D1. Evaluate the reasons for the success of two contrasting businesses,
reflecting on evidence gathered.
In this assignment I am going to evaluate the reasons for the success of my two
contrasting businesses which are Tesco and Starbucks, reflecting on the evidence
gathered.
TESCO
INTRODUCTION
Tesco plc, trading as Tesco, is a British multinational groceries and general merchandise
retailer with headquarters in Welwyn Garden City, Hertfordshire, England, and United
Kingdom. Tesco is the largest British retailer and is also the world’s third largest retailer
in the world measured by gross revenues and the nine largest in the world measured by
revenues. Largest grocery retailer with outlets across Europe, USA, and Asia. The
business began in 1919 with one man, Jack Cohen, selling groceries from a stall in the
East End of London. In the UK Tesco now has over 2,200 stores ranging from the large
Extra hypermarket style stores to small Tesco Express high street outlets. Tesco’s
original product range of grocery and general merchandise has diversified to include
banking, insurance services, electrical goods as well as telephone equipment and
airtime.
OWNERSHIP
Tesco is a PLC ownership which stands for public limited company. Also known as the
for-profit sector and activities outside the public sector organizations and businesses that
provide services and products based on market demands for a cost with the purpose of
producing a profit for owners and shareholders in the organisations. Tesco is owned
through shares traded by Stock Exchange, this enables the public to buy shares and own
them for as long as they want or even sell them on for profit, floating Tesco as a PLC has
helped them as its been able to dramatically grown and in the longer terms make huge
profits which has been one of their aims. Tesco have a limited liability for the
shareholders, the business can raise a large capital sum as there is no limit to the
number of shareholders. The disadvantages are Tesco cannot make business decisions
instantly because they need to confront company directors and major shareholders and
the business can be taken over if somebody buy 51% of shares.
SIZE
Tesco is one of the largest food retailers in the world, operating around 2,318 stores and
employing over 326,000 people in the UK. Tesco extended to Ireland, China, the Czech
Republic, Hungary, Japan, Malaysia, Poland, Republic of Ireland, Slovakia, South Korea,
Thailand, and Turkey. At the end of its last financial year 2019 Tesco had a total of 3,263
stores, with 68.2 million square feet of sales area. 1,988 of these stores are in the UK,
with 27.8 million square feet of sales area and 1,275 stores in its international operations
with 40.4 million square feet of sales area. In the UK Tesco now has over 2,200 stores
ranging from the large Extra hypermarket style stores to small Tesco Express high street
outlets. Tesco’s original product range of grocery and general merchandise has
diversified to include banking, insurance services, electrical goods as well as telephone
equipment and airtime.
STAKEHOLDERS
OWNERS
, Owners of Tesco Plc have financial interests in the business. The owners of Tesco s Plc
hope that the share price of the company will rise, and the business will continue been
successful. Owners of Tesco Plc want to receive large and increasing proportions of the
company’s dividends. They influence the business by having international investment
because of the trade fairly and try to avoid environmental damage. Tesco’s owners have
good relationship with their business because what they do will influence the entire
business this because any decisions they make, contracts with other business,
shareholders and suppliers, their policy in the business with employees and customers. If
the owners of Tesco do something wrong this may negatively affect the business and its
success. They need to respect the policies and agreements that they do with its
shareholders or suppliers because they can get into debs making the business to lose
money and in the worst case declare bankruptcy. Tesco uses verbal communication such
as face-to-face and over the phone conversation. The advantage of this is that it allows
regional managers to communicate important information easily with owners within the
company. Another form of verbal communication that can be done face to face is board
meeting. As well as verbal, Tesco also use written communication, such as letters and
emails to communicate important information or invitation to meetings that the business
is making.
EMPLOYEES
Employees can influence the success of Tesco by their productivity and efficiently job,
duties, and tasks they do every day. They can also resort to industrial action if they
disagree with working conditions, pay or company policies. Tesco wants to have a good
relationship with their employees because they’ll be the faces of Tesco Infront the
customers. Tesco often reward their employees with bonuses when there is a significant
increase in their work. Tesco offers a promotion to their employees that shows great and
excellent work performance and can motivate them with their work. Tesco usually
includes their employees’ ideas and feedbacks on how to improve their performances
and sales by carrying out events or meetings to provide space for the employees to
participate in decision making process in the company. Tesco uses verbal
communication such as face-to-face. The advantage of this is that it allows employees to
communicate important information easily with each other within the company. Tesco
also use reports as a form of written information to communicate between staff members
within the company. The advantage of this’s that they record and show information of
what happened during an entire week or month in a store. A disadvantage of using
reports is that writing involves gathering lots of data and information, which can be time
consuming. Another writing communication that Tesco uses are e-mails where they can
share basic information within employees. The advantage of this’s that nowadays most
people uses social media 24/7 so employees will have access to their emails easily, but
the disadvantage is that they can’t see the messages or important announcements if they
don’t have internet.
SUPPLIERS
Tesco works with thousands of suppliers and producers. These suppliers and producers
not only provide Tesco with required products, but also help the company reduce food
waste. Suppliers can decide whether to raise prices for orders which can affect and
influence Tesco’s profits. Also, a supplier’s reliability could affect production. If orders
don’t arrive on time finished goods may not be ready to put out to customers. Tesco must
need to have a good relationship with their suppliers because they give to Tesco the
products that they need to sell to the public. Tesco want to give suppliers some certainty,
reflecting on evidence gathered.
In this assignment I am going to evaluate the reasons for the success of my two
contrasting businesses which are Tesco and Starbucks, reflecting on the evidence
gathered.
TESCO
INTRODUCTION
Tesco plc, trading as Tesco, is a British multinational groceries and general merchandise
retailer with headquarters in Welwyn Garden City, Hertfordshire, England, and United
Kingdom. Tesco is the largest British retailer and is also the world’s third largest retailer
in the world measured by gross revenues and the nine largest in the world measured by
revenues. Largest grocery retailer with outlets across Europe, USA, and Asia. The
business began in 1919 with one man, Jack Cohen, selling groceries from a stall in the
East End of London. In the UK Tesco now has over 2,200 stores ranging from the large
Extra hypermarket style stores to small Tesco Express high street outlets. Tesco’s
original product range of grocery and general merchandise has diversified to include
banking, insurance services, electrical goods as well as telephone equipment and
airtime.
OWNERSHIP
Tesco is a PLC ownership which stands for public limited company. Also known as the
for-profit sector and activities outside the public sector organizations and businesses that
provide services and products based on market demands for a cost with the purpose of
producing a profit for owners and shareholders in the organisations. Tesco is owned
through shares traded by Stock Exchange, this enables the public to buy shares and own
them for as long as they want or even sell them on for profit, floating Tesco as a PLC has
helped them as its been able to dramatically grown and in the longer terms make huge
profits which has been one of their aims. Tesco have a limited liability for the
shareholders, the business can raise a large capital sum as there is no limit to the
number of shareholders. The disadvantages are Tesco cannot make business decisions
instantly because they need to confront company directors and major shareholders and
the business can be taken over if somebody buy 51% of shares.
SIZE
Tesco is one of the largest food retailers in the world, operating around 2,318 stores and
employing over 326,000 people in the UK. Tesco extended to Ireland, China, the Czech
Republic, Hungary, Japan, Malaysia, Poland, Republic of Ireland, Slovakia, South Korea,
Thailand, and Turkey. At the end of its last financial year 2019 Tesco had a total of 3,263
stores, with 68.2 million square feet of sales area. 1,988 of these stores are in the UK,
with 27.8 million square feet of sales area and 1,275 stores in its international operations
with 40.4 million square feet of sales area. In the UK Tesco now has over 2,200 stores
ranging from the large Extra hypermarket style stores to small Tesco Express high street
outlets. Tesco’s original product range of grocery and general merchandise has
diversified to include banking, insurance services, electrical goods as well as telephone
equipment and airtime.
STAKEHOLDERS
OWNERS
, Owners of Tesco Plc have financial interests in the business. The owners of Tesco s Plc
hope that the share price of the company will rise, and the business will continue been
successful. Owners of Tesco Plc want to receive large and increasing proportions of the
company’s dividends. They influence the business by having international investment
because of the trade fairly and try to avoid environmental damage. Tesco’s owners have
good relationship with their business because what they do will influence the entire
business this because any decisions they make, contracts with other business,
shareholders and suppliers, their policy in the business with employees and customers. If
the owners of Tesco do something wrong this may negatively affect the business and its
success. They need to respect the policies and agreements that they do with its
shareholders or suppliers because they can get into debs making the business to lose
money and in the worst case declare bankruptcy. Tesco uses verbal communication such
as face-to-face and over the phone conversation. The advantage of this is that it allows
regional managers to communicate important information easily with owners within the
company. Another form of verbal communication that can be done face to face is board
meeting. As well as verbal, Tesco also use written communication, such as letters and
emails to communicate important information or invitation to meetings that the business
is making.
EMPLOYEES
Employees can influence the success of Tesco by their productivity and efficiently job,
duties, and tasks they do every day. They can also resort to industrial action if they
disagree with working conditions, pay or company policies. Tesco wants to have a good
relationship with their employees because they’ll be the faces of Tesco Infront the
customers. Tesco often reward their employees with bonuses when there is a significant
increase in their work. Tesco offers a promotion to their employees that shows great and
excellent work performance and can motivate them with their work. Tesco usually
includes their employees’ ideas and feedbacks on how to improve their performances
and sales by carrying out events or meetings to provide space for the employees to
participate in decision making process in the company. Tesco uses verbal
communication such as face-to-face. The advantage of this is that it allows employees to
communicate important information easily with each other within the company. Tesco
also use reports as a form of written information to communicate between staff members
within the company. The advantage of this’s that they record and show information of
what happened during an entire week or month in a store. A disadvantage of using
reports is that writing involves gathering lots of data and information, which can be time
consuming. Another writing communication that Tesco uses are e-mails where they can
share basic information within employees. The advantage of this’s that nowadays most
people uses social media 24/7 so employees will have access to their emails easily, but
the disadvantage is that they can’t see the messages or important announcements if they
don’t have internet.
SUPPLIERS
Tesco works with thousands of suppliers and producers. These suppliers and producers
not only provide Tesco with required products, but also help the company reduce food
waste. Suppliers can decide whether to raise prices for orders which can affect and
influence Tesco’s profits. Also, a supplier’s reliability could affect production. If orders
don’t arrive on time finished goods may not be ready to put out to customers. Tesco must
need to have a good relationship with their suppliers because they give to Tesco the
products that they need to sell to the public. Tesco want to give suppliers some certainty,
