The task of which has been set for this assignment is to: produce a detailed business report on a large sized company. For this the company known as Tesco has been chosen, and a closely linked analyse of the company will be produced, from its history to where it is now. To produce this report a number of sources will be used including books, Internet, newspapers etc. This report should prove to be interesting and helpful as it has been found to be when written. How it all began Tesco was founded in 1924 by Sir Jack Cohen and had earlier roots from selling groceries in London’s East End markets.
The first store to be opened was in 1929, which was in Burnt Oak, Edgware. In 1847 Tesco stores Ltd was floated on the stock exchange, with a share price of 75p. The first Tesco self-service store was opened in St Albans in 1948. Tesco opened its first supermarket in Malden. In the 1960’s, Tesco started to sell fresh food, clothing and household goods in addition to groceries and opened stores in the high streets of towns across England. In the 60’s Tesco’s started to sell petrol through petrol stations. In the 1990’s, Tesco started to expand its operation outside the UK into Eastern Europe.
In 1992 Tesco opened its city centre stores under the branding of Tesco metro and within 1995 Tesco introduced the loyalty card and by the end of the 90’s diversified (expanded) further into banking. By the year 2000 Tesco had become Britain’s leading food retailer with 845 stores across the country. Tesco now is one of the most well established organisations, which continues to research opportunities internationally and is constantly looking for ways of getting better for customers, simpler for staff and cheaper for Tesco. Tesco objectives in the line to there success are to: Understand customers better than anyone else.
To be energetic, innovative and be first for customers needs. Also to Use their strengths to deliver unbeatable values to each customers and to look after their own people so they can look after our customers Tesco will ensure that they achieve this success by treating people how they themselves would like to be treated. Through All retailers being treated as though there’s one team … The Tesco Team. Everyone should trust and respect each other. Each individual should strive to do his or her very best Giving support to each other and praise more than criticise. Also to ask more than tell and share knowledge so that it can be used.
But lastly to enjoy work, celebrate success and learn from experience. Ownership Tesco operates within the private sector of the economy. This sector of the economy is separated into three parts: corporate, personal and financial. Tesco however belongs to the corporate part of this sector, as the company is considered to be a public limited company. Tesco are a plc because they offer shares to the general public, which basically means anyone, this is often done through the stock exchange. Tesco started as an ltd (private limited company) and became a plc to raise money for expansion.
Now claiming dominance as the UK’s leading grocery retailer. Benefits: The benefits of being a plc is that, shareholders have limited liability. The sale of shares enables larger sums of money to be raised. While the company has this money permanently, the individual owners can recoup their money by selling their shares to others and also being a plc gives the opportunity for directors to be brought in who are experts in certain fields. Constraints: There are a number of legal requirements of which the business has to fulfil when setting up as well as throughout the business’s operation.
The accounting of the company is less private than for other firms. The companies Acts, which states that financial records must be audited and made available to the registrar of companies, govern the company. Lastly directors need to inform shareholders of the state in which the business is in i. e. profit/loss, solvency. Which must be done no matter what and can be a very hard thing to do. Market Tesco have a large amount of market share and are currently the leading company within the retailing market.
As Tesco’s share of the UK market has grown steadily since the early nineties, which is believed by the company to be as a result of their customer focused strategy. The firm’s market share is now over 16. 5%. This is how they compare with their existing rival firms. (Based on IGD data) Competitors Being a market leader brings about a lot of competition and it is needless to say that Tesco have a lot of strong competition.
But Tesco’s three main competitors are the companies of: Sainsbury, Asda, Safeway. Sainsbury’s: they currently hold a market share of 11.7% making them the current leader in the race against Tesco for market dominance. They may not have as much market share as Tesco but the gap between the two is small and the fluctuation of customers between the two firms is very sensitive, so a sudden change in consumer buying habits can alter the market suddenly. Asda: is the next after Sainsbury’s in the race for market leader with 10. 6% market share.
The gap in profit through consumers is very small between the two which means that although Tesco must be careful to ensure they do not lose out to their competitors Sainsbury’s must be very careful not to lose out to Asda.