Croatia as a Proposed New Market
According to Business Monitor International’s retail report of Croatia’s first quarter in 2014, Croatia’s retail market is looks very active and promising. With Croatia’s entrance to the European Union on July 1, 2013, many multinational companies have decided to take advantage of the growing economy of Croatia. Other European Union countries, like the Czech Republic, Slovakia, Hungary, Poland, and Turkey, have successfully welcomed TESCO. Expanding TESCO into the Croatian marketplace would have similar success and opportunities due to TESCO’s previous experiences in the region.
Macro-Environmental Characteristics of Croatia
Croatia is located in southeastern Europe, bordering the Adriatic Sea, Slovenia, Hungary, Bosnia and Herzegovina, and Serbia. The population according to the 2013 census was 4,475,611 (CIA, 2013). The majority of the population, over 40%, is between the ages of 25 - 54 years old. This age range is the target consumers for TESCO in Croatia. Croatia’s transportation systems include multiple airports, railways, paved roadways and expressways, and ports and waterways. This would give TESCO multiple options to import and export goods. According to The World Bank, the Gross Domestic Product of Croatia in 2012 was 20,964 USD. It has been increasing steadily since 2004, with the exception of a decrease between 2008 - 2010.
Company Overview
TESCO Plc, a British-based retail giant, founded by Jack Cohen in 1919. Today, the company operates in 12 countries and employes more than 530,000 people around the world. TESCO operates in six different formats including Tesco Extra, Tesco Superstores, Tesco Metro, Tesco Express, and Tesco One Stop.
According to Figure 1, the the ...
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References
Business Monitor International. 2014. Croatia Retail Report Q1 2014. [ONLINE] Available at: http://www.marketresearch.com/Business-Monitor-International-v304/Croatia-Retail-Q1-7885331/. [Accessed 09 March 14].
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Tesco Plc. . 2013. TESCO: Annual Report 2013. [ONLINE] Available at: http://www.tescoplc.com/. [Accessed 09 March 14].
The World Bank. 2014. Croatia. [ONLINE] Available at: http://www.worldbank.org/en/country/croatia/overview. [Accessed 09 March 14].
United States Central Intelligence Agency. 2014. The World Factbook: Croatia. [ONLINE] Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/print/country/countrypdf_hr.pdf. [Accessed 09 March 14].
Store information provided by Tesco: Text Box: Tesco Superstore, our most frequent layout, with groceries and non-food [IMAGE] - Coffee Shop/Cafe [IMAGE] - Pharmacy [IMAGE] - Deli Counter [IMAGE] - Fish Counter [IMAGE] - Petrol Station [IMAGE] - Pay at pump Task 1 This organisation chart for Tesco Plc shows that even though the Chief Executive is in charge of Tesco Plc most decisions are still made by the Board of Directors: * [IMAGE]Tim Mason - Marketing & E-commerence Director * Davis Potts - Retail Director * Andrew Higginson - Finance Director * John Gildersleeve - Commercial and Trading Director * Terry Leahy - Chief Executive * David Reid CA - Deputy Chairman * Rowley Ager - Company Secretary * Philip Clarke - IT & logistics Director Each individual store is divided Text Box: into this organisation chart. [IMAGE] The store manager has span of control over all the deputies who have span of control of their section. When some thing needs to be done the store manager would ask his deputise who would divide the work between other workers following the chain of command. Task 2 Aims are what businesses set out to do.
Tesco is a Public limited company (PLC), which means it is owned by shareholders and it is in the private sector Also known as the for-profit sector and Activities outside the public sector organizations and businesses that provide services and products based on market demands for a cost with the purpose of producing a profit for owners and shareholders in the organisations. Tesco is the biggest employer in the UK with over 250,000 employees and over 1,800 stores.
Its core business is based in the UK, this is due to its vast rate of expansion, which is also expanding to other countries. Tesco first started as a food business but now has grown into other areas such as the Telecoms industry, clothing industry as well as many more, allowing them to be a well-known business. This strategy stabilises a gradual growth in terms of revenue for the business.
Tesco is trying to gain as high profits as they can because company investors or shareholders might thing about investing more money in to the business because of its success and development. Tesco wants to make its investors satisfied because it may affect business future.
Taxation has a huge impact on organisations, especially Tesco's, as some of their products have increased on tax. Some products have increased in tax because it is considerate for the government such as for the economy, healthy living and the environment. Due to an increase of tax on certain products not many people will agree with the price they are paying for these specific products and/or services. This is the reason why it has a huge impact on the companies because they aren't gaining much profit from them, they are losing profit from
“Return on Sales.” Investopedia. Investopedia US, A Division of IAC., n.d. Web. 25 March 2014.
This is the second part of the strategic assignment. In this report the competecies, culture and resource analysis of Tesco is presented. Furthermore in this report SWOT analysis of Tesco is presented and then two strategic options are suggested to Tesco. The strategic options suggested are then evaluated through the SAF model.
Tesco is the largest retailer in UK. It is a public limited company which sells multinational grocery, health and beauty product, household items and toys etc. Since Jack Cohen founded Tesco in London’s East End at 1919 and now it has sprouted branches in 12 countries with over 7,800 stores include franchises. Tesco hire over 530,000 employees and they serve over tens of millions customers per week. Tesco
They are highly skilled in areas of design, technology, training, and research and development. In addition, Tesco has a superior presence in the area of manufacturing.
Tesco has net profits (before tax) of around £3 billion. Tesco 's primary aim is 'to serve the customer '. Keeping existing customers happy is important, as they are more likely to return. This is more cost effective for the business than acquiring new ones. In the UK Tesco now has over 2,200 stores ranging from the large Extra hypermarket style stores to small Tesco Express high street outlets. Tesco 's original product range of grocery and general merchandise has diversified to include banking, insurance services, electrical goods as well as telephone equipment and airtime. This move towards 'one stop shopping ' means customers can meet all their purchasing needs from one place. Tesco has also expanded its customer base through its Tesco.com website which attracts one million regular users. As the company has grown, so has its workforce. From one man and a stall, Tesco now has approximately 280,000 employees in the UK and over 460,000 worldwide. To serve its widening markets it needs flexible and welltrained staff that can recognise the needs of the
Bibliography: Tesco Annual Report. (2013). Tesco Annual Report 2013. [online] Retrieved from: http://files.the-group.net/library/tesco/annualreport2013/pdfs/tesco_annual_report_2013.pdf [Accessed: 1 Apr 2014].
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space.
Bibliography: Lawson, A. (2013). Analysis: Is Asda’s five-year strategy the right one?. [Online] Retail-week.com. Available at: http://www.retail-week.com/sectors/food/analysis-is-asdas-five-year-strategy-the-right-one/5054989.article [Accessed 23 Jan.
Metro Holdings Ltd is a multi-national company that operates two major business segments, namely Property Development and Investment, and Retail. This report explores the retail arm of Metro, which manages three department stores and four specialty “accessorize” stores in Singapore, and another five department stores in Jakarta and Bandung, Indonesia.
With its amazing coastline, rich history and abundance of medieval ruins, in combination with well educated dentists and acceptable price of treatment, Croatia is becoming a major competitor in the dental tourism market.