Sample Thesis Paper
Respondents identified that Tesco’s expansion into the US may appear to be a major step but is actually part of a much larger picture for Tesco. It was observed that the return inflows from the US currently count for not more than one percent of Tesco’s total revenues and there is still a need to make decisions that are of pivotal relevance in nature.
Opportunities for TESCO in the US market
A key reason because of which the scenario is viable for Tesco to launch the Fresh and Easy hypermarket is because the concern for the revival for lost health has increased across the American consumers over time. Being a prominent player in the food retail industry, Tesco has the perfect opportunity to launch itself in the American market and the low income regions come across as prime markets for the launch.
The supply chain model that Tesco follows has a heavily centralized approach. While suppliers working for retailers in the US food and non-food sectors generally choose to deliver their goods directly to individual stores, Tesco brings a fairly different strategy to the US through its supply chain. The centralized value chain structure followed by Tesco is one that can be expected to bring forth a situation for US suppliers in which they will have to adapt their functioning. Tesco’s supply chain management system takes away the liberty that supplier companies otherwise have to exercise to exercise excessive price control and to independently establish transportation and related logistical routes. However, this will simultaneously allow suppliers to save costs where costs are concerned. Key areas in this regard include those such as the costs incurred as a result of delayed deliveries as well as decentralized packaging and handling.