Strategic planning (TESCO) Case Study Example | Topics and Well Written Essays - 2750 words

strategical planning (TESCO) - Case Study ExampleThe really core purpose of any business, besides living and profitability, happens to create and keep adding measure out for the customers. A supermarket chain in particular needs to take into g everywherenment note the changing needs and requirements of the customers, depending upon the changing environment, food habits, time management, availability of alternates in the market, increasing awareness near environmentally friendly goods and services etc. This way they can earn the loyalty of the customer composition successfully attracting more customers. Tescos mission statement1 says, Our core purpose is to create value for customers to earn their lifetime loyalty. value creation for the customer proves to be a competitive weapon to retain the customer.Retail Business requires managing a large-minded range of retail skills in the areas of customer gross sales and service, promotion & advertising, store layout, visual merchand ising, economics & accounting, marketing, acquire from suppliers, inventory control, and human resource management. The mission and objective statement must encompass all such fields and activities. Tesco has a long term system for growth, based on four key separate1.3 Principle activities and Products Tesco, the super-market chain is in the business of retailing for nearly 90 categorys now. It is UKs largest retailer, having around 1800 stores in UK alone and more than 2300 stores worldwide, with group sales crossing m 37,070 worldwide at the end of fiscal year 2005. An transnational retailer of food, non-food and retailing services, Tesco currently operates in the China, Czech Republic, France, Hungary, Japan, Malaysia, Poland, Republic of Ireland, Slovakia, South Korea, Taiwan, Thailand, bomb calorimeter and the UK.1.4 Short History It was in the year 1919 that Jack Cohen founded Tesco, when he began to sell surplus groceries from a swoon in the East End of London. In thos e days his first days profit was 1 and total sales of 4. The name comes from the initials of TE Stockwell, who was a partner in the firm of tea suppliers, and CO from Jacks surname. It was in year 1929 that Jack Cohen opened his first Tesco store in Burnt Oak, Edgware, North London. And the journey continues, theres no face back since then.1.5 Microenvironment factors With an emphasis on Globalization and consumerism, role of retailer and supermarkets is continuously on the rise. World over such supermarkets are replacing the street corners shops as the supermarkets offer better quality, branded items and value for money. In fact supermarket chains like TESCO piss now become a formidable brand in themselves. 1.6 Perceived competitive Advantage From the strategic planning point of view, competitor analysis is very primary(prenominal) for any companys long-term survival (Kotler, 1972). Tesco is securing itself a position in the top echelon of an elite group of international retail organizations on account of the number of superstores that it has worldwide and the range of products available. Mintzberg (1994) too, while talking about the changes that have taken place on the strategic planning front, emphasizes the importance of strategic planning.1.7 Future Assumptions David (1999) defined strategy as the match an organisation makes between its internal resources and skills and the opportunities and risks created by its external forces. This assumption forms a pivotal component while planning for future. For such planning, the TOWS (Threats-Opportunities-Weaknesses-Strengths) and SPACE (Strategic Position and Action Evaluation) Matrices prove to be very helpful tools.