Table of Contents
1. Introduction: 2
2. Value Chain analysis 2
2.1 Logistics that are inbounded 2
2.3 Logistics that are out bounded 3
2.4 Sales plus marketing 3
2.5 Services 3
3. Resource based view (RBV) 4
4. Public relation issues 5
4.1 Tesco’s Twitter PR crisis around 'slave labour' claims 5
4.2 The horsemeat scandal 6
5. Core competencies 7
6. Tesco Cultural Web 8
7. Tesco TOWS Analysis 8
8. Strategic options for Tesco 10
8.1 Strategy for market development: strategic alliances plus joint development 10
8.2 Diversification and development of the product 11
8.3 SAF 11
9. Conclusion 12
This is the second part of the strategic assignment. In this report the competecies, culture and resource analysis of Tesco is presented. Furthermore in this report SWOT analysis of Tesco is presented and then two strategic options are suggested to Tesco. The strategic options suggested are then evaluated through the SAF model.
2. Value Chain analysis
Lynch (2006) explained this as it is an association in between main values that adds tasks plus supporting tasks. In Audrestsch (1995) it is proposed that this is considered like a tactical valuation means which helps in diagnosis addition of values by the process of weaknesses plus strength. Below given image is proposed by value chain of Tesco.
(Source: Lynch, 2006)
2.1 Logistics that are inbounded
Complete administration of cost is done by lean internal operational functions adopted by the Tesco. Record of accepted salespersons and organizing scheme are upgraded regularly and endlessly. Effectiveness and efficiency of such operations are maintained by these policies adopted by Tesco.
2.2 Organization of operational activities
Tesco’s plan of low cost leadership is managed and facilitated by efficiently using the informational technology systems. Through, Tesco digital program, £76 million was invested by Tesco in order to modernize the processes by using an ERP solution. In 2009, profitability of Tesco has been increased up to £550 million with the adoption of this system. Stock holding was minimized in the Tesco Company by using the ERP system.
2.3 Logistics that are out bounded
In retail food segments (offline and online), Tesco is a leader. This position has been achieved by Tesco by its efficient and effective logistics that are out bounded. There are different types of formats and stores that are developed by the company. In this format, Superstore and Express & Moto are there as proposed in Mintel, (2010). Customer exposure has been achieved on large level and a proper strategy is followed to achieve this position.
2.4 Sales plus marketing
With the help of advancement of informational technology, loyalty programs brought in like Tesco Club card. With this program, a reduction of customer discouragement was noticed. Another scheme which was also introduced by Tesco was Greener Living. It was helpful in giving the advices on ecological issues to customers. It...