11% of all VAT-registered businesses in the UK are retailers. 70% of UK retail is Organized and 30% is Unorganized.

The retail sector generates almost 8% of the Gross Domestic Product of the UK. The retail industry employed 2.9 million people, as at the end of September 20. Supermarkets dominate the UK food retail market, with 56.0% of sales.
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Tescos is a United Kingdom based international supermarket chain. It is the largest British retailer both by global sales and by domestic market share. Established in 1924. Tesco is the third-largest retailer in the world next to Wal-Mart, Carrefour and is operating around 2,440 stores and employing over 4,00,000 people www.Tesco.com is recognized as the worlds largest online grocer, with a customer base of little less than 1 million and more than 250,000 orders a week. Tescos market share of UK retailing is 12.5%.
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Tesco has moved into areas such as clothes, consumer electronics, consumer financial services, internet services, consumer telecoms and gas stations. Tesco now controls over 30% of the grocery market in U.K. As of March 2008, Tesco have a store in every postcode of the UK.
1960 1970 1980 1960 2000

EXTERNAL ENVIRONMENT OF TESCO

Grocery sales in the UK are dominated by Tesco, Asda, Sainsbury's and Morrisons. These "Big Four" had a combined share of 75.3% of the UK grocery market in the 12 weeks ending 2nd April 2009

ASDA Group Limited

J Sainsbury plc Morrison

Somerfield

Competitors
Marks and Spencer Group plc Royal Dutch/Shell Group Iceland Waitrose Booker Cash & Carry Limited ALDI Group John Lewis Partnership plc

SUPERMARKET SHARE ` Tesco: 30.6% ` ASDA: 16.6% ` Sainsbury's: 16.3% ` Morrison's: 11.1% ` Somerfield: 5.4 ` Waitrose: 3.7% ` Iceland: 1.8%
(Source TNS cited by BBC 2006)

Tesco Sainsbury somerfield Iceland

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Asda Morrisons waitrose

Positioning of Competitions

Food Specialist s

Food with Non-Food

Non-Food Specialist s

Threat of New Entrants (Medium)

Bargaining Power Of Suppliers (Low)

Rivalry Among Competitors (High)

Bargaining Power of Buyers (Medium)

Threat of Substitute Products (Low)

` ` ` `

The three strong CSFs of Tesco are: Branding Integration Suppliers management

CSF BRAND INTEGRATIO N S/MNGT TOTAL

TESCO 5 5

SAINSBUR Y 5 4

ASDA 4 3

MORRISON 3 3

5 15

5 14

4 11

4 10

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P POLITICAL FORCES, LOCAL, NATIONAL INTERNATIONAL MANY GOVERNAMENT INVOLVES; COFFEE (BRITISH AND COLOMBIA GOV) CHEAP ALCOHAL & BINGE DRINKING FAIR TRADE POLICY UNEMPLOYMENT & IMMIGRATION S MOVE TO OTHER COUNTRIES LIKE RUSSIA DIFFERENT CULTURES, VALUES & SHOPPING PATTERN DIVERSITY AT WORK COMMUNITY & CHARITY SUPPORT STAFF DISCOUNT & FLEXIABLE WORKING HOURS

E FLUCTUATIONS IN STOCK MARKET RECESSION TAX INCREASE & VAT INTREST RATE INCREASE PURCHASING POWER OF CUSTOMERS

T HYDROGEN POWER LORRIES ONLINE SHOPPING 21sT CENTURY TECHNOLOGY , IT & INFORMATION SYSTEMS SELF CHECKOUT
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` ` ` `

FOLLOWING MODEL CAN HELP TO UNDERSTAND THE INTERNAL ENVIORNMENT OF TESCO PORTER VALUE CHAIN RESOURCE AUDIT BOSTON MATRIX STRUCTURE

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FIRM INFRASTRUCTURE HUMAN RESOURCE MANAGEMENT

SUPPORT ACTIVITIES

TECHNOLOGY DEVELOPMENT PROCUREMENT

INBOUND LOGISTICS

OPERATIONS OUTBOUND MARKETING SERVICE LOGISTICS & SALES

PRIMARY ACTIVITIES
14 13

` ` ` `

PHYSICAL RESORCES HUMAN RESOURCES INTANGIBLE RESORCES FINANCIAL RESOURCES

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UK No. of Stores 2000 No. of DCs 28 No. of Staff 270,000 Turnover 29.5 Billion

International No. of Countries 12 No. of Stores 440 No. of DCs 20 No. of Staff 1,40,000 Turnover 7.5 Billion

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Store types: Express Metro Superstore Extra Tesco.com

Store offerings: Food Retail Non-Food Retail Petrol Stations Home Living Range

Personal Finance: Insurance Savings Accounts Personal Loans Secure Investment Bonds Online Mortgage Finder
1994 1997

1970

1992

1994

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2007 m Fixed assets Investments in subsidiaries and Joint ventures Current assets Derivative financial instruments Debtors Current asset investments Creditors Net current assets Total assets less current liabilities Creditors Net assets 7,382

2006 m 9,805

Inc/Dec % 24.7

70 4,857 90 (2,644) 2,373 9,755 (3,608) 6,147

2,702 150 (2,720) 132 9,937 (4,037) 5,900

44.36 40.00 2.79 94.43 1.83 10.63 4.02

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Capital and reserves Called up share capital Share premium account Profit and loss reserve Total equity

395 3,988 1,764 6,147

389 3,704 1,807 5,900

1.52 7.12 2.38 4.02

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Income Statement
2007 m Revenue (sales excluding VAT) Gross profit Operating profit Profit before tax Profit for the period Attributable to: Equity holders of the parent Minority interests 22,631 1,614 1,309 1,289 938 936 2 2006 m Increase % 9.1 12.2 18.9 18.0 18.6 15.8 20,735 1,439 1,101 1,092 791 788 3

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H 270000 NATIONAL WORK FORCE 140000 INTERNATIONAL STAFF STAFF TRAINING AND DEVELOPMENT TRAINNING IN COVER ALL AS PECT CUSTOMER SERVICE, HEALTH AND SAFTY, LEGAL ISSUE.

I TESCO FULLY HELP AND SUPPORT MANY CHARITIES (CANCER RESEARCH....) AND ENVIRONMENT, EDUCATION .... Goodwill Reputation (HIGHLY REPUTABLE) Brand names ( VALUE RANGE NAME)

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Star
0

Problem Child -

?
0

Cash Cow

Dog
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` `

` `

There are six work levels within the organisation. This gives a clear structure for managing and controlling the organisation. Each level requires particular skills and behaviours. Work level 1 frontline jobs working directly with customers. Various instore tasks, such as filling shelves with stock Requires the ability to work accurately and with enthusiasm and to interact well with others. Work level 2 leading a team of employee who deal directly with customers. Requires the ability to manage resources to set targets to manage and motivate others. Work level 3 running an operating unit. Requires management skills, including planning target setting and reporting. Work level 4 supporting operating units and recommending strategic change. Requires good knowledge of the business, the skills to analyse information and to make e decisions, and the ability to lead others. Work level 5 responsible for the performance of Tesco as a whole. Requires the ability to lead and direct others, and to make major decisions. Work level 6 creating the purpose, values and goals or Tesco plc. Responsibility for Tescos performance. Requires a good overview of retailing and the ability to build a vision for the future and lead the whole organisation.

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Tesco six level of work with in the organisation

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Strengths
Increasing market share, sale Insurance , Customer loyalty Tesco online, good availability Brand value, accessible store UK market leadership reinforced

Weakness
Reliance upon the UK market Debt reduction Signs point to serial acquisitions Shrinkage problem/ waste Struggling: clothes and telecom

Opportunities
Non-food retail Health and beauty Further international growth

Threats
1) UK structural change could spark a price war(recession) Overseas returns could fall Wal-Mart/Asda challenge 24 International expansion

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