...sTUDY ON tESCOUNLOCKING HUMAN RESOURCE MANAGEMENT CHAPTER 14: STRATEGIC HRM 14: Case study: Employee relations at Tesco Tesco is the largest multiple retail grocery supermarket stores group in the country, with over a quarter of the grocery retail market. It has a longstanding union recognition agreement with USDAW, the shop workers’ union, and the union claims density in stores of between 60−70 per cent. In 1998 the company signed a partnership agreement with the Union of Shop, Distributive and Allied Workers (USDAW), although this is currently under review, and has just signed a partnership agreement with the administrative arm of USDAW (SATA) for Tesco’s 600 call centre employees. In the mid 1990s Tesco began to see the benefits of trying to secure employee commitment through the process of involvement and communication, and established an Involvement Director who ensures compliance with legal developments in the employee relations field, including consultation and information. It was also concerned that existing union/management arrangements were not conducive to getting the best from staff. The changing external context and particularly the election of a Labour government committed to a partnership approach also influenced the company’s thinking in moving forward. The company saw annual pay negotiations with USDAW as symptomatic of adversarial-style industrial relations and wished to move away from this and the annual ballot on acceptance/rejection of any deal struck...
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...from 3 major perspectives namely, operations strategy, operations design and operations management. Firstly, it will show an introduction. The second section will analyze Tesco’s formats and international expansion at corporate strategy level. And then, based on the customer-centric conception, it will discuss the low price policy, cost control, loyalty card strategy, supply chain management, delivery system management and inventory management at the business unit strategy level and functional strategy level. Following this, it will make a comprehensive conclusion and show the strengths and weakness of Tesco’ operations management. Finally, the article will give some appropriate recommendations to Tesco’s sustainable development. Keywords: operations strategy, operations design, operations management 1. Introduction Tesco was established by Jack Cohen in London in 1919. Today Tesco is the biggest retailer in UK. It operates in 14 countries across the world and serves tens of thousands of customers every day. The company mainly operates 4 types of store formats in terms of Express, Metro, Superstore and Extra, respectively. In recent years, it also expands its...
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...TESCO CASE STUDY ASSIGNMENT Training & Development October 29, 2013 HOW TRAINING AND DEVELOPMENT SUPPORTS BUSINESS GROWTH. 1. Explain the difference between training and development. How have changes in customer expectations affected Tesco and its need to train staff? Training is the process of instructing an employee in their new job so that she/he understands their role and responsibilities and learns to perform the tasks assigned to them so they can perform with ease and efficiency. Training makes an employee more productive for the organization and is concerned with their immediate improvement. Development is an ongoing process that continues beyond training. The focus of the development process is on the person themselves where the focus of training is on the organization. Development is concerned with the making the employee more productive for the future of the organization. Training is for short-term goals of the organization while Development is for the long-term goals of the organization. Customer expectations have changed to ‘one-stop shopping’. Tesco’s original product range of grocery and general stores have diversified to include banking, insurance services, electrical goods, and telephone equipment and airtime. This means customers can now have all their purchasing needs met in one place. Tesco’s aim to expand and diversify means they need to have right employees in the right place at the right time. As Tesco opened new stores in new...
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...HOLY ANGEL UNIVERSITY Angeles City CASE STUDY: Submitted by: Aquino, Pauline Catherine Catajan, Nikka Camille Garcia, Mary Fe Yza Maniago, Lizette D. Nepomuceno, Anna Bettina S. Submitted to: Mrs. Maria Cristina Naguit September 01, 2014 Summary Tesco is the largest British retailer and is also the world's third largest grocery retailer with outlets across Europe, USA and Asia. The business began in 1919 with one man, Jack Cohen, selling groceries from a stall in the East End of London. Jack bought surplus stocks of tea from a company called T.E. Stockwell. T.E. Stockwell and Cohen combined their names to brand the tea Cohen originally sold TESCO tea. In 1929, the first Tesco store opened in north London. Tesco has expanded since then by a combination of acquisition of new stores, retail services and by adapting to the needs of consumers. Tesco has net profits (before tax) of around £3 billion. Tesco's primary aim is 'to serve the customer'. Keeping existing customers happy is important, as they are more likely to return. This is more cost effective for the business than acquiring new ones. In the UK Tesco now has over 2,200 stores ranging from the large Extra hypermarket style stores to small Tesco Express high street outlets. Tesco's original product range of grocery and general merchandise has diversified to include banking, insurance services, electrical goods as well as telephone equipment and airtime. This move towards 'one stop shopping' means...
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...race, gender or sexual orientation and age etc. With reference from the article, Tesco has its policy in place to ensure that its workforce has a balance of different people with its main strand for its strategy being “everyone is welcome”. On the other hand, Tesco not only adhere by the law to ensure fair treatment (equality), they establish networks to make sure that it engages with its people. 2. Explain which groups are particularly covered by equality laws. With reference from the article, the groups are mainly those with different sexual orientation (lesbians and gay men), the physically challenged people, Asian groups, women and the old people. They are all covered by equality law to ensure that all of them have equal rights in the society. More than 1000 lesbians, gays, bisexual and transgender members works in Tesco. Tesco also help the physically challenged people from organisations like Whizz-Kidz offering them work placements opportunities to give them the experience of working in retail. With Tesco’s established network with Tesco Asian Network, they assist Asians raise the profile of their careers, and with ABC Network, they reach out to the African and black people to help them reach senior positions in the organization. Tesco also helps women by supporting their careers and raising their profile through training, mentoring and career sponsorships. Last but not least, Tesco has a workforce of old people working and sharing their life...
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....How does Tesco create value in its international operations? First , the company devotes considerable attention to transferring its core capabilities in retailing to its new ventures, 2) the company hires local managers and support them with a few operational experts from the United Kingdom, 3) the company’s partnering strategy in Asia is a great asset because the companies Tesco has teamed up with are good and have a deep understanding of the markets in which they are participating, 4) the company and its partners bring equally useful assets to the venture which increases in the probability of success, and 5) the company focuses on markets with good growth potential but that lacks strong indigenous competitors. 3. In Asia, Tesco has a long history of entering into joint venture agreements with local partners. What are the benefits of doing this for Tesco? What are the risks? How are those risks mitigated? Tesco is able to share ideas and use ideas from the Asian companies. The risk is that the companies involved could pull out, steal Tesco ideas, or fail and leave Tesco with debt. The risk is mitigated by Tesco being involved only 50/50. 4. In March 2006, Tesco announced that it would enter the United States. This represents a departure from its historic strategy of focusing on developing nations. Why do you think Tesco made this decision? How is the U.S. market different from others Tesco has entered? What are the risks here? How do you think Tesco will do? ...
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...Introduction Tesco is the largest British retailer and is also the world’s third largest grocery retailer with outlets across Europe, USA and Asia. The business began in 1919 with one man, Jack Cohen, selling groceries from a stall in the East End of London. Jack bought surplus stocks of tea from a company called T.E. Stockwell. T.E. Stockwell and Cohen combined their names to brand the tea Cohen originally sold – TESCO tea. In 1929, the first Tesco store opened in north London. Tesco has expanded since then by a combination of acquisition of new stores, retail services and by adapting to the needs of consumers. Tesco has net profits (before tax) of around £3 billion. Tesco’s primary aim is ‘to serve the customer’. Keeping existing customers happy is important, as they are more likely to return. This is more cost effective for the business than acquiring new ones. In the UK Tesco now has over 2,200 stores ranging from the large Extra hypermarket style stores to small Tesco Express high street outlets. Tesco’s original product range of grocery and general merchandise has diversified to include banking, insurance services, electrical goods as well as telephone equipment and airtime. This move towards ‘one stop shopping’ means customers can meet all their purchasing needs from one place. Tesco has also expanded its customer base through its Tesco.com website which attracts one million regular users. As the company has grown, so has its workforce. From one man and a stall, Tesco now has...
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...Marilynn Black Tesco Case Ashford University BUS620: Managerial Marketing (NAC1244A) Dr. Susan Sasiadek 11/05/12 Tesco is one of the world’s leading retailers with over 2100 supermarkets, in Europe, US and South East Asia. The group has interests in grocery, non-food items, financial services and telecommunications. It is committed to reducing prices for customers and offering the best value. It seeks to help customers spend less. In 2007, sales were £42,633.4 (mill) and it experienced sales growth of 21.9%. Tesco has over 400,000 employees (Tesco plc, 2010). Tesco Company has attributed an increase in performance and productivity to the use of this model (Tesco plc, 2010). Tesco is an international retailer with a global presence in over 14 countries and a major share of the UK retail market and a consumer base exceeding 260 million people (Child, 2002). Considering the utter size and operations of the organization, it is essential that it deploys a strong strategic performance management structure in order to improve and reinvent itself continuously. The recent financial crisis put Tesco under the pressure when its customers by seeking reduce its expenses switched to cheaper alternative supermarkets as Lidl, Asda and Aldi. According to the has poor results in this market segment, and in order to maintain their market share, the company has tackled the problem by releasing 400 low -cost new ranges of food and products on their shelves. Tesco had to change...
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...MarketLine Case Study Tesco plc Case Study How Tesco Became the UK's Largest Retailer Reference Code: ML00001-041 Publication Date: December 2011 WWW.MARKETLINE.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED TESCO PLC CASE STUDY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00001-041/Published 12/2011 Page | 1 OVERVIEW Catalyst Tesco is the largest retailer in the UK and dominates the UK food and grocery market, accounting for almost a third of all grocery sales. This case study examines the factors that have led to the growth of the company as the UK’s number one retailer. Summary In 1995, Tesco overtook Sainsbury’s to become the UK’s largest retailer. Since that time the company has grown from strength to strength, widening its lead year on year. The unrivaled success of the Tesco Clubcard in building customer knowledge and generating loyalty has been fundamental to the rise of Tesco. The company has created a powerful brand and a number of valuable sub-brands including store, product and service brands. Tesco’s grocery product brands tend to center around a three-tier branding system, allowing the company to appeal to a mass market. Tesco has been a forerunner in the price competitive environment of the UK food and grocery market, utilizing its economies of scale to lead price wars with other supermarkets. The company has grown inorganically, buying out various independent grocers...
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...Evaluate the Tesco marketing (distribution) channels Marketing-channel decisions are one of the most critical decisions that Tesco needs to make because the chosen channel could profoundly affect all other marketing decisions. Intensive market research would need to be performed by analysing customer needs, establishing channel objectives and identifying and evaluating the major alternatives to be able to decide which type of channel is suitable. Tesco uses their Club Card to retrieve customer buying habits to tailor their marketing channels more effectively. For example to get customers into the store, Tesco gives out vouchers to targeted individuals and their product interests. Three of the most important trends are the growth of vertical marketing systems, horizontal marketing systems and multichannel marketing systems. All marketing channels have the potential for conflict and competition resulting from such sources as goal incompatibility, poorly defined roles and rights, perceptual differences and interdependent relationships. Horizontal Conflict: Occurs among firms at the same level of the channel. For instance, some Toyota dealers might complain the other dealers in the same city steal sales from them by pricing too low or by selling outside their assigned territories. Or one hotel franchise might complain about other operators overcharging guests or giving poor service, hurting the overall franchise image. Vertical Conflict: Conflicts between different...
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...How Introduction Tesco is a global public limited company founded by Jack Cohen in the United Kingdom in 1919. Measured by revenues and profits, Tesco is considered as one of the global leaders in international food retailing as a core business. In addition, its business also includes non-food products and services such as banking, insurance, telecommunications, health, entertainment and furniture. There are numerous Tesco stores in 14 countries with strategic diversification of investments having contributed to their achievement and progress over the last 12 years (Fame, 2010; Deloitte, 2010). Furthermore, according to Berwin (2009), the grocery retail-market structure of the United Kingdom is dominated by 4 influential firms an ‘oligopoly’ comprising of Tesco, Asda, Sainsbury and Morrison’s with a whole market share of 75.6%. Tesco, however, takes 30.5% of the market share of the retailing industry triggered by the achievement of economies of scale to maintain the advantage of price, outstripping the growth of competitors (Morris et al, 2004; TNS World panel, 2009). Table No.1 Source:tescoplc,2010 The main value for Tesco is to maximize profit and to provide goods and services that are cheap and affordable to consumers or the public. The company is also adaptable and quickly responds to the changes in the market. It has grown strong due to diversification into non-food products/ services, for example financial services and telecommunications....
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...Introduction Reading problems stem from several sources. First, the student may not be able to read the words themselves. Indeed, word decoding development and discrepancies are the concern of many researchers and educators, predominantly for younger children and children with learning deficits. However, this concern has sometimes led to the abandon of the corresponding item of word decoding: sentence comprehension. It is clear that many readers be deficient in adequate reading abilities and knowledge to appreciate the sort of texts that encompass their classroom lives. World knowledge is mostly cooperative to considerate text genres such as narratives or novels. But students need domain-specific knowledge to understand their textbook material. Here in this assignment it is going to be discussed about the reading strategies and how it helps in communication in the businesses 1.1 All information about the natural or social world is based on the text data surrounded. School, work and the success of our social order depends on the capability to realize the material. Many children and adults are still under pressure to understand the text data. Following are some techniques to make them understood: Reading strategies Before reading Preview text type and text features: students should be thinking about what's going to read it before reading. Also, graphics, hyperlinks, and the information will be aware of what kind of writing. (www.ft.co.uk) Four corners and staying guide:...
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...INTRODUCTION This TESCO case study for diversity summaries that, in a worldwide marketplace, big companies that hires a diverse workforce around the world, are better to explain and understand the different demographics of the global marketplace, TESCO better service and is equipped to grow in the marketplace because of its diverse workforce than that of all those small companies that has limited or small range of employee demographics. Tesco provides banking, insurance and telecommunications services as well as having a strong online presence. Tesco is a business that puts people first, ensuring its customers and colleagues are at the heart of everything it does. ‘Our core purpose is to create value for customers to earn their lifetime loyalty. Our success depends on people: the people who shop with us and the people who work with us. Earning customer loyalty is crucial and Tesco focuses to helping customers in lots of small ways which together can make a big difference. ‘Every little helps’ is more than just a slogan. It describes Tesco’s way of working with all of its stakeholders, and that includes colleagues as well as customers. Tesco works in a competitive market where products, stores, tastes and even the way customers shop are constantly changing. Tesco needs to be proactive in preparing to face these changes. This means finding talented people who will be ambassadors for the brand in the communities it serves. Diverse communities mean that it needs to recruit and...
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...13 Effectiveness of Online Recruitment and Selection Process : A Case of Tesco Aakash Gopalia Oxford Brookes University Abstract The purpose of this paper is to give an overall assessment of effectiveness of using internet to recruit and select people with the case reference to Tesco. For this research paper, exploratory, theory building approach is used. Online recruitment is effective in terms of saving cost of recruitment and selection. Case exploration about the effectiveness of online recruitment and selection depicts that it saves time to hire and reduces recruitment cost. Effectiveness of online recruitment and selection process can be used by other firms working in different industries, students working on internship programs on HRM, HR practitioners and researchers to develop further thesis and projects. Introduction Recently there has been significant increase in use of internet to recruit and select people has grown (Hopkins &Markham, 2003). Various research evidences show that online recruitments have become easy way to save cost and valuable time of firms (Hart, Doherty & EllisChadwick, 2000). Some recent studies on the effectiveness of internet in recruitment and selection have reflected the benefits delivered by Internet to the organizations. This research article evaluates the effectiveness of internet to recruit and select people with reference to the case of Tesco in terms of recruitment and admin cost, time to hire, market image ...
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...Journal Article: Building Brand Webs: Customer Relationship Management Through the Tesco Clubcard Loyalty Scheme Group Topic: Customer Relations and the Food Industry In this journal article, the author, Rowley, examines the use of loyalty schemes and the role that they have in developing a customer relationship with the brand distributing, or communicating with the loyalty scheme. The role of loyalty schemes in branding is also examined alongside their effectiveness of keeping customers loyal. A central argument that is portrayed is ‘Do loyalty schemes work?’ (Rowley, 2005:194). This is assessed on their effectiveness on the way the brand or organisation is perceived and the way customers behave towards the brand. The theory that Rowley basis her argument around is that ‘relationship marketing acknowledges that a stable customer base is a core business asset’ (2005:195). The role of theory in this instance is used to help understand the use of loyalty schemes and the relationship they build with the customer and the brand. So by a brand opting to use a loyalty scheme, they can effectively get to know their customers. This can result in a stable customer base for them, therefore benefiting the business or brand in many ways. Another theory that is used in this article is that customer loyalty cannot be bought through such schemes, rather it is developed overtime through a sense of customer satisfaction and value. A number of different perspectives are...
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