Tesco was founded in 1924 by John Edward Cohen.

Jack 'the Slasher' Cohen, as he was better known, started out as a market stall trader in the East End of London.15 The name Tesco, was first used on tea, and was derived from the initials of Cohen's tea supplier, T E Stockwell, combined with the first two letters of Cohen. Tesco Stores Limited 16 was incorporated in 1932. Cohen was responsible for several small revolutions in retailing which led to the rise of 'the supermarket' we know today. In 1935, Jack Cohen visited the USA and was impressed by the supermarkets self-service system which enabled more people to be served faster, with lower labour costs. In 1947, the Tesco branch in St Albans, a small shop by 21st century standards (200 square metres) was the first Tesco to be converted to self service, although it didn't immediately catch the public's imagination. In the early 1960's, Cohen lobbied Parliament to have the Retail Price Maintenance (RPM) act abolished, efforts supported by Edward Heath. The RPM allowed manufacturers and suppliers to set the price of goods thus preventing large retailers, who could buy in bulk and had greater buying power, from benefiting from economies of scale and undercutting the prices of smaller shops. To get 'around' this, Tesco offered another incentive to get customers through the doors - Green Shield Stamps. These were collected by customers when they spent money in the store, and were then traded for goods in a catalogue. An effective discount. In 1964, Parliament passed the Resale Prices Act, curtailing RPM, which by 1979 remained in force only on books and pharmaceutical goods. In the 1960s, Tesco was buying up literally hundreds of grocery stores and small grocery chains around the country.17 It introduced 'Home 'n' Wear' departments into larger stores to carry higher-margin non-food merchandise, including clothing and household items, and opened its first 40,000ft 'superstore' in Crawley, Sussex. Until the 1970's, Tesco operated on the 'pile it high, sell it cheap' formula Cohen had imported from the USA. However, the market was changing, leaving the company with slim margins and a serious image problem. Under the leadership of Ian MacLaurin, who succeeded Jack Cohen in 1973, Tesco decided to try something dramatic and different: to become an aspirational mass retailer. It discontinued the use of Green Shield trading stamps and launched 'Operation Checkout' which cut prices across the board and started a price war with major rivals Sainsburys. Next, Tesco decided to moderniseitself, closing 500 unprofitable stores, and extensively upgrading and enlarging others. At this time, Tesco prioritised the development of large out-of-town stores where parking was convenient, the selection of goods broad, and where a higher volume of business could be generated at increased margins while reducing overheads. In 1974, in a deal with Esso, Tesco began to open petrol stations on the grounds of its superstores. The idea was successful and by 1991 Tesco was the countrys largest independent petrol retailer: it now accounts for 12.5% of all petrol sold in the UK.18 Other innovations throughout the 1980s included introducing own-label product lines; computerising and centralising distribution systems and developing shopping centres outside of the major cities. In 1983, Tesco Stores PLC renamed itself simply Tesco PLC.

In 1985, Tesco opened its 100th superstore on a 43-acre site in Brent Park, Neasden. From the time it acquired the site in 1978, it had come into conflict with the local council whose greatest concern was the impact that this, the largest food store in London, would have on retailers in the surrounding areas. In 1993, when Tesco introduced 'Value' lines, a cut-price range of own-label goods, competitors scoffed and the share price sank. But Tesco had gauged the popular mood: after years of recession, shoppers were looking for bargains, and sales soared. A year later, Tesco started 'One in Front'opening a new till whenever a checkout line exceeded two trolleys. It cost millions in extra staff, but customers loved it.19 1. In 1995 Tesco became the first supermarket to introduce a company loyalty card, an idea developed by the then Deputy Managing Director, Terry Leahy. At first the other supermarkets were sceptical, but the concept caught the public imagination leaving the others racing to catch up. See under Corporate Crimes for more on loyalty cards.

Strategy
'We have only got 5% of the non-food market in Britain, we've only got 6% of the convenience market and we have only got 2-3% of the banking market...In all those examples we could be much bigger' Sir Terry Leahy, January 200420 'Tesco's strategy is far ahead of Sainsbury it has grown a strong UK core, and then rapidly developed international stores, built good non-food sales, expanded into retailing services and exploited e-commerce successfully' Datamonitor, food retailing analysts21 Tesco's success in recent years has mainly come from expanding overseas, shifting to 'higher margin' non-food merchandise and maintaining a strong UK core business. Its UK success has been built on low prices, cultivating customer loyalty, offering a range of different store concepts and expanding into retailing services, such as banking and insurance. Tesco's focus on non-food items has led some to wonder whether it is fair to compare Tesco with the other grocery retailers at all as it seems to have become a consumer goods company.
22 At the annual Institute of Grocery Distribution conference in October 2003, Tesco Chairman David Reid made the assertions that 'You cannot save your way to prosperity' and that 'Growth is crucial to shareholders...staff...and suppliers'. Investing in growth is really at the heart of Tesco's strategy. This investment doesn't just come from ploughing back profit. In January 2004, Tesco raised 773m by placing 315m new shares23, and in March 2004 24 announced a joint venture with property group Topland to release 650m from its UK property portfolio. The main reason for the new share offering is to pay off the company's debt. Tesco's credit rating had fallen the previous year because so much of its growth had been based on borrowing.25

External Factors Affecting Organizational Structure

EXTERNAL FACTORS:

Environment The environment is the world in which the organization operates, and includes conditions that influence the organization such as economic, socialcultural, legal-political, technological, and natural environment conditions. Environments are often described as either stable or dynamic. Stable environment customers' desires are well understood remains consistent for a relatively long time Examples of organizations that face relatively stable environments include manufacturers of staple items such as detergent, cleaning supplies, and paper products. mechanistic structures to be advantageous This system provides a level of efficiency that enhances the long-term performances of organizations that enjoy relatively stable operating environments Dynamic environment Customers' desires are continuously changingthe opposite of a

Footnotes 1'Sir Terry Leahy' Chris Blackhurst Management Today February 2004 2'Outgoing Safeway chief hits at Tesco' Julia Finch. The Guardian 6/3/04 3http://news.bbc.co.uk/1/hi/business/3086625.stm viewed 29/6/04 4 www.tesco.com/corporateinfo 5'C-stores help Tesco drive market share' The Observer 22/9/04 6Tesco Plc, Interim Statement of Results 24 weeks 9 August 2003, 'More Customers Choose Tesco' (16/9/03) 7'Tesco's Clean Sweep' Management Today December 2003 82004 edition of Mintel's European Retail Rankings 9'Tesco: A new international company. A new perspective' Speech by Sir Terry Leahy 26/1/04 www.tesco.com/ 10http://www.tesco.com/corporateinfo/ viewed 24/3/04 11Tesco Annual Review 2004 12Tesco's profits leap 20% as they gobble up corner shops. Robert Winnett. The Sunday Times 18/4/04 13'The Myth of Choice' Felicity Lawrence The Guardian 15/6/04 14'Tesco's Clean Sweep' Management Today December 2003 15www.tesco.com/corporateinfo viewed 21/4/04 16International Directory of Company Histories Vol 2. 17See http://www.fooddeserts.org/images/suptime.htm for lists. 18 www.tesco.com/corporateinfo viewed 3/4/01 19http://www.economist.co.uk/research/backgrounders/displaystory.cfm?story_id=730271 viewed 8/7/04 20 Quoted in The Guardian, 16/1/04 21Sainbsury is still a long way behind Tesco, says CommentWire' 17/1/02 Source Just-food.com 22Just-food.com www.just-food.com/features_detail.asp?art=789 viewed 12/4/04 23From Tesco's preliminary statement of results 53 weeks ended 28/2/04 24The Grocer 27/3/04 25http://www.corporatewatch.org.uk/news/tescoAGM_2003.htm viewed 16/6/04

26http://www.tesco.com/corporateinfo/ viewed 20/4/04 27 Tesco Case Study by Allan Breese, Retail Director, TNS Supapanel http://www.kamcity.com/library/articles/Tesco.htm viewed 18/10/04 28See Corporate Watch profile on 'Asda'. 29Supermarket Sweep by Julia Finch 16/1/04 The Guardian 30Tesco on target to rack up profits of 2bn' Kate Rankine The Telegraph 22/9/04 31Interim results 2004/2005 21/9/04 www.tesco.com/corporateinfo viewed 22/9/04 32http://newsweaver.ie/trinityenews/index000038571.cfm 33http://www.nutricentre.com/Start/tescopress.aspx 34Supermarkets look at housing schemes The Grocer 27/09/2004 35Tesco Annual review and summary statement 2004 36 The Guardian 18/9/01, http://www.guardian.co.uk/Archive/Article/0,4273,4259567,00.html 37www.tesco.com/corporateinfo viewed 20/4/04 38http://www.just-food.com/news_detail.asp?art=57919 viewed 29/6/04 39http://www.grocertoday.co.uk/article.asp?a=261753 40 http://www.just-food.com/news_detail.asp?art=56896 41Tesco preliminary statement of accounts to the year ending 28th February 2004. www.tesco.com/corporateinfo 42http://www.just-food.com/features_detail.asp?art=841 43ibid. 44Ibid. 45http://www.siamfuture.com/asiannews/asiannewstxt.asp?aid=2422 46http://81.201.142.254/presentResults/results2003_04/Prelims/site/a/a2.html 47http://www.just-food.com/news_detail.asp?art=49430&lk=nd02 48http://www.siamfuture.com/asiannews/asiannewstxt.asp?aid=2422 49http://81.201.142.254/presentResults/results2003_04/Prelims/site/a/a3.html 50http://www.nacsonline.com/NR/exeres/00003342ushebobunnrzxpiv/NewsPosting.asp?NRMODE= Published&NRORIGINALURL=%2FNACS%2FNews%2FDaily_News_Archives%2FJanuary2004%2Fnd 0123046%2Ehtm&NRNODEGUID=%7BC55FF1F9-E86A-40C5-BF40-EB87B3C16BA0%7D&NRQU ERYTERMINATOR=1&cookie%5Ftest=1 51http://www.just-food.com/news_detail.asp?art=56649

52www.tesco.com 53http://www.just-food.com/news_detail.asp?art=51694, http://www.justfood.com/news_detail.asp?art=50353, http://www.grocertoday.co.uk/article.asp?a=129106 54http://www.time.com/time/asia/magazine/article/0,13673,501020429-232675,00.html 55Ibid. 56http://www.greenpeacesoutheastasia.org/en/seanews72.html 57http://81.201.142.254/presentResults/results2003_04/Prelims/site/a/a3.htm 58http://www.just-food.com/news_detail.asp?art=55615 59http://www.kamcity.com/namnews/asp/newsarticle.asp?newsid=18183 60http://www.kamcity.com/namnews/asp/newsarticle.asp?newsid=17618 61http://www.just-food.com/news_detail.asp?art=49453 62http://81.201.142.254/presentResults/results2003_04/Prelims/site/a/a3.html 63http://www.grocertoday.co.uk/article.asp?a=267585, http://www.grocertoday.co.uk/article.asp?a=267299 64'Tesco pedals cautious path in Japan' Justin McCurry in Tokyo 1/6/04 The Guardian 65See http://www.corporatewatch.org/news/whales.htm for more information. 66http://just-food.com/features_detail.asp?art=839, http://news.bbc.co.uk/1/hi/business/3532713.stm 67http://www.grocertoday.co.uk/gra_article.aspx?articleid=74466 viewed 13/8/04 68See 'Food Inc: Corporate Concentration from farm to consumer' (2003) Available from the UK Food Group 69http://81.201.142.254/presentResults/results2003_04/Prelims/site/a/a2.html 70http://81.201.142.254/presentResults/results2003_04/Prelims/site/a/a2.html 71http://www.kamcity.com/NAMnews/asp/newsarticle.asp?newsid=17620 72http://www.just-food.com/news_detail.asp?art=57571 73http://www.just-food.com/news_detail.asp?art=55987 74http://81.201.142.254/presentResults/results2003_04/Prelims/site/a/a2.html 75Felicity Lawrence in The Guardian, 29/4/04 76ibid 77 Verdict report 'European Grocers 2003' http://www.grocertoday.co.uk/article.asp?a=255625 viewed 29/6/04

78http://81.201.142.254/presentResults/results2003_04/Prelims/site/a/a2.html 79http://www.kamcity.com/namnews/asp/newsarticle.asp?newsid=18170 80Sir Terry Leahy speech to the Northern Ireland CBI Annual Dinner25/3/04 www.tesco.com/corporateinfo viewed 29/6/04 81http://www.grocertoday.co.uk/article.asp?a=263114 from 6/12/03 82http://www.unison.ie/irish_independent/stories.php3?ca=9&si=245365&issue_id=2617 viewed 29/6/04 83http://company.monster.ie/dunnesie/ 84http://www.just-food.com/news_detail.asp?art=55850 85http://www.odca.ie/cfmdocs/press/press3.cfm?article_no=4723 86http://articles.findarticles.com/p/articles/mi_m0DQA/is_2001_June_21/ai_76427276 viewed 87http://www.wsws.org/articles/2001/jul2001/lab-j05_prn.shtml viewed 29/6/04 88Mintel / IDG definition of convenience stores as: of less than 3,000 square foot (280 square metres); with extended opening hours (including Sundays); offering a range of products; and serving a local community. As quoted by the Office of Fair Trading. 89http://www.oft.gov.uk/business/mergers+ea02/decisions/clearances+and+referrals/tesco.htm viewed 25/3/04 90The Grocer 13/3/04 91http://news.bbc.co.uk/1/hi/business/3086625.stm viewed 29/6/04 92http://www.asa.org.uk/index.asp viewed 23/8/04 93Tesco working on trolley entertainment for kids. 6/8/04 www.just-food.com viewed 13/8/04 94 www.tesco.com/corporateinfo

KJJ2.3 swot analysis matrix - in business/marketing - internal v external factors

Modern SWOT analysis in business and marketing situations is normally structured so that a 2x2 matrix grid can be produced, according to two pairs of dimensions. Strengths and Weaknesses, are 'mapped' or 'graphed' against Opportunities and Threats. To enable this to happen cleanly and clearly, and from a logical point of view anyway when completing a SWOT analysis in most business and marketing situations, Strengths and Weaknesses are regarded distinctly as internal

factors, whereas Opportunities and Threats are regarded distinctly as external factors. Here is the explanation in more detail:
Strengths andWeaknesses
the internal environment - the for example, factors situationinside the company relating to products, or organization pricing, costs, profitability, performance, quality, people, skills, adaptability, brands, services, reputation, processes, infrastructure, etc. the external environment the situationoutside the company or organization for example, factors relating to markets, sectors, audience, fashion, seasonality, trends, competition, economics, politics, society, culture, technology, environmental, media, law, etc. factors tend to be in the present

Opportunities andThreats

factors tend to be in the future

swot matrix (2x2 matrix using internal/external categories)

Here is a typical extension of the basic SWOT analysis grid into a useful 'action-based' 2x2 SWOT matrix. The SWOT analysis in this format acts as a quick decision-making tool, quite aside from the more detailed data that would typically be fed into business planning process for each of the SWOT factors. Here the 2x2 matrix model automatically suggests actions for issues arising from the SWOT analysis, according to four different categories: strengths (internal) weaknesses (internal)

strengths/opportunitie weaknesses/opportunitie s s
obvious natural priorities potentially attractive options

opportunitie Likely to be quickest and easiest to s implement. (external)

Probably justifying immediate action-planning or feasibility study. Executive question: "If we are not already looking at these areas and prioritising them, then why not?"

Likely to produce greatest ROI (Return On Investment)

Likely to produce good returns if capability and implementation are viable. Potentially more exciting and stimulating and rewarding than S/O due to change, challenge, surprise tactics, and benefits from addressing and achieving improvements. Executive questions: "What's actually stopping us doing these things, provided they truly fit strategically and are realistic and substantial?"

strengths/threats
easy to defend and counter

weaknesses/threats
potentially high risk

threats (external)

Only basic awareness, planning, and Assessment of risk crucial. implementation required to meet Where risk is low then we must ignore these challenges. these issues and not be distracted by them. Investment in these issues is generally safe and necessary. Where risk is high we must assess capability gaps and plan to defend/avert Executive question: "Are we properly informed and organized to in very specific controlled ways. deal with these issues, and are we Executive question: "Have we accurately certain there are no hidden assessed the risks of these issues, and surprises?" - and - "Since we are strong here, can any of these threats where the risks are high do we have specific controlled reliable plans to be turned into opportunities?" avoid/avert/defend?"

swot analysis - different applications

SWOT analysis is a powerful model for many different situations. The SWOT tool is not just for business and marketing. Here are some examples of what a SWOT analysis can be used to assess:
y y y y y

a company (its position in the market, commercial viability, etc) a method of sales distribution a product or brand a business idea a strategic option, such as entering a new market or launching a new product education and qualifications planning and decision-making life-change - downshifting, relocation, relationships, perhaps even family planning?..

y y y

SWOT analysis template

Here is a larger illustration of SWOT analysis. Note that this format is not presented or proposed as a 2x2 'internal/external' matrix; it's a more open demonstration of the sorts of issues and questions which can be addressed when using the SWOT format as part of business planning and decision-making.

Subject of SWOT analysis: (define the subject of the analysis here)

Strengths
y y y y

Weaknesses
y y y y

Advantages of proposition? Capabilities? Competitive advantages? USP's (unique selling points)?

Disadvantages of proposition? Gaps in capabilities? Lack of competitive strength? Reputation, presence and reach?

y y y y y y y y y y y

Resources, Assets, People? Experience, knowledge, data?

y y y y y y y y y y y

Financials? Own known vulnerabilities? Timescales, deadlines and pressures? Cashflow, start-up cash-drain? Continuity, supply chain robustness? Effects on core activities, distraction? Reliability of data, plan predictability? Morale, commitment, leadership? Accreditations, etc? Processes and systems, etc? Management cover, succession?

inancial reserves, likely returns?

Marketing - reach, distribution, awareness? Innovative aspects? Location and geographical? Price, value, quality? Accreditations, qualifications, certifications? Processes, systems, IT, communications? Cultural, attitudinal, behavioural? Management cover, succession?

Opportunities
y y y y y y y y y y y y y y y y

Market developments? Competitors' vulnerabilities? Industry or lifestyle trends? Technology development and innovation? Global influences? New markets, vertical, horizontal? Niche target markets? Geographical, export, import? Market need for new USP's? Market response to tactics, e.g., surprise? Major contracts, tenders? Business and product development? Information and research? Partnerships, agencies, distribution? Market volume demand trends? Seasonal, weather, fashion influences?

Threats
y y y y y y y y y y y y y y

Political effects? Legislative effects? Environmental effects? IT developments? Competitor intentions - various? Market demand? New technologies, services, ideas? Vital contracts and partners? Obstacles faced? Insurmountable weaknesses? Employment market? Financial and credit pressures? Economy - home, abroad? Seasonality, weather effects?

This SWOT analysis example is based on an imaginary situation. The scenario is based on a business-to-business manufacturing company, who historically

rely on distributors to take their products to the end user market. The opportunity, and therefore the subject for the SWOT analysis, is for the manufacturer to create a new company of its own to distribute its products direct to certain end-user sectors, which are not being covered or developed by its normal distributors.

Subject of SWOT analysis example: the creation of own distributor company to access new end-user sectors not currently being developed.

Strengths
y y y y y y y y y y y y y

End-user sales control and direction. Right products, quality and reliability. Superior product performance vs competitors. Better product life and durability. Spare manufacturing capacity. Some staff have experience of end-user sector. Have customer lists. Direct delivery capability. Product innovations ongoing. Can serve from existing sites. Products have required accreditations. Processes and IT should cope. Management is committed and confident.

Weaknesses
y y y y y y y y y y y y y

Customer lists not tested. Some gaps in range for certain sectors. We would be a small player. No direct marketing experience. We cannot supply end-users abroad. Need more sales people. Limited budget. No pilot or trial done yet. Don't have a detailed plan yet. Delivery-staff need training. Customer service staff need training. Processes and systems, etc Management cover insufficient.

Opportunities
y y y y

Threats
y y y

Could develop new products. Local competitors have poor products. Profit margins will be good. End-users respond to new ideas.

Legislation could impact. Environmental effects would favour larger competitors. Existing core business distribution risk. Market demand very seasonal.

y y y y y

Could extend to overseas. New specialist applications. Can surprise competitors. Support core business economies. Could seek better supplier deals.

y y y y

Retention of key staff critical. Could distract from core business. Possible negative publicity. Vulnerable to reactive attack by major competitors.

PEST and SWOT. Similar factors appear in each. That said, PEST and SWOT are certainly two different perspectives: PEST tends to assess a market, including competitors, from the standpoint of a particular proposition or a business. SWOT in business and marketing tends to be an assessment of a business or a proposition, whether it is your own business See also the free PEST analysis template and method, which measures a business according to external factors; Political, Economic, Social and Technological. It is often helpful to complete a PEST analysis prior to competing a SWOT analysis. See also Porter's Five Forces model.

more on the difference and relationship between PEST and SWOT

There is some overlap between or (less commonly) a competitor's business or proposition. Strategic planning is not a precise science - no tool is mandatory - it's a matter of pragmatic choice as to what helps best to identify and explain the issues. PEST analysis may useful before SWOT analysis where it helps to identify SWOT factors. Alternatively PEST analysis may be incorporated within a SWOT analysis, to achieve the same effect. PEST becomes more useful and relevant the larger and more complex the business or proposition, but even for a very small local businesses a PEST analysis can still throw up one or two very significant issues that might otherwise be missed.

The four quadrants in PEST vary in significance depending on the type of business, for example, social factors are more obviously relevant to consumer businesses or a B2B (business-to-business) organization close to the consumer-end of the supply chain, whereas political factors are more obviously relevant to a global munitions supplier or aerosol propellant manufacture

in conclusion
By sorting the SWOT issues into the 6 planning categories one can obtain a system which presents a practical way of assimilating the internal and external information about the business unit, delineating short and long term priorities, and allowing an easy way to build the management team which can achieve the objectives of profit growth. This approach captures the collective agreement and commitment of those who will ultimately have to do the work of meeting or exceeding the objectives finally set. It permits the team leader to define and develop coordinated, goal-directed actions, which underpin the overall agreed objectives between levels of the business hierarchy. Albert S Humphrey August 2004.

TASK 3: TO CONSTRUCT A STRATEGY PLAN FOR THE ORGANIZATION 3.1 SUITABLE STRUCTURE FOR A STRATEGY PLAN THAT ENSURES APPROPRIATE PARTICIPATION FROM ALL STAKEHOLDERS OF AN ORGANIZATION. Community Participation Program means the portion of the comprehensive plan that describes the local government s program for insuring meaningful public and stakeholder involvement in the preparation of the Community Agenda portion of the plan. According to local planning requirements of the Georgia Department of Community Affairs, the community participation program is prepared in conjunction with the community assessment part of the comprehensive plan, then submitted along with the community

assessment, after public hearing, for regional and state review (see review process below). There are three required components of the community participation program: (a) Identification of Stakeholders (b) Identification of Participation Techniques (c) Schedule for Completion of the Community Agenda Objective The program seeks to obtain meaningful involvement of stakeholders and the general public in the preparation of the comprehensive plan. This community participation program describes the City of Commerce s strategies for ensuring meaningful public and stakeholder involvement in the preparation of the Community Agenda portion of the comprehensive plan. It is important to emphasize here that this means little if any active involvement in preparing and conducting the community assessment part of the plan, other than what is obtained through the required public hearing for the community participation program and the community assessment.1 1 Commerce was advised by its planning consultant to proceed with appointment of a comprehensive plan steering committee at the outset of the planning process, and it did so. The steering committee was formed and met twice in order to provide some preliminary feedback on issues and opportunities as well as preliminary character areas and areas requiring special attention. Community Participation Program, City of Commerce Comprehensive Plan, December 2009 2 Publication of the Approved Program and Community Assessment Once reviewed, the Community Participation Program and Community Assessment must be publicized by the local government for public information. This requirement may be met by providing notice in a local newspaper of general circulation identifying where complete copies of the Community Assessment and Community Participation Program may be reviewed.

City of Commerce Comprehensive Plan Steering Committee2 Lula Pittman Jimbo Stephenson Patsy Morrison Sammy Thomason Barry Lord Joe Leffew Stakeholders Suggested in the State Planning Recommendations and their Applicability in the City of Commerce The State Planning Recommendations provide a list of almost fifty suggested stakeholders. For simplicity, they have been grouped into like or similar interests below along with comments as to their applicability in Commerce. For stakeholders not formally represented on the committee, through a media release, individual businesses will be invited to submit e-mail addresses to receive information and regular updates to be posted on the city s web page.