TESCO SERVICE CONCEPT
TESCO has been in business ever since 1919 when it was founded by Jack Cohen. Its name is a combination of the initials of its first supplier Thomas Edward Stockwell and the founder Jack Cohen (Zhao, 2014; 184). While grocery products account for the largest proportion of the company’s products, TESCO has diversified its market to deal in: mobile services (TESCO Mobile), internet services, books, clothing, furniture, petroleum, software and financial services. This is all deemed to cushion the risk of loss during low business seasons for its major commodity of trade (Tesco P. L. This is of importance after revelations in the Small Business. co. uk. , 2017 report that four in ten small companies don’t make it five years after venturing into business in the United Kingdom.
This report examines the service Concept of TESCO, how her operations contribute to the functioning of the concept, assesses how well the operations implement the service concept and proposes on how the concept and delivery system of TESCO will be improved for an excellent delivery an analysis that will benefit TESCO and her peers in the market. Precisely, TESCO interacts with its customers directly and indirectly. Customers interact directly with TESCO personnel when buying items physically from the TESCO stores. This, Sparks, 2014; 149 calls a ‘Front Office interaction. ’ Another type of a clientele group may not prefer to buy physically from the TESCO outlets. This group of customers makes virtual trips to the shops and selects their purchase while making the payment online courtesy of TESCO online shops.
TESCO also operates the one-stop shops. These have a number of the branded TESCO products selling at smaller volumes hence ideal for retail buying (Foster & Noh, 2013; 296). Finally and recently, TESCO is operating the TESCO Com. Only Stores. They include; Croydon, Aylesford, Greenford, Enfield, Crawley, and Erith. L. C, 2017; 5). This way, every operation and product is customer tailored and this has helped the company achieve more than average in as much as customer satisfaction is concerned. According to the United Kingdom Customer Satisfaction Index report of 2017, TESCO has a customer satisfaction ranking of 77% which is well above average. 85% of the customers even report that they are likely to repurchase from TESCO once they have bought the first time (TESCO P. According to her assessment report of 2017, product and service diversification accounted for 20% of its success in 2017.
Products According to the TESCO Annual report of 2017, the partnering with revered global firms like the IBM, Facebook, Samsung and Tata Motors is what has enabled the company to tailor products according to customer specification accounting for 30% in its 2017 success report. Partnering with the right people and organizations has enabled TESCO to take research and innovation, product improvement and meet standards with ease (TESCO P. L. C, 2017; 55). Therefore, to clean its name and perform well in this concept, TESCO has to become genuine to all its stakeholders and never lie about its financial status. The mogul has to take honesty as one of its core values if it has to build upon it and manage to meet 100% the intended goals of its service concept.
Also, TESCO should take it as an initiative to provide healthy meals to its clientele. In the past recent days, Customers are tending to avoid very sugary meals, salty ones too, fatty foods and instead prefer more natural greens and vitamins (Sparks, 2014; 152). This has the implication that crisps and processed industrial drinks stocked on its shelf will no sooner than later be slow moving or will not sell at all. TESCO and her peers should thus take an initiative in adopting this report’s recommendations. References Brown, D. M. and Whysall, P. Viewing the Strategy‐Performance Relationship Through a Reputational Lens: A Longitudinal Study of Leading Retailers. Sustainable London, pp. Mollah, M. D. A. S. Business failure: Four in ten small companies don’t make it five years.
Available at: http://www. fsb. org. uk/media-centre/small-business-statistics as at 10th Jan 2018, 0555 hrs. tescoplc. com/media/417/tesco_annual_report_2017. pdf. The Institute of Customer Service, 2017. Rising customer trust and satisfaction boosts Tesco financial recovery. 44B 101. 38B 100. 21B 102. 89B Cost Of Goods Sold (COGS) 70. 17B 78. 74B 4. 39B 2. 61B 2. 48B Income Before Depreciation Depletion Amortization 1. 35B 1. 35B 1. 08B 889. 25M 728. 52M Tesco Pretax Income 191. 92M 245. 63M - - - Investment Gains Losses - - - - - Other Income - - - - - Income Before Extraordinaries & Disc Operations 76. 76M 327. 14M -9. 31B 3. 01B 2. 46M Average Shares used to compute Diluted EPS 2. 72B 2. 72B 2. 7B 2. 69B 2. 13B Income from Nonrecurring Items -638. 15M -81. 65M -9. 62B -1. 13B -1. 99B Marketable Securities 4.
36B 5. 51B 1. 21B 1. 73B 920. 94B Raw Materials - - - - - Work In Progress - - - - - Finished Goods - - - - - Notes Receivable 5. 51B 5. 78B 6. 21B - - Other Current Assets 472. 52M 380. 11B 33. 27B 38. 61B 39. 47B Investment & Advances 3. 88B 5. 21M 836. 63M 115. 09M 92. 05M Intangibles 3. 6B 4. 01B 1. 22B Accounts Payable 11. 75B 12. 98B 16. 15B 16. 14M 12. 67B 13. 24B 10. 04B Tesco Total Current Liabilities 25. 68B 29. 22B 17. 34B 14. 67B 15. 98B Non-Current Capital Leases - - - - - Other Long-Term Liabilities 13. 49B 7. 43M 660. 84M 638. 56M 639. 64M Capital Surplus 6. 75B 7. 71M -228. 7M -673. 86M -774. 15M 1. 13B Tesco Shareholders Equity 8. 2017 2016 2015 2014 2013 Tesco Net Income Cash Flow 1. 35B 1. 58B -10. 38B 3. 56B 3. 2M Cash From (used in) Discontinued Operations -154. 86M 193. 86M - - -1.
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