Evaluating Tescos Methods of success in the Retail Supermarket Industry

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Introduction (Company Background)

Tesco is one of the leading dealers in the United Kingdom and one of the largest food retailers in the world. It also sells non-food products such as household appliances and clothing. Tesco has its headquarters in Hertfordshire, United Kingdom and employs about 318 300 people. (Www.datamonitor.com) the group generated sales of £ 42.641 million in the fiscal year ended February 2007; an 8.1% increase over 2006.The advantage of the working group was £ 2,648,000 in fiscal year 2007, an increase of 16.1% over 2006. (Www.tescocorporate.com) Net profit amounted to £ 1,892 million in fiscal 2007, an increase from 20.5% in 2006. (Spulber, 2007) The company started as a grocer, but then made a wide range of retail, where he was an equally wide range of services. These include finance and insurance, telecommunications, travel agency, and a selection of other products, including legal advice in the form of wills, do-it-yourself kits and divorce. He also runs a business selling retail gasoline extremely influential.

 Tesco has a fully national network in the United Kingdom, although it may be strongest in the South, because their roots are Londres.plans international society more and more headlines in the United Kingdom. Recently, he has withdrawn from talks with Bharti Enterprises in Indian society for the creation of a joint venture. It is a great opportunity for foreign retailers to a market that is expected to double the size of the U.S. $ 640,000,000,000 in 2015. Tesco is always looking for opportunities in the Indian market, however.

Mission Statement

A model shows the most important priorities of the company. Tesco's mission statement is to be loyal customers, which the world that Tesco to ensure that customers, they go back to them and not their competitors keep showing plans. The reason Tesco has a vision, know so that their shareholders and customers, where the company is headed. (Spulber, 2007) to Tesco must set goals in order to do so. Tesco aims are to their customers happy, because if they do, it means that Tesco customers will be happy, Tesco will stay with them and not by competitors, and Tesco has Tesco loyalty of their customers. For Tesco to achieve their goals they have set goals small. (Simms, 2007) Tesco Plc Coursework-Writing.co.uk

Objectives of company

Tesco customers will be loyal to Tesco goals to achieve the small goals that Tesco are great help set their goal to keep. Tesco aims are to keep the customers happy in order to achieve high profit margins for the employees, motivate overseas expansion, support for economic issues and to protect the environment.

Tesco currently operates primarily in supermarkets and hypermarkets, but the company has diversified in the period. Its operations include convenience and gasoline retailing through its Tesco Express fascia and small businesses through high street Tesco Metro, Tesco Extra on Supercenter and non-food specialist by Tesco Home Plus. Services are in the Tesco Personal Finance and Tesco.com online sales channel has 98% coverage of the United Kingdom and the country's top Internet services. (Thomas, 2007) his most recent strategy was simple - is growing by all means available to achieve maximum economies of scale to take advantage of a serious threat to his course work-Writing.co.uk Tesco Plc to create competitors. This means the sale of a wide range of products, the stratification of the offer so that consumers rich and poor is not there and especially shop, opening as many trips as possible. Known, the small village of the bisector of Oxford County was next with six Tesco stores after the company took over T & S store retailer shops. (Forster, 2007) It was great, marbles in the British press about the speed and success of the strategy, but Tesco's operations are not considered illegal or monopolistic. However, the rate of re-referral to the Competition Commission proposed by a parliamentary committee that Tesco may be challenged.

Business Activities

Increase your sales

One of the main goal of Tesco was to their income in the only way this is done could increase with revenue growth. Tesco has increased its sales starting with the diversification into non-food sector, because it meant that Tesco could sell a wider range of products and attract more customers and sales growth. Once Tesco have thought a lot of profit from non-food manufactured so that it meant in diversified financial services Coursework Tesco Plc Writing.co.uk that Tesco would be a wider range of services have to offer their customers.

(Clive, 2007) Tesco, other services such as card clubs and Internet purchases has introduced because it meant that Tesco could be a wider range of customers who have thus contributed to its objective of revenue growth and achieve and maintain a higher income.


One of the main goals is to have low Tesco prices because of low prices have led to Tesco to increase their chances of winning and maintaining customer loyalty higher profits. Such as Tesco to get prices down is by working through the system of central purchasing. In normal companies that buy their shares through the central purchasing system that would mean they would be obligated to purchase products from the wholesaler shall obtain from the manufacturer. Tesco do not want them to skip the wholesalers in order to get their products cheaper by the manufacturer. Sun Tesco keeps its process and low profit rates.

Foreign expansion

Tesco has captured the market in the UK and then decided it was time for them to go for a wider range of customers for its broad range of customers Tesco had to go abroad in order. I think Tesco's overseas expansion was a good thing, because so far 280 million pounds Tesco profits made abroad and I think it will only grow all the other benefits of Tesco.


Customers loyal to Tesco should take care of your customers, they do so with the low price, because if Tesco have low prices, then Tesco will attract more customers, because they have less money to spend Tesco them. Tesco keep their customers happy by opening more stores and larger exclusive because if Tesco stores to open bigger and they have everything under one roof, which is for Tesco customers, who are very busy, because they simply a trip to Tesco and All get what they want. (Lincoln, 2007) Tesco and their customers keep loyal to them by sending a card club that customers buy more stuff from Tesco points and supports. When customers get enough points, they get vouchers from Tesco; this again is very beneficial to Tesco, as there is a lot of customer loyalty.


Another goal of Tesco in the town, Tesco joy of communion with the one that Tesco carried out as they take care to: Tesco Plc Coursework-Writing.co.uk Was money aid organizations in the community showed that Tesco business that helps people care around the world ist.Tesco the environment has shown through the planting of trees outside their stores this that the local Tesco are environmentally friendly and supports it, community settings. (Forster, 2007)

Private label strategy of Tesco private label function is as wide as possible, offering a range of products and has a number of different positions within the brand. In the case of its food, the brand-in-the brand that includes as Finest, Value, Fair Trade, organic, whole foods and healthy lifestyles. Every call is acceptable, or another group, economic or social development, thus extending the customer base of the company at its widest width.

(Manfred, 2008) The company pursues the same strategy in his offer not alimentaire.Elle operates a number of clothing lines, including the market earlier in Florence and Fred, Cherokee and school wear. Worryingly, Tesco has followed model high street retailer Top Shop is building its Florence and Fred range, reproduction as expensive sewing at a fraction of the price of brand focus. This shows the resolve of the Tesco muscle in all areas of retail.


New developments of private label for the company in 2005 and 2006 included the launch of its range of GI, the Glycaemic index diet on trailers of food and variety of food transformes.Tous two target is not in response to consumer demand, although the actual sales format may be less important to the companies responsible as the appearance and be sensitive to food trends.

Competitive positioning

Tesco is the positioning of construction: It aims to cover every conceivable part of the customer base. For example, the retailer is surprisingly sensitive to specific regional needs. Tesco Plc-Writing.co.uk coursework His performance in Brixton - part of London with a high level of immigrants - has produced a strong offer Afro Caribbean and Asia. (Manfred, 2008) This position reflects the company's strategy of being all things to all consumers. The company is at a distance, the leading dealers in the United Kingdom. Its share value of 11% market share in 2006 was nearly double the 6% of J Sainsbury plc, its closest rival generated. (Thomas, 2007)


Tesco continues to increase this share in the period, thanks to its expansion strategy to establish unity, and with its enormous economies of scale to the very favorable conditions. The society now dictates prices to producers and not vice versa. This allows very aggressively compete on price, so that the small consumer market. These two factors, with the undeniable convenience of shopping there, combined, and a series of groundbreaking offers a consumer service, good food and non-food and retail loyalty programs, have combined to produce the largest base to build consumer in the United Kingdom. (Lincoln, 2007) Tesco is market leader, because his size allows him to raise the bar in terms of product range and price. However, much to the innovation of their ability to be expanding rather than real radical new ways of doing business. There is no pressure to fit the company its competitive advantage in the UK is so great. (Manfred, 2008)

Recruitment Procedure

The selection involves choosing the most appropriate to apply for a job without employment laws. Selection candidate a very important process ensures dassSelection.Cells they are selected for an interview at best with the requirements of the position.


In the early stages of screening, each candidate selectors Tesco examiner on sattentivement's curriculum vitae (CV). Sums up the candidates CV shistoireBuilding and employment to date. A well written resume and positive CV helps Tesco in assessing whether an applicant meets the specification meets the person's specifications for the job.

The company also offers a "kind of job-matching" tool its careers web pages. People interested in working for Tesco can see where they might fit in before applying. The process Tesco uses to select external management candidates has several stages.


A candidate who does the screening attended an assessment center. Assessment center in the store and instead are run by managers. They help to provide consistency in the selection process. Candidates will be given various exercises, including teamwork exercises or problem solving exercises. These include examples of problems they have in order to be exposed at work. Candidates approved by the Centers internal assessment and then they have an interview.

Employee Motivation

Rewards should be about choice and relevance

Rewards are the most effective, memorable and motivating are generally accepted to select by the workers themselves. It is ideal if you have a system of incentives for your employees to implement because it is a variety of gifts ambitious and capable, the most coveted brands.

The importance of the right reward

With the right rewards instead of a staff incentive scheme is unexcellent way to increase sales of any product or service, improve the performance of your employees and encourage employees to "go beyond".

Offer rewards or poor and inadequate incentive system can lose your momentum, which could actually discourage your employees around a negative impact on your business.

Conclusions and recommendations

Tesco are apparently good results in the supermarket chain Tesco is to stop this but how success and progress. I think Tesco can go further by fallen more for their customers. I recommend Tesco to open a playground for children, finding customers, Tesco, have the children for a quieter time have made the purchase. If Tesco is a playground for children, it has more customers with children, such as attracting Tesco is the only supermarket to offer this service.

I also recommend Tesco to improve their shopping on the Internet so that it ensures that potential customers of Tesco are worried that their personal information could be stolen.

How can Tesco do their shopping over the Internet to make safe hack website for free, it will make customers feel more secure Internet and open with their information.

I recommend that Tesco also expected to do business more races, so that they appeal to consumers around the world. How can they make their businesses more ethnically with clients who speak a variety of languages ​​so they Coursework-Writing.co.uk Tesco Plc who are from different countries can understand them? Such as Tesco, customers who speak a variety of languages ​​spoken are preparing them for different languages. Another way is whether such a store in Slough, where it can have a large community of Indians and Pakistanis and Tesco people who speak Punjabi or Urdu is able to employ, because it is the main population of Slough.Der advantage of more ethnic stores Tesco not only to customers in the United Kingdom also appeals to customers who respond from other countries. Tesco Plc-Writing.co.uk coursework.