Future of Tesco

melonhead73

Hello

I don't know if this is the right section but here it is anyway:

As part of my thesis I must give recommendations on the future direction of Tesco?

Anyone any suggestions or ideas would be so helpful

Thanks guys appreciate it

m1ck007

I think someday tesco might turn into a transformer and take over the world

Lantus

what did your lit review regarding the current and changing factors within the economy provide by way if insight? Recommendations typically come after the conclusion so presumably you have that bit written as well?

Recommendations should flow from the conclusion as gaps you have identified. The rule no new material would apply to this section just as your conclusion so you need to draw out points you have made in your conclusion and go one step further to provide an example of how an issue could be resolved or developed.

For example if Tesco have failed to respond to cheaper rivals and are losing market share then should they simplify and engage in cost cutting? Or should they provide even more choice and range?

If you have identified Tesco's base costs as being higher than rivals then you could recommend smaller stores, reducing staff or automation to deal with this.

If you have identified brand image as an issue then advertising, rebranding, better targeting of their core market segment as possible directions.

Look at your thesis you have written and draw out the issues you have already identified and then develop an idea as to a possible way to deal with them. Try to be specific and to the point. Avoid generalities. This is about showing your thought processes as much as actually trying to solve Tesco's woes.

hfallada

melonhead73 wrote: »

Hello

I don't know if this is the right section but here it is anyway:

As part of my thesis I must give recommendations on the future direction of Tesco?

Anyone any suggestions or ideas would be so helpful

Thanks guys appreciate it

It's probably the most analysed company in the UK over the last few years. Its share has nose dived and recovered. There is countless articles if you just research it

power101

Look up Porter's strategy. I believe many people would agree that Tesco would now seem like a company that is "stuck in the middle". Many other companies now beat it on cost, others again beat it on quality and types of goods. So there you have Tesco being attacked on all sides and when you top it off with poor upper management it really does not look good for them. Basically they need to replace a lot of senior management.

What happened with their suppliers was borderline if not illegal. They got their suppliers to give them fake discounts coming up to their year end and at the same time increased the payment time of suppliers. This had the effect of increasing their cash at bank for their accounts, decreasing their creditors and increasing their margins. Suppliers then issued new invoices after the accounting year end that covered the fake discounts.

Like anything of this nature it grows each year as you have to cover the previous year and the current year etc. Eventually it all comes crashing down as it did during the summer of 2014.

jimmycrackcorm

I think the obvious answer would be to ask why it can't follow an ALDI or LIDL path.

I know they've tried doing the convenience store approach but there's no reason they couldn't have adopted a dual supermarket and discount mini store strategy doing exactly what they do.

pedroeibar1

It’s a very interesting topic but the OP would need to get off its @rse!

Power101 hit several nails on the head above, I’d add that Tesco has taken its eye off the loyalty ball both with regard to customers and suppliers.

@Melonhead, Aldi & Lidl might seem important in Ireland but they are outside this topic (Aldi has sales of about 70 billion, Lidl less.) Write about them in detail on a global context and it’s a fail. Using memory rule of thumb figures, Tesco was the No3 retailer globally with sales of about $100 billion; Carrefour and Costco are ahead of it +/-. All are far behind Walmart at about 500 billion , so Costco, Carrefour + Tesco together are not even the same size as Walmart.

Have you looked at the top player’s different strategies on out-of-town hypermarkets? Numbers of products stocked? On on-line sales? Shop & Collect? Shop & Deliver? Banking? Insurance? Loyalty cards? What the leaders are doing in China? India? Or in Latin America? What is the differentiation on Tesco Express and Carrefour City? Staffing? Stockturn?
Have you looked at ecommerce sales as a % of total sales? Have you looked at market share (or even presence!) in top ecommerce markets? Have you shopped in a Tesco? Have you done any research?? Lots of differences if you do a bit of work!

martyoo

I think they should look at improving their value brand. It looks crap, tastes crap and it's the same price as Aldi / Lidl. It should be part of their strategy going forward.