Tesco Plc in a Social Perspective Case Study Example | Topics and Well Written Essays - 2500 words

Tesco Plc in a Social Perspective - Case Study Example A new breed of customers has also emerged-a market which is highly concerned on what the organization to address the needs of its stakeholders especially in the communities where it operates (Kotler 2005). As an organization which has been scrutinized for its effect in the market and competition, Tesco is pressured to launch programs which can contribute the society. The idea is to offset the harm it does to the society by investing in beneficial programs. From its foundation by John Cohen as a one-man business, Tesco PLC has ascended to the world retail industry becoming the largest British retailer based on both global and local shares. In its early years of operation, the UK-based international retailer specializes only in the distribution of food products. As it gained more market and its performance strengthened, it enhanced its portfolio by adding other goods and services to which ranges from clothing to consumer electronics to consumer financial services to internet services to internet service and consumer telecom. The phenomenal success of Tesco as a retailer is recognised even in the global arena. The company is named the world's third largest retailer lags behind Wal-mart in terms of global sales while staying ahead of other retail giants like Carrefour, and Home Depot (Tesco Plc 2007). In its 2007 Annual Report, Tesco Plc announced a total annual turn... It is estimated that in every 8 UK retail sales, 1 is spent on Tesco. The company's success and even mere existence in the strategies it employs to capture new markets and retain its current buyers. After saturating the UK market with its retail stores, the company expanded its customer base by opening up operations in foreign market abroad. The retailer sells to customers in United Kingdom, the rest of Europe, and Asia (Annual Report 2007). The company's desire to reach a larger market is highlighted through its extensive use of internet technology. This also aids the company in gaining access to a low-cost distribution system (Annual Report 2007). The development of Tesco can be divided into three distinct phases: formation; postwar development; and expansion. The first phase starts with the foundation of the company in 1919 and ends with formal opening of the first Tesco store in Burnt Oak, Edgware, London. Postwar development commences with the retailer's initial public offering (IPO). Rapid growth was witnessed as Tesco opens its first supermarket and superstore. The last phase features the rapid expansion of Tesco PLC both in new product areas and geographic region. Throughout this stage, the company utilized the new trends in global retailing to enhance its products and services. Competing in the Market Place: Tesco's Strategies 1. Four Pronged Strategy Even though it has changed so much in terms of size and operations, Tesco Plc maintains a long-term strategy since 1997. The giant retailer claims that this four-pronged strategy enables it to focus on its core operation in the United Kingdom while serving as a guideline in its expansion overseas. This long term strategy has the