mohan kumar injeti
business in other words means a commercial activity or an economic system in which goods and services are exchanged for one another or money, on the basis of their perceived worth. Every business requires some form of investment and a sufficient number of customers to whom its output can be sold at profit on a consistent basis. To further explain the above said definition of business, the leading supermarket conglomerate giant TESCO has been taken as an example and in the following lines we will discuss the various factors of and which affect a business. Information about TESCO :
Founded in 1919 by jack cohen, tesco has quite an interesting story of upbringing. Jack cohen began to sell surplus groceries from a stall at well street market, hackney in the east end of London. In 1924 the name TESCO 1st appeared. Jack cohen bought a shipment of tea from T.E. Stockwell. He wanted an influence of the tea supplier to his company so he used the 1st 3 letters of the suppliers name (T E S) and the 2 letters of his surname (C O) thus founding TESCO. Tesco opened its 1st store in burnt oak, Edgware, Middlesex in 1929. And since then there was no looking back as it was floated on the London stock exchange in 1947. It was then named as Tesco stores ( holdings ) limited.
In 1956 the 1st self service store opened in st Albans (operated as tesco metro until 2010) and also the same year the 1st supermarket in malden was opened. After its formation in the 1920’s during the 1950’s and 1960’s tesco saw a rapid growth and grew organizationally also through acquisitions until it owned close to 800 stores. This included a purchase of 70 willaimsons stores(1957), 212 irwin’s stores(1960), 200 harrowstones outlets(1959), and the victor value chain(1968) which was sold to be jam in 1986.Though originally tesco was specialising in food and drinks, it later diversified into many vast areas such as clothing, electronics, financial services, telecom, home, health, car, dental and pet insurance, retailing and renting of dvd’s, cd’s, music downloads, internet services and software.
Carrolls model :
According to Carroll “the history of business suggests an early emphasis on the economic and then legal aspects and a later concern for the ethical and discretionary aspects”. Economic obligations are therefore seen to be tempered by ethical responsibilities or social expectations and norms. Discretionary responsibilities go beyond ethical responsibilities and include philanthropic measures such as corporate sponsored programs for disadvantaged workers. In 1991, Carroll presented his corporate social responsibility model as a pyramid and suggested that, although the components are not mutually exclusive, it “helps the manager to see that the different types of obligations are in constant tension with one another”. Social responsibilities of tesco will be describes as follows in respect with carrolls model. Corporate social responsibilities (CSR):
Can be described as the “ economic , legal, ethical, and discretionary expectations that a society has of an organisation “.
The economic responsibilities refer to the society’s expectation that the organisation will produce goods and services that are needed and desired by the customers and sell those goods and services at a reasonable price. Organisations are expected to be efficient, profitable, and to keep shareholders interests in mind with the basic 4 responsibilities which are : 1. Profitability
3. Non discrimination
Tesco has a wide range of products from a different brands and makes, and also its home brand products which are cheaper than most of the displayed established brands. But still the profits are staggering and the transparency maintained is excellent. Tesco applies the same financial criteria to all of its customers, suppliers, and employees. Direct...