tesco aims and objectives

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Omer Baig

Aims and Objectives

Tesco's Mission Statement

A mission statement shows the aim of a company. It shows the direction a company is going. And what they are doing to give their shareholders the best dividend. Tesco have a mission statement to encourage shareholders to invest in their company.

You need to broadcast your aims to the public so that they can see what the company wishes to achieve e.g. Tesco want loyalty from customers and therefore this indicates that they will do everything possible to achieve this. Tesco needs the profits which only the customer can give and this is only possible if the company provides the right type of goods to satisfy everyone. Tesco has made sure that they stocks are goods and plentiful so that the customer does not need to go anywhere else because their aim is to satisfy each and every customer.

By setting an aim the company is able to set itself targets e.g. to become the leading supermarket and improve its market share every year. By setting targets the company can assess its performance. If things go wrong then they can take steps to improve and achieve their appropriate targets.

The company will also attract every type of customer, which will lead to large profits which are desperately required to pay the shareholders dividend, expand the company, introduce new products and improve existing services.

In order to reach their aim Tesco set itself small objectives which are small targets and these help to meet their main aim which is to retain customer loyalty. Objectives are also important because they give the company a direction to work towards and achieve its success.

Customers

Tesco achieves success through various ways and one successful method has been the Club card.

I think one of the main reasons customers prefer to shop at Tesco is their facility of the club card. This is a loyalty card which gives customers free coupons to spend in stores and this is a huge attraction for the public. People enjoy the benefits of these vouchers because these are for the products the customers purchase regularly.

Tesco ensure they are keeping their customers happy by giving them a variety of goods they also provide them with special offers. Tesco diversified into non-food products, online shopping, club card, low prices and household items which customers require all these things. Tesco has done all this to retain their customers and not let them go to other stores. Tesco's competitors Asda and Sainsbury’s failed at this scheme and Tesco were very brave to continue in this area. This has led Tesco to gain a 30% market share and the leaders in food and drink and this shows they met their aim and objectives of retaining loyalty. Grow Sales

Another one of Tesco's objective is to grow sales. Tesco buy in bulk, this means that one person from Tesco buys millions of products but they get it cheaper. They sell their products through the Internet as well as their 1100 stores. The 1100 stores have helped to contribute a lot of profit. Tesco make £10 millions in profit through the Internet. The Internet is a good benefit to Tesco and has also contributed a lot of profit to Tesco's bags and bags of profit. They also offer halal meat for vegetarians and Muslims. Many customers buy from Tesco because of their Club card. Tesco get the low prices from the central buying system.

It shows that Tesco have been able to grow sales and expand their services and satisfy the customers. Profits have allowed Tesco to give more money to shareholders. Expand Abroad

Tesco also decided to go abroad after they became the leaders in the UK market. This has helped them grow into a bigger multinational organisation. In France Tesco have 109 stores; in Germany, they have 220 stores. Poland has 80 stores. Tesco have a huge investment in different countries around the world. This will ensure shareholders get the largest amount of dividend possible. This is a very good investment for Tesco and you can see this from the amount of stores they have and incredibly high profit they have gained £425 million and this has helped them to give higher dividend to shareholders.

Environment

Every Business around the globe has to be concerned and retain the environment when carrying out their business activities. The governments have set these rules and guidelines that all companies be obliged to follow regarding water, air and visual pollution. The governments have to keep an eye on the activities of Tesco's and other businesses. Tesco are monitored on a full-size scale as they have the highest market share of 29% and a profit of £2.2 billion. Over a third of the U.K's population shop at Tesco. The nationwide press keeps tabs on every single thing that Tesco does, good or bad. This either helps gain or loses customers. Tesco's main objective is to keep hold of customers. Tesco superstores have used intelligent strategies in keeping the pressure groups of their support by using their £2.2 billion profit and reinvesting into schemes that defend and preserve the environment. I.E green trays, degradable plastic bags. Tesco's have used objectives to cut down on energy, fuel and water spending on all there stores across Britain. They have a very refined way of recycling bins and trees, regenerating areas and lorry deliveries during of peak times.

The Tesco Company is a large international business PLC, People all around the country will want to know what Tesco does to uphold the environment. They have to hang on to customers and gain customers. To keep customers keen and keep pressure groups off their back they need to look after the environment. If Tesco's started using new environmental reduction schemes this will help increase more customers also helping their major aims to retain customers.

Tesco have invested their £2.2 billion pound profit into schemes that help the environment. Such as energy consumption, water efficiency and fuel efficiency technologies. However this costs Tesco a lot of cash to put in, into all their shops so not most of there stores have these new systems. Tesco's have provided recycling bins around their Tesco stores which get recycled properly. They launched a new scheme of degradable plastic bags which are more environmentally better then usual plastic bags.

The company has to stick to the rules and the guidelines that the government has set them. If they do not stick to the rules the government could issue Tesco with a fine and pressure groups will start to form. This could make Tesco lose their high reputation and give them bad publicity. If they get bad promotion the public that shop at Tesco will stop and go to other companies such as Asda or Sainsbury. This will make Tesco lose there status of being the leading supermarket in the U.K.

This will affect the local solitary traders around in the area. As Tesco are fulfilling all their customers needs. This determination means the shareholders get more money and higher dividends. The company's sales and profit will increase so they will be able to reinvest more. And invest into the company.

I think that the Tesco's company should help preserve and defend, because they have such a massive profit of £2.2 billion. If they keep on protecting the environment there market share will keep on rising. This will further make certain that they will remain the leading supermarket in Britain.

Suppliers:

At Tesco's suppliers are vital for them. If the company are buying low-priced from suppliers this will automatically mean that the stock in side of the store will have a very low price.

Tesco superstore increase huge discounts from there suppliers as they buy in vast bulks for all there stores. They have many benefits of dictating the price from the suppliers.

This new technology has helped Tesco run their business more efficiently. The computer is able to inform the manufacturer to restock their products as it can automatically find out what products are at low stock. This expensive technology is cheaper in the long run as it Tesco will have made enough money back in return to pay off the cost of the technology. This also shows what Tesco has sold during the day and the computer can calculate and much stock is remaining and what brand they are.

This technology is also saving Tesco money and time as they would need more workers without any computers. Without computers assistance Tesco would be wasting more time to get stock as they would have to do several things before the interaction has gone though. Tesco would need to communicate formally rather than informally as having no technology the only way for them to receive stock would be to go and get it themselves. Tesco would also need more workers to find out what products are at low stock so they can inform the manufacturer what products are needed however, with a computer it's timeless and much more efficient and doesn't waste Tesco's valuable time and money.

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Going Abroad:

Tesco superstores currently are operating in 12 worldwide countries, and have strategies at a mixture of levels of enlargement to enter into as much as possible. A quantity of countries have moderately not fully formed grocery retail markets, but are undergoing swift changes and supply huge possible markets for companies such as Tesco whom have marked these locations. Tesco has succeeded in being an appropriate business amongst the peak retailers in a few Eastern European countries, has determined tactics of following in China, is trying to enter India, and is also soon to open its first store in ...

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