International Marketing Strategy for Tesco

International Marketing Strategy for Tesco Executive Summary This report outlines international marketing strategy for Tesco for its market entry into Sweden with a range of baby wear. The SWOT and PESTAL analysis show that Tesco currently has the resource capabilities to successfully enter the market and implement a market development strategy. The report recommends that Tesco target the high-end market segment with a differentiation strategy. This report will assist in understanding and the formulation of an international marketing strategy for Tesco Plc. The report will use PESTLE and SWOT analysis to provide an insight into Tesco’s current market situation. This will help management in making the correct strategic choices in terms of corporate and international strategy in terms of lunching a range of baby wear (infant toddler clothes) into Eastern Europe (Namely, Sweden). The report will outline how Tesco will make such market diversity and also managing corporate portfolio. We will use the Ansoff Matrix to consider market entry models. The final part of this report will provide an activity plan for Tesco along with a profit and loss account. Measurements and control with contingency plans will also be discussed. Company Profile Tesco runs more than 2,300 supermarkets, hypermarkets, and convenience stores in the UK (where it is the market leader in food retail), Ireland, Central Europe, and Asia. Its operations include convenience and gasoline retailing (Tesco Express), small urban stores (Tesco Metro), hypermarkets (Tesco Extra), and financial services through Tesco Personal Finance. A global leader in online grocery sales, it owns a 35% stake in US grocery chain Safeways GroceryWorks. It is the leading online grocery store and it is now expanding its business with a TV channel and a retail based education institution†. SWOT and PESTLE Analysis of Tesco Plc A PEST analysis of the industry will examine the local, national and global influences of political, economic, social and technological factors to understand opportunities and threats well. All of those (political, economic, social, technical, legal and environmental) factors will to some extent apply to the retail industry in Sweden. POLITICAL – Following the European Integration and Free Trade Agreements, the market has opened up for British Companies to invest in Eastern Europe. Tesco already has 60 Hypermarket store in Hungary. Lidl is uncompromisingly fighting to maintain its market share with an aggressive pricing strategy. ECONOMIC the Retail sector is fairly recession prawn and also very sensitive to changes in interest rates. Since the events of September 11th the world economies have suffered heavily, stocks plummeted and prices are at all time lows. The world economy is however, now on the up post September 11th. Consumers are optimistic and the retail industry is once again booming. SOCIAL – changes in consumer taste and lifestyle represent both opportunities and threats for the industry. Opportunities in terms of new market and consumers, however, there are added threats in terms of alternative established Swedish national retailers (foreign company bias). TECHNICAL – Changes in retailing methods as such clothes sales via the Internet is now a common place in retailing. Paperless operation, the management and administration of the company are undertaken on IT systems, which are accessed through secure servers; provide flexibility in the running of the business. As Sweden is at the forefront of technological advancement with national companies like Ericsson, Tesco would enjoy the comprehensive logistic and distribution channels already in place. LEGAL – National legislation for health and safety both in terms of consumer rights and also in terms of production of own natural renewable resources for making clothes. ENVIRONMENTAL – The renewable source of resources used in production, namely cotton and wool are environmentally friendly. The threats are in terms of legal consequences for livestock’s in terms of health and safety. Market Entry Strategy We can use Ansoff’s product/market matrix to identify directions for Tesco’s strategic development. This matrix offers directions for strategic option available to Tesco in terms of products and market coverage, taking into account its strategic capability and also expectation of stakeholders Source: Johnson, G., Scholes, K., Whittington, R., (2005) We can see from the Ansoff Matrix that Tesco’s lunch of Baby wear in Sweden will involve a market development strategy. As Tesco already sells kid’s clothing (existing product) but Sweden will be a new market. Both capability and market consideration has driven Tesco to into development into new markets. Kid’s clothing is a product that can be exploited in other market segments and also geographical spread internationally. Tesco may encounter some difficulties around creditability and expectations as they attempt to enter the new market. Tesco may not be seen as a credible ‘mainstream’ supplier. Tesco Plc Target Customers Tesco must decide which market segment in Sweden it wants to target; this will subsequently determine its generic strategy. If it wishes to with the low cost retailers then it must adopt a cost leadership strategy. Otherwise it will have to look for differentiation so that it can charge premium prices at the high-end market. As the competitive rivalry in the low cost market is intense, Tesco should enter the high-end market with a differentiation strategy. However, before Tesco decides on its target customers, we need to conduct a market analysis, in terms of size of the baby clothing market in Sweden, market shares of all the existing firms in the market and finally segments within the market, to identify particular segments, so that Tesco can target these and adjust its marketing. Marketing Objective Tesco could have the following objectives: Profitability, in terms of operating margin (a 10% target) Swedish Market share (a 20% target) Customer advocacy (the number of customers who recommend Tesco branded clothing, repeat business) Respected company (the number of community stakeholders who respect Tesco) Employee motivation (the number of employees who feel motivated to deliver Tesco’s goals) Tesco must ensure that it sets ‘SMART’ marketing objectives that are measurable, time limited, attainable and relevant. Marketing Strategy Tesco’ strategy is clear, with growth being pursued from four areas – the core UK grocery business, non-food, international expansion and retailing services such as financial services, the dotcom business and telecommunication packages. Basically, Tesco is using its strong stable core to keep the business ticking over while it forges new riskier areas of growth. Pushing further into non-food in the next phase (Johnson, G., Scholes, K., Whittington, R., (2005)). Lidl is currently destroying the market by selling the products below cost price. Therefore, Tesco’s generic strategy will have to be cost leadership, unless we can successfully differentiate our line of clothing so that we can charge a premium price. A marketing strategy will involve analysing the markets, and which products to offer. The strategy is implemented through marketing tactics, which involve detailed decisions about factors such as the price and the way the product is distributed. So Tesco must decide on its model of entry in terms of, own stores, Internet selling or joint venture with an existing national retailer. Activity Plan Market Research Market Analysis (including demand for baby wear) Mode of Entry Marketing Mix Decisions (Place, Price, Product, Promotion) decisions Methods of promotion – advertising, public relations, direct mail, sales promotion and personal selling Profit Loss account Measurement Controls Tesco must also have in place both financial and strategic controls. Financial controls are in terms of profit targets, capital bids and performance appraisal. Strategic controls in terms of overall strategic balance, agreed business plan, optional services and infrastructure and any short-term constraints such as human resources. Contingency Plan The contingency plan must be in place to ensure that if the product fails having made large capital investments in new store, Tesco must have other products within its portfolio, which it can launch. References and bibliography http://www.forbes.com Johnson, G., Scholes, K., Whittington, R., (2005) Exploring Corporate Strategy Text and Cases, 7th Edition, FT Prentice Hall http://www.hoovers.com/nike/ID__14254/free-co-factsheet.xhtml ACCA Paper 3.5 Strategic Business Planning and Development (2001) The Financial Training Company M.E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, 1985 Jeannet, J., Hennessey, D.H, Global Marketing Strategies, 6th Edition, Houghton Mifflin

Labor and Unions in America :: American America History

Labor and Unions in America The Industrial Revolution was dawning in the United States. At Lowell, Massachusetts, the construction of a big cotton mill began in 1821. It was the first of several that would be built there in the next 10 years. The machinery to spin and weave cotton into cloth would be driven by water power. All that the factory owners needed was a dependable supply of labor to tend the machines. As most jobs in cotton factories required neither great strength nor special skills, the owners thought women could do the work as well as or better than men. In addition, they were more compliant. The New England region was home to many young, single farm girls who might be recruited. But would stern New England farmers allow their daughters to work in factories? The great majority of them would not. They believed that sooner or later factory workers would be exploited and would sink into hopeless poverty. Economic "laws" would force them to work harder and harder for less and less pay. THE LOWELL EXPERIMENT How, then, were the factory owners able to recruit farm girls as laborers? They did it by building decent houses in which the girls could live. These houses were supervised by older women who made sure that the girls lived by strict moral standards. The girls were encouraged to go to church, to read, to write and to attend lectures. They saved part of their earnings to help their families at home or to use when they got married. The young factory workers did not earn high wages; the average pay was about $3.50 a week. But in those times, a half-dozen eggs cost five cents and a whole chicken cost 15 cents. The hours worked in the factories were long. Generally, the girls worked 11 to 13 hours a day, six days a week. But most people in the 1830s worked from dawn until dusk, and farm girls were used to getting up early and working until bedtime at nine o'clock. The factory owners at Lowell believed that machines would bring progress as well as profit. Workers and capitalists would both benefit from the wealth created by mass production. For a while, the factory system at Lowell worked very well. The population of the town grew from 200 in 1820 to 30,000 in 1845. But conditions in Lowell's factories had already started to change.

Feeding Program Report Essay

CAT’s Feeding Program provides a healthy, fresh and nutritious meal to the kids who were in hunger or else to the areas wherein we can see that the people cannot really accommodate their meals clearly. This program also desires to give free meals to those children who where in the particular place that we are destined to go to. Feeding is a tool, which today effectively enables hundreds of millions of poor children worldwide to be sustained to their meals—in developed and developing countries alike. This paper describes the benefits of CAT feeding and how this well-proven tool can be scaled up and specifically targeted to address some of the key constraints to universal primary health completion. One of the advantages of CAT feeding is that, in addition to enabling health status, it has positive direct and indirect benefits relating to a number of other development goals (namely for gender equity, poverty and hunger reduction, partnerships and cooperation, care and prevention, and improvements in health and other social indicators). Some of those implications are discussed herein as well. Even in the most-developed nations, there are hungry children who can be helped by school meals. Through this program, we can help the poor people to at least give them meals so that their hunger will be removed. We, the CAT officers, are the ones who personally made and planned the meals to be cooked. We prepared the meals carefully and cook the meals deliciously so that it would be worth for the children who were eating the meals. We can assure to the children that were eating the meals that we had prepared were all clean and healthy since in has the nutritious ingredients like carrots and sweet potato. We also add some seasonings to the meal so that it would be more delicious and that the children would be very happy to the meal that they were eating. The program tries to close the people’s hunger gap by bringing food to children across the street. Run by the school that funded primarily by the CAT officers, the program offers a safe location for children to eat meals and get free food to take home to their families. At least, in our own simple ways we could help to close the people’s hunger. And through this simple way of helping them closing their hunger, we could also give them nutrition. The objectives of the program are to value the health of every people in the community, to have cooperation while giving foods to others, and to discipline the child’s behavior. And through this program, the children learned how to give, they learned through cooperation and the target objectives were happened. Content/Body On the day of the Feeding Program, it was an exciting day for me since it was my first time to experience that one. Our assembly place was our school and our assembly time was 6:30-7:00 am and I came up late at the school because of the fact that when I came up there, they were only few of them who were there. So, when I came there, there was them and after a few minutes I began to help them. I help them repacking the juice; I also help them chopping the ingredients into small dices. After doing all those preparations, we began cooking. Our teacher divided into three different groups that’s why I am sure it will be easy for the meal to be cooked. We also have three large pots where we can cook the meal. Our group leader was Sinclair F. Seno, I know that he really knows how to cook and besides, he is a skillful person whom I trust on. I trust him that he could make our meal so delicious and he really does. Through his experiences in cooking and on his determination to finish cooking, he made it very fine. And then the other group’s meals were also already cooked. Afterwards, we were preparing so that we can now go to our designated area. The area we will distribute the meals that we had prepared. Then we went to the chapel of their place and tell all the residents that we will be giving out free food and meals. So, we have been working out and then the residents began going out and went to us to ask for food and we also gave them. We also gave them juice so that they will not choke the food that they eat. From the start, the residents were too little and it seems that the food that we had prepared were too much for the people that we are giving food. But when we had announced from each of their homes that we are giving food for free, they were immediately going our from their houses and went to us for food. We were so very happy because it is relieving to the heart that you can help to stop the people’s hunger just in a very simple way. This program is also a way in helping them out of the state of hunger. We also take some videos and pictures for our documentary and also as a remembrance for having this first activity of our CAT. After giving free foods for them, we also immediately clean up the area that we had used and go back again to our school. We wash all those large pots and other things that we had use for cooking. After cleaning those things, we had our picture taking. Together all of us, we had worked out for this event to be successful I enjoy this event and really had fun. Observation I had observed from our program that handling this kind of program is not that easy because you need to have the cooperation between the officials from the place and also from the administration from the office of the school and without their cooperation, the program would be nothing. Also I had observed that without the cooperation of the officers, it wouldn’t be a big success to this program. I had seen that all of us were working together for us to finish this kind of job for the day. We work hard together for us to make this program very successful. This program is also with the residents who support our program. Who were there to ask for food and support what we were doing. This kind of program is not really easy. It really needs time to plan and enough budgets so that the needs would be completed. This program needs to be planned carefully so that the result would be very nice and that the program would be very successful. Recommendation This kind of program should be improved. This program must be in a proper way of having a program. Maybe this should have a list of program so that we can also entertain the children who were there. We can also have games for the children so that they would not only enjoy the food that they eat but also they will be happy and because of the games that will be prepared for them. We can also give them toys (used or donated) so that they would delight the things that will be given to them. We can also perform some intermission numbers for them to be entertained. At least through this simple ways, we could bring joy to their lives and make them happy for this time. This kind of program would be very interesting because it can really help a lot for the children. Conclusion In the current years, the population of the world is getting bigger and bigger and we are not really sure if they can still accommodate their needs and if they can still feed themselves. That is why we have this program to help the people’s hunger to be removed. Giving also nutritious foods to the children could be the best way for them to be provided with adequate nutrition. And also through the food that they eat, it could also energize their day. Therefore, I conclude that this program is for the benefit of the people who are in the state of poverty and hunger.

What Is Body Language Essay - 965 Words

What Is Body Language? The Missing Ingredient By Paulus Harrison | Submitted On July 22, 2012 Recommend Article Article Comments Print Article Share this article on Facebook Share this article on Twitter Share this article on Google+ Share this article on Linkedin Share this article on StumbleUpon Share this article on Delicious Share this article on Digg Share this article on Reddit Share this article on Pinterest Expert Author Paulus Harrison What do you read my lord? Words, said Hamlet. Methinks he should hath answered body language. Where many of us are obsessed with words, always thinking of what we ll say next, we pay comparatively little attention to our body language. Strange given that 55% of communication is conveyed through body language and only 7% involves words. Take a moment to consider that fact. 7% of communication is words. 55% is body language. It is a staggering fact, a fact that makes one thing clear: if you are to make the most of your communication skills--social, professional or wherever else--you need to make use of body language. How, then, can you begin, today, right now, to take advantage of that whopping great 55% of communication that comes from body language? There are a great many ways. Let s take a look at some of the most popular and most important. Conflict Resolution: Perhaps you are one of the unfortunate people who seem to get in arguments often without much of a clue why. Some people seem to create conflict seeminglyShow MoreRelatedWhat Is Body Language?965 Words   |  4 PagesWhat Is Body Language? 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