Problems for Tesco

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Tesco have reached their target of being the leading supermarket in the UK because of this Tesco has decided to expand further by going abroad. Opening stores in Europe has helped them to grow sales brining back 375 million this investment was worthwhile for the company. Once again Tesco have changed their aim, now expanding to China and Malaysia because they see the potential. It shows Tesco are very flexible with changing their aim. Constantly changing to meet the needs of customers because Tesco know this is the only way to retain loyal customers and make the most profit for the shareholders. The investors are very important to the company seeing as they provide the funds for Tesco allowing them to expand and remain the leading supermarket in the UK.

How successful have Tesco been in meeting their aims and objectives. Tesco have obviously been very successful in meeting their aims and objectives and making a huge profit of �2.2 billion this shows Tesco have been running their stores efficiently and satisfying their customer’s needs. Tesco have achieved a 30% market share, Tesco did this by competing well with other supermarkets and stores by providing the right products for consumers and making their life convenient.

Tesco invested in non-food products successfully, their profits have gone up 20%. As a result Tesco have began to stock, birthday cards, ironing boards, washing machines, clothes etc because they want to be convenient for customers therefore allowing them to retain loyal customers.

Moving abroad has been successful for Tesco seeing as they have made 375 million in Europe this shows Tesco expanding to other countries has made The company large amounts of profit therefore allowing them to expand further into countries such as China and Malaysia they have obviously established themselves successfully. The location of Tesco in Slough has also enabled the company to be very successful seeing as the location is in the town centre surrounded by major organisations has all helped them to increase their market share and also invest further in a superstore.

Why did Tesco Locate near the Town Centre Tesco located near the town centre because they knew the high street attracts thousands of people everyday, therefore enabling Tesco to encourage a large number of people of those people to shop at Tesco as well. High street shoppers who need to buy there groceries will almost certainly go to Tesco because it is so close by and they do not need to go 20 to 30 minutes away by car and shop at Asda or Safeway they can go easily to Tesco in the town centre therefore it becomes very convenient for the shoppers. The customers have the privilege of 3 hours free parking allowing them to comfortably shop in the high street and in Tesco thus allowing the company to retain loyal customers and attract new ones.

Surroundings

Tesco were very lucky to find the piece of land that they did in Slough, especially because of the fact that it was is near to the high street. Tesco is also surrounded by 02, Thames Valley University, Yell, Brunei bus station and Slough train station these all attract customers. All these companies have thousands of workers who can shop in Tesco at lunchtime and after work to complete their weekly shopping which is a huge advantage for the company. This shows that large organizations surrounding Tesco have benefited the supermarket and therefore helped them to make profit and retain loyal customers.

When Tesco wanted to buy that piece of land near the high street the price did not matter to them because Tesco knew that even if they pay a high price to be near the high street it would be worthwhile, since there will be large number of customers coming to the town centre daily and this would help Tesco because it become convenient for the shopper to do everything in one trip. Tesco needed a large piece of land to build a large store petrol station and car park all on the same site. Therefore it has been a good return on investment because now Tesco have built a superstore in the area. Slough is obviously a profitable area for them.

Another reason why near the high street was a good location is because there is no real competition, and this has been a huge benefit for the company because people will prefer shopping while they are in the town centre. Tesco’s competitors are located 3-4 miles away this allows the company to benefit from everyone shopping in their supermarket. This allows Tesco to meet their aim of retaining loyal customers.

Tesco is located on a main road which makes it easily accessible for customers. It also enables Tesco to get customers in and out easily without any hassle which makes it customer friendly. Also main road is very useful for people who wish to purchase petrol. In conclusion these factors have led to Tesco’s success and have helped them become the market leader with the greatest market share in Slough and their success has helped them to build a superstore.

What problems has Tesco caused for Slough? Tesco has caused numerous problems for Slough such as traffic and congestion in the town centre, the traffic delays for people going to work everyday this happens because Tesco is located on a main road in the town centre. The council in partnership with Tesco have come up with a solution to this problem and have made the road wider.

They have introduced a new lane for Tesco shoppers to enter from so the traffic and congestion can be reduced and therefore reducing the chance of accidents. Tesco has very large delivery Lorries they have everyday. With the help of the local council Tesco decide to have delivery vans early in the morning and late at night this prevented any nuisance to the public and complaints of pressure groups that may have made problems for Tesco.

This has also avoided any Traffic delays and congestion for people who go to work early as this would have been a huge nuisance for people in Slough. Tesco obviously make sure that they do not have any pressure groups complaining about their activities and cause problems for the company. Tesco’s location is also good because it avoids extra pollution as the rubbish tips are very close by and boxes can be disposed without travelling too far.

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