Starbucks Target Market

Starbucks Target Market Starbucks open its first coffee store in Seattle, Washington and at the end of 1990 Starbucks expand its headquarters in Seattle and also build a new roasting plant. In 1990s Starbucks opens 60 retails shops in United Kingdom. At the end of 2000s Starbucks total branches was 3500. Coffee is one of the rapidly growing industry in this world. According to national coffee association, USA 49% of American age 18 and more drink coffee beverage every day. Coffee industry was in peak of its success at the end of 1990s. Starbucks purchases and roasts high-quality whole bean coffees and sold them along with fresh brewed coffees, Italian style espresso beverages, gold blended beverages, a various complementary food items, coffee related accessories and equipment. TARGETED MARKET AT THE TIME OF LAUNCHING At the time of Starbucks launching the target market was upper income class. But during 1990s Starbucks realise that the growth of Starbucks depends on the middle or lower class incomes because these two classes are more motivated and go to the discounted products. Starbucks also focus on consumer habits and share its speciality of coffee with the buyers. In the end of 20th century there are many changes in market that helped Starbucks getting successful. The most important change of the last twenty, thirty years is the changes of economic policies over the world. Starbucks target market was 18 years to 24 years young professional because they are not yet been loyal with coffee industry. Starbucks strategy comprises to locate its stores at picky places such as the first floor of blocks of offices, underground main entrance and urban areas. An addition to sales through its company-operated retail stores and licensed retail operations, Starbucks sells coffee and tea products through ot her channels like distribution targeting restaurants, hotels, colleges and universities and other work places. Starbucks stated goal is to become the leading retailer and brand of coffee in each of its target markets and it aims to achieve this goal through continued aggressive expansion of Company operated retail locations. STARBUCKS STRATEGY Starbucks adopt different type of strategy to build its branding in the market. Starbucks has numbers of capabilities likes market leadership and its outlets as customers means its locations which means it is the place where customers can relax from work or home and its supply chain management. To try to keep the coffee taste in the stores clean, Starbucks banned smoking and asked employees to refresh from draining perfumes. Prepared foods were kept covered so consumer would smell coffee only instead of other food. Starbucks is culture oriented company who introduce new techniques like commuter mugs and T shirts in different regions of USA that was in keeping with each citys culture(like peach shape coffee mugs for Atlanta State, Paul Revere picture for Boston State and the Statue of Liberty for New York city). To make sure that Starbucks stores reach the maximum standards, the company used mystery shoppers who posed as customers and rated each location on à Ã‚ ° number à Ã‚ ¾f criteria. Starbucks internal operations can be divided into two parts: Retail and Specialty. The Retail division is governed directly by Starbucks Corporation. The Specialty division includes foodservice, licensing agreements to overseas outlets and revenue from foreign joint ventures. STARBUCKS AIMS AND OBJECTIVES Starbucks main objective was to launch itself as the most renowned and respected brand in the world. The company main objective was to the expansion of its branches all over the world, to broad its retail business, develop new techniques, product and introduce new distribution channels in order to achieve its goals. The company another aims was establish its brand as a leading brand in coffee market by selling high quality products, providing better services and build relationship between customers and the Starbucks. SWOT ANALYSIS STRENGTHS OF STARBUCKS Starbucks is good at taking advantage of opportunities. Starbucks is internationally recognized and has a global presence Starbucks has strong ethical values. WEAKNESSES Reliable on beverage innovation Starbucks 50% business is in USA from last three decades. Starbucks need to spread its business all over the world to spread its business risk. Starbucks is dependent on a main competitive advantage, the retail of coffee. It could make them slow to diversify into other sectors should the need arise. OPPORTUNITIES Company has the opportunity to expand its business around the globe In 2004 the company created a CD burning service in their Santa Monica (California USA) cafe with Hewlett Packard, where customers create their own music CD. THREATS Starbucks are increasing the cost of coffee and dairy products Consumer taste might be change in future. Consumer can replace coffee with other cold beverage or leisure activity. CONCLUSION Starbucks is a leading company around the globe. Starbucks used  a very simple strategy, connecting links between treating employees with dignity and respect and producing à Ã‚ ° good product and services. That was the major factors that differentiate Starbucks from others and bring the successful to Starbucks.

Aphrodite :: essays research papers

APHRODITE (a-fro-DYE-tee; Roman name Venus) was the goddess of love, beauty and fertility. She was also a protectress of sailors. The poet Hesiod said that Aphrodite was born from sea-foam. Homer, on the other hand, said that she was the daughter of Zeus and Dione. When the Trojan prince Paris was asked to judge which of three Olympian goddesses was the most beautiful, he chose Aphrodite over Hera and Athena. The latter two had hoped to bribe him with power and victory in battle, but Aphrodite offered the love of the most beautiful woman in the world. This was Helen of Sparta, who became infamous as Helen of Troy when Paris subsequently eloped with her. In the ensuing Trojan War, Hera and Athena were implacable enemies of Troy while Aphrodite was loyal to Paris and the Trojans. IN HOMER In his epic of the Trojan War, Homer tells how Aphrodite intervened in battle to save her son Aeneas, a Trojan ally. The Greek hero Diomedes, who had been on the verge of killing Aeneas, attacked the goddess herself, wounding her on the wrist with his spear and causing the ichor to flow. (Ichor is what immortals have in the place of blood.) Aphrodite promptly dropped Aeneas, who was rescued by Apollo, another Olympian sponsor of the Trojans. In pain she sought out her brother Ares, the god of war who stood nearby admiring the carnage, and borrowed his chariot so that she might fly up to Olympus. There she goes crying to her mother Dione, who soothes her and cures her wound. Her father Zeus tells her to leave war to the likes of Ares and Athena, while devoting herself to the business of marriage. Elsewhere in Homer's Iliad , Aphrodite saves Paris when he is about to be killed in single combat by Menelaus. The goddess wraps him in a mist and spirits him away, setting him down in his own bedroom in Troy. She then appears to Helen in the guise of an elderly handmaiden and tells her that Paris is waiting for her. Helen recognizes the goddess in disguise and asks if she is being led once more to ruin. For Aphrodite had bewitched her into leaving her husband Menelaus to run off with Paris. She dares to suggest that Aphrodite go to Paris herself. Suddenly furious, the goddess warns Helen not to go too far, lest she be abandoned to the hatred of Greeks and Trojans alike.

Violence On Television And The V-chip :: essays research papers

Violence on Television and the V-chip Television programs that generate a great deal of concern among parent and educators are those that contain violence. The questionable violence, sex and language on television have caused the nation to find methods of censoring these problems. Due to television violence, censorship should reduce the ability for children to view violent content.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Children have an easy access to violence on television from violent programs through movie channels. The public’s concern has been reflected in congressional hearings and massive studies on the effect of TV violence, especially on children. Dr. James C. Dobson from the Focus on the Family Newsletter says: If you have any doubt about the influence MTV wishes to exert on today’s adolescents, watch their popular program Beavis and Butthead†¦They use crude words, fondle themselves, do horribly cruel things to animals, and sit around watching heavy-metal videos as bright green stuff runs from their noses†¦Beavis and Butthead took a trip to a rifle range where they accidentally shot down a plane. They had difficulty opening the door of the wrecked plane, so they left women and children to die inside. This is the fare served up to preteens and adolescents by the company that seek to shape an entire generation (Hendershot 13) In 1994 a small child burned down his trailer house, killing his baby sister. His mother responded to the accident by saying that he learned to do so by watching Beavis and Butthead. Instead of legal issues, MTV responded by moving the program to a later time. (Hendershot 14)   Ã‚  Ã‚  Ã‚  Ã‚  There are many reasons to be concerned about violence. Television violence is more frequent then real violence. Television violence spares the views the suffering of the victim and the disorder of the killer. By the time a child is the age of 18, they will see 115,000 violent acts on television. (Hefzallah 88) An eleven-year-old child reported, â€Å"I was scared when I saw Friday the 13th. Whenever the girl went into the water and Jason stuck a knife in her and all this blood was in the water-I got real scared.† (Abelman 28) Robert Singer voiced: Working-class children, minority children, unpopular children and children doing poorly in school seem to be the ones more susceptible to imitating the aggression that they see on television. This may be partly because they watch more hours and are exposed to more television violence†¦Television may or may not contribute to their aggressive behavior, but their aggressive nature does play a major role in what they choose to watch.

Will Cliff

An atom is the smallest unit of matter that cannot be broken down by chemical m means and an element Is a pure substance made of only one kind of atom. An element Is made up o f only one kind of atom. The atomic number and mass shows the amounts of that atom In proto ins, electrons, and neutrons. The atom Is the smallest unit of the element. 2) An atom is the smallest unit of matter that cannot be broken down and a molecule is a group of atoms held together by covalent bonds.In a molecule there are atoms being brought HTH together to make a molecule. 3) In a ionic bond the atoms are brought together by the attraction of oppositely char De ions and an ion is when an atom or molecule that has gained or lost one or more electrons. A c bivalent bond Is sharing of two paired electrons together. There can one or more pairs In a co valet bond. 4) The type of weak bond that forms between water molecules is a hydrogen bond.T he hydrogen bond is the attraction of two water molecules. 5) The di fference between polar molecules and monopole molecules is that polar mole culls are molecules with an unequal distribution of electrical charge, such as water molecules. A monopole molecule is a molecule that shares electron equally and does not have ends with pop site charges. 6) Sodium chloride Is an example of a compound because It Is a substance made of t woo different elements. ) The difference between cohesion and adhesion is that cohesion is an attraction of molecules of the same substance and adhesion is the attraction between molecules of different substances. 2) A substance would not dissolve well in water is oil because the water molecules ar e more attracted to each other than to the monopole molecules. This shows why OLL clumps or bleeds In water and doesn't dissolve In It. 3) The difference between acids and bases is that.

Management and Co-ordination

Coordination Definition of Coordination Co-ordination is the unification, integration, synchronization of the efforts of group members so as to provide unity of action in the pursuit of common goals. It is a hidden force which binds all the other functions of management. According to Mooney and Reelay, â€Å"Co-ordination is orderly arrangement of group efforts to provide unity of action in the pursuit of common goals†. According to Charles Worth, â€Å"Co-ordination is the integration of several parts into an orderly hole to achieve the purpose of understanding†. Management seeks to achieve co-ordination through its basic functions of planning, organizing, staffing, directing and controlling. That is why, co-ordination is not a separate function of management because achieving of harmony between individuals efforts towards achievement of group goals is a key to success of management. Co-ordination is the essence of management and is implicit and inherent in all functions of management. Ingredient of all the Managerial Functions A manager can be compared to an orchestra conductor since both of them have to create rhythm and unity in the activities of group members. Co-ordination is an integral element or ingredient of all the managerial functions as discussed below: – 1. Co-ordination through Planning – Planning facilitates co-ordination by integrating the various plans through mutual discussion, exchange of ideas. e. g. – co-ordination between finance budget and purchases budget. 2. Co-ordination through Organizing – Mooney considers co-ordination as the very essence of organizing. In fact when a manager groups and assigns various activities to subordinates, and when he creates department’s co-ordination uppermost in his mind. . Co-ordination through Staffing – A manager should bear in mind that the right no. of personnel in various positions with right type of education and skills are taken which will ensure right men on the right job. 4. Co-ordination through Directing – The purpose of giving orders, instructions & guidance to the subordinates is served only when there is a harmony between sup eriors & subordinates. 5. Co-ordination through Controlling – Manager ensures that there should be co-ordination between actual performance & standard performance to achieve organizational goals. Differences between Co-ordination and Co-operation |Basis |Co-ordination |Co-operation | |Meaning |It is an orderly arrangement of group efforts in |It means mutual help willingly. | | |pursuit of common goals. | | |Scope |It is broader than co-operation which includes as well|It is termed as a part of co-ordination. | |because it harmonizes the group efforts. | | |Process |The function of co-ordination is performed by top |The functions of co-operation are prepared by persons at | | |management. |any level. | |Requirements |Co-ordination is required by employees and departments|Co-operation is emotional in nature because it depends on | | |at work irrespective of their work. |the willingness of people working together. |Relationship |It establishes formal and informal relationships. |It establishes informal relationship. | |Freedom |It is planned and entrusted by the central authority &|It depends upon the sweet will of the individuals and | | |it is essential. |therefore it is not necessary. | |Support |It seeks wholehearted support from various people |Co-operation without co-ordination is fruitless & | | |working at various levels. therefore it may lead to unbalanced developments. | Therefore, existence of co-operation may prove to be effective condition or requisite for co-ordination. But it does not mean that co-ordination originates automatically from the voluntary efforts of the group of members. It has to be achieved through conscious & deliberate efforts of managers, therefore to conclude we can say that co-operation without co-ordination has no fruit and co-ordination without co-operation has no root.

Errors of Attribution

With reference to research discuss two errors in attributions. (22 marks) The Attribution Theory is a concept of social psychology that makes reference to how individuals feel the need to provide ‘cause to the events around us’. Fritz Heider first proposed the theory ‘The Psychology of Interpersonal Relations (1958), which was later developed by others such as Harold Kelley and Bernard Weiner. The developed definition of this theory refers to the role of our minds in relation to our social behaviour. There are two main categories within this particular theory, Situational factors, which refer to how one’s environment and external circumstances can influence an individual, whilst Dispositional factors refer to our personality and our traits, factors that are to do with us as people. The Self- Serving Bias focuses on the way in which we as individuals tend to associate successes with our internal ability and characteristics and equating failures to external factors. The reason that this is seen as a common human tendency is because people acknowledge success as a way of positively influencing their self-esteem levels. This bias can affect our opportunities to learn from our mistakes and improve- by refusing to accept responsibility for our failures, our skill levels remain unchanged. Although this bias can be recognized in people throughout modern day society, Lewinsohn et al (1980) proposed that the bias will have the complete opposite effect on people who have a low self esteem or see themselves in a negative light. All successes are seen as luck rather than ability, whilst failures are seen as dispositional factors, generally seeing stupidity as the sole factor for their mistakes. Ironically, Lewinsohn suggests that depressed individuals will see themselves more realistically, making more practical attributions about their personality than a ‘normal’ person will. A study that was carried out by Johnson (1964), demonstrated a Self Serving Bias through teaching. Participants (psychology students) taught two children how to multiply numbers by 10 and 20. The study was done in two phases through a one-way intercom. The first phase was to teach them how to multiply by 10, the second, by 20. After each phase, the participants were able to access the worksheets that the children used and were told to evaluate the children’s progress. The worksheets had been constructed in such a way that pupil A gave the correct answers in both worksheets, and depending on the circumstance, pupil B either did badly in both worksheets, or did badly for the first and improved in the second. The participants were therefore asked to assess their teaching abilities based on the pupils’ results. What Johnson found was that in the situation where pupil B improved, the participant saw this improvement as an indication of their abilities as teachers. When pupil B did not improve, the participants blamed the failure on the pupil’s lack of ability. Wolosin, Sherman and Till (1973) is another classic example of a study examining the self-serving bias. Participants in this study partook in a decision-making activity, in which they chose geographical locations where they believed they were most likely to meet a friend. In the first phase, the participant was performing the task whilst co-operating with another individual. The second phase consisted of the participant competing against the individual. After these two experiments were completed, the participants were given feedback. In the co-operative phase, the participant assumed more responsibility when they received positive comments, in contrast with the participants who received negative or neutral feedback. This again reiterates the point that individuals will exhibit self-biased attributions, whilst in circumstances of failure; they will provide situational factors for their lack of success. Although there is evidence to support this error of attribution, there are also contradictions to the theory. Zuckerman (1979) argued that this bias depends on our desire to maintain our self-esteem. He reasons that it we attribute our successes to dispositional factors it improves our self-esteem, whilst if we deny responsibility to failure, we are protecting our self-esteem, therefore suggesting that it all depends on the individual. Cross-cultural examination also shows that the bias is consistent. Heine (1999) and Kashima & Triandis (1986) used studies to support the theory. They found that in collectivistic cultures such as Japan, members are far less likely to attribute success to dispositional factors compared to individualistic cultures such as the US or the UK. Kashima & Triandis found that when Japanese and American participants were asked to remember slides from unfamiliar countries, Americans tended to attribute success towards their ability, whilst the Japanese attributed failure to lack of ability. This study therefore shows that there is definitely a link between maintenance of self-esteem and self-serving bias, in individualistic cultures. Fundamental Attribution Error (FAE) refers to the tendency for individuals to view behaviour as a significant factor. Therefore, we tend to overestimate dispositional factors and underestimate situational factors when attempting to explain behaviour in a member of society. The reason for this attribution error, is because generally, we focus more on the individual in the specific situation, which leads to us making judgments and decisions relating to their personality- internal attributions, simply because we do not have enough information on their character to make a balanced assessment. Lee Ross first introduced this term in 1977 defining it as ‘The tendency to underestimate the importance of situational determinants and overestimate the degree to which actions and outcomes reflect the actor’s dispositions. Napolitan and Goethals (1979) examined the theory by asking student participants to talk individually to a woman told to behave either aloof and critical or friendly and warm. The first batch of participants were told that she was acting spontaneously, whilst the other half was told that she was instructed to behave in a certain way towards them. Interestingly, the knowledge of her instructions versus spontaneity had no effect on the participants, all of whom attributed her behaviour to internal dispositional factors rather than situational. Another classic demonstration of the study was by Jones and Harris (1967). They hypothesized that people would attribute apparently free-chosen behaviour to disposition and instructed behaviour to situational factors. This was investigated by asking participants to read a series of Fidel Castro essays, some of which were pro and others were anti Fidel Castro. After reading these essays, the subjects were asked to rate the attitudes of the writers. When the subjects believed that the writers had chosen freely on their position on Castro, the participants naturally assumed that the essays reflected the genuine attitude towards Castro. However, even when the subjects were told that the writers had no choice, they still believed that the essays reflected their actual views on Castro. This supports the error of attribution because despite the fact that the participants knew that the writers were heavily constrained by the situation, the subjects still chose to attribute their views to dispositional factors. Cultural variance may affect the Fundamental Attribution Error, as members from individualistic culture have a higher tendency to commit this error compared to members from a collectivistic ulture that are less prone to it. Miller (1984) supports this argument as he found that children from western cultures make dispositional attributions whilst children from India make situational attributions, particularly when explaining the actions of someone who has done wrong. Moghaddam (1998) also stated that the FAE was due to ‘pervasive individualism' of modern western culture. Reference: http://education. calumet. purdue. edu/vockell/edPsybook/Edpsy5/edpsy5_attribution. htm http://changingminds. org/explanations/theories/attribution_theory. tm http://en. wikipedia. org/wiki/Attribution_(psychology) http://changingminds. org/explanations/theories/fundamental_attribution_error. htm http://changingminds. org/explanations/theories/self-serving_bias. htm http://ibpsychologynotes. files. wordpress. com/2011/02/04-discuss-two-errors-in-attributions. pdf http://en. wikipedia. org/wiki/Fundamental_attribution_error http://ion. uwinnipeg. ca/~clark/teach/1000-050/Ch18-social. pdf http://en. wikipedia. org/wiki/Self-serving_bias http://www. psychwiki. com/wiki/Self-serving_bias

Critically discuss the Strategy in Action of Tesco plc The WritePass Journal

Critically discuss the Strategy in Action of Tesco plc INTRODUCTION Critically discuss the Strategy in Action of Tesco plc INTRODUCTIONPESTEL FRAMEWORK 2.1 Political Factors2.2 EconomicalFactors2.3Social/CulturalFactors2.4 Technological Factors2.5 Environmental FactorsPORTERS FIVE FORCES8.0 CONCLUSIONRelated INTRODUCTION Tesco plc is the food and drink retail sector represents the major industry in the UK, providing, manufacturing, employment for over three million people in the main production and retailing. In 2004 retail accounted for 9% of (GDP) gross domestic product (Datamonitor, 2003). In latest years UK supermarkets have come under increased analysis over their management of suppliers, yet the increase of strategic supply networks has been essential part of largely supermarket strategies for the past decade. This report is provides Tesco, with emphasis on its external environment and companys analysis of resources, competence and culture strategic and   the resources based on strategies. One of the largest food retailers in the world,   Tesco operating about 2,319 stores and employing over 325,000 people. It provides online services through its subsidiary, Tesco.com. The UK largest market   company   where it operates under four banners of Superstore, Extra,   Metro and Express. The company sells about 40,000 food products, non-food lines, clothing and other. The companys own-label products are at three levels, normal and finest, value,. As well as convenience produce, several stores have gas stations, becoming one of Britains largest independent petrol retailers. Other retailing services Tesco Personal Finance. PESTEL FRAMEWORK 2.1 Political Factors the company Operating in a globalized environment. Tesco has   stores around the world now operates   in the Republic of Ireland, Europe   , Slovakia, Poland , Czech Republic, Hungary and Turkey. It also operates in Asia in Thailand Japan Taiwan, South Korea,   and Malaysia it is performance is greatly influenced by the political and legislative situation of these countries, including the (EU). For employment  Ã‚   the government encourages retailers to provide a mix flexible   job opportunities, lower-paid and locally-based jobs to highly-skilled, higher- located jobs paid and centrally- (Balchin, 1994). Moreover to meet the demand from population categories such as working parents senior citizens and Students. 2.2 EconomicalFactors Tesco economic factors are of concern, because they are likely to influence demand, prices profits, and costs. One of the mainly influential factors on the economy is high unemployment levels, which decreases the effective demand for several goods. The economic factors are largely outside the control of the company, but their effects the marketing and performance can be deep. while international business is still increasing (Appendix A), and is expected to contribute better amounts to Tescos income over the next few years, the company is still highly dependent on the   market. therefore, it   would be badly affected by any slowdown exposed to the market concentration risks and in the UK food   market 2.3Social/CulturalFactors present trends show that British customers have moved towards ‘bulk shopping, which is due to a range of social changes. Tesco have, therefore, improved the quantity of non-food stuff available for sale. Demographic changes such as the aging of people, the female workers   are increase and a decline in preparation home meal mean that UK retailers are also focusing on services and added-value products . adding, the focus is now towards; the share of the   own-label in business mix, the operational improvements and   supply chain , which can drive costs out of the business. National retailers are increasingly reticent to take on new suppliers (Datamonitor Report, 2003Clarke, Bennison and Guy,1994;). The type of goods and services demanded by customers is a meaning of their consequent attitudes and beliefs and social conditioning . customers are becoming more and more aware of their attitudes towards food are constantly changing and   health issues. For instance   to accommodate an increased demand for organic products Tesco adapting the product mix, and also the first company   to allow customers to pay in cash and cheques at the checkout. 2.4 Technological Factors Technology is a main macro-environmental changeable which has influenced the increase of several   Tesco products. The new technologies benefit the company and customers satisfaction raises because services can become more personalised and shopping more convenient, goods are readily and available.The launch of the Efficient Consumer Response initiative provided the shift that is now apparent in the management of food supply chains (Datamonitor Report, 2003 2.5 Environmental Factors In 2003, there has been improved pressure on several companies and managers to admit their responsibility to society. (Johnson and Scholes, 2003) The major societal concern threatening food retailers has been environmental issues, a key region for companies to proceed in a socially responsible way. therefore, by recognizing this tendency in the broad ethical stance, the company   corporate social responsibility is concerned through the ways in which an organization exceeds the minimum obligations to stakeholders particular through regulation and business governance PORTERS FIVE FORCES Threat of New Entrants The UK grocery market is mainly   dominated by   competitors, including the major brands of Tesco ,Sainsburys   Safeway ,and   Asda, that   take a market share of 70% and small chains of Somerfield,   Waitrose and Budgens   with a further 10%. Over the last 30 years, Ritz (2005), the grocery market has been changed into the supermarket-dominated business. The   Majority of the large chains have built their power due to operating efficiency, major marketing-mix expenditure and one-stop shopping. This power had a large impact on the small traditional shops, such as, bakers, butchers and etc. therefore, these days it possesses a strong barrier for new companies who want to enter the grocery market. For example, it becomes rather difficult for new entrants to increase sufficient capital because of large fixed costs and highly developed supply chains.   in   advanced technology This is also evident in huge investments done by large chains, like T esco, for stock control systems that impact new entrants and the existing ones and checkouts . Other barriers include economies of scale achieved by Tesco. Bargaining Powerof Suppliers This force   that can be influenced by major grocery chains and that fear of losing their business to the large supermarkets. Therefore, this consolidates more leading positions of stores like Tesco and Asda in negotiating better     prices from suppliers that small individual chains are unable to match Ritz (2005).   UK based suppliers are also threatened by the rising ability of   retailers to source their products from abroad at cheaper deals. The relationship with sellers can have same effects in constraining the strategic freedom of the company and in influencing its margins. The forces of competitive rivalry have reduced the profit margins for suppliers and supermarket chains. Bargaining Power of Customers   Porter M. (1980) more products that become standardized or undifferentiated, the lower the switching cost, and therefore, more power is yielded to buyers. Tescos famous loyalty card – Club card remains the successful customer retention strategy that   increases the profitability of Tescos business. In meeting   customer needs, better choices, customizing service, ensure low prices,   constant flow of in-store promotions like Tesco enables brands to control and retain their customer base. In recent years the   food retailing has   changed   due to a large demand of consumers doing the majority of their shopping in supermarkets that shows a larger need for supermarkets to sell non-food items.   Also it has provided supermarkets with a new strategic expansion into new markets of banking. moreover Consumers have become more aware of the issues surrounding fairer trade and the influence of western consumers on the expectations and asp irations of Third World producers. Ethically and ecologically benign sound production of consumer produce such as coffee, tea, and cocoa is viable, and such products are widely available at the majority of large chains. Threat of Substitutes for a particular product General substitution is able to reduce demand, while there is a threat of consumers switching to the alternatives Porter M. (1980). In the grocery industry this can be seen in the form of the substitute of need or product-for-product     and is further weakened by new trends, such as the way small chains of convenience stores are emerging in the industry. In this case Tesco is trying to acquire existing small-scale operations and opening Express and Metro stores in city centres and local towns   Ritz (2005). 3.5Bargaining Powerof Competitors The grocery environment has seen a very significant growth in the size and market dominance of the larger players, with greater store size, increased retailer concentration, and the utilisation of a range of formats, which are now prominent characteristics of the sector. As it was mentioned above, the purchasing power of the food-retailing industry is concentrated in the hands of a relatively small number of retail buyers. Operating in a mature, flat market where growth is difficult (a driver of the diversification into non-food areas), and consumers are increasingly demanding and sophisticated, large chains as Tesco are accruing large amounts of consumer information that can be used to communicate with the consumer Ritz (2005). This highly competitive market has fostered an accelerated level of development, resulting in a situation in which UK grocery retailers have had to be innovative to maintain and build market share. Such innovation can be seen in the development of a range of trading formats, in response to changes in consumer behaviour. The dominant market leaders have responded by refocusing on price and value, whilst reinforcing the added value elements of their service. SWOTAnalysis   mus,,,, Tesco is the top grocer and leading retailer in its home market of the UK. Pitched at the broad middle mass-market, it has maintained its position through a clear focus, well targeted product offer and excellent record both in product and format innovation. Tesco also leads the world in online grocery retailing. In the UK the company concentrates on running grocery superstores, c-stores and an online service. Elsewhere the focus is usually on hypermarkets. In 2003, the groups trading record around Europe and UK has been outstanding. The full SWOT analysis of Tesco is presented in Appendix B, summarizing the key issues from the business environment and the strategic capability, including resources and competence, of the company that are most likely to impact on strategy development Strengths Increasing market share: Tesco holds a 13% share of the UK retail market. Its multi-format capability means that it will continue to grow share in food, while increasing space contribution from hypermarkets will allow it to drive a higher share in non-food. Tescos general growth and ROI show no sign of abating: In the UK, Tescos late 2002 investment into West-midlands based convenience store group TS was billed as the most aggressive move into the neighborhood market by a big-name retailer so far. The deal has turned Tesco into the countrys second biggest convenience store chain after the Co-operative Group, and the company also plans to open up 59 new stores in the UK this year. Tesco has grown its non-food division to the extent that its revenues now total 23% of total group earnings. Tescos international business segment is growing steadily, and is predicted to contribute nearly a quarter of group profits over the next five years. If geographical spread continues to grow, this will ensure Tescos continued regional strength. Insurance: In fiscal 2003 Tesco Personal Finance reached the milestone of one million motor insurance policies, making it the fastest growing motor insurance providerever.The groups instant travel insurance allows Clubcard holders to buy their holiday insurance conveniently at the checkout. Pet insurance now has over 330,000 cats and dogs covered, while the life insurance policy followed on from the success of last year, when it was voted The Most Competitive Life Insurance Provider in the MoneyFacts Awards 2003. Tesco online: Tesco.com is the worlds biggest online supermarket and this year the group had sales of over  £577 million, an increase of 29% on last year. Tesco online now operates in over 270 stores around the country, covering 96% of the UK. With over a million households nationwide having used the companys online services, the company has a strong platform to further develop this revenue stream. Brand value: Profits for Tescos operations in Europe, Asia and Ireland increased by 78% during the last fiscal year. The company has a strong brand image, and is associated with good quality, trustworthy goods that represent excellent value. Tescos innovative ways of improving the customer shopping experience, as well as its efforts to branch out into finance and insurance have also capitalized on this. UK market leadership reinforced: Since acquiring number one ranking in 1996, Tesco has developed a successful multiformat strategy that has accelerated its advantage. Its UK sales are now 71% larger than Sainsburys. Also the Competition Commissions report makes it very difficult for a competitor to challenge its scale and has effectively scuppered Wal-Marts chances of stealing UK leadership. Therefore, Tesco is in an enormously strong position in its domestic market. Weaknesses Reliance upon the UK market: Although international business is still growing, and is expected to contribute greater amounts to Tescos profits over the next few years, the company is still highly dependent on the UK market (73.8% of 2003 revenues). While this isnt a major weakness in the short term, any changes in the UK supermarket industry over the next year for example, like the Morrisons group successfully purchasing the Safeway chain could alter the balance of UK supermarket power, and affect share. Debt reduction: Tesco is not expected to reduce its debt until at least 2006. Tesco has a large capital expenditure program mainly due to its huge investment in space for new stores. Since its expansion is so aggressive, Tesco has little free cash for any other operations. Signs point to serial acquisitions: With an enterprise value of  £23 billion, Tesco clearly has enormous firepower. Also, its product range is vast and almost any acquisition can be justified, particularly in the UK. While fill the gap strategy would be useful to the company, as has been the case with the UK convenience market, there is the danger of Tesco becoming a serial acquirer, as this tends to reduce earnings visibility and quality. 8.0 CONCLUSION The success of the Tesco shows how far the branding and effective service delivery can come in moving beyond splashing ones logo on a billboard. It had fostered powerful identities by making their retiling concept into a virus and spending it out into the culture via a variety of channels: cultural sponsorship, political controversy, consumer experience and brand extensions. In a rapidly changing business environment with a high competitors pressure Tesco have to adopt new expansion strategies or diversified the existing in order to sustain its leading market position in an already established retailing market. The company must constantly adapt to the fast changing circumstances. Strategy formulation should therefore be regarded as a process of continuous learning, which includes learning about the goals, the effect of possible actions towards these goals and how to implement and execute these actions. The quality of a formulated strategy and the speed of its implementation will therefore directly depend on the quality of Tescos cognitive and behavioural learning processes. In large organizations as Tesco strategy should be analysed and implemented at various levels within the hierarchy. These different levels of strategy should be related and mutually supporting. Tescos strategy at a corporate level defines the businesses in which Tesco will compete, in a way that focuses resources to convert distinctive competence into competitive advantage