Tesco's Aims - SMART and PESTLE analysis.

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Tarik Kerim        AS Applied Business        Unit 1 Investigating Business


Tesco’s core UK  business is significant within the group as it has over 300,000 employees and exactly  2,979 stores with a revenue of  £42,248m from 2011/2012. The place where the vast majority of the profit comes from are the UK stores where 60% of all the profits are made, this could be because Tesco started off as a UK company so which means there are more stores around the UK. Also Tesco’s has various different formats as they now have Tesco Express, Tesco One Stop, Tesco Metro etc. The company started off in 1924 and now have a widest range of food and have their own brands of food.

The reason for Tesco being so successful is that they have gradually gained mutually beneficial and long term partnerships with various suppliers, this gives them the competitive edge. Although competition is fierce, Tesco’s results have a sustainable and efficient supply chain which means there is a guaranteed supply of items in store for all customers (supplier certainty). This gives Tesco’s the boost to invest in new and improved products

In April 2012, Tesco announced a £1billion commitment for the year 2012/13 to improve the shopping experience for customers. The UK plan was to build a better Tesco focusing on six key elements to maximise profitability and improve all Tesco stores.

Aim : An aim is the overall direction that the business is heading towards to help them maintain profitability by having good business knowledge and understanding. Also expansion and growing a business in size is a good aim to have as it will introduce a bigger income over a period of time.

Objective : An objective is breaking down an aim into different task for each ‘group’ of staff in order to become a successful company.

SMART Objective :

An objective that follows SMART is more likely to succeed because it is specific and clear so you can plan and understand what needs to be achieved. The way to tell a SMART objective has been achieved is when you have a way to acknowledge what it takes for completion. A SMART objective is a lot more likely to occur because it is an objective that is measurable and achievable. Before setting SMART objectives, factors such as the resources and time should be taken into account to ensure that it is realistic. The timescale element provides a deadline which helps people focus on the tasks required to achieve the objective.

Specific – This is where there should be a specific method set out to determine what a business is trying to achieve.

Measurable – A business must make it possible to measure when an objective a goal that had previously been set has been achieved or not.

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Agreed - Each candidate that is involved with setting up and meeting targets should all agree that the target is reasonable.

 Realistic – The target must be achievable. When an objective appears to be obtainable and worthwhile it makes people more likely to work for what they want, whereas if the target appears completely unrealistic then people will not want to -put in wasted effort.

 Time Specific – It is of great importance to make sure every person involved knows how long they have until a deadline to achieve their agreed target, this can also help motivate teamwork.

Tesco’s ...

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