Premium Essay

Case Study at Tesco Hrm

In: Business and Management

Submitted By jayshree74
Words 2764
Pages 12
www.thetimes100.co.uk

How training and development supports business growth
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 approximately 280,000 employees in the UK and over 460,000 worldwide. To serve its widening markets it needs flexible and well-trained staff that can recognise the needs of the customer. Tesco’s employees work in a wide range of roles in both store and non-store functions, such as: • Customer Assistants on…...

Similar Documents

Premium Essay

Tesco Case Study

...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......

Words: 993 - Pages: 4

Premium Essay

Hrm Zappos Case Study

...Zappos Case Study Introduction Zappos is a successful company with a unique corporate culture and impressively low turnover rate. This case study explores the human resources strategy employed by the company, focusing first upon the significance of the environment upon human resources. The paper then identifies how the Zappos strategy fits within the human resource management model. The final section discusses the core strengths and weaknesses of the Zappos HR strategy. While the Zappos human resource practices are characterized by many strengths, they could be improved by enhancing the accountability of managers responsible for conducting performance appraisals and inviting a greater degree of employee feedback into the appraisal system. Both of these relatively small opportunities for change are consistent with the company's overall company culture. Environment and HR The external environment plays an important role in determining the direction of a company's human resources strategy. "An organization's strategy must be appropriate for its resources, environment circumstances, and core objectives. The process involves matching the company's strategic advantage to the business environment."[1] Companies develop networks with external entities, such as customers, suppliers and investors, which must be cultivated to ensure longevity.[2] Human resources must ultimately support the business with practices that will enable it to interact and compete within the surrounding......

Words: 1863 - Pages: 8

Premium Essay

Hrm Case Study

...HRM Incident 1 (A Matter of Priorities) MGT 331 (Management of Human Resources) March 23, 2014 Professor J. Barnes Background Sheila Stephens, a production manager for Thompson Manufacturing was put in an unfortunate situation while attempting to juggle a busy work schedule and interview a potential candidate. The human resource manager caught her off guard and insisted she give some attention to an individual he felt would be an asset to the company. Stephens juggled competing interruptions during the course of the interview including phones calls and having to leave the room. The constant interruptions could make the applicant think that his potential manager is not up to task. Current Challenges Whenever a manager conducts an interview, there are always challenges. The key to a successful interview is to be time conscious. The interview should be performed with the least amount of interruptions as possible. The resume of the candidate should have already been reviewed. Also, the inquiry should be structured to include information relevant only to the qualifications of the candidate for the position. An interview is not just an assessment of the individual looking for a position but also an assessment of the organization by the individual. Having a smooth-flowing interview is important as it allows continuous exchange of ideas and conversation (2014, para. 1). Analysis of Issues Stephens was definitely too busy to accommodate an interview on that particular......

Words: 536 - Pages: 3

Premium Essay

Tesco Marketing Case Study

...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......

Words: 267 - Pages: 2

Premium Essay

Tesco Case Study

...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......

Words: 752 - Pages: 4

Premium Essay

Case Study of Tesco

...Case Study of Tesco * Submitted by, Binoy Introduction Tesco was started by Jack Cohan. It was 1st opened at Edgware, North London in 1929. Initially Company had grown and reflected in Retailing. The company floated on the Stock exchange in 1947 with an initial price of 25 pounds. Strategies Implemented 1. The company makes the use of stamps that could be exchanges for cash or goods. So company could build customer loyalty. 2. Cohen’s another strategy was ‘Pile it high and sell it cheap’. 3. After that, they moved to out of towns and started store with more attractive interiors. 4. Another strategy that they had take up that they have started stores at petrol bunks. Overall they made a turn over of 1billion pounds in 1979. 5. In 1980’s they had started new stores and new initiatives to start some other business also. 6. In 1985 they announced healthy eating options with nutritional information and advice on some of branded foods. 7. In 1990’s they moved to undertake other major supermarkets as well. 8. They deal with pharmacies and make tie up with the Royal Bank of Scotland to provide EMI schemes to the customers and also overcome the profit of Levi’s outlet. 9. In the new century they have moved up with Shopping via Internet and home delivery 10. In 1933 through to its finest products as well as a brand called “Free from” for customers with special diatory needs. 11. They also expand their business in......

Words: 411 - Pages: 2

Premium Essay

Marketline Case Study Tesco

...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......

Words: 4232 - Pages: 17

Free Essay

Tesco Case Study

...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......

Words: 996 - Pages: 4

Free Essay

Tesco Case Study

....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......

Words: 376 - Pages: 2

Premium Essay

Hrm Case Study

...Project contributor: Bill Schaefer, SPHR Nancy A. Woolever, SPHR External contributor: Sharon H. Leonard Editor: Courtney J. Cornelius, copy editor Design: Terry Biddle, graphic designer © 2008 Society for Human Resource Management. Fiona L. Robson Note to HR faculty and instructors: SHRM cases and modules are intended for use in HR classrooms at universities. Teaching notes are included with each. While our current intent is to make the materials available without charge, we reserve the right to impose charges should we deem it necessary to support the program. However, currently, these resources are available free of charge to all. Please duplicate only the number of copies needed, one for each student in the class. For more information, please contact: SHRM Academic Initiatives 1800 Duke Street, Alexandria, VA 22314, USA Phone: (800) 283-7476 Fax: (703) 535-6432 Web: www.shrm.org/hreducation 08-0753 © 2008 Society for Human Resource Management. Fiona L. Robson 1 International HRM Case Study Purpose of the Case Study This case study is geared toward an undergraduate audience with a basic understanding of the issues involved in domestic recruitment and selection. The case is based on a fi ctional organization in the United Kingdom’s hotel industry; however, the content covered is relevant internationally and among different industries. The material is presented in this manner to allow you to apply theory to a practical situation. You will have an......

Words: 2383 - Pages: 10

Premium Essay

Introduction to Business. Tesco as a Case Study

...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....

Words: 2059 - Pages: 9

Free Essay

Tesco Case Study

...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'......

Words: 1233 - Pages: 5

Premium Essay

Tesco Case Study

...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 format into Tesco online grocery shopping. The core value of Tesco is to ‘create value for customer to earn their lifetime loyalty’. The vision of Tesco is to be a growth company (Tesco PLC, 2013). According to a survey of IGD (vending international, 2006), the international food and grocery specialist, Tesco is regard as the best in class retailer. Apart from its long history and large scale, the success of Tesco heavily relies on its innovative operations strategy, distinctive operations design and effective operations management. Based on Tesco’s case study, this essay will analyze and critically evaluate the Tesco’s current operations management from 3 major perspectives, namely, operations strategy, operations design and......

Words: 3140 - Pages: 13

Premium Essay

Case Study Tesco

...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 experiences.......

Words: 1110 - Pages: 5

Premium Essay

Hrm Case Study

...[pic] HRM Case Study Assignment – 2012 Phalicia Pang Matthew is a bright, popular, and well-informed mechanical engineer who graduated with an engineering degree from University of Glasgow, U.K in July 2011. After her graduation, she went out on many job interviews, most of which she thought were conducted courteously and reasonably useful in giving both her and the prospective employer a good impression of where each of them stood on matters of importance to both of them. It was, therefore, with great anticipation that she looked forward to an interview with the one firm in which she most wanted to work, WWF Environmental. She had always had a strong interest in cleaning up the environment and firmly believed that the best use of her training and skills lay in working for a firm like WWF, where she thought she could have a successful career while making the world a better place. The interview, however, was a disaster. Phalicia walked into a room in which five men – the president of the company, two vice-presidents, the marketing director, and another engineer – began throwing questions at her that she felt were aimed primarily at tripping her up rather than finding out what she could offer through her engineering skills. The questions ranged from unnecessarily discourteous (“Why would you take a job as a waitress in college if you’re such an intelligent person?”) to irrelevant and sexist (“Are you planning on settling down and starting a family anytime......

Words: 473 - Pages: 2