Case Study Recommendations For Tesco

Recommendations of Tesco to increase ROCE

A recommendation to Tesco would be to deepen and strengthen consumer penetration . This consists of enhancing Tesco’s relationship with its customers so that they spend more time in Tesco stores, thereby spending a greater amount of money on Tesco products. The manner in which Tesco could do this, as mentioned previously, is through revitalising its loyalty programme. The loyalty programme not only allows customers to claim lower prices and better deals, it also allows Tesco to widen its customer base and collect information on the pattern of customer expenditure. Information of this regard would allow Tesco’s management to adapt to customer trends and allocate resources and capital in accordance with changing customer preferences thereby increasing efficiency and profitability of the company.

Tesco may also opt to use the method of product penetration to increase profitability. A continuous spending pattern of one customer at one supermarket can be …show more content…
Adopting a focused look into specific facets of decision making in a large business, and relevant interviews of high-level management during my research of the case study, allows me to understand the commercial reasons behind which certain decisions have been made. An insight into the decision-making processes of such a large business and the strategic rationale behind these decisions will have a significant positive impact in my future career. The research that has gone into identifying problems that are being faced by Tesco and the recommendations that need to be implemented to alter the current financial position, allows me as a future trainee to have a strong commercial perspective when advising business clients. The growth of this commercial acumen will allow me to provide sound commercial advice with a legal core to