Mission Statement of Tesco Essay

Tesco plc is a global grocery and general merchandising retailer headquartered in Cheshunt, United Kingdom. It is the second-largest retailer in the world measured by profits. It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), Malaysia and Thailand. Tesco’s mission statement is to create value for customers to earn their lifetime loyalty.

Its aims and objectives are •To be a successful international retailer (marketing; market development) •To grow the core UK business (increase market share in UK) •To be as strong in non-food as in food. (marketing; product development, diversification) •To develop retailing services – such as Tesco Personal Finance, Telecoms and Tesco. com(marketing; diversification) •To put community at the heart of what we do. corporate social responsibility, build up positive image for the company) To achieve above goals, Tesco has undertaken the strategies as follow

* “To appeal to all segments of the market” ,One plank of this strategy has been Tesco’s use of its own-brand products, including the up market “Finest”, mid-range Tesco brand and low-price “Value” encompassing several product categories such as food, beverage, home, clothing, Tesco Mobile and financial services. *To grow the core UK business, Tesco’s stores are divided into six formats, differentiated by size and the range of products sold. Tesco Extra;

Tesco Superstores; Tesco Metro; Tesco Express; One stop; Tesco Homeplus) In this way Tesco appeal to more customers and better meet their expectation through improved convenience. The formats are used because only 20% of its customers have access to a Tesco Extra, and the company is restricted in how many of its superstores it can convert into Extras and how quickly it can do so. Large units for non-food retailing are much more readily available. *Tesco expansion strategies has been its innovative use of technology.

It was one of the first to build self-service till and use cameras to reduce queues. * To protect its brand image, Tesco has been employing a policy of launching defamation proceedings. It’s been proved to be controversy. I. e. in 2008 the legal action against the Guardian newspaper on its statement that Tesco had used offshore arrangement to avoid paying ?1 billion corporation tax, though Tesco successfully made the newspaper apologized ,meanwhile this issue brought negative critics on Tesco. increase the number of products with a carbon label to 500, and increase customer awareness of the label. Reduce carrier bag use by 70% in the UK by the end of 2010 (compared to 2006) Stakeholder perspectives Tesco’s stakeholders are shareholder, employees, customers, government, local community, suppliers, Financers, pressure groups. *Shareholder Shareholders want to have high return (dividend) from the share also a sustainable return. The present share price is 395. 00p per share.

*Employee. Employees want to work in a trusted company with fine reputation and fare treatment. Tesco are committed to follow the legal law request, in addition, keep its employees motivated and rewarded by means of distributing free shares among 207000 staffs in the UK. Apprenticeship and foundation degrees are provided by Tesco in order to help employees to fulfill their need. *Customers Generally a customer wants quality goods at a low cost. They would also want a variety of products to choose from and convenient way to purchase the products.

Tesco has been recognized as the supermarkets providing cheapest prices, and it also introduces Club cards to make the customers feel reattributed from buying Tesco’s products or service. In the UK Tesco launched a service called ‘Every Comment Helps’. Customers can contact us via free text messages, free phone calls, and email or on a card commenting on their experience in a store – good or bad. *Local community Communities expect the business to provide jobs opportunities and services and support local causes and be environmental friendly.

In2010, Tesco has donated 61. 6million pounds to charities and good causes. Tesco also help to bolster local economy. It provides jobs to local community and chose to work with local suppliers. In additions, it brings competition, drive up standards, increase choice and cut prices which benefit the community by passing more value to customers. Tesco made afford to help things that communities care, i. e. donations to local projects that support children and their education and welfare, elderly people and adults and children with disabilities.

Since August 2009 Tesco has diverted 100% of our waste from going directly to landfill. Following a massive logistical exercise in reducing, reusing and recycling, it set annual target to reduce the effect of the business on environment. *Suppliers Suppliers want fare prices, trusted relation and to be treated with respect. In addition, they want Long term contracts and prompt payment when working with the business. Tesco works in partnership with local and international suppliers helping them to grow and innovate. However there is evidence that Tesco lack of communication with local suppliers.

Also there’s news saying big supermarkets like Tesco has so much power that they can demand what price they pay neglect the suppliers’ prospection. Problem appear Tesco has always been market with a low-price image with customer and it has gained market share from more expensive rival partly due to the recent economic downturn. However, the material cost has gone up and the new consume tax put up the label price, Tesco are in a dilemma to decide to hit a profit margins from rising costs rather than risk it’s reputations by hiking pain, which means some short-term pain for it’s shareholders.

Or chose to pass on input cost pressures to its customer, in which way hand a marketing gift to rivals. In either way there’ll be a squeeze on profits margins or decline volumes, meanwhile pressure its share price, since customers to budget supermarket like Tesco are more sensitive to the change in price than upper-market group, Tesco need to handle the price problem with caution. Other problem is that currently UK policies tend to encourages new set up business which brings competitions and variety to the society. Meanwhile (public image, aggressive measure on driving small business)