Resource Requirements

Tesco is in a prime position to implement this strategy through the abundance of resources, which are not only financial, that we have available. The way these are categorised can be shown in Figure 16.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Organisational Capital

 

The strength that Tesco has in terms of its organisational capital is both its financial resources (with a revenue of £70.94 billion [1]) and distribution networks. All of the petrol stations and infrastructures are already in place to effectively transport and distribute the biofuel and we have sufficient funds to cover the initial outlay.

 

Human Capital

 

Human capital is the one area in which the company will need to invest and focus on if we are to develop a breakout strategy. Tesco is currently solely a retailer, with no experienced personnel in the field. Investment will need to be made in the form of hiring experiences scientists and engineers, training and recruiting for the future if we are to maintain our competitive advantage. The transition can be made simpler by our partnership with Greenergy who already have the capabilities to do this.

 

Symbolic Capital

 

Despite the recent dents to the companies symbolic capital, through the over estimation of profits and delays in payments to supplier [2], Tesco has a tremendous brand image for both reliability and value. This will drastically help our venture as it will be significantly easier to encourage and convince consumers to switch to the new product.

 

Social Capital

 

Tesco currently have great social capital, through our relationships with suppliers and networks. One issue that can be foreseen is the pressure put on our relationship with our current petrol and diesel suppliers, however this will not prove terminal we will continue to stock  and distribute their fuel, and our biofuel is seen as an alternative rather than a direct competitor.

 

 

 

REERENCE:

[1] http://www.tescoplc.com/files/pdf/results/2014/prelim/prelim_2013-14_analyst_pack.pdf

[2] http://www.bbc.co.uk/news/business-31143452