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Tecsave is a supermarket chain. It is an industry dominated by five large firms and currently it is second in terms of its share of the market.

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Introduction

Korrin Barley Tecsave Tecsave is a supermarket chain. It is an industry dominated by five large firms and currently it is second in terms of its share of the market. Tecsave began its business in 1947 as a sole trader set up by Robbie Peers. It had just one grocery shop in the Midlands. Tecsave became a private limited company in 1957, by which time the business opened 56 shops all sited in the Midlands. In 1965 it became a plc. By 2002 the company owned 187 supermarkets in the UK. In a fiercely competitive industry Tecsave must endure that it is both aware of the actions of its competitors and looking for possible future developments and growth that will help it to achieve top position in the 'big five' league table when it comes to market share. Future growth will need a range of resources, one of which will be staff. Therefore, recruitment and retention are important issues for the company it expands and seeks to ensure high levels of staff and customer satisfaction. The majority of the staff employed by Tecsave are part time. Tecsave is aware that some of their competitors have moved to e-commerce and have established an online shopping service, which allows customers to place and order of their shopping on the internet and then have it delivered to their homes. Tecsave's own research has shown that there is take up from a wide range of customers and not just the elderly. Other areas that are being considered are mini-supermarkets, or convenience stores, and product diversification. The directors must constantly monitor the state of the market and the performance of the company, balancing the interests of the different shareholders involved, as they seek to ensure future growth. Tecsave is in the tertiary sector. There are three sectors all together: * Primary production involves acquiring raw materials. For example, metals and coal have to be mined; oil drilled from the ground; rubber tapped from trees; foodstuffs farmed, and fish trawled. ...read more.

Middle

To expand Tecsave would have to raise their capital. To do this they would * Invest their profits * Keep savings / invest their savings * Obtaining loans from banks * Obtaining loans from other businesses * Issuing new shares * Merge with other companies. Organization charts are vital for companies. The structure of business organizations depends on the nature of their activities. A manufacturing firm may have a different structure from one providing a service. Two common ways of organizing firms internally are dividing by: * Functions (departments) * Products A manufacturing firm may divide its operations up by product, as it probably produces a range of products. Most large companies have departments or functions as their basis for internal structure, for example: Production, Finance, Marketing and Personnel. The head of each area is called a director. Each department has different tasks, all of which are extremely important in order for the company to run smoothly. Production: Department in manufacturing firms responsible for turning raw materials into finished goods. Marketing: The function of this department includes consumer and market research, selling, advertising and distribution. Finance: This department deals with the accounting, recording, controlling and analysing of the firm's funds. Personnel: This department is responsible for employing and dismissing staff; salaries, assessment and training. The Tecsave Human Resources Department. The Human Resources department anywhere is usually responsible for recruiting new staff and for training them to do their job. When job vacancies arise, it draws up documents for specific purposes, organizes and runs interviews. They do plenty to ensure that all staff working for a company are happy and well looked after within their working environment. The department arranges holidays and overtime for staff. They operate wages and the perks to a job eg: * Cars * Health insurance * Free uniform * Discounted products * First class travel And also arrange shifts, the hours people want to or need to work and they also provide equipment and uniforms for all employees. ...read more.

Conclusion

The two kinds are: * Persuasive: The main objective of persuasive advertising is to persuade your consumers that they need or must have this product. It attempts to persuade the public to buy your product over rivals' products, suggesting that yours is the best. Persuasive promotion is supported by the use of branding, packaging and other forms of product differentiation. * Informative: The way in which informative promotion tries to sell a product is emphasising on the full information of the product, (e.g. telling consumers your products are okay for diabetics.) Although informative is not very common with products such as ice creams it does not mean it should not be considered. Informative promotion is often used with services to try and compete with each other suggesting that they have better or more services available than other companies. Tecsave's Financing The Public Sector operates both at national level and locally. Responsibility, and therefore funding, lies with central government or local authorities. Although the main function of public corporations and local authority undertakings is to provide a service for everyone, they may also make a profit. If this is the case, then the surplus cash is reinvested in the business as retained profits, to develop or improve the service. Otherwise, funding comes from the Treasury or the local authority, either in the form of grants funded by taxation, or loans. The Public Sector Borrowing Requirement (PSBR) is the money required by the public sector of the economy for expenditure on items that are not financed by income. External sources of finance 1. A sole trader or a small business may be able to borrow money from family or friends without paying interest. 2. Loans from a bank or a building society can be expensive. An agreed amount is borrowed and repaid over a fixed period of time with interest. 3. Grants from central or local government can cost the firm nothing. 4. Firms often lease equipment or machinery to avoid a large outlay of cash. This is useful if a firm needs to upgrade within the medium term as technology advances. ...read more.

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