Growth Strategy for Tesco PLC

Complete 8 pages APA formatted article: Growth Strategy for Tesco PLC. In recent years, the Irish market has persistently performed poorly owing to strong competition from discount retailers and fierce couponing activity. Tesco’s response has been to introduce their Price Promise in that market and work hard to demonstrate the superiority of the company’s offer. In spite of these measures, the poor performance of Irish operates has reduced the profitability of the company’s entire European segment. Tesco’s answer to growing competition and sustained growth lies in market penetration.Tesco’s product offering spans two broad categories: groceries and general merchandise (Tesco PLC, 2014). The latter category includes clothing, home appliances, electronics, phones, and furniture among other goods. Tescos corporate strategy is to appeal to all the segments of every market the company operates in. One pillar of this strategy has been for Tesco to brand all the products it carries. Tesco-branded products fall into three ranges: the “finest” range for the upmarket, the mid-range for the middle market, and the “value” range for the low-end market(Mark, 2009). According to retail, analysts, Tesco’s strategy is one of its kind (Mark, 2009).The internal environment of a company refers to the internal factors that affect the operations and the success of the company and over which the company has considerable influence relative to the external factors(Tesco PLC, 2014). Tescos internal environment includes the organization’s culture, and organizational and management structures. Like societies, organizations too have cultures. Organizational culture refers to the accepted standard behaviors that inform decision-making and action. Whereas there is not a single term that may describe the culture of a particular structure, organizational change researchers have developed a number of models by which the culture of the&nbsp.organization may be described. In the case of Tesco, O’Reilly, and colleagues’ Organisational Cultural Profile (OCP) model best suits the company. The OCP model identifies the culture of the organization by evaluating the organization’s values. To this end, the model outlines seven values that include teamwork, innovation, respect for people, goal-orientation, aggressiveness, stability, and attention to detail (Machado & Carvallo, 2008).

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