The operations department
Most businesses will use CAD CAM to design their products, but Tesco doesn’t produce the products that are sold in the stores. They buy the products already made and packed. The operations department also make sure that the quality of the products is all good quality. The operations department at Tesco will employ people with a large variety of specialists. If any part of Tesco’s operations department stopped it will have a knock on effect on all the other departments. This is because if they didn’t make full use of what they have Tesco will have to purchase more products including land. This will reduce the amount of income for Tesco. The operations department for Tesco could use farmland to produce products.
The marketing department make sure that the managers understand what the customers want from the business. They can do this by market research, promotion and sales. Before a company can offer a new product they have to make sure that they know what the customers want and make sure that they know what the competitors are offering. They can get this information from carrying out customer questionnaires this is called market research. It will use this information to offer promotion and sales activity designed to reach the people it is aiming to reach.
If Tesco wanted to introduce a new product to the shelves they would need to ask the customers what they think first this is because they need to know if anyone’s going to buy the product and they know what to plan next. They will also need to know what similar products are Tesco’s competitors (Asda, Sainsbury) are offering this will help them gain more profit. By researching the market Tesco will try to reduce the risk of unprofitable investments in a product. This will help Tesco because they will be able to sell more products and make a higher profit.
Before fully introducing a product the company will test market the product. This is when they offer the product to only one region of the country and keep record of the sales figures. If the product is successful then they will introduce the product to all the outlets. If Tesco want to introduce a new product to their stores after all the market research they can use different sales techniques which include: Free samples – this is when Tesco would give away small packages of the product either on the street, in the shops or house to house. The aim is, once the customer has tried the product they will want to buy more of the same product.
Free gifts – free gifts are offered to people with club cards. Sales The sales department at Tesco will make sure that their opening house suit, stores are well presented and products well displayed, arrange in store demonstrates to show how products can be used. The number of sales any business makes will depend on how easy it is for the customer to buy. This department will make sure that Tesco accept a wide range of payment methods, happy helpful staff that help customers. The sales department will also encourage and promote internet base shopping and over the phone ordering to help suit customers who can not get to the stores.
Furthermore the sales department will use computers to organise and track orders – stress free shopping – happy customers. Tesco’s sales department will make sure that stores and internet based shopping sites are convenient to use. Tesco sales department will consider how to price their products competitively so that people continue to shop. Price checks with other supermarkets, adverts etc. Customer service Tesco must have an exceptional customer service facility. Service to customers can be the deciding factor when a customer is choosing between rival firms such as Tesco & Asda. Successful businesses such as Tesco are required to provide a range of services for their customers. Things which Tesco can accomplish, to provide a good customers service are:
Information – Customers will ask for information before they make a purchase so they can judge rival merchandise. The cost of an item is a significant piece of information. Questions about the performance of the item are also sometimes asked, e.g. ‘Are those shoes waterproof?’ Advice – When buying something for the foremost time customers will ask for guidance form sales staff, who they expect to know something about the item for sale and the alternative available.