location of tesco

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Location of Tesco

Location is a key factor for every business including Tesco and many aspects of a location must be analysed before it can be chosen. This includes the competition in the area, the reputation and the population of the area.

Finding an ideal location is a decision that requires a lot of reconsideration and investigation particularly as Tesco is such a huge company with such big stores. Firstly all Tesco stores require a large area for the stores, as they will be accommodating such a huge variety of products. Secondly they will need a huge car park space for their customers, as the store can have hundreds of customers at any given time as well as providing disabled parking and family car parks. They also require a substantial area for a warehouse to stock their goods as well as loading bays where they receive their deliveries of stock.

Some Tesco stores are situated in town centres however this is only if they are able to find such amounts of land they normally tend to locate in other places where they are able to build bigger stores. However building stores in town centres also means high interest rates so Tesco must be wary of this.

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I will discuss the location of my local Tesco store in Slough. Tesco found a big area of land available in the town centre of Slough and through Market Research and Investigation they were able to conclude that Slough is a viable location with a stable economy and a high spending power. Also the Town centre brought many benefits for Tesco as firstly it would give them a brilliant return on investment as it would help to establish the company being amongst other well known stores. However being in the high street is more expensive than being out of ...

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Here's what a star student thought of this essay

The student discusses potential issues within the town, such as their crime rates and gives examples of certain crimes. This section is presented well, as the student has imputed a graph, and circled the hotspots of crime. This will allow the exmainer to understand the areas of crime with ease.

The report states that Tesco will be at the centre of the high-street, which attracts consumers as it's within the heart of the town. However the student doesn't include the effect that this has on other local businesses within the area. The student does understand how this effects Tesco as a business, although it's important to consider the effects of Tesco on other businesses within the area. This shows the exmainer, that the student has written a balanced report, including all view points. The student states that there is a train station and a bus station next to the Tesco store. This is mentioned, however the student hasn't stated that the store has good communication links. This would allow Tesco to attract consumers, due to the high transport links between a number of different locations. Thus, the Tesco store is easy to access by a number of consumers. The student states that the competition of Co-Op wasn't much of a challenge. Although why isn't this a challenge? The report could include 'Co-Op will not have a large impact upon Tesco's sales as there attract different customers. Co-Op attracts those consumers who want a fair deal, but may be more expensive. However Tesco offers good quality for low prices. This difference in consumer's, is the reason to why Tesco may not worry to a great extent'.

In summary, the report almost acquires high marks. The report states a number of factors that can influence a businesses decision to locate their store within a certain area. However the report does lack some detail and the student should justify some parts of there report more often. The student understands that the location of the business can effect the businesses performance due to a number of factors. The report states that Tesco requires large premises within all of their stores. However this is false. Some Tesco stores need to be quite small, as there have a number of small stores, known as 'convenience stores'.