The core business functions of TESCO:
• The administration function
• The human resources function
• The marketing function
• The research and development function.
Aims of TESCO:
2) It aims to maximize its sales and hence increase its profits.
3) It aims to make the shopping of its customers cheaper by decreasing its prices.
4) It aims to include healthy eating products in its product range and offer it via an online shopping site.
5) It aims to provide jobs to people and reduce unemployment in the local community.
Stakeholders of the company and their expectations:
Stakeholders are- customers, investors, employees, suppliers, and NGOs (www.tesco-careers.com)
1) The company will improve the shopping experience of its customers.
2) Quality products will be provided by the company at affordable prices.
3) The company will increase the capability of its employees and will be unbiased to all employees.
4) The company will cut down its costs and increase profits.
5) The company will repay its debts on time.
6) The company will contribute to the welfare of society.
The relation between the aims of the company and stakeholders:
Costumers expect that the company will give quality products at low prices which are also the aim of the company. Then, the company aims to increase its profits which are expected by the investors. The company aims to give jobs to people who are an expectation of the general public at large and is a part of the social responsibility of firms. So most of the aims of the company relate to the aims of stakeholders.
SWOT analysis of TESCO:
This is a globally recognized brand and comes in the list of top 100 most valued brands in the world. The products offered by it provides value for money. It has a wide range of products and an excellent product portfolio. Innovative business methods are utilized for growth. It has a presence across the world and has some stores like Tesco Metro, Tesco Express, etc. It gives an opportunity to the customers to shop online. It has joint ventures with other countries like China which gives it easy access to other markets too. It has the benefits of economies of scale. It has kept the prices low to attract customers. It has successfully created long term relations with customers. The Internet is used by elderly people as they have income by can't visit the store to buy things every time. By online site, Tesco has positively responded to the social change. Supply chain management systems were developed by the company to attain a competitive advantage, and the cost efficiency was enhanced. It made use of technology appropriately.
It faces bad debts from credit cards and the insurance claims of households. It lacks experience in few markets that it has entered or plans to enter. It needs a lot of resources in cash to invest in new technologies of The Web and IT. This has the possibility of adversely affecting the sales of the company.
It can expand into markets like digital entertainment. It can offer its rand smartphones and tablets in markets like Malaysia, South Korea, and China, etc. With an online shopping site, more flexibility can be provided to the customers. This will attract more customers to the company. It has the opportunity to expand overseas in markets where the competition for retail grocery stores is less like in Australia. The higher economic growth has paved a way for the growth of the supermarket industry. Also, the increased growth of the economy will increase the spending of customers.
It receives huge competition from other retail grocery stores. Wal-Mart poses a great threat to Tesco as it has all the required skills, experience, funds, etc. that create problems for Tesco. The expansion of Tesco is hindered by the town planning activities, intolerance of customers for the out-of-town stores and the concern for the small shops' livelihood. Due to the increase in the VAT by the government, customer spending might reduce, and it might negatively affect the sales of the company. The government also proposed that it will adopt a fat tax to control the medical problems in people due to obesity, this will also adversely affect the sales of certain products.
Tesco can launch a range of healthy products which it has already started to fight the impact of the fat tax. Then it can reduce the prices of products so that even if VAT increase, the customers can buy the products. To fight the competition, it can try to achieve the economies of scale, gain competitive advantage, etc.
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Barnes, R. (2011). The great Tesco beauty gamble (the Tesco supermarket chain?s marketing strategy for breaking into the UK beauty services market). Strategic Direction, 27(7).
Wilkinson, M. (2000). The Tesco Roundabout. Books Ireland, (236), p.373.