Businesses and organisations
In this task I will outline the aims that Tesco have and the objectives they need to do to complete these. For example my aims would be to achieve at least 5 A* to C grades at GSCE level including Math’s and English to get into college. The objectives that I need to complete to achieve this aim are having over 95% attendance, attend revision sessions, study and work hard to my full potential. Most businesses and organisations have 4 key aims which are: Survival, Profit, Growth and Prestige. I will now explain what these key terms mean. Survival is quite simply what you have to do keep the business running.
In terms of businesses this is when organisations have to cope with the other competitors by keeping their prices competitive so they don’t lose money themselves but keep customers visiting the business so they don’t go bankrupt. Profit is the money left over when total costs have been taken away from total revenue. This is a main aim for all businesses because you only run a business to make profit otherwise there is no point to running a business if you are making a loss. Growth is when a business expands and diversifies, this could be that they are opening more stores or diversifying the product range to cater for more of the market.
Prestige is when an organisation builds a reputation for itself by offering the customer what they want e. g. great customer service, special offers and competitive prices. I will now outline what Survival, Profit, Growth and Prestige would mean in relation to Tesco. Tesco needs to achieve this aim if they want to succeed and to achieve this aim they need to fulfill the objectives required to do this; but as they are Britain’s leading supermarket chain it means they have already achieved this aim.
In the early days Tesco would have had to meet many objectives to survive but now they are the market leaders they are settled in the British market and are now financially stable. They have achieved survival by completing the following objectives e. g. constantly evaluate their performance making sure that they give great customer service; provide adequate training and meet consumer demand so customers are happy.
Tesco should also monitor competitors to compare prices so they can keep their prices low and their customers happy. This will result in the customers revisiting and recommendations to others so more customers visit. Tesco can also conduct market research to find out what customers want and what they would like to be improved in their local store. Also Tesco have got a online service to make it easier for customers who cannot visit the store as they haven’t time or are physically unable to as they are elderly or disabled.
People also use the online service as it easier and you don’t have to actually visit the store saving you hassle as you don’t have to wait in any queues and money because you don’t have to spend money on fuel costs; Tesco do charge for the delivery service but if more people use the online service then it would mean less cars on the road and also less emissions. This point could also contribute to Tesco’s good reputation and prestige. Tesco should give detailed and professional training to their employees so they know how to handle customers professionally.
Tesco constantly evaluate their performance so they know if they are on target or not for that specific period of time, they do this on a regular basis so they know when to put on special offers so customers buy more stock and they can achieve more revenue. Although Tesco is settled in the British market they have not until yet survived in the World market as this is totally new to them. The world market is totally new to Tesco in market terms and they haven’t up until yet survived as they have not yet got enough of the market share to be fully safe and secure.
For Tesco to survive in America with its Fresh and Easy store it needs to complete the following objectives which are price items competitively with relevance to their competitors, buy items in bulk and negotiate with suppliers saving on costs, monitor performance, have good customer service, have a bigger market share, make an online service so customers can shop online. Fresh and Easy should conduct market research to see which customers are more likely to shop at their store and then they advertise directly towards them, diversifying their product range to meet their needs.