As part of my Applied Business GCSE, Unit 1 Controlled Assessment I have chosen to study Tesco’s. Tesco Plc is a global grocery and general merchandising retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues (after Wal-Mart and Carrefour) and the second-largest measured by profits (after Wal-Mart). It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), Malaysia and Thailand. Tesco has been serving UK customers for the best part of a century. Ever since, Jack Cohen founded the company and first opened a market stall in the East End of London in 1919. Today, they are much more than the weekly shop. As their customers have changed, so have they by introducing new services, products and ways to shop. In 1924 the first Tesco product – Tesco Tea – was sold by Mr Cohen. The name Tesco comes from the initials of TE Stockwell, who was a partner in the firm of tea suppliers, and CO from Mr Cohen’s Surname. The first ever Tesco store was opened in Burnt Oak, Edgware, north London in 1929. In 1947 Tesco Stores LTD floated on the Stock Exchange with a share price of 25p. In 1974 Tesco opened its first petrol stations. Technological advancements were also made by Tesco during the 1990’s with the launch of a new on-line bookstore, on-line banking and in 1999 mobile phones were on the shelves of the stores. Tesco has come a long way since its early years; it has gone from just selling your average groceries to banking and insurance. For example, in 2005 they announced annual profits of £2 billion and most recently in 2009 Tesco launched tesco.com/clothing and in 2010 – Tesco opened the world’s first zero-carbon supermarket in Ramsey, Cambridgeshire.
1 The Tesco Logo
Tesco is well known for its ‘Every Little Helps’ philosophy and apart from wanting to make a profit, it aims to provide prices that customers find good value, provide charitable or voluntary service and also be environmentally friendly. Tesco wants to help everyone, not just themselves. Tesco’s has a large market share in the retail sector. Business Activity
Before explaining what Tesco’s operations are I will briefly describe what type of business Tesco is. Businesses providing services
Tesco is a tertiary sector business. These are businesses that provide services. Services are products which are not physical and which cannot be touched or kept, such as taking a holiday abroad or going to the cinema to see a film. When a consumer receives a service, there is nothing physical to keep. Filmgoers pay for the experience of watching the movie on a large screen with surround sounds, from a comfortable seat. But they can’t take the firm home. There are three main types of service.
Client services are services that are services that are tailored to meet the needs of particular individuals or groups of consumers. Examples include sports and entertainment, health care and financial services such as banking and internet access. Retail services are services that involve the selling of goods. Examples include shops, mail order businesses and website based sales. Other Services include a range of services which do not fit into the above two categories. For example: * Transport services, such as taxis, trains and planes;
* Communication services for consumers, such as mobile phone networks. What they sell
Tesco provides the public with a range of goods and services. This is an example of tertiary sector activity. Its stores sell a wide variety of products, ranging from poultry to fruit, clothing to entertainment and even banking and insurance, quite like the other supermarket giants like Sainsbury’s and ASDA. Tesco prides itself on having higher-quality products than its competitors, which gives it a market advantage in the eyes of higher-income people. However, higher priced products may...