Customer Service

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To: Mr. Sttorck

From: Kasun perera

Date: 11th September 2003-09-17

Ref unit 10: Customer Service

Customer Service

The aim of this report is to produce evidence of an investigation in to the customer service practices of Tesco and a report on how the organization could improve its customer service. This report will:

  • Identify and describe the different types of customers and their needs
  • Identify and analyses the skill required in customer service.
  • Account for how the organization has incorporated consumer protection in to its customer service policy.
  • Describe how the organization use customer service to meet customer needs as well as strategic objectives.

The report on the chosen organization will include:

  • The techniques my chosen organization has used to try to improve customer service.
  • How my chosen organization monitors the performance of its customer service function.
  • Recommendations on how my chosen organization could improve its quality systems help meet customer’s quality standards.


Tesco was founded in 1924 by Sir Jack Cohen. Over the last 78 years, as the food retailing market has changed, the company has grown and developed, responding to new opportunities and pioneering many innovations. Today it is Britain's leading food retailer with 639 stores around the country. Profits have risen by 11.9% since last year. Tesco operates stores in twelve countries - the UK, Republic of Ireland, Poland, Hungary, the Czech Republic, Slovakia, Turkey, Thailand, South Korea, Malaysia, Taiwan, and Japan. Tesco is public limited company (Plc) - Means that any one can be shareholder.  Tesco sells every thing you would expect them to sell for example basic foods items such as bread, milk, eggs, cereals, fresh fruit and vegetables and much more including cloths, CDs, videos, DVDs, books, computer games, electrical, school equipment, wines and other alcohol drinks. Some of the larger stores are open 24 hours a day; this is very useful for shift workers and those who wish to shop when it is less busy.  Tesco have their own petrol stations attached to some stores, they sell normal petrol 95 RON and 97 RON also diesel and in selected stations they have LPG.

Tesco offers Personal finance and insurance this involves a full range of services such as Loans, Credit cards, Savings, ISAs, Mortgages, life insurance, Motor insurance, Home insurance, pet insurance, breakdown cover, travel insurance and travel money.  

Tesco also offers a service called telecoms, which includes Tesco home phone, Tesco mobile and Tesco Internet access. Some Tesco’s has an in store pharmacy. Throughout out years Tesco’s in store pharmacy grown in to one of the country’s leading pharmacy chains.

Tesco is currently the leading supermarket in UK. Tesco as a pretty good competition from other supermarket such as Sainsbury, Safeway. But Tesco is cheaper then mot of the other supermarkets and they offer lot more products. Recording to Tesco on average Sainsbury’s is 4% more expensive then Tesco and Safeway are 10% more expensive then Tesco.

There are more then 2,318 -plus stores and many distribution centres are located in United Kingdom. They have several office sites in the UK. And Ireland, where they’re key support functions is based. The majority of office staff is based in Hertfordshire, Tesco has been operating on an international basis for long time, anticipating the need to become a major retail name in key regions, they moved into central Europe, where they have a strong presence in Hungary, Poland, Slovakia and the Czech Republic and the dynamic Asian market. Tesco now operate 440 stores in 11 international markets. They employ 326,000 people worldwide, working in 2,318 stores, with total sales of £33.6 billion.

Shown below is the Turnover, Number of stores and selling space for Tesco in the last five years.

Tesco’s sales by region are shown below.

Tesco’s Financial highlights

Group Sales                                                 + 18.7%

Underlying group profit before tax†                         + 21.9%

Group profit before tax                                         + 17.6%

Underlying diluted earnings per share†                         + 16.7%

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Diluted earnings per share                                 + 11.3%

Dividend per share                                        + 10.3%

Tesco’s primary / secondary activates:

Tesco’s primary activities include groceries and house hold retailing. Secondary activates include Communications - (Tesco offers telecoms such as Tesco homophone, Tesco mobile and Tesco Internet access. Financial Services – Tesco’s Financial Services include Loans, Credit cards, Savings, ISAs, Mortgages, life insurance, Motor insurance, Home insurance, pet insurance, breakdown cover, travel insurance and travel money. Other secondary activities include retailing, transport, importing / exporting, education, health, social and advertising.

Location of Tesco:


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