Tesco - Aims and Objectives

AIM: To increase value for customers continually and to earn their lifetime loyalty.

OBJECTIVES are specific targets that must be achieved if the business is to fulfil its aims.

Tesco business aim is to:

To increase sales they achieve this by selling items with promotional offers. This will also attract a large number of customer's example (as listed below one of few tesco promotional offers 40% off DVD releases)

Tesco also need good profit levels to survive against heavy competitors.

They need good profit ratings to be able to offer promotional offers.

Tesco provide services to the local community such as home delivery. Tesco also provide a service which involves:

o Mortgages

o Loans

o Insurances

o And other personal needs.

Statistics below show Tesco's other activities.

Maximising sales or improving quality - Tesco wants to maximise its sales to increase profit ratings. By Improving quality Tesco are able to provide a better service then its competitors which would appeal stronger to the community.

Two major aspects of providing goods and services that businesses must consider:

The quality of their goods and services. Quantity relates to the performance of a product, how long it lasts, how well it is made, what additional features are included therefore Tesco needs to make sure the product is a longer lasting and efficient product which will meet the needs of the customers.

The price they charge for them. Quality goods cost more to make and buy therefore Tesco need to focus on their budget and get high quality goods for cheaper prices. This process will include researching for local and cheap suppliers.

Tesco need to provide a highly competitive service to over come any competitors. Normally the more people in that market the cheaper the prices.

Tesco need to provide more services than their competitors to beat them in the market:

Being environmentally friendly

Pollution, waste disposal, recycling and energy use

Do not want bad publicity over environmental issues

Reasons for Corporate Objectives

Market share

Profit maximisation

Growth

Diversification

OBJECTIVES

The objectives of a business are closely related to its aims and should fulfil two essential criteria. They should be:

Quantifiable defined in way that can be measured.

Achievable they must be targets that the business can realistically meet.

Some typical objectives of a business might include:

To sell more of its products than a competitor.

To provide more goods/services this year than it did last year.

To produce a new product/service.

To improve an existing product/service.

Businesses have a main aim or an overall aim which is set up in their "Mission Statement".

Look at various large businesses for examples

Tesco objectives are set so that they can be achieved over a Long term period of time.

Aims:

Tesco aims consist of several different achievement plans some of these include:

Maximising share holder's wealth

Growth maximising

Sales revenue maximisation

Diversification

Increased market reputation

Environmental objectives

Survival

Strategies to achieve these aims:

By increasing sales tesco is able to provide a range of share contracts.

By increasing profits tesco is able to expand and increase their international franchise.

By increasing sales and profits tesco are able to provide a service where their customers are not affected by the increase or decrease in tax.

Diversification - growing the company.

Increased market reputation - by providing a high quality service Tesco are able to increase their reputation in the Food Retail market.

Environmental issues - By providing facilities such as recycle bins and charity facilities tesco is able to win the respect and trust of green peace customers and the other wiser community.

Survival - Tesco like any other company needs to provide and make profit to survive in the competitive market.

Objectives:

To understand their customers better than any of the competitors do

To use intelligence, scale technology to deliver unbeatable value to customers in everything they do.

To be Energetic and innovative and to take risks in making life better for our customers.

To earn the respect of staff for these values and to appreciate their contribution to achieving them.

To recognise that brilliant employees are working for them and to use this strength to make the customers shopping trip enjoyable in every way possible which, no competitor can.

Strategies to over come these Objectives:

By doing this Tesco will earn the respect and trust of their customers.

To use intelligence and technology will improve the way customers can enhance themselves in the store. Intelligence will help tesco provide greater facilities and more technical things which will help them in the future.

To be energetic, this will help increase customer rates by initiating quicker service.

By earning the respect of staff Tesco are able to motivate and increase their reputation and to run the business they need staff.

By realising that brilliant employees are working with them Tesco has the ability to ask more from its employees.

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Rizwan Iqbal