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Usiness at work - Tesco was founded in 1924 by Sir Jack Cohen. Over the last 78 years, as the food retailing market has changed, the company has grown and developed, responding to new opportunities and pioneering many innovations.

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Introduction

USINESS AT WORK COURSEWORK TESCO PLC Introduction Tesco was founded in 1924 by Sir Jack Cohen. Over the last 78 years, as the food retailing market has changed, the company has grown and developed, responding to new opportunities and pioneering many innovations. Today it is Britain's leading food retailer with 639 stores around the country. Profits have risen by 11.9% since last year. OBJECTIVES * Increase food sales * Develop non-food business * Offer the convenience of one-stop shopping to their customers * Expand their hypermarket business in central Europe and Asia. Currently, international growth has gone up by 32.3% to �2.3bn and contributed �59m to profits up 78.8% to last year. * Increase value for customers and to enhance returns to shareholders *????Continually lower prices that customers pay for everyday products, current prices are 12.5% lower than they were in 1996 and in the first half of this year, they had deflation of 1.6% * Increase their investment in the environment * Continue helping charities * Provide better services to ...read more.

Middle

3. Since it has many shareholders, many ideas are brought into the business and the best ones are chosen on how to operate the company. 4. It has unlimited liability 5. Its large size enables it to enjoy economies of scale such as being able to buy in bulk 6. Its size will also enable them buy special equipment and machinery which will save in labour and expenses 7. It can find it easier to borrow money than smaller businesses during financial difficulties because they are at less risk of going bankrupt than smaller firms. Disadvantages of being a PLC 1. Each of Tesco's shareholders has very little say on how to run the business unless they own a lot of shares. 2. it's easy for someone to buy enough shares to take over the business if they think they can make more profit which means the current shareowners loose out. 3. This means unlike other businesses, a PLC find it hard to sacrifice profit to other objectives like helping the environment. ...read more.

Conclusion

The customers are happy with its products and I think they will continue supporting it since it also gives back by donating money to charities and also helping preserve the environment in a way that it gives recyclable carrier bags, fund for environment protection agencies etc. It has also started selling non-food products like electronics, DVDs, health and beauty products which shows that it is indeed investing in other markets. Non food products have also had a 300% increase in sales. It's making it easier for customers to shop by having online ordering where they can order the goods and get them delivered to their door steps free of charge. This increases sales and Tesco tries to make it popular by offering free delivery. Generally looking at the chairman's statement I obtained from the internet, financial group sales increased by 10.6% to �12.7bn (2001-�11.5bn), profit before tax increased by 13.3% to �545m, UK sales alone grew by 6.8% to �10.5bn (2001-�9.8bn) of which 3.9% came from existing stores and 2.9% from new net stores which shows that internet is booming. Compiled by Anthony Nuwagira ...read more.

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