1. Introduction Tesco Stores (Malaysia) Sdn. Bhd. was commenced on 29 November 2001.

Tesco Malaysia is a strategic alliance between Tesco PLC United Kingdom and local group company, Sime Darby Berhad which is holds 30 percent of the total shares. Tesco Malaysia commenced operations in February 2002 with the opening of its first hypermarket in Puchong, Selangor, followed by Malacca and Klang. Tesco Malaysia employs nearly 13,000 employees and operates 36 stores nationwide. Tesco stores in Malaysia can categorize to two forms, which is Tesco hypermarket and Tesco Extra hypermarket. For your information, Tesco hypermarket offers customers a complete one stop shopping for their needs from fresh food to groceries, from household needs to apparel. It carries more than 60,000 lines of products including nearly 3,000 own brand of products ranging from food to non-food items. On the other hand, Tesco Extra format serves the needs of small businesses, families and individuals all under one roof by providing a comprehensive range of products and services focused for small businesses including bigger pack sizes, special trolleys and checkouts as well as a dedicated business development team to support small business owners with their orders. Furthermore, Tesco Malaysia started Tesco own brand, Tesco Value in 2003. Tesco Malaysia also started its own house brand, Tesco Choice in 2004. In year 2006, Tesco Malaysia acquired Macro Cash and Carry. Tesco Malaysia changed existed Macro Cash and Carry Stores to Tesco Extra hypermarket in year 2007. On the same year, Tesco Malaysia is the only Hypermarket to run its own loyalty card, which returns money to customers 4 times a year. Their purpose is to create value for customers to earn their lifetime loyalty. Tesco Club Card and Biz Club Card were introduced, as a way to say thank you to customers by giving money back to them. Club Card has received an overwhelming response from customers with nearly 2 million household members signed up to date. As of January 2009, Tesco have rewarded nearly RM10 million worth of Club Card Cash Vouchers to the customers.

As part of its global commitment, Tesco Malaysia is market leading on tackling climate change in techniques of energy saving, launching Green Club Card Points to incentivize customers shopping with their own bags, introduce degradable carrier bags, promote positive behavior among staff though Energy League competition intra stores and a recycling centre to facilitate customers to do their part for the environment.

2. Content Sun Tzus Art of War is the oldest known military classic in Chinese literature that considered as most revered and well-known Chinese military text outside of China. It teaches a philosophy that could be described as winning without conflict. Its philosophy contain five aspects which is understanding strategic positions, collecting competitive information and recognizing opportunities, automatically selecting moves that minimize losses and avoid dangerous situations, instantly recognizing the specifics of situations and the responses they require, getting the most out of each move and securing benefits. The work organized in thirteen chapters such as detailed assessment and planning, waging war, strategic attack, positioning, forces, weakness and strength, armed conflict, adapting the situation, armed march, field position, nine terrains, attacking with fire and using spies. The chapter that our group picked to analyse the company is Chapter 6 which is Weaknesses and Strengths. The chapter examines the "circulatory system" of competitive environments, the underlying mechanism of change. As water flows downstream, there is a natural balance of the forces in nature. Voids are filled. Excesses are emptied. Sun Tzu uses this process to explain the deeper nature of chance. The multitude of characteristics in the environment can be reduced to emptiness and fullness. Most importantly, human needs are all forms of emptiness, and human produce is all forms of fullness. Using chances is hugely positioning your target in the environment to tap into the flow between them.

The challenges and problems that Tesco faced is Tesco is now leading the pack in the dot-com business, the arrival of broadband internet means that more and more people will shop online - suggesting there is plenty of room in the market for Tesco and competitors. Service differences are likely to smooth out, making it more likely that people will choose on the basis of price and brand loyalty. Tesco's status as first to the market has won it a lot of customers. But if it's still going to lead the field in five years' time, it has to work a lot harder.

While Tesco already has thousands of consumers shopping online, there also are a great number of complaints on the companys customer services. Complaints on shortage of product stocks and inappropriate product substitutions, and tardiness of home deliveries abound. Moreover, Tesco will also need to consider social dynamic issues. Quantitative and demographic issues, such as aging baby boomers and emergence of the new Generation-X, will need to be taken into account in determining the magnitude of information technology infrastructure and services that would be made available to consumers. Further, other softer issues of values, lifestyle, and demand will also need to be considered. Economic issues will also need to be considered crafting Tescos scenario plans. Macroeconomic trends and shaping the e-retailing forces as a whole, as well microeconomics, such as emerging innovations and long-term competitors; and forces at work within Tescos company itself all these should also be taken into account when probing for economic issues that would affect Tescos future. Tesco will need to bear in mind prevailing political issues, focusing largely on regulatory issues such as government interventions, competitive markets, and taxations.

3. Discussion Sun Tzu said: Those who arrive first at the battleground will have sufficient time to rest and prepare against the enemy.(6.1) Those who arrive late at the battleground will have to rush into battle when they are already exhausted.(6.2) Thus, the person adept in warfare seeks to control and manipulate his enemy instead of being controlled and manipulated.(6.3) He can cause his enemy to arrive on his own accord by luring him with advantages.(6.4) He can deter his enemy from coming by creating (potential) dangers and harm.(6.5) A good place or location of Tesco is very important. It often referred to as the distribution channel. It is very significant for Tesco to do well that they have to find a suitable place to run their business. They would have to take into account the surrounding land and materials surrounded around Tesco. Tesco normally located nearby the residential area where it is very convenient for the people from residential area buying goods in Tesco without spending a lot of time to reach the market. Moreover, Tesco spotted the opportunity to enter the market and become a first mover in the marketplace. For example, Tesco in Kampar is surrounded by well known University Tunku Abdul Rahman and the hostel of student. It attracts hundreds of customers daily and the customers pass by Tesco and may be tempted to shop in Tesco. Since Tesco acts as a first mover, first to offer a product in a marketplace will be the long-term market winner. Other than that, Tesco has created a high barrier of entry for other competitors competing with them and hard to entry the market. Thus when the enemy is well rested, distress and tire him.(6.6) When he is wellstocked with food, starve him out.(6.7) When he is well-encamped and comfortable, provoke him to move.(6.8) Attack places where the enemy must rush to rescue.(6.9) Move quickly along routes where the enemy least expects.(6.10) An army can travel for a thousand miles without being distressed and exhausted because it moves along places where there is no enemy.(6.11) To be certain to capture what you attack is to attack a place where the enemy does not defend or where his defend is weak.(6.12)

In strategic management, products of Tesco have differentiation with others similar products. For example, Tesco is a retail shop that provide various products in Malaysia include Tesco Value, Tesco Choice, Light Choice and among others. Tesco Value gives the customers cheaper price and daily use. It is simpler packaging with the best cost to provide savings to the customers. The Value product is suitable to satisfiers customer needs. For instance, Tesco Value Toilet Rolls, Tesco Mineral Water 1.5L and others. The product fit the customer purpose and customers can choose which they like based on their budget. In addition, Tesco Choice obtains 1000 products in it choice range for customer trip. The Tesco Choice product is developed with quality, taste, and performance in par with marketing leading brands. It is saving 40% of compare with leading brands. For example, Tesco Choice CHOCOMALT 3 in 1, Tesco Choice Cola, Tesco Choice ISOPLUS 1.5L or Tesco Choice Berry. Most of the customers prefer Tesco Choice products through the blind tasting sessions. Besides that, Tesco also provide a product service that is Club Card. The usefulness of Club Card is collecting point that you spent and lot more. For instance, customer can get 1 point for every RM 2. Once customers have collected 150 points, they can claim one Club Card voucher at the customer service counter. With the running of Club card, it provides the buying habits of customer in Tesco. Hence, Tesco gain a competitive advantage in marketplace to compete with competitors. Next, the principle underlying military deployment may be likened to water.(6.57) It is the inherent characteristics of flowing water to escape from high ground and hasten its movement downwards.(6.58) In the same way, the disposition and deployment of an army should be to avoid strengths and attack weaknesses.(6.59) Just as water controls its flows according to the characteristics of the terrain, an army should create its victory according to the situations of the enemy.(6.60) So, in the conduct of war, there is no fixed situation and condition, just like water has no constant shape and configuration.(6.61) The person who gains victories by adapting to the changing conditions and situations of the enemy can be considered a legend in warfare.(6.62)

Because of Tesco is an international retailers, Tesco must have its outstanding management to make sure every part of strategies and management have perform very effective and efficient in the business. Tesco have to act as water controls its flowing according to characteristic of the terrain or situation. Hence, Tesco have to become flexible like water to implement the promotion strategy based on the situation without error occurred. For instance, Tesco have promoted their products through broadcast advertising on radio and TV or internet site. For example, customer can search more information in Tesco websites. Moreover, price discount and buy one get one free also used by Tesco to encourage customers to buy more. In sales promotion, Tesco also use the following tools to further enhance its sales such as premiums, exhibits, coupons and entertainment. Using the coupon that one can acquire after spending a particular amount over period of fixed time, customers can enjoy the benefit of free gift or free add-ons. Tesco also provide vouchers and exciting offers in their prints ads, which customers must cut and bring along. Furthermore, Tesco is using the strategy such as Everyday Low Price strategy to attract the customer to make transaction in Tesco. This strategy helps them to adapt to the changing conditions and situation. It also helps them compete with competitors. An army can travel for a thousand miles without being distressed and exhausted because it moves along places where there is no enemy.(6.11) To be certain to capture what you attack is to attack a place where the enemy does not defend or where his defense is weak.(6.12) To be certain to hold on to what you defend is to defend a place where the enemy does not have the courage to attack or where the defense is invulnerable to attacks.(6.13) Thus, the expert in offence attacks places where the enemy does not know how to defend.(6.14) The expert in defense protects places where the enemy does not know how to attack.(6.15)

The aim is to be as strong in non-food as in food. This means offering the same great quality, range, price and service for our customers as in the food business. Many supermarket chains have attempted to diversify into other areas, but Tesco has been exceptionally successful. By late 2004 it was widely regarded as a major competitive threat to traditional high street chains in many sectors, from clothing to consumer electronics to health and beauty to media products. Tesco sells an expanding range of own-brand non-food products, including non-food value and finest ranges. It also has done quite well in non-food sales in Malaysia.

Making Corporate Responsibility integral to their business is essential in applying their values as a responsible business. They believe it is also an opportunity for growth. Tesco Malaysia is committed to stay close to the heart of the communities Tesco Malaysia is part of. They responded and worked with many local communities including NGOs such as the National Cancer Council (MAKNA) to raise RM450, 000 through fundraising and Walk for Life series to raise cancer awareness. Tesco has also raised funds for the Malaysian Nature Society through the sales of its designer green bag and carrier bag sales and Walk for Schools donation to local primary schools. Tesco Malaysias Charity partner of the Year 2010 is Nur Salam, and they aim to help improve the quality of life for these children through customer and staff fundraising activities at all its stores nationwide.

Lastly, such is the intricacy and subtlety of the expert in warfare that he appears to be invisible and without trace.(6.16) Such is the mystery and myth of the expert in warfare that he is not heard nor detected.(6.17) Indeed, he can be the one who determines the fate of the enemy.(6.18)

Sir Terry Leahy, current CEO of Tesco PLC, has overseen 13 years of dynamic expansion and development that has taken Tesco from living in their rivals shadow to the UK's number one retailer and not to mention third in the world after Wal-Mart and France's Carrefour. After becoming CEO of Tesco, Leahy focused on each of the following areas: Tesco's core UK business, its international operations, its forays into the non-food sector and retailing services, and Tesco.com.

4. Recommendation

Tesco needs to insure that a substantial percentage of its store based workforce were full-time employees who are paid a living wage, and have affordable, quality health benefits. The company should also establish a positive relationship with labour unions or at least take a position of neutrality and not seek to influence employee decisions on whether to join unions.

Tesco should increase the number of stores in low-income, underserved communities. Since the company strongly highlights its commitment to food access in low-income communities, it should be held accountable and identify a goal for how many of its stores it will locate in communities that have high rates of poverty and that are food insecure. If the company fails to reach the target percentage, then Tesco could pay into a linkage fund, the proceeds of which would help jurisdictions attract healthy food stores to underserved neighbourhoods. As a policy matter, this approach should be applied to all supermarket chains. Furthermore, for reducing the operational cost, Tesco can make use of the latest technology, RFID. This system enables Tesco to save their men power and also the storage of their stock. This is because factory is able to access to the database provide from the RFID system to know what product have out of stock, this will help Tesco to reduce the usage of their outlet store, in addition, they does not need to worry for the limited they have and expend their outlet. Through this technology, first, Tesco can reduce the usage of space, second, they can reduce the operational cost by transfer the utility cost of power usage for store to the transportation cost of the goods delivery. Other than that, Tesco can also create a transportation service to help customer to get to their outlets. Tesco can cooperate with the bus service to arrange 2-3 trip of bus from every that purposely travel to Tesco outlets. First, this can help to reduce the traffic problem of the road during busy hour and secondly, it can reduce the air pollution that give out by vehicle. Lastly, it can create a convenient and comfortable situation for customer to purchase good at Tesco, because most of the family might only 1 vehicle, and most of the time they have to wait for their turn to use it, so it will be hard for them to go out without it. Tesco can sign few years contact with the local bus service providers, bus express or others related bus service to produce transportation to the public.

5. Conclusion

In conclusion, the concept of Sun Tzu Art Of War is very important in business strategies. As a large company, change and staying flexible must implemented to survive to prevent them kick out from the market world by competitors. Hence, they observe competitor activity very strongly and will do all they can to beat or match prices. Besides that, we insist that also on penetrating into new market since we are the market leader in this business.

Marketing strategies plays a very important role in the development of an organisation whether large or small and customers usually prefer organisations especially in the retail businesses that offer best quality with reasonable prices. The marketing strategy is applied within an organisation to gain a competitive advantage in the industry through increased sale of goods and services.

References 1. Christ, K. (2009, April 9). Types of Marketing Strategies. [Online] Available at Ehow.com: [Accessed on January 17, 2010] http://www.ehow.com/about_5367099_types-marketing-strategies.html

2. Strategic Management of TESCO supermarket. Ivory Research, Retrieved 15 Jan, 2005, from http://www.ivoryresearch.com/sample5.php

3. Tesco store (Malaysia) Sdn Bhd (2011), About Tesco, Retrieved February 20, 2011, from http://www.tesco.com.my/html/stores.aspx?ID=7&PID=100&LID=1

4. Gagliardi, G. & Elder, A. (2009). The Classical Guide to Strategy. Sun Tzu's The Art of. Retrieved January 20, 2009, from http://knol.google.com/k/sun-tzu-s-the-art-of-war#History_of_the_Text

5. Tesco store (Malaysia) Sdn Bhd (2011), Our brand, Retrieved February 18,2011, from http://www.tesco.com.my/html/ourbrands.aspx?ID=3&PID=12&LID=1 6. Strategic Direction. (2005). The secrets of Tescos expansion success. Strategic Direction, 21 (11), pp. 5-7.

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