Tesco Business Environment Essay Example

Tesco Business Environment Paper Tests Pl is the largest company in Great Britain sales with stores in 14 countries (across Asia, Europe and North America). Tests Pl is a public Limited Company how was made it by Jack Cohen in 1 919 in United Kingdom and in the present has got more than 6,351 stores(national and international) with revenue than EWE. 539 billion and more than 519. 671 employees. (www. Tests. Com) Like a national and international company, Tests is missions to create value or customers and to win their lifestyle loyalty. That is why Tests Pl has a strong aims and objectives: success international retail; a strong communication with people, to build up a good and positive image and good services, to give the people and customers confidentiality; to develop a diversification on food and non-food products; to develop retailing services: Tests Bank, Tests Mobile, Petrol Stations and Tests. Com Task 1 a. Examine the various type of organizational missions and third purpose and compare the missions, goals and the strategic objectives of your chosen organization with a similar organization. The main types of organization on U. K. Are: Sole trader a person who is providing the financial control and the profit of the business; Partnerships a firm where two or more partners making control of the workload, skills, shares, capital, profit and also enjoy limited liability; Companies a business between partnership with limited liability which protecting the company shareholders; Franchises that kind of business who is using the name, the logo to make the profit into the market. We will write a custom essay sample on Tesco Business Environment specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Tesco Business Environment specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Tesco Business Environment specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Like a national and international company, Tests is mission to create the value for customers and to win their loyalty. Thats why Tests Pl has a strong aims and objectives: success international retail; strong communication with people, to build up a good and positive image and good services, to give the people and customers confidentiality, to develop a diversification on food and non-food products, to develop retailing services: Tests Bank, Tests Mobile, Petrol Stations and Treats. Com. Another company with the similar services is Kingsbury Pl with very easy difference, because Kingsbury is to be the first choice Of food, their objectives is to satisfy the customers needs and their goal is to improve laity products. B. Explain how stakeholders influence organizational missions and goals and discuss how and to what extent your chosen organization (responsibilities) meets stakeholders expectation Tests Pl to achieve theirs aims and objectives, they created a Steering Wheel with stakeholders, strategy of success which include: People, Community, Customers, Finance and Operations. For Tests, success is very important to build up great places to work. To work With pleasure, respect, interest, helps and opportunities, and for all these points they created a motto Treat People How We Like TO Be TO create DOD and nice local jobs, and new branches in different areas, they involved in local community, supporting the local community activities and to have good relationships with neighbors. This point help the company to increase the varieties of products, because they give people thrust, in their honesty and responsibility, give the customers healthy choices. The strong and most import point for Tests are the customers. To attract more customers, to give them confidentiality, thrust and health, they build rules: to have all the time the aisles clear, to have a trip sensation and easy ay to get what they want. Another strategy are the prices, they comparing all the time the United Kingdom economy on report with people objectives, that is way to create a good price. Strong strategies which help them to develop good services are to do not have queued and great staff (like smile, uniform and communication with customers to obtain a feedback). Finance is a chain between stakeholders, if the people touching good services for customers, they will go to have more benefits like bonus, holidays, privileges cards, shares, savings and earns and also to grow sales faster than costs. Operations for Tests mean health and safety of jobs and these are the important and crucial goal. To achieve these things they need to have green audits, all staff need to have a induction and trainings regarding right to work, to make easy jobs, to save time and money and to be on right time and right place, and to care on safe all the operations on front of the customers and teams. Www. Tests. Com) TASK 2 a. Explain the nature of I-J economic system and how it affects business organization such as yours Economy represents the balance between the available resources of the entry (land, capital, entrepreneurship and labor) and the needs Of consumers (produce, goods and services). There are three types of economy: planned economy, market economy and mix ed economy. The U. K is using the mix economy. Mixed economy is a combination between plan and market economy, where government has got the control of the resources and contributes and the market has got the rest of the control. Tests is using the mix economy, because they respected the government intervention to kept the minimum suppliers and to pay for their making decisions and on this way government help Tests became part of manufacturing industry and in his case they provided their own goods, value, services and items using their own brand and also the government decisions e. G. They instructed Tests to not sell Tobacco and alcohol under the age of 18. To produce good services for government Tests used social plan, they developed charities programs, educations, environment of society, e. G. O have a good growth on the business Tests invested on U. K infrastructure and on this mode Tests help government because they created more jobs and the rate of unemployment decreased, also they help own business because they provide a easy way for customer needs and services. (www. Tests. Com) Government plays an important role in economic activity, in order to maintain a steady growth, high level of employment and stability of prices. To do that, government has to adjust spending and tax rates (fiscal policy) or to manage the money supply and control the use of credit (monetary policy). This way it will slow down or speed up the economys rate of grows, affecting the level of prices and employment. [pick] b. How government manages the national economy briefly and analyzes the impact of fiscal and monetary policy on business such as your chosen organization Monetary policy is the process between money supply and exchange rates to influence economic growth and inflation. Monetary policy is domain of a nations central bank and their goals are to achieve a high rate of economic growth, to achieve full employment and to stabilize prices and wage. (Encyclopedia Britannica). Monetary policy is independent from government control and is a committee of the Bank of England. Fiscal policy is government influence from macroeconomic conditions and government spending money and funds (taxation, borrowing, consumption, sales, seignior age). In 201 2 fuel price increased and also higher energy prices plus climate exchange equal higher food price and Tests retail fall of 0. 4% in volume terms. This fall was influence from transport prices which increased, from others companies or shops which bankrupt and the unemployment rate increased and the wages and consumers decreased. . Analyses how competition policy and regulatory mechanism work in the UK in relation to your chosen organization Competition is that process between each firms to win customers business. Some firms are rivals on prices, on quality of existing products or services, or there using the entrepreneurial or research skills to develop new products or services. U. K. Has two major competition policy: the Office of Fair Trading and Competition Commission which expanded, developed new areas of expertise and both have been put into the hands of professors of economics. Business Law/second edition/Mean McIntyre) Tests Pl has got a strong powerful retailer and also a strong position like a existing firm, thats way Tests created a barrier for the new entrances and market. The commission policy argued with the local markets because are very concentrated and presented a negative influence for customer. For Tests this decision is favorable because they can have a high profit. Tests increased the barrier on front of the local grocery suppliers and in this case Tests can be investigated from the Office of Fair Trading and Competition Commission. TASK 3 a. Using your chosen company as an example, explain how market structure determines the pricing and production decisions There are different kinds of markets in different economies/sectors/ goods. Accordingly, there are different ski ends of output and pricing decisions which take place. Usually, output and pricing decisions are interdependent except for the case of perfectly competitive markets. In perfectly competitive markets, a single firm is so small compared to the market that it cannot affect the prices. In that case, it must take the price as given, and then decide the quantity to be supplied. Price in this market is equal to the marginal cost of production. In monopoly, however, things are different. The monopolist can change the prices, as it is the sole provider Of the good and thus has the market power. But here also, if the price increases quantity demanded decreases. Therefore, the monopolist must take under consideration both the positive and negative effects of increase in prices. In another market oligopoly, pricing is a bit more complicated and it depends upon the strategic interaction among the firms. Tests situate its self in an oligopoly market. Its core business objective is to satisfy the needs, wants and preferences of the customers. Tests is producing the best quality of product for its consumers; this way is beating the high competition in the market. In the same time, Tests plan is to maintain his first place in top retail store in 1. K and to examine sales and profits. B. Using a range of examples, analyze how market forces influence the organizational response and examine how your organization would respond The interaction between the demand and supply in a market is represented by market forces. The reaction of a company to an economical circumstance represents the organizational response. This reaction is very important because it will affect directly the profits and reputation of a company. The most successful companies are having a deep research on the market in order to be able to supply a product or service to meet the demands of its customers. By doing this research, the company will keep its customers happy due to the fact that they will us apply the product or services in appropriate quantities. Apart from meeting the customers needs, the company will increase their profits by selling as much as they can without over stocking. Without research, the company will not meet the costumers needs, they will not supply with enough products or they will overstock with a product that the customers not want. In both situations the profit and reputation of the company will be affected. The relation between the two is very important in order for a company to succeed. It is also very important to continue monitoring the market forces to ensure that the organization can respond to any changes in market conditions. In retail market, Tests has been very successful in capturing the leadership. This success shows that Tests has design and implemented an efficient supply and deliver system. One of the proofs is the Loyalty cards, which Tests has been the firs company to lunch this program. According to Palmer (2004), until recently Tests has been the only grocer to use the information to email customers every month. C. Discuss the business and cultural environment of your selected organization and asses to what extent it shapes the behavior of the organization Culture of business refers to knowledge, experience, communications, religions, hierarchies of people and also relationship between groups of people. Tests bases is culture team to enjoying work, Tests is not leasing just customer is leasing the staff too. In this way Decos improved rules between staff and everybody to treated with respect, a manger who help you, a interesting job, an opportunity to get on and in this balance they attached: better (to help customers with their shopping), simple (to provide a simple ark for staff and to be efficiently and with less stress) and cheaper (Decos keeping customers loyal and staff happy). Tests to have control of the culture and the competition been teams they involved a new structure of culture Making moments matter which mean the work of the employees in relation with customer services. Move. Tests. Com) TASK 4 a. Discuss how international trade affects the UK business organization and analyses the impact of global factors on I-J business, including your chosen organization I-J is considered a small country and their domestic market is very small. If KICK wants to improve its economy, this will be possible only through international trade. The brands that once were very popular like Phillip s or BAS is not wanted in market and they have been replaced by cheap goods from Japan or China. To have a future UK has to reestablish its brands and recapture its market through international trade. In KICK, like in any other country, businesses are affected by external factors. Those factors are: political, economical, social, technological, environmental and legal. A political factor refers to any change that government can do and it will influence cuisines operations. Due to the fact that Tests is operating in a globalizes environment with stores around the globe, its performance is highly influenced by political and legislative conditions of these countries, including the European Union. Tests is one of the companies that have understood what impact has the retail industry on jobs and people and employs large number of students, disable and elderly people, often paying them lower rates. Economical factors involve changes in the global economy. For Tests economic factors are very important because they can influence demand, costs, prices and profits. A high unemployment level is one of the most important factors that could influence the economy. Even if Tests is now operating in other countries and the business overseas are growing, the company is still dependent on the UK market. Social factors represent the cultural aspects of a country which means the population growth rate, age distribution, attitude for a career, health consciousness. In social factors, trends are playing a very important and at the moment the current trend adopted by customers is one-stop shopping, therefore Tests has increased the amount of non-food items available for sale. Demographic changes such as the aging population, an increase in female workers and a decline in home meal preparation mean that UK retailers are also focusing on added-value products and services. In addition, the focus is now towards; the own-label share of the business mix, the supply chain and other operational improvements, which can drive costs out of the business. National retailers are increasingly reticent to take on new suppliers (Clarke, Benison and Guy, 1 994; Denominator Report, 2003). The type of goods and services demanded by consumers are reflected in their life style, attitude and beliefs. They are becoming more aware of healthy issues due to the fact that Tests had to adapt to the increased of the organic products. Technological factors could determine barriers to entry for an organization and also could influence outsourcing decision. In Tests the new technology has offer benefits for both sides; for the customers because the goods are more reliable and shopping is more convenient. (Denominator Report, 2003). Tests is utilizing the following technologies: wireless devices, intelligent scale, electronic shelf labeling, self check-out machine, radio frequency identification. An environmental factor offers to the weather and climate change. Those factors can affect a company that operates in tourism industry, farming industry and insurance industry. According to Grassier and Scott(2004), in 2003 the government has launched a new strategy for sustainable consumption and production to cut waste, reduce consumption of resources and minimize environmental damage. Apart from that, the legislation created a tax on advertising highly processed and fatty foods and is been called fat tax. This tax has affected directly Tests products and they had to adapt them, which cause damage in relationships with customers and suppliers. Legal factors include laws, such as consumer law, discrimination law, employment law and health and safety law. Various government legislations and policies have a direct impact on the performance of Tests. For instance, the Food Retailing Commission (FRR) suggested an enforceable Code of Practice should be set up banning many of the current practices, such as demanding payments from suppliers and changing agreed prices retrospectively or without notice (Minute Report, 2004). B. Assess the role and impact of EX. policies and directives on the UK businesses using your organization as an example The UK government as well as the European Union is influencing the way business operates through the taxation, spending, laws and regulations. In the same time is providing support and advice for organizations. Here are some examples of policies that help governments to influence the organizations activities: employment policy, regional policy, inflation policy, education and training policy, taxation policy and international policy. At European Union level, funds are made available to support regions of high unemployment and social deprivation such as large areas of Southern Italy ND rural France, as well as the Highlands and Islands of Scotland. Regional policy sets out to compensate for the fact that with the development of the more prosperous parts of the European Union, jobs have been lost in other areas. The government can promote trade, encourage sales of British goods abroad (exports), or discourage goods coming in from other countries (imports).