Editor’s Note: In 2011, TESCO had stumbled. With dipping market share and profits, they were desperate to reverse the trend and called upon the research skills of Mary Yoko Brannen, Terry Mughan, Fiona Moore, and Christopher Voisey, drawing upon their deep experience and the company’s myriad potential sources of knowledge to turn itself around.
Mary Yoko Brannen (@maryyokobrannen) presented this work at the most recent EPIC conference, and I’m delighted they’ve decided to further share their work here. One reason I love this project is because it illustrates the usefulness of ethnographic methods to one of the world’s largest retailers, showing that there are few limits to the range of organizations that it can serve. I also believe this research was key for negating a common misconception in many global companies: the flow of insight is not “one way.” Creative ideas to improve the service offerings of more established branches in Europe and America can just as easily come from their more recently-established branches in emerging markets (although I disagree with and avoid using the term “reverse innovation”).
Companies with the opinion that more developed markets have a monopoly upon good ideas are missing a broad spectrum of different perspectives that could lead to new and refreshing initiatives from other contexts. The researchers’ refining of a method to systematize the building of a “bicultural bridge” is, as they say, potentially groundbreaking for the fields of anthropology and management alike. Read the Globe’s recent coverage of Mary and her team’s work.
In 2011, the retail giant Tesco UK was in crisis mode. Tesco’s profit in the U.K. had fallen by about 0.5 percent—a rude awakening after having been the market leader in the U.K. and the third most profitable food retailer globally. At the same time that Tesco’s profits were falling in the UK, however, worldwide profit had actually risen 30 per cent, thanks to its Asian subsidiaries. That year, the company tasked me and my colleagues, Terry Mughan, Fiona Moore, and Christopher Voisey with identifying and assessing “the Essence of Tesco”, i.e., parts of the firm’s culture which were distinctive to Tesco and which could be transferred abroad to other parts of the firm’s global reach. The project had the dual objectives of helping Tesco (1) understand and evaluate the core practices that comprised the essence of Tesco’s home country advantage, and (2) identify sources of learning from Tesco’s foreign subsidiaries to aid in reinvigorating its core in order to make it more competitive at home. Read More…