Preview

Tesco in China

Best Essays
Open Document
Open Document
4816 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Tesco in China
TESCO AND THE SUPERMARKETIZATION OF CHINA

AN ANALYSIS OF THE CHINESE RETAIL INDUSTRY AND TESCO’S STRATEGIC POSITION WITHIN IT

Prepared by: Martin Witthoeft Module Title: Strategic Management Module Leader: Graham Webster Module Code: BC315017S Academic Year: 2008/9 Semester: One Level: 3 Submitted: 17 December 2008

Table of Contents

1.

The Supermarketization of China ..................................................................................... 1 1.1. 1.2. China - Land of Opportunity ....................................................................................... 1 Tesco on Course of Expansion ..................................................................................... 1

2.

Part 1: Analysis of the Chinese Retail Market .................................................................. 2 2.1. 2.2. 2.3. 2.4. PESTEL Analysis ............................................................................................................ 2 Porter’s Five Forces Analysis ....................................................................................... 5 Opportunities and Threats Analysis ............................................................................ 7 Critical Success Factors Analysis .................................................................................. 8

3.

Part 2: Analysis of Tesco in China...................................................................................... 9 3.1. 3.2. 3.3. 3.4. Porter’s Value Chain Analysis ...................................................................................... 9 Balanced Scorecard Analysis ..................................................................................... 10 Ansoff Matrix Analysis ............................................................................................... 13 Strengths and Weaknesses Analysis.......................................................................... 14

4.

Future Outlook on Tesco in


References: Action against Poisoning, 2000. Butchered Alive, [Online] (Updated 2000). Available at: http://www.actionagainstpoisoning.com/page276/page314/cryTurtleslive.html [Accessed 17 November 2008]. Arlidge, J., 2008. Tesco Express rolls into China. The Sunday Times, [internet] 13 April. Available at: http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/ article3671705.ece [Accessed 17 November 2008]. China Daily, 2004. China to develop recycling economy, [internet] 9 November. Available at: http://www.chinadaily.com.cn/english/doc/2004-11/09/content_389917.htm [Accessed 20 November 2008]. CIA World Factbook, 2008. China - People, [Online] (Updated 20 Nov 2008). Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html [Accessed 20 November 2008]. Elsevier Food International, 2005. Outsourcing: Tool of the Future for Retailers, [internet] 28 November. Available at: http://www.foodinternational.net/articles/ecr/10/outsourcing-tool-of-thefuture-for-retailers.html [Accessed 19 November 2008]. Foster, S., 2004. Tesco’s four-point master plan. Elsevier Food International, [internet] 1 September. Available at: http://www.foodinternational.net/articles/retail-profile/1108/tescos-fourpoint-master-plan.html [Accessed 17 November 2008]. Gale, F. & Reardon, T., 2004. China’s Modernizing Supermarket Sector Presents Major Opportunities for U.S. Agricultural Exporters. AgExporter, [internet] 1 November. Available at: http://ffas.usda.gov/info/agexporter/2004/November/pgs%204-8.pdf [Accessed 17 November 2008]. Jones, L., 2004. Why Tesco is betting on China. BBC News Online, [internet] 15 July. Available at: http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/3893469.stm [Accessed 17 November 2008]. Kaplan, R., 2008. Tesco 's Approach to Strategy Communication, [Online] (Updated 14 Sept 2008). Available at: http://freshneasybuzz.blogspot.com/2008/09/guest-contributor-tescosapproach-to.html [Accessed 19 November 2008]. Kuipers, P., 2008. Retail in the wild east. Elsevier Food International, [internet] 2 July. 18 Available at: http://www.foodinternational.net/articles/country-profile/1064/retail-in-thewild-east.html [Accessed 17 November 2008]. Kumar, A., 2007. Retail sector undergoing paradigm shift, [Online] (Updated 8 Jan 2007). Available at: http://www.dawn.com/2007/01/08/ebr8.htm [Accessed 20 November 2008]. Manktelow, J., 2008. The Ansoff Matrix, [Online] (Updated 2008). Available at: http://www.mindtools.com/pages/article/newTMC_90.htm [Accessed 20 November 2008]. Penhirin, J. & Miu, A., 2002. Hypermarkets China-style are Cashing In, [Online] (Updated 23 Dec 2002). Available at: http://www.mckinsey.com/locations/greaterchina/mckonchina/industries/consumer/hyper markets.aspx [Accessed 18 November 2008]. Shipeng, G. & Graham-Harrison, E., 2008. China launches surprise crackdown on plastic bags. Reuters UK, [internet] 8 January. Available at: http://uk.reuters.com/articlePrint?articleId=UKPEK25589820080108 [Accessed 18 November 2008]. Tesco PLC., 2008. Interim Results and Management Report 2008/9, [Online] Tesco PLC. Available at: http://www.tescoplc.com/plc/media/pr/pr2008/2008-09-30/ [Accessed 17 November 2008]. Tesco PLC., 2008. Our International Strategy, [Online] Tesco PLC. Available at: http://www.tescoplc.com/plc/about_us/strategy/international/ [Accessed 17 November 2008]. The Economist, 2008. Country briefings China – Factsheet, [Online] (Updated 30 Sept 2008). Available at: http://www.economist.com/countries/china/profile.cfm?folder=ProfileFactSheet [Accessed 17 November 2008]. The Economist, 2008. Country briefings China – Forecast, [Online] (Updated 30 Oct 2008). Available at: http://www.economist.com/countries/china/profile.cfm?folder=ProfileForecast [Accessed 17 November 2008]. Thorniley, T., 2008. City focus: Tesco takes on China. This is Money, [internet] 12 August. Available at: http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article _id=449618&in_page_id=3 [Accessed 20 November 2008]. 19 Wardell, J., 2008. Tesco plans further China expansion. Seattle Post Intelligencer, [internet] 11 November. Available at: http://seattlepi.nwsource.com/business/1310ap_eu_britain_tesco.html [Accessed 20 November 2008]. Wheatley, C., 2007. China revolution: Toads in Tesco. This is Money, [internet] 21 May. Available at: http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article _id=420559&in_page_id=3 [Accessed 17 November 2008]. 20
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Publix
    • 6258 Words
    • 26 Pages

    Publix

    References: 1. 2. 3. Appleson, G. (2006, August 14). Grocery chains blur retailing lines as they bottle Wal-Mart. Knight Ridder Tribune, P. 1 Awbi, A. (2006, June 16 Tesco Shifts Focus as foreign business booms. Food & Drink Europe.com. Retrieved August 21, 2006 from http://www.foodanddrinkeurope.com/news/ng.asp?id=68453. Klintenberg, H. (2003). Japanese Food Market Consumer Market Characteristics, and the foreign entry situation from a Swedish Perspective. Gotenborg, Dept. of Human and Economic Geography. Retrieved August 21, 2006 from http://www.handels.gu.se/epc/archive00003058. Ikea to move into specialty grocery market. (2005, July 11). Food & Drink Europe.com Retrieved August 24, 2006 from http://www.foodanddrinkeurope.com/news/printNewsBis.asp?id=61218 Jackson, J. (2006, April 6). Experts discuss bird-flue response: Publix plan for curbside delivery is an example of how business for the worst. Knight Ridder Business Tribune. Retrieved August 21, 2006 from ProQuest. Mujtaba, B. G. (April 2007). Cross cultural management and negotiation practices. ILEAD Academy Publications; Florida, United States. ISBN: 978-0-9774211-2-1. Website: Ileadacademy.com. Mujtaba, G. B. & Johnson, W., (2004). Publix Super Markets Inc.: Achieving Customer Intimacy. Case 15; pages 375-392. In William Johnson and Art Weinstein‘s book entitled Superior Customer Value in New Economy. Second Edition. CRC Press. Orgel, D. (2002, June 17). U.S. Supermarket Operators need a foreign policy. Supermarket News. Retrieved August 21, 2006 from ProQuest Database. Pint Sized Imports. Progressive Grocer (2006, May 15). 8, p. 18. Retrieved August 21, 2006 rom ProQuest Database. Publix. (2006, March 2). Publix Announces 4th Quarter and Annual Results for 2005. Retrieved August 21, 2006 from www.publix.com. Publix. (2006, April 13). Publix Announces Annual Dividend. Retrieved August 21, 2006 from www.publix.com. Publix. (2006). Publix website visited on August 21 2006 at http://www.publix.com 31…

    • 6258 Words
    • 26 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    P5 Tesco in UK and China
    • 5981 Words
    • 21 Pages

    P5 Tesco in UK and China

    Tesco has becoming a major trader across the globe but with this approach it faces many challenges. Across the countries in which it operates in, each has their own laws, regulations, economy and consumers.…

    • 5981 Words
    • 21 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    P1 Unit 3 Industry Analysis
    • 1188 Words
    • 5 Pages

    P1 Unit 3 Industry Analysis

    Diversification – Tesco’s have set up a few stores abroad in places such as china. They first tried selling their average products but soon learned that they would have to diverse into selling different product that the Chinese would be more inclined to…

    • 1188 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Analysis of U.K Supermarket Development Strategy
    • 3571 Words
    • 15 Pages

    Analysis of U.K Supermarket Development Strategy

    The international expansion is a main trend in supermarket industry. After the fully development in European countries, the retailers begin to move their eyes on Asian countries. During the globalization, retailers should pay more attention to the government policies of the host countries. Planning permission is increasingly difficult to obtain, as Government declared policy is to maintain the viability of existing retailer. For example, Wal-Mart¡¯s entry into the UK has been made easier by the acquisition with ASDA (Wal-Mart).…

    • 3571 Words
    • 15 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Unit 3 P1
    • 1803 Words
    • 8 Pages

    Unit 3 P1

    Based on their objectives, Tesco’s growth strategy would be market development. Their goals are to expand the business not only in the UK but internationally which will further establish the company across the globe. Therefore, using their existing products and services Tesco want to endeavour in new markets by opening 120 more stores in Europe, India and China. Tesco started trading with China in 2004 and already have 131 stores located there, this has been a lucrative and successful project as their revenue for 2012/13 is around…

    • 1803 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Good Essays

    Tesco in China
    • 1492 Words
    • 6 Pages

    Tesco in China

    This report will consist of information about the economy in the countries. China and UK. Also there will be information about Tesco in both of these countries and why is there a major difference in the markets.…

    • 1492 Words
    • 6 Pages
    Good Essays
    Read More
  • Powerful Essays

    Expanding Target to China - Why Target should expand into China and what they will need to know.
    • 3046 Words
    • 10 Pages

    Expanding Target to China - Why Target should expand into China and what they will need to know.

    China is, without a doubt, the fastest growing economy in the world today. Companies from around the world have wanted to tap into China's market to cash in on the tremendous success that it continues to experience. There had been many restrictions for foreign companies who tried to do business in China, limiting the number of foreign companies, and allowing only the big players to come into China. Even then, these big players from around the globe faced more restrictions and rules once they entered China. But things have changed since China joined the World Trade Organization (WTO) in 2001; a new milestone for this country, as well as for other economies. Since then, restrictions for foreign investors and businesses to enter China's market had begun to ease up. By December 11th, 2004, China must remove remaining restrictions on the retail sector in order to comply with the WTO rules. This means it will be much easier for foreign retailers to enter the market, and for current foreign retailers in China to expand (1). Many retailers from all over the world will seize this golden opportunity, and Target should do so too.…

    • 3046 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Good Essays

    Kroger
    • 634 Words
    • 3 Pages

    Kroger

    During the early 1990s, opportunities in South East Asian markets became increasingly important to American and European retailers seeking to sustain their international growth rates. In particular, the less developed markets of South East Asia began to attract attention which they had previously not received. This was in contrast to earlier expansion patterns among European international retailers. Before the early 1990s, retailers have tended to look towards Europe and North America, rather than East Asia to grab international growth opportunities.…

    • 634 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Ansoff Matrix of Tesco
    • 566 Words
    • 3 Pages

    Ansoff Matrix of Tesco

    As part of our study let’s analyze Tesco with the help of Ansoff Matrix. The matrix analyze a company based on two aspect ‘market’ and ‘product’. Based on this there are four part, they are :…

    • 566 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Marks and Spencer's Expansion Into China
    • 4872 Words
    • 20 Pages

    Marks and Spencer's Expansion Into China

    IRETChina. (2011). Retail market entry strategy in China. Available: http://www.slideshare.net/IRETChina/retail-market-entry-strategy-in-china. Last accessed 16 May 2011.…

    • 4872 Words
    • 20 Pages
    Powerful Essays
    Read More
  • Good Essays

    Arcadia Group - Strategic Analysis
    • 732 Words
    • 3 Pages

    Arcadia Group - Strategic Analysis

    The economic downturn was a tough wave to ride for most retailers. It is becoming increasingly clear that there are noteworthy differences in the pace and nature of the economic recovery taking place in Europe and Asia. According to a report by CB Richard Ellis, the recovery in the European economy as a whole remained sluggish while the Asian economies reported positive export growth in the first quarter of 2010. Many retailers are looking to expand into the emerging markets of the region which are seen as having good growth prospects. Retailers showed a greater inclination to commit to new premises for business expansion and an increased leasing activity was recorded in key shopping areas in major cities. Fast fashion and F&B chains remained the major drivers of demand. (CB Richard Ellis. 2010)…

    • 732 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Introduction to business, Tesco
    • 2570 Words
    • 7 Pages

    Introduction to business, Tesco

    The political, legal and social environment all affects in the activity of the business. This article focuses on how they do this on Tesco in the UK and also in China.…

    • 2570 Words
    • 7 Pages
    Better Essays
    Read More
  • Powerful Essays

    Tesco's External Enviorment
    • 1110 Words
    • 5 Pages

    Tesco's External Enviorment

    China’s accession to the WTO has promoted a free flow of foreign trades by removing all barriers encouraging Western companies, including Tesco, to make way into the world’s most profitable market encompassing over 1.3 billion[3]. In 2009 an agreement was signed by Tesco to set up a premeditated series of joint ventures for the development of shopping malls in China. This joint venture included three malls: Anshan, Fushan and Qinhuangdao. Furthermore, 18 new hypermarkets are expected to open in China by 2010[4]. The growth of Tesco’s international business segment is on the rise and it is predicted to account for one quarter of the company’s profit.…

    • 1110 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Tesco
    • 7490 Words
    • 30 Pages

    Tesco

    The report below provides an insight into the supermarket company, Tesco, with emphasis on its еxtеrnal еnvironmеnt analysis and company 's analysis of resources, compеtеncе and culture. Two future strategic options are suggested in regards to the resources based strategies.…

    • 7490 Words
    • 30 Pages
    Powerful Essays
    Read More
  • Good Essays

    Tesco in Poland
    • 697 Words
    • 3 Pages

    Tesco in Poland

    The traditional retail sector in Poland started to modernize intensely in the later years of the twentieth century. After the collapse of communism entrepreneurship and privatizing in retailing was highly supported and approved by the government as this was economically important to Poland. Using this opportunity, Western European countries started to own local stores thus penetrating the Polish market and as a result, by 2003 the estimated number of food sales has reached to 40-50%. “Seven out of the top ten European retailers are now in Poland, and Tesco is the sole British representative.”…

    • 697 Words
    • 3 Pages
    Good Essays
    Read More

Related Topics