Tesco

Most businesses have aims and objectives about how they are going to make their business successful. Most businesses have different aims and objectives. For example a schools main aim will be getting as many students to a high educational standard. Some businesses may state official aims in a statement that is part of the business’s policy. The mission statement of First Direct, the telephone banking arm of HSBC, is to `create harmony between the services it provides and the way people live their lives with simple, straightforward products`.

Another example is BUPA, the private health care and insurance company, has a vision statement of `taking care of the lives in our hands. An aim is a goal the business wants to achieve. For example to make a good profit, the business has aims to reach their goals such as expanding or improving their services or quality of goods. All businesses aim to provide goods and/or services, either to their local community or to the wider community. The main aim of every business is to survive. The only way it can do this is to make a profit.

Its turnover, the goods or services it sells must be bigger than its operating expenses, or the day to day cost of running the business. Tesco’s main aim will be to provide a good service to all customers, while providing an acceptable return for its shareholders. Tesco has a key phrase which Tesco basis its business around, `Creating value for customers to earn their lifetime loyalty`. Tesco listen to the customers needs better than any other business, as they provide an excellent service (customer service). This would help retain customers and gain a healthy profit.

Tesco have four types of stores so this will provide them with a steady sales revenue. The four types of stores around the UK and they are, Tesco superstore, Tesco Extra, Tesco Express and Tesco Metro. Tesco have located each of these stores in an excellent location around the UK. While they gain customer loyalty by doing this they will also gain a steady income so they will be able to share some of its profits with its shareholders. However if they don’t make customer loyalty and gain a steady income, they will lose money and so will its shareholders.

The shareholder of a Tesco is always at risk of losing their money, which is why Tesco offer a better return than that of a bank where the shareholder is at no risk of losing money. Another of Tesco’s aims is to look after their customers as customers are very important because they provide income to the business. Also Tesco need to do their best to deliver good products at a cheap price to their customers and the public. Tesco aim to treat all their customers in an appropriate manner.

By doing this Tesco will gain customer satisfaction and lifetime loyalty. By treating their customer’s well Tesco will also get a good reputation and also they may gain other competitors customers. Tesco also aim to understand their external customers needs better. Therefore, Tesco carries out market research to find out the customers needs. They produce surveys and questionnaires for the customers to fill out. Using market research, they can see how their products may compare to other supermarkets and which products the customers like the best.

Tests had an In store policy that a new checkout line would be opened If there was m re than 1 person waiting In line and they were pioneers In self service checkout terminal. Tests was also innovative with its store formats. Tests stores ranges in size and service fro m; Express, Metro, Superstore, Extra, and Homeless. Tests used consumer purchase data to tailor assortments to local customer needs. Tests also increased the amount of non food items they stocked to include a clothing line.

The Club card, which offered cash back rewards and redeemable vouchers, was successful In creating loyalty among Its consumer. Tests proved successful In International operations by expanding Into emerging entries with minimal competition such as those in Eastern Europe and Asia. It AC aired smaller, established retailers and kept local management in place. They were flexible in their strategy and acted locally using multiple formats.

Tests also leveraged its brand loyalty to expand in other service areas such as; flan telecommunications, and grocery delivery. This by partnering or eventually acquiring recognized and trusted brands/organizations. 2. Which success factors are or are not transferable to the US? Transitioning to the United States presented a challenge for Tests considering that t Eire major factor of international success have been the lack of strong competition in the new areas to expand.

Clearly not this case, because there were around 35,000 supermarkets In t and in addition, almost every retailer from drugstores to home improvement centers sold some grocery items. There existed intense price competition as the U. S. Was over stored, according to some industry analysts, and the average U. S. Supermarket realized an operating proof t of 2% to 3% of sales, presenting a much different landscape from what Tests was transitioning g from in the U. K.

Nevertheless, Tests identified an increasing consumer interest in wellness, in health conscious food choices and a continuing trend towards on the go consumption, especially evident in California as a result of greater automobile commuting times compared to the national average. Tests hoped to avoid the headed head competition for the weekly family shopping trim with the established grocery chains, a niche it dominated in the U. K. , and rather focus s on targeting an undeserved niche in the marketplace. 3. Was Tests smart to enter the US market? In California, Arizona and Nevada?

Although early analysis led decision makers to believe the US, especially the Southwest was a good market to enter actual performance leads one to think otherwise. Tests c inducted a great deal of due diligence prior to entering the US market. They analyzed trends I indicated by market research, sent senior managers to live with Californian families, and conducted d a mock store tour with 200 focus groups. By targeting an undeserved niche in the marketplace ace, Tests hoped to avoid headed head competition for the weekly family shopping trip with established grocery chains.

Several other factors demonstrated potential to include: o Grocery retailing in the US embraced multiple formats (in keeping with Tests strategy No national grocery retailer in the US None of the principal supermarket chains (Kroger, Safely, Supernal) commanded more than 15% of US grocery sales Market size: $600 billion Possible gap between convenience stores and supermarkets that might be filled by neighborhood markets o Increasing customer interest in wellness, in health conscious food choices, and a Tests specifically looked to the following benefits of California, Arizona and Nevada:

S Grocery retailing not dominated by any one chain S Lower penetration by Wall Mart than in other US regions S CA: rapidly growing, ethnically diverse population of over 35 million, median house hold income well above national average S AZ, NV. Similarly diverse and growing rapidly Despite all of the potential benefits, Tests faced several challenges to include: Competition (35,000 supermarkets) Almost every retailer from drugstores to home improvement centers also sold grocer y items (overstated) Intense price competition Economic downturn Low average operating profits of 23% of sales

Prior attempts by British supermarket chains to expand into the US had proven nuns successful 4. What is the Fresh & Easy value proposition? Is it likely to be appealing in California, Arizona and Nevada? “C… ] customers wanted great service, choice, and value” (p. 4) “offer fresh, wholesome food at affordable prices” (p. 7) “strong commitment to being a good neighbor and a great place to work” (p. ) emphasis on everyday low pricing rather than weekly specials hoped to leverage lower operating costs to deliver “honest low prices” on “fresh wholesome food” that “should be available to everyone” in a “neighborhood market” ( Employees from local community, carefully selected to fit Deco’s culture (p. 7) Nonfood items would account for only 5% of sales (p. 7) “ready to sell” approach, whereby many products sent from distribution center to store packaged, extending product freshness, protecting produce from damage, cutting down on spoilage, requiring less refrigeration, and reducing labor needed to stock shelves (p. ) Leveraging relationships with collaborators for distribution (p. 8); this centralized MO del was similar to Walter’s Smaller stores = easier permitting process Taking over existing, vacant drugstores = cheaper than building from scratch New stores built from prepare materials = quicker construction, lower overhead, streamlined supply chain Energy efficient stores (30% less energy than comparable, traditional stores; some stores LED certified) Fresh & Easy emphasized everyday low pricing rather than weekly specials and hope d to on “fresh wholesome food” that “should be available to everyone” in a “neighborhood market. Fresh & Easy leveraged relationships with collaborators for distribution to create value e by minimizing costs and emphasize fresh. Their “ready to sell” approach, whereby prepare caged products went directly from distributors to local stores, promotes that it extended pro duct freshness. The prepackaging protected produce from damage, cut down on spoilage, required less refrigeration, and reduced labor needed to stock shelves. Fresh & Ease’s appeal in new markets relied on various factors.

California offered the rapidly growing, ethnically diverse population of over 35 million with a median house hold income well above the national average. The percentage of Caucasians had fallen to below 45 and 40% of people spoke a language other than English at home. Hipic Americans accounted for 37% of the population, Seminarians for 12% and African Americans 6%. The populations of Arizona and Nevada were similarly diverse and growing rapidly. Ethnically diverse pop populations are likely to appreciate Fresh & Ease’s value propositions.

The emphasis on “honest 10 w prices” and a “neighborhood market”appeal to various ethnicities. However, Fresh & Easy built many stores in suburban neighborhoods. The population n in these neighborhoods tend to shop less times per week but spend more at each visit. These habits clash with the Fresh & Easy concept of daily visits to grab a quick and inexpensive vive bite. It may have been a better idea to have targeted urban cities like New York or Chicago w here the population’s buying habits are more compatible with Fresh & Ease’s intended target. 5.

My two companies are Hackney Community College & Tesco. Stakeholders are a person with an interest or concern in something for example a business. Customers A person or organisation that buys goods or services from a store or business. Hackney Community College example: Students come to the college for a service which Is education. Tesco example: Public people, bars, convenience store and cash & carry these are all customers that sell food. Employees A person who exchanges services for wages of salary.

Hackney Community College example: Principle, teachers, receptionist, cleaners, caretakers these are all people that work at the college. Tesco example: Factory workers, advertising department, people that deal with the sales. At Tesco there Is a great deal of people that work for them not Just factory workers but also people that advertise the business though television and keep the website updated, people that contact suppliers and deal with sales and delivery of the product. Owners and shareholders These are the owners of shares within the business/company.

Hackney Community College example: The government owns Hackney Community College example because it is public. Tesco example: BlackRock Inc, Norges Bank and Berkshire Hathaway Inc. The local and national community A community is a group of interacting people sharing an environment. Hackney Community College example: Local residence & local business of Hackney. Diageo example: There are 3,141 stores in total all over the I-JK this includes superstores, extras, expresses, metros. The head office of Tesco is located in Cheshunt, Hertfordshire. Trade Union

A labour union of workers in a particular trade. Hackney Community College example: NUT (National Union of Teachers), UVISON & ATL (Association of Teachers and Lecturers). These are a union where teachers in the college & outside can come together and change what doesnt satisfy them. Tesco example: USDAW. The government and its agencies The system by which a national, state, or community Is governed. Hackney Community College example: Department of education, department of employment, OFTED. Tesco example: Income revenue/tax office, safety and health executives. Suppliers

A resource from which a person or place can be provided with the necessary amount of recourses. Hackney Community College example: Furniture, equipment, stationary and resources. Tesco example: Packaging, raw meet, raw vegetables and ingredients. which is education.

The Marketing Function at Tescos is concerned firstly with identifying their customers’ needs and wants and then ensuring that they provide goods and services to meet those needs and wants. If Marketing fail to do this then the customers might be tempted away to other supermarkets such as Sainsbury’s. In Tescos they identify customer’s needs by setting up a survey, in this survey they would include thing like, what their jobs are and how much on average they earn.

After this they would be able to provide what customers needs are. Marketing would introduce a range of products to suit the customers according to there salary. These ranges are ‘organic’, ‘Tescos Finest’, ‘Low Fat (diet)’, ‘Tesco value’ and ‘Healthy living’. Marketing at Tescos have created these ranges to suit customers who don’t really earn much from their job. The range such as ‘Tesco Value’ provides products with a lower value but the quality of the product is low.

Marketing at Tescos offers ‘club cards’ to customers that can exchange the points that they earn from buying groceries etc into buying petrol or diesel for a cheaper price. Tescos also have a bonus card, the benefits for this type of card is that there is no interest payment back every year, 0% of Tesco purchases for the first 12 months from account opening. Tescos introduce these cards for customer benefits and to attract more customers.

In order for Tescos to attract more and more customers, they need to advertise their promotions. For example, Tescos have introduced a new healthy living range; they would need to promote this by advertising on banners, T.V adverts or on the radio. They would try to make it sound really interesting and make it look good on images. Also they would make it a reasonable price at first when it comes out, then they would gradually make offers such as ‘buy one get another free’ or even raise the price a little bit more.

Marketing in Tescos have now expanded in their business as they have introduced more things such as car insurance, loans, mortgages and savings, the reasons why they had done this is all to do with attracting even more Customers, for this they would advertise more and make sure by doing all of this they would still keep customers happy.

Tescos use a ‘unique selling point’ to attract customers that normally don’t buy from them; they do this buy making their prices cheaper, they do this to compete against other grocery stores like Sainsbury’s and Asda. Making prices cheaper and also providing ranges like Healthy living, attracts more customers into buying their goods, as more people would like to by cheaper or more reasonable priced goods. But by doing this they must have limits, otherwise they would lose in profit.

In marketing, a company would use the ‘4ps’ to be successful in it. The ‘4ps’ is basically what a company would use for their aim and they would use it to carry out ideas. The ‘4ps’ are ‘product’, ‘price’, ‘place’ and ‘promotion’. For ‘product’ they must meet consumer’s wants and needs, for ‘price’ it is set according to the lifestyle/income job etc, to the target audience and competition. It must reflect the quality of the product/service. ‘Place’ is about distributing a product or service from the manufacturer to the consumer. It must be convenient to consumers and quick, the location of distribution would be either on the Internet, the high street or it can be a regional distribution. ‘Promotion’ is the brand Awareness; they do this by using methods of communicating to promote the consumers from the Internet in a product or service.

The Human Resources department for Tescos deals with job vacancies. People that apply for a job in Tescos, send their C.V (Curriculum Vitae) to the Human Resources department, this would include, a life history, job history, achievements, and Skills. When the Human Resources receive this, they would pick out the best ones buy looking at there past experiences, achievements and skills, for achievements they would look at whether if; the applicant has a university degree, any awards or whether is they have the required grades for the job. After the Human Resources departments have done this then they would shortlist the right applicants for an interview.

The Human Resources shortlists the applicants as it would make it easier for them to select the best employee for their company. The Human Resources function ensures that personnel are used and developed in the most productive way, other than filling in a vacancy they also advertise the job, they do this by either posting on the Internet or advertising on the newspapers, after this is done, they would send out application forms to the people who apply for the job.

Retention is an important feature in Tescos. They employ the selected applicants for their specified jobs. Retention is basically keeping the employees happy and motivated at work, making sure that they don’t fight, argue or any kind of insulting and the use of physical violence. Motivating staff and retaining them is vital for any business to run smoothly. Using an effective reward system would strongly help reduce the number of sick days and would increase the productivity. Benefits would help mostly on making the company different to other rivaled companies because if the company has better benefits than another, then the company with better benefits would be able to employ more staff. Read about NHS Functional Areas

In Tescos, the Human Resources would try and keep their employees by giving them benefits, such as a discount if the employee chooses to buy from Tescos, this would most defiantly keep staff motivated and happy, another benefit would be that Tescos could give their employees free gift vouchers to spend on groceries etc. Tescos could even give their staff a jobs raise, if they think that the employee has been working really hard. By doing this it would make them happier and motivated in their job.

In most cases employees would leave their job just because they are not happy in their position. Sometimes they feel less motivated because they are not being rewarded for their hard work, even though the employee(s), have been ill at times, but still come into work and work hard to pay for their family. Some other employees would leave their current job because they are attracted to another job. Changing jobs could be for many reasons; it can be that the present job is not challenging or that the employee doesn’t feel happy or motivated there. It can also be because the newly attracted job has better benefits and more salary than the present job.

Because Tesco is a big company would have a lot of legal structures to make sure that business is operating properly. One legal structure of Tesco is the ‘Corporate governance’, the people in this sector deal with shareholders; they do this to make sure Tesco is achieving the strategies that the shareholders want them to achieve. For the community the company has responsibilities to make sure that it reduces using carbon footprints this means the business doesn’t produce a huge amount of carbon dioxide.

The Legal Services deal with any business legal matter that Tesco would have to deal with. The Licensing team makes sure that every store has an alcohol licence and to make sure that it is legal. Because Tesco is a big company their size will be big so Tesco would have a lot of branches and subdivisions. The size of Tesco depends on how much revenue the business has if the business has a large amount of revenue the business size will be big.

Tesco culture is to sell goods and products to customers it is mostly groceries food drink etc. but Tesco developed and started selling clothing electronics etc. The purpose of the business is to provide good customer service to their customer and to sell goods and make profit. Tesco mission statement is to provide good customer service to customer and to make sure their customers are happy. Tesco Functional Structure Cancer Research Legal Structure Because Cancer Research is a charity orgainsation that doesn’t benefit from profit the legal structure will be different compared to orgainsation which goal is to ear profit.

One legal structure of Cancer Research is the group to deal with costs, because this business is a non-profit so they would need to decide how to use their finance because most of their finance is donated by people which want to help, another legal a structure for cancer research is the size of the organisation, because cancer research is a big organisation they need to structure how the organisation is because the business will be broken into different sections one that deals with different jobs. Another is the charity status, by having a charity status you can be part of the charity law.

Because Cancer Research is a big non-profit company it has a big size the business involves around teamwork, Cancer research has a large size because the business has different employees that deal with fundraising and science to help defeat cancer. Cancer research culture is to find ways to fight cancer to make the world a better place and create a cure. The purpose of cancer research is to help and support anyone that has cancer and give him or her, the helping hand they need. The mission statement is to find the cure for a person who has cancer and make the future brighter for people that have cancer.

Cancer research functional structure Tesco and Cancer research organisational charts are different but also similar. The main differences with the orgainsational charts is Tesco has more departments than Cancer research, they are both big companies, however because Tesco is a profit company it will have more departments to deal with different situations. Also, Tesco has a CEO but Cancer Research doesn’t have any CEO, with a CEO they have responsibilities to make decisions that will benefit the business finance.

However Tesco doesn’t have a department that deals with drugs so Tesco doesn’t have that because none of their departments doesn’t deal with drugs. Also, Tesco doesn’t have any a research groups but Cancer Research has a lot of departments that deal with research for the company. These two business are different, one orgainsation is profit this is Tesco and the other is a non-profit organisation is Cancer Research, Tesco has expanded and sale a variety of products, however Cancer research sticks to defeating cancer so, Tesco has a variety of products to offer and Cancer Research only has one product to other to customers.

Both businesses has different mission statements, Tesco is to give good customer service to its customers and Cancer research is to help people which need a cure for cancer. However, both businesses have similarities for example both businesses are an international business; the both are located around the world. Another similarity is both of the businesses provide excellent customer service to their customers, Tesco has to have a good customer service because they sell their products to them and Cancer research is helping people which have a serious illness.

Also, both businesses have provided services or products that will benefit their customers. Both businesses will have external resources that will affect the business, because Tesco gets some of their products from other countries and Cancer research have different research teams around the world trying to find a cure.

Quantifiable defined in way that can be measured. Achievable they must be targets that the business can realistically meet. Some typical objectives of a business might include: To sell more of its products than a competitor. To provide more goods/services this year than it did last year. To produce a new product/service. To improve an existing product/service. Businesses have a main aim or an overall aim which is set up in their “Mission Statement”. Look at various large businesses for examples Tesco objectives are set so that they can be achieved over a Long term period of time.

Aims:

Tesco aims consist of several different achievement plans some of these include:

Maximising share holder’s wealth

Growth maximising

Sales revenue maximisation

Diversification

Increased market reputation

Environmental objectives

Survival Strategies to achieve these aims:

By increasing sales tesco is able to provide a range of share contracts.

By increasing profits tesco is able to expand and increase their international franchise.

By increasing sales and profits tesco are able to provide a service where their customers are not affected by the increase or decrease in tax.

Diversification – growing the company. Increased market reputation – by providing a high quality service Tesco are able to increase their reputation in the Food Retail market.

Environmental issues – By providing facilities such as recycle bins and charity facilities tesco is able to win the respect and trust of green peace customers and the other wiser community.

Survival – Tesco like any other company needs to provide and make profit to survive in the competitive market.

Objectives: To understand their customers better than any of the competitors do To use intelligence, scale technology to deliver unbeatable value to customers in everything they do. To be Energetic and innovative and to take risks in making life better for our customers. To earn the respect of staff for these values and to appreciate their contribution to achieving them. To recognise that brilliant employees are working for them and to use this strength to make the customers shopping trip enjoyable in every way possible which, no competitor can. Read also “Waitrose aims and objectives”

Strategies to over come these Objectives:

By doing this Tesco will earn the respect and trust of their customers. To use intelligence and technology will improve the way customers can enhance themselves in the store. Intelligence will help tesco provide greater facilities and more technical things which will help them in the future. To be energetic, this will help increase customer rates by initiating quicker service. By earning the respect of staff Tesco are able to motivate and increase their reputation and to run the business they need staff. By realising that brilliant employees are working with them Tesco has the ability to ask more from its employees.

ICT is needed in almost every business especially the NHS. Accounts of peoples information will be kept on this so that they have records of who visited what doctor and when. The NHS can be a private company. People’s records will be kept by using ICT so that they can be easily accessed.

Customer Services

As in any business Customer Service is required. People may wish to phone up because they are unaware of an appointment or they wish to cancel.

They may question that they have a bill that is the incorrect amount in which they need people to contact in the event that this happens.

Human Resources (doctors, nurses etc)

Doctors/Nurses play a vital role in the NHS. They help to make the problem better for anyone with medical problems Prior to becoming a doctor they will have to take a series of exams and training so they know how to operate and so they know the body inside out.

Other HR are required like: Receptionists and Personal Assistants.

They are responsible for what the doctor is doing and for how much time is required on a certain job. The time may be different for different jobs. No day is the same at the NHS. Support staff Support staff will need regular training in order to become qualified as the Doctor’s back-bone. Read also about functional areas of McDonald’s

Strategic leadership

Leadership is important in any job as then you know where you stand. A person that has been doing a job for a while may be required to become a leader in which he needs to carry his team forward and make sure that everything is running smoothly.

Without any leader there will be a big problem. Agreement between people is also very important as that way everyone is satisfied with what is going ahead. The leader has the say in this position which is why leading someone or leading a team is very important. Marketing This function in the NHS is to ensure the general public is aware of how to obtain good health care from the NHS. Marketing will also promote a “healthy lifestyle” for the public to reduce the demand on the health services.

Finance

The finance department will monitor the budget for the NHS and all the expenditure of the NHS trust companies. The future of the NHS will ensure value for the services and supply of the medical products.