Annual Report:
Every limited company needs to produce an annual report once every year. The annual reports contain information on items such as:
- Financial progress, this is to see whether tesco is able to carry out the business and if they cost and price their products.
- Growth and expansion, tesco need to look at the growth of their business and see if their profits are growing because then they can expand their business all around the UK.
- Explains future plans for the company, tesco has to make plans for the future to keep their business going in a good way and never let their profits decrease.
Tesco operations
Tesco operations are broken down into several areas which are:
-
Production - This means tesco has its own brands they have produced and then to sell.
-
Purchasing – This is were tesco buys other branded products to sell and make a profit out of them.
-
Distribution – This is were the products of tesco are made and allocated in different tesco stores.
Operations department play a big part on a business. The job of the operations department is to carry out the manufacturing, processing or any other procedure, this is were their raw material will be turned into a product ready to be sold and bought out to the market. In order to do this, operations need to take the inputs which are:
-
Land: a business needs land so they can build their factories and build their stores in different areas.
-
Labour: a business needs labour for the business to be successful. A business might employ specialists and general labour. They have specialists so they know what to do instead of the business training them which will take a lot of time.
-
Capital: a business needs capital so they are able to build all their stores/departments and to pay their staff. They also need capital to advertise the business. In order for the business to be successful they need to produce lots of good quality goods for their customers.
Tesco marketing and sales
Every Tesco store uses the same advertising and promotional methods, each tesco store sells the same products and research, advertising and promotion is dealt with at central offices and then communicated to each store.
Advertising in tesco
The main aim of the advertising that a business does will be to attract customers and to increase their sales.
The different methods of advertising are:
-
Television - This will get your business across to millions of people. However it is very expensive and since my shop is only a local shop, and television shows adverts to people all over the country, the advert would only be applicable to a tiny percentage of people watching and a waste of money.
-
Radio - This is a cheaper method of advertising than a television advert. Also I could place an advert on local radio for a small cost and it would go out to people all over the local area.
-
Leaflets/Posters - These would be a good idea, since they are very cheap to produce and you can place them anywhere in the local area, or hand them out to people. However people may ignore the adverts, and if I was to produce posters then detailed information could not be placed on them because they would only be seen for a short amount of time.
-
Magazines and newspapers - If I were to place an ad in the local newspaper I know that this would be seen by people all over the local area. It would also be a fairly low cost. However the disadvantages are that readers do not always look at the advert, and if I were to show an ad in a newspaper then it would be limited to black and white.
Tesco Promotion
Tesco promotes a lot of offers to attract the customers and to make them walk in and buy what is on offer and sale. Tesco promotes in many ways such as:
Money off- this works when you buy a product then with that product the next time you go in to buy something you will have money off your next purchase. E.g. when you buy nutella u get a token with it so next time you buy the product you will have 50p off.
Competitions – when you buy a product it may have an advertisement for a competition you can take part in.
Buy one, get one free – when you buy a product you can get the same for FREE! E.g. Tesco offers buy one get one free on shampoos.
3 4 2 – you can get three products and only pay for two. E.g. Tesco gives their music cd’s three for the price of two.
Free delivery – when you buy products and cannot take them home, tesco will offer you FREE home delivery. E.g. when you spend over £50 tesco will offer you free delivery.
And many more!
