Strategic management of Tesco Essay Example | Topics and Well Written Essays - 4750 words

strategical management of Tesco - Essay ExampleInbound logistics include the receiving, w arehousing, and inventory control of input materials. Superior bring out chain management has always been Tescos core strength. Stockholding and distri exactlyion costs were minimized by forever replenishing stocks. The new Tesco stores were built so as to facilitate reconfiguration (for e.g. walls in the warehousing area could dismantled to energise for additional selling space) and minimum warehousing space. Operations are the value-creating activities that transform the inputs into the final mathematical product. Outbound logistics are the activities required to get the finished product to the customer, including warehousing, order fulfilments, etc. Marketing & Sales are those activities associated with getting buyers to purchase the product, including channel selection, advertising, pricing, etc. Service activities are those that maintain and enhance the products value including custom er support, recompense services, etc. The elements of the value chain described here have been dealt with in the earlier discussion.1.2. Antecedents The first troika letters Tes that form the name Tesco come from the founder Jack Cohens first tea supplier, T. E. Stockwell and the co from his surname - provision chain management has always been prominent in the companys scheme of things. ... They were direct delivery of the supplier to the retail store centralised distribution system for ambient goods to be supplied to regional centres, which began in the 1970s but continued to arise over the years a composite distribution system developed in 1989 and vertical collaboration in the supply chain to achieve better in operation(p) efficiencies. The reconfiguration of distribution and operational strategies helped the company to achieve sustainable hawkish advantage.The companys fortunes changed dramatically during the 1992-2002 decade. The top six retailers in the UK up to 2002 were Tesco, Sainsburys, entre (now Somerfield), Argyll (now Safeway), Asda (acquired by Wal-Mart) and Kwik Save. Tesco was far ahead of its competitors in 2002 with sales worth 15.6 billion - her nearest meet Sainsburys had sales of 6.4 billion. In 2002 W. M. Morrison arrived as a new entrant to the top six claiming a tooshie above Safeway with sales of 3 billion in that year and in the process dislodging Kwik Save.1.3. Strategic challenges The strategic issues that the food retailing industry faced in the last decade of the twentieth century were challenging. As all of them offered - more or less - the same goods it was difficult to create a sustainable competitive advantage over an extended period. The differentiator was to be service and to beat competition businesses had to constantly evolve a process of innovation in their service offering. One of the consequences of this evolving process of innovation was to diversify product offerings that made food retailers move into non- food businesses like clothing, electrical goods, petrol, financial products and insurance apart from