Tesco Case Study

1. Case Study BY ASSIGNMENT PRIME

2. Introduction of Tesco Tesco was founded in 1919 by Jack Cohen as a group of market stalls in Hackney, London.It is the third-largest retailer in the world measured by gross revenues[6][7] and the ninth-largest in the world measured by revenues. It has shops in five countries across Europe, and is the market leader of groceries in the UK (where it has a market share of around 28.4%) Tesco has expanded globally since the early 1990s, with operations in 11 other countries in the world. The company pulled out of the US in 2013, but as of 2018 continues to see growth elsewhere. Since the 1960s, Tesco has diversified into areas such as the retailing of books, clothing, electronics, furniture, toys, petrol, software, financial services, telecoms and internet services. ASSIGNMENT PRIME | TESCO CASE STUDY 02

3. Accounting Scandal Horsemeat Scandal Tesco Scandals The voluntary disclosure of the misrepresentation of financial statements by the management of the UK-based retailer Tesco plc (Tesco) in September 2014 impacted the market price of its share, affecting the investment value of its shareholders. Tesco, and the discovery that a number of its products had included horsemeat. Horsemeat is a type of meat that is traditionally banned from sale to consumers in the United Kingdom. The voluntary disclosure of the misrepresentation of financial statements by the management of the UK-based retailer Tesco plc (Tesco) in September 2014 impacted the market price of its share, affecting the investment value of its shareholders. On January 15, 2013, Tim Smith, Group Technical Director of Tesco, UK's largest retailer was confronted with the horsemeat Scandal. The Food Safety Authority of Ireland (FSAI) publicly announced that horsemeat, including readymade meals and burgers, was misleadingly labeled as 100 percent beef. The shareholders expressed resentment over the negligence of Tesco’s management and filed legal suits against it, demanding compensation for the losses they had suffered as a result of the financial statements being misrepresented. ASSIGNMENT PRIME | TESCO CASE STUDY 03

4. Phase 1: Direct to Store Delivery (1970s) During this particular time, the suppliers of Tesco had the overall control in an organized manner. the company was severely hit by the operation checkout. Phase 2: Centralization (1980s) Supply Chain Phases Supply chain consolidation is a crucial competitive value for firms with international operations. Close supplier relationships help improve quality, streamline the delivery systems, and reduce operational costs. Tesco manages its global supply chains through lean thinking, vertical integration, and complexity management. In the 1980s, manufacturers, and suppliers had to supply their products directly to the distribution centers of Tesco plc. Usually, the suppliers provide their products to the company’s store. Back in the 1980s, Tesco has adopted the outsourcing feature. It helped them in controlling the overall price of various products for retail selling. Phase 3: Composite (1980s & 1990s) While writing Tesco supply chain case study, you will get to know that back in the 1980s & 1990s the Tesco regional centers were developed to maintain the quality of the products. It had included various vehicles with an adjustable temperature for specific products to secure the quality and avoid waste while transporting the products from one place to another. ASSIGNMENT PRIME | TESCO CASE STUDY 04

5. How Tesco Became E-commerce Retail Case Study Favourite? Despite the accounting and horsemeat scandal, Tesco remains the customer-favorite retail chain in the entire United Kingdom. 1. Excellent Customer Service 2. Product Diversification 3. Insane International Expansion ASSIGNMENT PRIME | TESCO CASE STUDY 05

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