From its foundation by John Cohen as a one-man business, Tesco PLC has ascended to the world retail industry becoming the largest British retailer based on both global and local shares. In its early years of operation, the UK-based international retailer specializes only in the distribution of food products but as it gained more market and its performance strengthened, it enhanced its portfolio by augmenting other goods and services to which ranges from clothing to consumer electronics to consumer financial services to internet services to internet service and consumer telecom…
In its website, Tesco Plc clearly identifies its mission by the statement "Our core purpose is to create value for customers to earn their lifetime loyalty" (Tesco Plc 2008) This statement is in recognition that the success of the giant retailer is highly dependent on two key identified stakeholders-"the people who shop with us and the people who work with us" (Tesco Plc 2008). Thus, the company also expresses its two core values which are focused on the satisfaction of these two groups of stakeholders. For customers, Tesco maintains that in their stores "No-one tries harder for customers," (Tesco Plc 2008) while for its employees, it stresses that it would "Treat people as we like to be treated" (Tesco Plc 2008).
This analysis will focus on three stakeholders of Tesco Plc, two of which are already identified above as its customers and employees. It should be noted that the success of the business organization is dependent on the customers' decision to purchase in the retail store. This in part is attainable only through the direct cooperation and effort of its employees to pursue its overall strategy of providing good products, excellent service, creation of a convenient shopping atmosphere and making shopping as enjoyable as possible. The mission of Tesco to retain loyal people both its customers and employees is created in recognition to this fact.
Since the mission statement revolves around customers and employees, the company's values are also geared towards the satisfaction of these stakeholders. Tesco further expounds on how it satisfies its customers by identifying the direct ways on how to boost customer value: "Customers have told us what they want-clear aisles, to be able to get what they want at a good price, no queues and great staff. We call this our Every Little Helps Shopping Trip for customers and use it every day to ensure we are always working hard to make Tesco a better place to shop, at home and abroad" (Tesco Plc 2008). The identification of customers as key stakeholders of Tesco becomes a primary importance when it formulated its values.
For its employees, Tesco Plc is committed in making the company a "great place to work" by listening to what its workforce wants: "Our staff have told us what is important to them - to be treated with respect, having a manager who helps them, having an interesting job and an opportunity to get on. Helping achieve what is important to our staff will help us to deliver an Every Little Helps Shopping Trip for our customers" (Tesco Plc 2008). Recognizing that Tesco's customers can be satisfied by its staff, the retailer also focuses on the satisfaction of its people to look after and deliver value to its customers.
The four pronged objectives of Tesco Plc together with the identified mission and values altogether work for the maximization of the wealth of its other key stakeholders-its shareholders. Every business organization pursues the same goal and that is to be able to generate a sizable profit for its ...
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The researcher states that the Process of Business Transformation is considered as a key managerial initiative undertaken by the organisational managers through the effective integration of components related to human resources, technology and the existing organisational processes to the strategic objectives and goals of the company.
The importance of value creation through positive stakeholder relationships has an impact of significantly increasing the profitability of a firm.The increase in environmental legislation and the emerging trends of ethical consumers,the incorporation of social responsibility in the business strategy is more of a necessity in the competitive market.
The company also has stores and retail outlet in other countries like the Republic of Ireland, Hungary, Poland, the Czech Republic, Slovakia, Turkey, Thailand, South Korea, Taiwan, Malaysia, Japan and China (Tesco 2006 Review).
Tesco operates 165 International Express stores.
The information networks created by the organisations help the people to adopt the environment. Build and develop communication networks, improves learning process, develops sense of understanding and sharing between the people, provides a platform to discuss discoveries and innovations, provide the people with chance to learn after making mistakes.
The total group turnover is over 51 billion pounds and sells products as varied as vegetable, clothes, and computers. It has over 3,700 stores spread over thirteen markets. The largest number of stores is in UK which comes to about 2,100 followed by 814 stores in Asia and 746 stores in Europe.
Gone were the days when the main concern of the customer is price and quality. In an industry where merchandise displayed on counters is almost treated as homogenous, companies are pressured to differentiate themselves through other means such as value-added services (Kotler 2005).
Currently Tesco has a market control of about 30% of the grocery market of the UK, which is a combination of its two most close rivals Sainsbury's and Adsa. In the year 2007 the retail chain announced a profit of more than 2.55 billion sterling pounds. In the past the chain mainly concentrated on food stuff but currently it has diversified its range of products to include consumer electronics, clothes, financial services, internet services, health insurance for customers and other services.
This way they can earn the loyalty of the customer while successfully attracting more customers. Tesco's mission statement1 says, "Our core purpose is to create value for customers to earn their lifetime loyalty." value creation for the customer proves to be a competitive weapon to retain the customer.
To retailers, the internet has provided a venue where they can distribute and market their products to their prospective clients. However, through the course of time, the success of online retailers proved to be a factor of its resources and how it employs these to achieve its specific goals and objectives.
In this regard, the case of Tesco has been analyzed in details. Tesco is currently the market leader among other major companies like, ASDA and Sainsbury’s, in the domestic market. The strategic practices adopted by the company have been
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