62 posts categorized "PEST Analysis Examples"
May 24, 2010
Logistics Strategy: the case of Tesco
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Logistics Strategy: the case of Tesco
Operating in a global market requires the formulation and implementation of effective strategies to establish and sustain competitive advantage. Logistics is among the most fundamental aspects that every organization should effectively manage because it includes the essential flow of goods, information, and other resources. Many empirical and theoretical works acknowledge its all-purpose role in accomplishing tasks in all industries by supporting the integration of information, transportation, inventory, warehousing, material handling, and packaging of products and services (Dennis et al. 2004; Fernie and McKinnon 2003; Harris and Dennis 2002; Vernon 2002; Calkins et al. 2000; Smaros et al. 2000). In the retail grocery industry, logistics do not only function in terms of its usual applications but also an important factor that is integrated in the overall business strategy. Meanwhile, the retail grocery industry particularly in the UK was challenge by various changes for the past decades that affect every organizational operation and other relevant aspects. It is believed that “noticeable issues concerning the development of new forms of competition (discount firms), the increased use of information technology in the management and logistics of groceries, and the diversification of the operating activities of various firms (high proportion of non-food sales)” (Athanassopoulos 2003, 932-33) prompted strategic shift towards alterations of the traditional business strategies employed by the leaders of this industry segment.
Meanwhile, Tesco is among the leading international retailers with a total of more than 3,000 outlets...