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my I might suggest the following: · Expansion overseas e.g. Russia. · Increase market share e.g. merge with Safeway. If Walmart took over Asda, why cant Tesco take over Safeway, for example. · Expand into new market / product e.g. cars, travel. · Rewards to staff, introduce a widespread bonus or share ownership (if Tesco doesnt do it yet)

A2 Evaluation of the effects that the alternative approaches might have on the structure and functions of the business, and how it achieves its objectives. Alternative approaches, suggested in A1 can affect the functions of the organisation and how it achieves its objectives very much, but they wont really affect structure of the organisation, because Tescos organisation structure is very good and there is no point of changing it.

Expand to Russia If Tesco expands to Russia, in general, it is going to be only benefit to the company. Of course first Tesco will have to spend some money to build and open new supermarkets, but it is not going to be very difficult because there are no other companies like Tesco. Big advantage of expanding Tesco into Russian market is that straight way after it Tesco will definitely become a dominant firm on market, because there are not very strong competitors and very soon Tesco can become a monopoly on the Russian market. Disadvantage of expanding is that Tesco can get failure as well. Russian prices and British prices are very different, so if Tesco retails goods, which are more expensive then in others stores, not many people will by it.

Increase market share Every single organisation wants to increase its market share, and the best way of doing it is to merge or take over another company. And I suggest that Tesco also could increase its market share by merging another retailer, for example Safeway. Safeway is not as big as Tesco, so it is not going to be very difficult to merge it or take it over. The advantage of the merger is that Tesco will increase its market share very much (by 10%) and two dominant firms of UKs market joined together can easy become a monopoly. The disadvantage of it that it is not very easy to do, because now Tesco has 35% market share, and if it merges Safeway, Tescos market share will be increased up to 45%. But British law says that firm which has 45% of market share is monopoly, so competition commission wont be happy about it and it will never agree with this merge.

Expand into new market Non-food retailing now becoming a major part of Tesco strategy. As I said before, Tesco is increasing competition and offering customers real value and choice in all areas from sportswear to software, electricals to spectacles. But still, I think Tesco didnt get into one very perspective market cars. Cars are very important in our time and there is a very high demand for cars in the UK. I think for Tesco it is wont be very difficult do get into this market, because Tesco is known as cheapest retailer in the UK, therefore people will continue to by everything from Tesco, and cars as well. But it could be easy and could be not, because currently there are many different firms on this market, and what I think is that there are could be some barriers to entry.

Rewards to staff introduce a widespread At the present time, many successful firms introducing new types of rewarding to staff. What I suggest is that Tesco also should introduce a widespread of rewarding to staff, for example employees
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could be awarded an annual bonus, which they can take in cash, vouchers or shares. The advantage of this type of payment is that if employees take shares, they will be interested in good work of the company and if they take vouchers, they will have to spend all salary in Tesco stores. So I think that it is very good way of rewarding with all benefits to the company.

Affects of the alternative approaches As I mentioned before, alternative approaches, suggested in A1 can affect the functions of the organisation and how it achieves its objectives very much, but they wont really affect structure of the organisation, because Tesco now has very good organisation structure with very good consultative and democratic management style. If Tesco expands to Russia and merges Safeway, there are will be “Operation Russia” department in the organisation chart. More people will be involved to work for Tesco, so Human Resources department will become bigger. After expanding to Russia Tesco easy can expand to other countries of Soviet Union such as Kazakstan, Uzbekistan, Kirgiztan and so on. It also will definitely help Tesco to prove itself as very strong multinational firm.

List of resources 1. The main resource was Tescos own web site: www.tesco.com. 2. I asked Tesco for some information and they sent me it. 3. Web site: www.bized.ac.uk 4. Business for Vocational A level book. 5. Newspapers

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