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Tesco

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Presentation on TESCO

Presentation on TESCO

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    Tesco Tesco Presentation Transcript

    • byAshutosh Singh
    • ABOUT Tesco is a global grocery and general merchandise retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues (after Wal-Mart and Carrefour) and the second-largest measured by profits Tesco House, head office in Cheshunt, Hertfordshire. (after Wal-Mart). It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%),Malaysia, the Republic of Ireland and Thailand.
    •  Originally specialising in food and drink, it has diversified into areas such as clothing, electronics, financial services, telecoms, home, healthcare, dental and pet insurance, retailing and renting DVDs, CDs, music downloads, Internet services and software. Tesco also operates a grocery home- shopping service, as well as providing consumer goods, telecommunications and financial services online.
    • Company profileType Public Limited CompanyTraded as LSE:TESCOIndustry RetailingFounded 1920 (East London)Founder Jack CohenHeadquarter Cheshunt, Hertfordshire, U.K.Number of locations 5380 stores (as at Feb. 2010)Key people David Reid (chairman) Philip Clarke (CEO)Products Groceries, consumer goods, financial services, telecoms etcRevenue £60.93 billion (2010/11)Operating Income £3.81 billion (2010/11)Net Income £2.67 billion (2010/11)Employees 472,000 (2010)Website Tesco.com
    • FROM HISTORY… Jack Cohen founded Tesco in 1920 when he began to sell surplus groceries from a stall at Well Street Market, Hackney, in the East End of London. The first Tesco store was opened in 1929 in Burnt Oak, Edgware, Middlesex. The first self-service store opened in St Albans in 1956 (which remained operational until 2010, with a period as a Tesco Metro), and the first supermarket in Maldon in 1956.
    •  In 1994, the company took over the supermarket chain William Low, successfully fighting off Sainsburys for control of the Dundee-based firm, which operated 57 stores. Tesco introduced a loyalty card, branded Clubcard, in 1995 and later an Internet shopping service. In July 2001 Tesco became involved in internet grocery retailing in the USA when it obtained a 35% stake in Grocery Works.
    •  In October 2003 the company launched a UK telecoms division, comprising mobile and home phone services, to complement its existing Internet service provider business and in June 2003 Tesco purchased the C Two- Network in Japan. In 2007, Tesco took part in a joint venture with O2 to form the Tesco Mobile mobile virtual network operator.
    • Jack CohenFounder of TESCO
    • KEY PERSONS BEHIND TESCO PLC Philip Clarke David Reid Terry Leahy CEO Chairman Former CEO
    • MISSION STATEMENT OF TESCOCreating value for customers, to earn their lifetime loyalty.
    • VISION STATEMENT Our vision is for Tesco to be most highly valued by the customers we serve, the communities in which we operate, our loyal and committed staff and our shareholders; to be a growth company; a modern and innovative company and winning locally, applying our skills globally.
    • CORPORATE STRATEGY Beginning in 1997 when Terry Leahy took over as CEO, Tesco began marketing itself using the phrase "The Tesco Way" to describe the companys core purposes, values, principles, and goals. Tesco expanded domestically and internationally under Leahys leadership, implying a shift by the company to focus on people, both customers and employees. A core part of the Tesco expansion strategy has been its innovative use of technology.
    • INTERNET OPERATIONS OF TESCO Tesco operates a grocery home shopping service, as well as providing consumer goods, telecommunications and financial services online. Tesco has operated on the internet since 1994 and was the first retailer in the world to offer a robust home shopping service in 1996. Tesco offers an internet-based DVD rental service, which is operated by LOVE-FiLM and a music download service.
    • U.K. OPERATIONS (STORES)Tescos UK stores are divided into six formats, differentiatedby size and the range of products sold. Tesco Extra Tesco Superstores Tesco Metro Tesco Express One-stop Tesco Homeplus
    • At A glAnce in StoreS…
    • LOYALTY CARDS (CLUBCARDS)
    • OTHER BUSINESSES Garden centres Banking Technika Telecoms Fuel Tech support Film making Tesco tyres
    • MAJOR COMPETITORS ASDA J Sainsbury WM Morrison supermarkets Wal-Mart Carrefour Bp plc
    • SWOT ANALYSIS Strength- Largest supermarket chain in UK. Strong brand name and financial power. Third largest retailer after Wal-Mart and Carrefour. International presence in 13 countries. Better usage of technology in marketing and distribution.
    • WEAKNESS- Increasing geographical spread makes focus on specific markets difficult. Lack of experience in phone and insurance markets. More dependency on UK market. High transport costs.
    • OPPORTUNITIES- Strategic alliance with other companies. Online arena for selling and marketing of products and services. Opening of new stores. Enter new Asian markets.
    • THREATS- Tough competition from giants Wal-Mart and Carrefour. Fluctuation in taxes may impact the Tesco financials. Innovation by other super markets. Rising raw material cost.