Tesco Case Study
Tesco’s main activities:
-Retailing
-Financial services
It’s a major global retailer
1) Retail activity
5 store formats: * Tesco extra * Tesco superstore * Tesco metro * Tesco express * One stop
Non-food ventures:
-Tesco Homeplus
- Dobbies
Since 2005, they have opened a member of non-food outlets:
Tesco Homeplus, Dobbies( garden centres)
2) Banking activity
Tesco Bank
A will to extend their involvement in the financial services
Service: credit cards/ loans/ mortgages/ saving accounts/ insurance
It’s run separately from the rest of the business
It was a 50/50 joint venture with RBS( Royal Bank of Scotland)
But the 28 of July 2008, Tesco bought out the shares of RBS
. Internet: tesco.com
.Telecom: Tesco mobile, it’s a joint venture with O2
The scale of its operation:
1994: First move into Central Europe
1998: First move into South East Asia
2007: First move in California
2008: First wholly owned Tesco opened in Guangzhou, China
China/ Czech Republic/ Hungry/ Republic of Ireland/ Japan/ Malaysia/ Poland/ Slovakia/ South Korea/ Thailand/ Turkey/ Uk/ US
They entered the US grocery market in 2007
Through the opening of a new chain: Fresh & Easy
Over the past 10 years, the profits per year have constantly increased
Tesco’s business strategy:
“At the core of Tesco’s business model is a focus on trying to improve what we do for customers”
.To create value for customers:
In such way that “if the business is performing well in the eyes of the customers, then it will also be performing well for other stakeholders”
Strategy in the UK:
Growth is sought through expansion into markets such as financial services, non-food and telecom
Strategy outside the UK:
Growth is sought by entry into locations, most recently China, India and in the US
Targets are defined under:
Five prospective of the steering wheel
-community
-operations
-people
-finance
-customer
To increase
-Retailing
-Financial services
It’s a major global retailer
1) Retail activity
5 store formats: * Tesco extra * Tesco superstore * Tesco metro * Tesco express * One stop
Non-food ventures:
-Tesco Homeplus
- Dobbies
Since 2005, they have opened a member of non-food outlets:
Tesco Homeplus, Dobbies( garden centres)
2) Banking activity
Tesco Bank
A will to extend their involvement in the financial services
Service: credit cards/ loans/ mortgages/ saving accounts/ insurance
It’s run separately from the rest of the business
It was a 50/50 joint venture with RBS( Royal Bank of Scotland)
But the 28 of July 2008, Tesco bought out the shares of RBS
. Internet: tesco.com
.Telecom: Tesco mobile, it’s a joint venture with O2
The scale of its operation:
1994: First move into Central Europe
1998: First move into South East Asia
2007: First move in California
2008: First wholly owned Tesco opened in Guangzhou, China
China/ Czech Republic/ Hungry/ Republic of Ireland/ Japan/ Malaysia/ Poland/ Slovakia/ South Korea/ Thailand/ Turkey/ Uk/ US
They entered the US grocery market in 2007
Through the opening of a new chain: Fresh & Easy
Over the past 10 years, the profits per year have constantly increased
Tesco’s business strategy:
“At the core of Tesco’s business model is a focus on trying to improve what we do for customers”
.To create value for customers:
In such way that “if the business is performing well in the eyes of the customers, then it will also be performing well for other stakeholders”
Strategy in the UK:
Growth is sought through expansion into markets such as financial services, non-food and telecom
Strategy outside the UK:
Growth is sought by entry into locations, most recently China, India and in the US
Targets are defined under:
Five prospective of the steering wheel
-community
-operations
-people
-finance
-customer
To increase