RESOURCED BASED VIEW THEORY:
The process by which organizations can assemble a unique portfolio of resources that will render them a competitive advantage. The resource-based view (RBV) of the firm (Wernerfelt, 1984; Barney, 1991) suggests that organizations should invest in those resources and capabilities that they believe will best assist them in successfully gaining a sustainable competitive advantage
Resources: Wernerfelt (1984) originally defined resources as ‘anything that could be thought of as a strength or weakness of a firm’. In a similarly inclusive vein, Barney’s (1991) definition of resources included ‘all assets, capabilities, organizational processes, ...view middle of the document...
Mar 2014 Tesco forms a 50/50 Joint venture with Tata group of India in which operates Star Bazaar retail.
* . Company overview Tesco is known as a food retail leader in United Kingdom and Ireland. Company’s annual online sales exceeded $5 billion and Tesco.com is recognized as the world’s largest online grocer, with a customer base of little less than 1 million and more than 250,000 orders completed a week. Company has nearly 1,900 vans that operate and about 300 stores and 9,000 pickers. Tesco.com 2006 sales grew up strongly by 29.2%. Tesco dominated in offline and online grocery market and was looking for other areas to expand. “ Our market share of UK retailing is 12.5% - that leaves 87.5% to go after” – Terry Leahy, CEO
* 3. Management team Terry Leahy – CEO, joined Tesco in 1979 and held a number of marketing and commercial positions prior to being appointed to the Board of Tesco PLC on 5 October 1992. Tim Mason - President and Chief Executive Officer Fresh & Easy Neighborhood Market. He was appointed to the Board on 16 February 1995. He joined Tesco in 1982 and has been President of our US operations since 2006 Andrew Higginson - Finance and Strategy Director. He is a member of the 100 Group of Finance Directors, Chairman of Tesco Personal Finance and a Non-executive Director of BSkyB PLC. He is also responsible for retailing services, including tesco.com, Tesco Telecoms and Tesco Direct. Phillip Clarke is International and IT Director. Prior to his appointment he held a number of roles in store operations, commercial and marketing. He is a Non-executive Director of Whitbread PLC. He was responsible for technological part of the Tesco.com.
* 4. Competitors Asda owned by US corporation Wal-Mart since 1999, is the only supermarket with the potential to become a thorn in the side for Tesco. Wal-Mart is the biggest food chain in the world and has annual sales eight times bigger than Tesco’s. Asda's George range of clothing is the bestselling brand in the UK and company is thinking about acquiring Matalan, the giant discount clothing and home furnishing store. Sainsbury’s was the UK's biggest grocer until 1995, but was recently relegated to third position behind Tesco and Asda. Despite the fact that company has been struggling lately it is starting to get back on track. Despite predictions that Sainsbury's would regain second position and a narrowing of ASDA's lead in recent months, the latest figures released by Taylor Nelson Sofres show Asda's share as 16.6% compared to Sainsbury's at 16.22%.
* 5. History 1919 – Jack Cohen founded Tesco, when he began to sell surplus groceries from a stall in the East End of London. His first day’s profit was $2 and sales $8. 1979 – Annual sales reach £1 billion. 1982 - Annual sales exceed £2 billion. 1995 – Tesco becomes the market-leading food retailer. 2000 – Tesco.com is launched. 2001 – Tesco announces a new strategic relationship with American supermarket Safeway Inc, to take the...