This report will discuss the downturn in Tesco’s profits and will describe the contribution of the key business functions to the changes implemented in the organization. (Finance, Marketing, Operations, and Human Resources). Also, it will explain the key stakeholders of the organization and the key issues in managing stakeholders. Furthermore, it will include a SWOT analysis and a Power and Interest Matrix about Tesco. Business functions
In the case study of Tesco, it is stated that they will appoint more staff to win their customers back. This step is related to Human Resource Management. HRM is activity, which include recruitment and defining the organization’s demand for skilled staff. “HRM includes the training and development of existing staff along with the recruitment of new staff.” (Capon 2009, p195). HRM is concerned with the overall strategic contribution of people to the organization. This involves developing policies on how to recruit, reward, and retain people. Moreover, HR department is about the contribution of the employees to the organization and what are their skills, abilities, and career development needs. The key activities of HRM are Recruitment and Selection, Performance, Learning and Development, Appraisal and Rewards. The changes in HRM will help Tesco to overcome the downturn in the most effective and efficient way due to the fact that when there is a strong motivation and enthusiasm to achieve your goals and know how to run your own business it is highly possible to become more competitive on the market and to be a leader in the market place. To increase their revenues, organizations such as Tesco rely on changes in one main area, in our case – changes in HRM. With this step, Tesco managed to returns its profits and moreover, to increase them with nearly 18% at £1.1bn.
For chain as Tesco it is exquisitely important the Operations Performance. The five performance objectives, which affect Tesco, are Quality, Speed, Dependability, Flexibility, and Cost. Firstly, quality means high ‘specification’ of a product or service and it is important for Tesco to have ‘quality’ products in their shops. “Speed indicates the time between the beginning of an operations process and its end.” (Slack, Lewis 2008, p38). Dependability is to give to the customers a delivery time. Flexibility is essential for the quick and efficient response to the customers demand. The last and the most important performance objective is Cost. It is important for the retailers because the lower the cost of producing the products or services, the lower they can sell it to the customers. The third business function related to Tesco is marketing. Marketing is about understanding the costumer’s needs and succeed to satisfy their wants and needs. It is a functional activity, which is focused mainly on customers, and will they purchase and continue to purchase the certain product or service. “Because the purpose of business is to create and keep customers, it has only two central functions – marketing and innovation. The basic function of marketing is to attract and retain customers at a profit. “(Jobber 2010 cited Drucker, p3). Marketing explains that to retain the existing costumers is easier than to attract new ones. The marketing mix is important for Tesco because it covers and explains five different aspects. The marketing mix is composed of Product, Price, Place, Promotion, and People. Firstly, the product is something that you will sell to the customers so it has to be successfully launched. The second P is price and it can be different- can be reduced or increased. Promotion is about introducing your product, how you will launch it on the market. The certain product can be promoted and advertised in different ways, through press, television, radio, magazines, internet. The promotional activities for supermarket such as Tesco can be loyalty cards for getting extra points. The fourth P is Place and it ensures the...
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