TESCO Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

TESCO Case Solution

Introduction:

The purpose of this case study is to examine and analyze the organizational culture and business structure of Tesco as well as to determine the efficiency and effectiveness of the operations of the company concerning the changing global digital economy in which the organization operates. It will require a comprehensive review of the value chain of the business and the strategies adopted by the management of the company on the changing dynamics of the industry and the technological environment of the markets in which the organization operates.

tesco case study solution

Company overview and background:

Tesco is a global retailer that offers grocery, in-house appliances and various other merchandise to the customers. The organization is the third largest global retailer in the world regarding the revenues and operating margins that it generates while working in the markets. The organization has market presence in the Asia, Europe, and North-America, while the UK is the home country and one of the major markets of the company from where it generates a significant proportion of its revenues and margins.

The business was founded in the early 1920 s and initially started out as a food and beverages provider to the local community of East-London however; due to the excellent leadership skills and policies of the successive managements of the organization, the business has grown phenomenally and diversified its operations and services along with the product offerings. The product and service portfolio of the organization nowadays has diversified into food and beverages, apparel, electronic items, financial services, telecom sector and various others.

Analysis:

The analysis of the structure will consist of a comprehensive study of the changing market dynamics and environment along with the varying preferences and trends of the customers in the markets in which the organization operates. The value chain analysis of the organization will also reflect that how effectively the management of the organization is attending and adapting itself to these changes in the markets and industry in the regions where it operates. The 12 themes identified by Tapscott as “characterizing the current economic environment” will also assist the management of the company to adopt the organization towards a more digital business structure regarding adoption of systems and technology based processes to help optimize the business costs and perform the operations more efficiently and effectively in the markets.

Porter five forces:

Threat of new entrants:

The business operates in the retail markets and industries in various attractive and promising markets all over the world, and the expansion of the operations of the organization in the non-food online retail segment will certainly widen the criteria and stakes of the company in the markets all over the world.

The markets of Europe and the U.S. most critically are very opportunistic and promising and are more prone to the new entrants. The threat to the organization from new entrants is not very significant as the scale at which the company operates globally will require high costs and infrastructure for a new group to match it and pose a threat to Tesco.

.Most of the new entrants who could likely pose a threat to the business are multi-national retail chains and entities, and the business is already competing with them in the markets all over the world, therefore their entrance in a particular market will not significantly change the threat analysis of the company.

Threat of substitutes:

The threat of substitutes is significantly higher for the management of the company and the business due to the constant evolution of the technology. In the retail grocery and merchandise industry, it is not about the products that you sell, it is about the services and value you give to the customers during their interaction with the company as almost all the organizations sell same stuff mostly from the same suppliers or the OEMs...................

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