Tesco and Resources
Tesco use both physical and technological resources. Physical resources are resources that are available to business organisations in the form of buildings and other machineries needed for the day to day running of the organisation. A few examples would be: Buildings and Facilities: All businesses need buildings which they control from, this can range from someone’s front room, or tower blocks all over the world, buildings play an important role in the image of a business and can influence different types of customers, many financial institutions such as banks like Lloyds TSB and HSBC have very famous buildings as their headquarters and are still located in central London near the stock exchange so that they can maintain links with clients in person as well as online. The location of the building is important when a business considers its distribution network, if a business locates nearer to a place which is very accessible to as many customers as possible, its profits will increase, for example Tesco PLC locating in central Europe as they trade throughout Europe and they can easily access other countries. Plant and Machinery: A business may spend thousands of pounds on its factory and machinery by buying everything that is needed for, for example, Tesco PLC will have to purchase all types of machinery for its delivery and warehouse option. Although they may purchase them, it may be more affective and cheaper if they lease the machinery and plants they need. Equipment including I.T: Equipment is so important for a business to operate efficiently, for example, a Tesco worker may not be able to work effectively if they do not have the correct size cage for allocating stock. Insurance: All buildings owned or leased by businesses must have insurance, if the business owns the building, it will arrange this cover itself, but if the building is being leased, it will often be arranged with the landlord. A fee is paid each month then protection is...
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