There can be better retailer business within as the Tesco runs over eight hundred stores around Europe as Tesco has been providing such range of business services that is for the business in distribution process of warehousing as well as advertising and the integration of financial service as possible as well as the transportation and interaction of such services. Aside, there indicates that Tesco continues in leading over. Tesco, being the largest British retailer having global supermarket chain as Tesco being UK’s successful retailing firm in the supermarket industry is able to reduce its unit cost of production as the scale of operation increases. ( 2006;2006; ) It is able to use its commercial or market power to bid down prices to obtain preferential rates thus enjoying large discounts for manufactured goods, vegetables, raw materials and transport via bulk buying and allowed Tesco to enjoy productive efficiency thus allowing cost advantage.
There was a greater cost advantage therefore means total cost of production is minimized hence securing and maintaining higher profit margins. Then, in Tesco, there identifies such factors effecting the structure of business in terms of exposing Tesco’s harmfulness as well as helpfulness to the business as there involves planning for the macro-environment role in effective functioning. (2006; 2006; 2006) There involves the distribution process to shareholders as dividends and with Tesco’s growth reflects stability in supermarket chain in UK. There can be use of Mintzbergs management strategy as there stating of deliberate strategy as a realized option of the strategy and has emerged from the changes upon certain review of marketing environment. (2007) Tesco uses such strategy such as the main UK business, the retail service as well as the non food and global strategy as Tesco have grown in profitability due to the strategy used as there saw an increase of 12.7 percent in group sales as well as retail profits of £40m also, the non food has a 4 percent market share and growth in sales comprising of 25.6 percent and if being closely examined, ( 2007) Tesco’s success strategy have the need to emphasize the value of business mechanisms along with its desirable market cycle for a sound business milieu concerning UK’s retail schemes in better pursuit of growing market share.