Tesco Value Chain Analysis

Established in 1919 by Jack Cohen from a market stall in London’s East End, Tesco has grown and became the leading multinational retailer in the UK with a wide range of products. Tesco’s operations in the UK are the largest within Tesco PLC (Tesco, 2014). The success of Tesco lies in its strategic management. This analysis will look into Tesco’s business in the UK by following a structure of four main parts: Tesco’s value chain management; Tesco’s important stakeholders and its managing them; Tesco’s attempt in competing with other rivals and finally, potential international opportunities for Tesco to get more profit.

QUESTION 1:

“The value chain identifies where the value is added in an organization and links the process with the main functional parts of the organization” (Lynch, 2012, p.173). According to SooSay, Fearne and Dent (2012), the value chain concept was first introduced in 1985 by Micheal Porter, which is a set of linked value-adding activities including primary activities and support activities. Tesco has use support activities to create a link between departments that Tesco can operate primary activities smoothly. Human Resources Management plays their role well in recruiting right people for right task. Human Resources department works with IT department for the operating machinery and computer systems so that the activities in stores can be done well such as the screens, electronic price tags, labor tags placed correctly. This link can be seen easily through