Group Assignment
Tesco PLC: Business Planning Proposal on
how to double up the sales for the year 2007.
Submitted by:
1. Low Kian Guan 44937
2. Karen Ng 45751
3. Khadeeja Khalid 45804
4. Ahmed Azhan Fahmy 45864
5. Ahmed Mujthaba 43832
6. Jayadurkeswari 45490
Executive summary
Many of the successful corporations apply management strategies to achieve their
company long term targets. Generally, a new company will be forced to confront with a lot
of external threats from the existing corporations. This project is to look into detail those
corporations which have been successful in the world wide market today and the strategies
they applied in order to conduct their business smoothly. In this case study project, Tesco
is chosen as the successful corporation on which the study details will be based on.
In this study of business planning proposal, the initial step will be to obtain the information
on the company. This includes a summary on the background, establishment ownership,
history, financial statement and the location strategies as well.
Secondly, this project will discuss more on the company mission and objectives on future
and current outcomes; which includes the key to success and the products and services set
by the management in order to meet their objectives.
Thirdly, this project will also mention the SWOT analysis of the corporation which is the
strength, weakness, opportunity, and threats. It will also include the TOWS formulation
under this section.
In addition, the unique selling point will be the topic of this discussion as well. This refers
to the reasons why the consumers keep on patronizing Tesco, .and what is so special of
Tesco from the consumers point of view.
Lastly, the final topic of concern is the business strategies of Tesco, the recent strategies
applied by Tesco will be explained and in which stages Tesco is classified in the market
position.
1.0 Introduction
1.1 Company Summary
Tesco plc is a United Kingdom-based international supermarket chain. It is the largest
British retailer, both by global sales and by domestic market share, and the fourth largest
retailer in the world behind Wal-Mart of the United States, Carrefour of France, and The
Home Depot of the United States. Tesco has a market value of about 29.090 billion Tesco
has become quite a successful hypermarket today; expanding to countries like Hungary,
Taiwan, Thailand, South Korea and Malaysia and many more other countries. Its success is
shown not only in its physical expansion, but in its internal control as well.
Originally specializing in food, it has diversified into areas such as clothes, consumer
electronics, consumer financial services, selling and renting DVDs, compact discs and
music downloads, internet service consumer telecoms and most recently budget software
Tesco practices the systematic delegation of the power within the organization; there are
different roles and responsibilities assign among the executive committee, nomination
committee, remuneration committee and audit committee to run the business efficiently
and in an orderly manner. Further related discussion will concern Tescos ownership,
history and the location.
1.2Ownership
Tesco was founded almost 87 years ago. The business was founded, as a one-man
business, by Jack Cohen in Londons East End. He began by selling groceries in the
markets of the East End after World War I in 1919. At this time rations and supplies were
low, so he would buy damaged goods from other businesses and resell them at reasonable
prices. And finally Tesco brand was established 1924.
1.3 Locations
Over the 87 years of expansion, Tesco has enlarged in term of size of the market,
shareholders and capital. Tesco started in North London and expended its company to most
of the Asia countries including Malaysia in 2001. Even though Tesco had begun their
business in Malaysia for almost 5 years, Tesco has still failed to obtain the City Center
Market share compare to Jusco, 1-Utama & Giant.
1.4 Expansion
Tesco is one of the largest food retailers in the world, operating around 2,318 stores and
employing over 326,000 people.
Today Tesco has a operation in Europe and Asia, operation held in Europe includes
Republic of Ireland, Hungary, Poland, Czech Republic and Slovakia.Tescos Republic of
Ireland business operates in the region of 82 stores, and around60 stores in the Hungarian
market.. In the Czech Republic and Slovakian markets, Tesco operates 22 and
23hypermarkets respectively.
Operation held in Asia including Thailand, South Korea, Malaysia and Taiwan. The
company operates 64 stores in Thailand and 28 stores in the South Korean Market, while
in the Taiwanese and Malaysian markets it has three stores in each nation.
.
2.0 Mission and Objectives
To expand mission and the objective of Tecso, first we did a research on tesco current
mission and objective to study for a future mission for the business plan. The reason why
we study the current mission and objective was tesco is an existing business that has
superior mission and objectives, and our job was to how to double Tesco profit by
implementing the objectives base on the current mission of Tesco.
Mission is a statement of a firms unique purpose and the scope of its operation in products
and market terms. (M.A. hitt, 2005)
Mission: Tesco current mission shows as follows:
1. Established a cross-functional corporate Social Responsibility Group under the
Chairmanship of the Group Cooperate Affairs Director to discuss key and emerging issues,
monitor and track progress against targets and implement plans.
2. Treating employees, customers, suppliers and shareholder in a fair and honest manner.
3. Treating customer with trust and respect each other.
Our core values no-one tries harder for customers and treat people how we like to be
treated characterize our approach to Corporate Responsibility. We believe we can achieve
