Big business turnaround - May 2012

Publication: Knowledge @ Australian School of Business

"Tesco's Extreme Makeover: A Phenomenal Tale of Turnaround Success"
By freelance business writer: Chris Sheedy
Editor: Deborah Tarrant
2000 words

The turnaround of UK supermarket chain Tesco is an exhilarating success story. In five years, the grocery group reversed its ailing sales and depressed share price to usurp the crown of market leader, Sainsbury's, in one of the world's most cut-throat industries. Tesco transformed itself into a diverse international business and one of the world's largest supermarket groups. Its new competitive edge was substantially created by the data gathered from a customer loyalty card that offered just 1% discount. An analysis of Tesco's transformation highlights the importance of stakeholder management and inventive marketing and uncovers rules for reversing the fortunes of ailing enterprises.

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