As discussed in the readings regarding the industrial giant G.E., a U.K. grocery retailer is facing the same financial failures due to their overemphasis on markets outside of their core roots. Tesco, once a leader in the U.K. retail sector, has lost their competitiveness and thus resulting into poor financial condition.
After expanding greatly internationally to countries in areas such as Asia, they are selling those operations and returning to their supermarket roots. Tesco's activities had grown to include banking, mobile phones, travel, and optical businesses.
Tesco's shares have fallen in the last year due to shareholders questioning their priorities and many customers have deserted the company for competitors, in order to find better service and lower prices in other supermarket stores. This recent turmoil has prompted the organization to focus more on reviving their original food and retail lines of business.
To address the problems in those store fronts, they are planning to hire 20,000 more employees in the next few years to improve service while luring old and new customers in. Although the hiring of these new employees and launching new advertising campaigns have begun, the success in their revitalization and new strategy depends on their execution. If the employees, managers, and executive team focus their efforts on controlling this total overhaul, success should be seen and profits should increase.