These factors are closely related to goals, values, and policies that govern its business operations. The success factors involve the performance of employees, strategic management, leadership, as well as strategies to enhance its operations and delivery of quality customer service.
Success factors linked to employees include customer focus, personal integrity, drive, team work, and personal development. Employee integrity plays an important role in creating trust with customers, which is necessary for customer loyalty.
Team work ensures that employees combine their individual efforts in order to guarantee better customer service. It improves decision making, problem solving, exchange of ideas and knowledge, and innovation. Success factors related to leadership and management include performance management, change management, commitment, as well as effective analysis and decision making. The management of Tesco ensures that these requirements are fulfilled in order to foster sustainable growth and enhance organizational success.
The aforementioned success factors are covered under four major areas that are related to operations and delivery of services. They include integration of information technology, market research, supplier management as well as branding and reputation.
Tesco is one of the companies whose success depends on the realization that branding and maintaining a clean reputation plays an important role. Tesco is a multinational brand that is mainly associated with the retail industry.
When the company started, it majored mainly on groceries. However, as it grew and implemented various expansion strategies, it expanded into other sectors. It embraced a corporate culture of converting generic products into branded products, which have attracted many loyal customers Ryle Branding is also applied as a marketing and organizational strategy that provides competitive advantage and provides a method for effective competition with other companies in the retail industry.
The products cover all categories and are priced differently depending on their target customers. The change has led to more effective supplier management and better customer service due to enhanced delivery of quality products and services to customers.
Therefore, it has become easier for the company to expand to other economic sectors. Another aspect that has contributed to its strong brand reputation is the creation of a customer loyalty program, which has been very successful Ryle The loyalty card system has enabled Tesco to grow further and attract more customers by customizing its services to fit the needs and interests of individual consumers Humby et al.
The company has an online platform that allows customers to buy merchandise from any part of the world. Online retailing is one of the most critical factors in the success of Tesco.
Tesco is highly success because of the expansion strategy that has enabled it to provide its products and services in various countries across the world Ryle The modern business environment is highly complex, volatile, and dynamic. Therefore, adapting to change is very difficult. Tesco has overcome these challenges by innovating and integrating technology into its business operations.
Information technology has been embraced partially by many businesses. However, information technology plays a pivotal role in the formulation of business strategies and the running of key business processes at Tesco.
Tesco also uses information systems to create partnerships with customers, suppliers, investors, and other stakeholders Humby et al.
Integration of information technology into business operations increases efficiency of service delivery and dissemination of information to customers, as well as suppliers. Tesco uses an extranet system to have easily and timely interactions with suppliers. The system eases the burden of supply control and reduces costs. The extranet system improves communication with partners by connecting them through online platforms Ryle Tesco also uses BT Cloud contact technology to connect more with its customers.
This service plays an important role in improving the quality of customer service that Tesco provides. The company uses several technological advancements to streamline its operations and processes. Consumer data has i shaped product offerings ii ranges iii given Tesco a better understanding of consumer segments and shopping profiles and iv helped marketing to build loyalty and develop promotion offerings that suit target groups. This level of sophistication has helped Tesco to remain leader within the UK market.
Suppliers are internationally sourced, and Tesco gains scale economies from its large buying volumes. This has enabled the company to keep prices down and supported its low price strategy aimed at the broad consumer market.
However, the company has been criticized for its management of suppliers and clashes with the farmers union. There has been growing opposition to the supermarket because of its size, and the government through the Monopolies and Mergers Commission has been involved in ensuring competitive markets in the UK. The organisation has a diversified product portfolio, which includes telecommunications, finance, insurance, which provides cross and up sell opportunities to customers.
Profits have been invested to support research and development, and its aggressive international expansion plans. Intense competitive rivalry within the UK retail market is forcing retailers to look at cost savings and ways that they can differentiate from competitors.
The retail market is mature and oligopolistic in its nature, with a few major multiple retailers dominating the market.
Intense competition between the large retailers has to price wars with Asda and Tesco and low price competitors — Netto and Lidl are reducing margins for the industry as a whole. Tesco has looked to increasing efficiency and effectiveness. Cost savings have been sought from the supply chain, through better use of IT, and from policies and management of suppliers to ensure the greatest value to the business and customer.
The market is highly regulated. The monopolies and mergers commission has been monitoring the market to ensure fair competition. The government has also been active in planning restrictions for new store openings. Growth appears to come from gaining new customers, improving product offerings, and from higher margin items such as clothing, appliances and other non-food offerings. Many retailers have looked overseas to fuel growth.
Customers are still king. Success in the industry is still dependent on how well the retailer can meet the customer needs. Price, particularly in the UK has become a dominant feature. If the UK and US enter a recession, this will put added pressure on retailers to keep prices low.
Household budgets may tighten, which could lead to reduced consumer spending. Essay Sauce, Tesco Case Study. These Business essays have been submitted to us by students in order to help you with your studies.
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