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TESCO harms local communities.

Extracts from this document...

Introduction

TESCO harms local communities. 1 Businesses are being forced to close down by TESCO. This is because TESCO are taking other customers from other shops and businesses. The cause of this is that TESCO sell goods below the cost price, and because local traders and businesses cannot afford to compete with these prices, they have to close down. However, when those businesses do close down, TESCO increase the price. Due to other businesses closing down TESCO might adapt its activities in a number of ways. In today's present situation, TESCO take on additional trade from businesses which have closed down, this will help maximise profits and provide TESCO with a new challenge and another market to explore. On the other hand TESCO might stop selling electronics, cloths, toys etc as this will provide local businesses with some customers and allow the to make money. However if TESCO do agree to this proposal there will be a huge financial cost to pay as this will cut them out of many lucrative markets such as electronics and clothes. ...read more.

Middle

TESCO could provide recycle facilities or even a recycle service so that more packaging etc can be reused. In addition to this TESCO could also provide an incentive for people to bring back their recyclable rubbish/ TESCO packaging for example, extra club card points or money of coupons. By doing this, TESCO will be under less pressure from Friends of the earth. This would not only benefit the Friends of the Earth but would also benefit TESCO's customers as well. 2 The idea of recycling is not entirely beneficial for TESCO because they have to pay for materials (for the product) and the most probably advertisement fees to promote the product and service. TESCO might need to take action because the consequence of not doing so may result in the Friends of the earth involving the government which would put TESCO under a lot strain. In addition to this, by pleasing other stakeholder groups i.e. shareholders; TESCO would not be able to make Friends of the Earth or the government happy as shareholders would be against the idea of investing money into a project which is not entirely beneficial for the business. ...read more.

Conclusion

have still found that this has made no difference to the way TESCO operates. If TESCO does not take action the consequences they may face may be a fine or most probably legal action may be taking by the Competition Commission and Office of Fair Trading. If this does happen, TESCO's unjust actions will be publicised all around Europe and this would ruin TESCO's reputation. This would also cause TESCO's existing customers to think twice whether they should shop at TESCO and if they don't will cause TESCO to lose a lot of money. Even though TESCO would be in great trouble if they carried on with their ways, TESCO's shareholders may not want them to do so as they know that paying the farmers a higher price will have a ripple effect which will eventually cause TESCO to lose customers and most importantly shareholders and money.eethe farmers the customers would end up paying more as TESCO would have to male upneficial for thstress to nesses to recivearket to exploretivities in a number of ways. ...read more.

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Here's what a star student thought of this essay

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Response to the question

In summary, the report is quite basic. The report states three difficult aspects of Tesco, and gives a little detail on each one. However the student is very one-sided and negative towards Tesco. The report should be balanced and contains ...

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Response to the question

In summary, the report is quite basic. The report states three difficult aspects of Tesco, and gives a little detail on each one. However the student is very one-sided and negative towards Tesco. The report should be balanced and contains a equal argument on both sides to ensure it's an balanced and accurate report. The report states that Tesco sells products at below cost price, however this is in-correct. The business rarely sells any products below cost price, and the majority of their products their sell will receive a small profit. This shows a lack of basic business understanding. In addition, the student states that Tesco has a monopoly. This is false. There are a number of other major competitors within the market, such as Sainbury's, Waitrose, ASDA and a number of other smaller supermarkets. The student could give an example to what price the framers produce the goods for and what price the supermarket pays for the goods, as this would allow the examiner to clearly understand the issue in terms of the pricing.

Level of analysis

The student has largely written using their opinion, and the student has written some quite large allegations regrading Tesco. Using an opinion is fine, as-long as the student has justified their reasoning, however this ins't the case. The student should review what there have written to allow the examiner to understand the student's own view. The student makes one statement and in another disagrees with itself. As the student states that Tesco is making an effort to reduce the packaging of the products, although the student states that Friends of the Earth stated Tesco should do something about it. Although Tesco is actively doing something about this issue. This is quite confusing, and doesn't really make sense.

Quality of writing

The writing style is quite poor. The student clearly hasn't re-read their own writing. The student should spent some time re-reading, and ensuring that all spelling is correct and all sentences make sense.


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Reviewed by danielbeal 31/03/2012

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