Friday, October 18, 2019

Five- Year Report for Tesco PLC Essay Example | Topics and Well Written Essays - 2000 words

Five- Year Report for Tesco PLC - Essay Example The revenues declined in the year 2011 to a extend of 14% with respect to the previous year due to hike in prices of the UK market where the core business of the company lies and the 2012 showed stable growth by offsetting the fall in profits in the UK markets by its international business. Tesco plc emerged as a prominent figure in the turn of the 21st century .In the years to come Tesco is continuously striving for its expansion efforts in its core business in UK, retail services, international operations and operations in non food business. Till the period 2004 the company has gone for massive expansion plans. The company’s growth trajectory has been exceptionally been good over the years. Business Model of Tesco Tesco has evolved as an eminent player in the market over the last five years. It is basically because of the expertise it possesses in capital, human and financial area which can be harnessed across different geographical boundaries trough its sound business model . Figure 1: Business model of Tesco (Source: Tesco PLC, 2013, p.25) Tesco PCL’s way of creating and delivering value to its customers and associated group is rather simple but yet very effective. Its core business activities in a nutshell can be summarized as buying, moving and selling of products and services to its customers and also making use of the customer’s perspective to provide better value to its customers. The core activities are explained below. The company constantly interacts with its customers through focus groups, ongoing research trackers and social networking sites to take in customer feedback with regards to the pros and cons of its available products. These valuable suggestions from customers are incorporated through adding further value to these products such that the customers can derive greater benefits. It offers to its customers a great range of products and through its broad range of supply chain it makes its products available in UK and Europ e etc with much ease. The company through its vast network of distribution channel and advanced technological system is making the right kind of products available to its customers at the right time. This is achieved through making a proper forecast of customer’s needs through detailed models which takes into consideration of variables like seasonality, weather forecast and the responsiveness of the customers to the promotional efforts. Secondly, its ordering system updates itself on real time basis such that it can quickly replenish its supply stores with the right kind of products at the right time. Whether it is store or online shopping or both Tesco is acknowledged to have delivered greatest shopping experience. Its loyalty schemes, multi-format approach to the stores network ranging from large Extra stores to Metro and Express Convenience stores have made its selling a divine experience for its customers. Due to these core competencies of the company in offering value to its customers it stands out in comparison to its competitor as it market ratings suggest being the first rank holder in UK, first and second position in all markets of Asia except China and

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