chairman Sir Richard Broadbent states that Tesco’s core competencies are that “it has outstanding operational effectiveness; it understands deeply what it means to orientate a business around the customer; it is passionate, and successful, about developing talent from within; and it manages a complex operating environment with great team work.” (TescoPlc, 2013). Tesco state that their core values and strategic objectives are meeting customer needs through innovation and change and treating colleagues with a culture of trust and respect (TescoPlc, 2013).
When Tesco competes to gain a competitive advantage, it is not just the environment that distinguishes them from their competitors but their internal strategic capabilities (Oxtoby et. al, 2002). For Tesco to gain an advantage over its competitors, it must use its resources and capabilities that enable it to manage a superior performance compared with its competition (Bolivar-Ramos et. al, 2012).
It must have distinctive core competencies, which are the skills, and abilities by which resources are deployed through activities and processes that allow it to deliver the value to the customer (Grewal and Slotegraar, 2007). For these recourses to be used in order to
References: Palmer, M. (2005). Retail multinational learning: a case study of Tesco. International Journal of Retail & Distribution Management, 33(1), 23-48.ences: Smith, D Lindgreen, A., & Hingley, M. (2003). The impact of food safety and animal welfare policies on supply chain management: the case of the Tesco meat supply chain. British Food Journal, 105(6), 328-349. Francis, M. "New product development and information technology in food supply chain management: the case of Tesco." Food Supply Chain Management (2004): 153-64. Rowley, J. (2005). Building brand webs: customer relationship management through the Tesco Clubcard loyalty scheme. International Journal of Retail & Distribution Management, 33(3), 194-206. Strategic Direction. (2008). Tesco 's American dream: Doing it differently. 24 (2), p11-15. Miller, D., "The generic strategy trap" in The Journal of Business Strategy 13(1):37-41 1992) Wright, Peter, Kroll, Mark, Kedia, Ben, and Pringle, Charles Snyder, A and Ebeling, H. (1992). "Targeting a Company 's Real Core Competencies", Journal of Business Strategy, Vol. 13 Iss: 6, pp.26 - 32 Barney, J Murray, A. (1988). A Contingency View of Porter 's “Generic Strategies”. Academy of Management Review. 13 (3), p391. Hambrick, D et. al. (1982). Strategic Attributes and Performance in the BCG Matrix—A PIMS-Based Analysis of Industrial Product Businesses. Academy of Management Journal. 25 (3), p511. TescoPlc, 2013. Available from: http://www.tescoplc.com [Accessed on 8th November 2013] Dibb et Civelli, F. (1998). Personal competencies, organizational competencies, and employability. Industrial and Commercial Training. 30 (2), p48-52. Bolivar-Ramos, M et. al. (2012). Journal of Engineering and Technology Management. Technological distinctive competencies and organizational learning: Effects on organizational innovation to improve firm performance. 29 (3), p331–357. Dai, G et. al. (2011). Leadership competencies across organizational levels: a test of the pipeline model. Journal of Management Development. 30 (4), p366-380. Grewal, R and Slotegraar, R. (2007). Embeddedness of Organizational Capabilities. Decision Sciences. 38 (3), p451-488. Oxtoby, B et. al. (2002). Developing Organisational Change Capability. European Management Journal. 20 (3), p310-320. Ward, J and Daniel, E (2012). Benefits Management: How to Increase the Business Value of Your IT Projects. 2nd ed. UK: Wiley & Sons. p72. Pfaffenberger, B (1997). Building a Strategic Extranet. CA, USA: IDG Books Worldwide Inc. p27-34. Clemons, E. K., & Row, M. C. (1991). Sustaining IT Advantage: The Role of Structural Differences. MIS Quarterly, 15(3), 275-292.