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].
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.
Tesco PLC's Expansion in North Bracknell Introduction: Tesco PLC is an international supermarket not only selling high quality goods but has now also become one of the biggest job markets. As well as this Tesco has been running sub-projects to increase the level of customer care. [IMAGE] Tesco's main aims are shown by the steering wheel provided by their website (www.tesco.com). Tesco want to have good quality for value to earn their customers loyalty while still making a profit. I will be investigating the Tesco Superstore, petrol station, pharmacy and coffee shop in North Bracknell (Warfield).
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
Tesco is a public limited business and therefore is in the tertiary sector as it provides a service to the public, this means that the business is owned by many shareholders. Tesco sell their shares on the stock exchange and are number one out of its competitors in terms of number of shareholders. Having a high amount of shareholders means that the business needs to make and retain profit levels high so that they trust and gain loyalty to the
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.
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].
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.
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.
Over the years, Tesco has recorded growth which has been achieved through different strategies. The company has adopted its growth strategy which has been implemented in four different parts. One has been emphasis on the growth of Core UK business in order to expand internationally. This growth has allowed that company to position itself in food and nonfood sectors based on retailing services. Over the years, the company has witnessed financial fortunes which have been reflected in its growing sales.
Tesco currently has strong financial, technical, and physical resources and moderate organizational capabilities. Financial Resources -.. Tesco maintains a strong financial forecast, as shown below. Revenue growth for Top Drive segment Q3 2011 was 83.6 million. Increase derived from sales increase, operating days for rental fleet, and after-market sales and service.
On the other hand, most factors prove otherwise. The retail industry does not have high Economies of Scale to be exploited in general . Yet, it is impossible to run department stores like Metro on a small scale . A large retail space, inventory, and warehouse are necessary to host a specialized portfolio of brands and products to better attract both customers and suppliers. Heavy capital requirements and operational expen...
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.
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.