BUSINESS MODEL INTERROGATION & DEVELOPMENT Essay

BUSINESS MODEL INTERROGATION & DEVELOPMENT - Essay Example In other words, the company is not limited to selling of products nor is specifically related to the sale of products instead it carries out both buying and selling of goods. Tesco’s business model is composed of four fundamental activities: buy, insight, sell and move and these four activities collectively work to attain the objective of â€Å"we make what matters better, together† (Tesco Annual Report, 2014). At the same time, the business model encompasses other layers which consist of other strategic values and objectives which collectively make this entire business model work for the co Tesco’s business model is adequate to satisfy the strategic long term business objectives besides serving the short term objectives. For example, the model is composed of four core operations which highlight four different business areas which do not share similar activities instead they have different operational and strategic significance for the company. More clearly, Tesco’s business operations start from the purchase activity in which the company engages with the suppliers of different food products. In this activity, the company looks putting substantial amount of concentration and energy as quality of food products largely relies on the fresh food products which are mainly reflected through the market goodwill of suppliers and producers as well. In this regard, it is important to mention that this purchase activity is of paramount importance for the company as it has strategic implications and effects of the market perception of Tesco. For example, if the compan y provides low quality food items and customers regularly complain about various quality issues, this would put negative effect on the perception of the Tesco and if the negative perception continue to stay longer, the company would face serious strategic issues including drop in sales, drop in the volume of sales and other relevant