Monday, April 28, 2014






Taylor’s Business Foundation
July Intake 2013
2nd Semester

Business Enterprise – BUS 0515


Group Assignment: Tesco Hypermarket
Tutorial Group 4

                                                                                  
 

Group Members :
                     Kong Xiang Nian            0316781                 
             Ng Sze Ling                  0317086         
             Tan Hui Wen                 0316761         
                  Chong Ri Jenn               0316400              
                 Shirhla Jane                  0316172             

Sunday, April 27, 2014

Assignment Checklist



Cover Page




FEEDBACK FORM




Marking Rubrics 

Part 1 - Corporate Social Responsibilites by Tesco Hypermarket

Conduct a research on the CSR initiatives/programs that had adopted by Tesco Hypermarket for the past ONE (1) years.




The Chief Executive, Phillip Clarke said: "Our scale gives us an opportunity to make a positive difference to some of the biggest challenges facing the world." These are a few CSR initiatives and programs that had adopted by Tesco Hypermarket for the past one year. The first one is, to create new opportunities for millions of young people around the world by inspiring, equipping and enabling millions of young people to succeed in the world of work. It means giving more chance to young people that needs it. To improve health and through this help to tackle the global obesity crisis by helping and encouraging our 500,000 colleagues and 50 million customers to live healthier lives. Next, it is to lead in reducing food waste globally by working with our producers and suppliers and helping the customers we serve to find ways to reduce food waste. In 2013, Tesco is laying foundations so they can set meaningful targets. Tesco has set themselves with big ambitions because as a company with scale, they believe that they can make a difference. The essentials are to trade responsibly, like putting the customers first and working with our suppliers to innovate and provide high quality products. The second essentials are reducing impacts on the environment, for example aiming to be a zero-carbon business by 2050 and to use scarce resources responsibly, including in their supply chain. Following with being a great employer by creating inspiring work that makes our colleagues happy and proud of what they do. The last essentials is, supporting their local communities like being a good neighbor and running our business to the highest standards.
              
In 2013, 75 million of young people are unemployed globally, 120 million potential new young workers enter the global labor market each year. Why does this matters? One thing which unites everyone who works with and shops at Tesco is the belief that young people need support and opportunities to make most of their lives. They knows that every family wants the best for their children and every community and employers wants confident, engaged and skilled young people. Tesco wants to draw from their capacity to hire, train and develop people's career to address the challenge of creating new opportunities for millions of young people. Tesco wants to inspire young people to broaden their horizons and realize their potential, they will equip the young people with the social and specialist skills they need for work. And Tesco will then enable hundreds and thousands of young people to get started on a career. Other than this, Tesco wants to break the cycle - no job: no experience; no experience: no job. They know that young people cannot do this on their own. They need business to step up and give them their initial opportunity. Tesco believes that if taking on this challenge is that, if they can achieve their ambitions, they can make a practical difference to young people, their families and everyone of these communities.

One of the key part of their plan is to go into schools and inspire young people about the possibilities ahead of them. They also want to equip young people for the future like bringing in new training and apprenticeship programs to give young people  more workplace skills. Tesco wants to enable young people to succeed in the world of work. Job creation has slowed substantially since the financial crisis and where vacancies do exists, young people have to compete with candidates who have more experience. Our plan is to use the chance of experience with Tesco to help break the cycle and enable hundreds of thousands of young people to get started on a career. These are some of the activities planned across the Group in 2013/4: For inspiring, South Korea are launching a mentoring program for high school and college students. In Czech Republic, they run an online retail business game for university students. On the other hand, Poland launch an outreach program where Tesco colleagues visit their former schools. For equipping, UK offers 5,000 places on our apprenticeship programs. Thailand provide 365 scholarships for university students from deprived backgrounds. Then, UK, Ireland and Poland donate learning equipment to thousands of schools and clubs. Turkey offers educational class through Tesco's Kipa Family Clubs. For enable, UK created 500 jobs for young long-term unemployed people through our Regeneration Partnership Stores. South Korea expands their paid internship program for college students and offer opportunities for full-time employment after six months. Lastly, in Ireland they triple the number of places on our graduate program.
               
The second ambition is to help and encourage Tesco's customers and colleagues to live a healthier live. And also help to tackle the global obesity crisis. According to Tesco, it matters because it is true that health matters to all of us and we want to enjoy active and healthy lives so that we can feel good physically and mentally. Most of us understands that health and wellbeing can be achieved by avoiding bad habits, being active and eating the right food, and most of us lack the money, time and motivation to make this a reality. As one of the biggest providers of food and beverage globally, Tesco has the responsibility to help their customers to bridge the gap between knowing and doing, and achieve the behavior change that they desire. By helping their colleagues and customers to live healthily, Tesco plays a significant role in tackling the global obesity crisis. With their stores all around the world providing food to millions, coupled with our insights into consumer behavior, they are well placed to do this. Tesco knows that it won't be easy and they understands that it will mean taking some difficult decisions along the way. However, through building a deeper understanding of the emotional drivers behind people's diet and lifestyles, they can work out what matters and how can they help. At Tesco, they believe they need to help tackle the problem and make it easier for their colleagues and customers to live healthier lives in six basic ways:
·         Help their colleagues lead healthier lives at work and at home.
·         Reformulate and more clearly label our products.
·          Create a store environment that encourages and promote healthier choices.
·          Provide customers with more personalized information so that they can choose solutions tailored to their individual needs.
·         Provide services and advice that can balance their customer's lifestyle.
·         Inspire their customers, colleagues and communities to be more active.               

               The last ambition that Tesco wishes to achieved at the end of 2013 is reducing food
waste. At Tesco, they buy, move and sell food - it is what they do and they do it with a scale, all over the world. This is why they have set themselves the ambition to lead in reducing food waste globally. Tesco reduces food waste globally by working with their producers and suppliers and helping the customers we serve find ways to reduce food waste. The nature of their business is to offer a wide range of foods to our customers every day, means that there is only some surplus food that we have stocked but have not been able to sell. In the UK, Tesco uses a list of hierarchy to manage their waste:
·         Try to minimize any waste, for example by reducing to-clear foods close to their expiry date in stores.
·         If food cannot be sold, offers it where possible to those in need by donating to charities.
·         Send bakeries waste to be converted into animal food for livestock. Out of date chicken and raw meat products are processed into pet food and their chicken fat and cooking oil is converted into biodiesel.
·         If these options are not available, we recover energy from food waste through anaerobic digestion or incineration.

On November 17, 2013 in Kuala Lumpur, Malaysians put on their walking shoes in support raising funds for the underprivileged children who are undergoing leukemia treatment at the University of Malaya Medical Centre(UMMC). Tesco Malaysia held its sixth annual Walk for Life 2013 today at the scenic University of Malaya Kuala Lumpur campus. Walk for Life is one of Tesco Malaysia's fundraising effort aimed to raise RM1 million to help 100 children with leukemia from underprivileged background within 3 years. Jointly organized by Tesco Malaysia and UMMC, 2013's Walk for Life raised over RM100,000 in cash as well as in kind. The Walk for Life campaign has raised RM600,000 since the launch in 2012. The funds raised today will help families bear the cost of medication, treatment and hospital travel expenses for young leukemia patients. The funds to help finance the children’s treatments are disbursed on a quarterly basis to needy children with leukemia identified by UMMC. The Walk for Life is made possible with the sponsorships from Tesco Malaysia's including The Continuity Company (M) Sdn Bhd and Protect & Gamble Malaysia Sdn Bhd, among others. This is one of the CSR activities that Tesco has adopted by Tesco. 


Next, on September 20, 2013 in Kuala Lumpur, in support of the government's initiative to mitigate the rising cost of living, Tesco Malaysia announced a long term price campaign to help its customers to save more. Tesco invested RM2.3 million to reduce prices on 18 essential fresh food item throughout its 47 stores nationwide for this campaign. The Tesco price campaign will ensure that customers can enjoy low prices with discounts of up to 37% on key essential fresh products beginning 20 September until 1 December 2013. These are popular everyday products our customers buy that include whole chicken, whole salmon, golden pomfret, imported beef, cucumbers, lemons, pineapples and Cavendish bananas among others. Tesco’s CEO, Georg Fischer said, "Our core purpose at Tesco is to make what matters better for our customers. Given the recent fuel hike and after listening to our customers, Tesco has the obligation to intensify our efforts and help our customers save on our food products that matter to them. As one of Malaysia’s leading hypermarket, we continue to lead by offering promotions of over 1000 products on weekly basis and while still maintaining the high standards of quality and freshness our customers have always enjoyed." Fischer also noted that the hypermarket has seen an increasing number of customers buying Tesco’s own brand products which matches the leading brand quality but with 20 percent lower prices. Tesco has over 2000 lines ranging from food to household items and some of the top selling Tesco branded items are Tesco Choice Sweetened Creamer, Tesco Choice Fresh Milk, Chocomalt, Tesco Carbonated Soft Drinks and Tesco Tissue Paper.

Part 2 - BUSINESS SUSTAINABILITY

a) What are the facilities provided by the company to their consumers? 




ONLINE SHOPPING
Consumers can choose to shop online or in-store shop with Tesco. Tesco offers online shopping facility which provides consumers assembly to their wide range of products and great quality. Consumers can click into this website http://www.tesco.com.my/, a full range of groceries as well as thousands of products from Tesco. Consumers can place their order online from the comfort of their own home. Besides, Tesco online shopping also provides great quality products delivered to consumers' house, with free shipping. Consumers can have them delivered directly to their door at a time to suit them. The individuals who deliver items are actually trained Tesco workers. This is great because consumers can ask them to explain more on the product that they have purchased. 




TESCO CLUBCARD
Tesco offers consumers many promotions so that the major benefits of shopping in Tesco are available to everyone with an access to the Internet. The picture above shows, Tesco offers Clubcard for consumers. They intention is to help their consumers to save their money on their shopping. Consumers can register a Clubcard to earn points every time they shop in Tesco Online Shopping. With the Clubcard, they will receive 1 point for every RM 2 spent, plus a lot more rewards. Once they have accumulated 150 Clubcard points or more, Tesco will convert them into Clubcard cash vouchers. The more points consumers collect, the more they will get back in their Clubcard statement every quarter!






















Trolley 
In every Tesco hypermarket, they also provide consumers facilities with shopping trolleys to hold their shopping lists. Consumers have to pay a small deposit by inserting RM0.50 into the coin lock to take the trolley. The deposit is returned when consumers return the trolley to the correct location. With a shopping trolley, consumers can transport goods to the counter during shopping. Consumers can also use the trolley to transport their purchased goods to their cars. This is convenient to consumers who want to buy a lot of goods. 





Trolley 
In every Tesco Hypermarket, consumers are allowed to leave the trolleys in the parking lot, and store personnel will return the trolleys to the storage area. Tesco makes it easier for consumers because after they have transported the goods to their cars, they do not have to walk back to the shopping center to return the trolleys. The deposit (RM 0.50) will return back to consumers after they have returned the trolleys, however, coin-operated locking mechanisms are provided to encourage consumers to return the trolleys to the correct place after use.




FREE PARKING PLACE
A facility like parking space is necessarily for consumers at Tesco. At some Tesco, free parking spaces are available. For example, Tesco Mutiara Damansara has free parking spaces for consumers. As for some Tesco they has no free parking spaces. For example, Tesco Paradigm offers 2 hours free parking for consumers. But In order to get free 2 hours parking, consumers need to spend a minimum of RM 30 in a single receipt. 




PRICE CHECK SCANNER
In every Tesco, they provide price check scanner. Price check scanner based for bar code system technologies to check the price of goods. By using bar code on the goods and automatically the system will read the price, thus each item prices will be appear on the screen. This is easier for consumers, for instance, if they could not find the price tag of one good they can check the price directly using this scanner. Therefore, they do not have to waste their time to ask Tesco staffs for the price. 




Weighing Machine
In every Tesco, they provide weighing machine for their consumers to measure the weight and price of foods that they want to purchase. Weighing machine is an electronic device that translates item weight into a numerical value. Consumers can know the price immediately and they can easily get enough grams of foods that they needed.



Information Counter 
In every Tesco, they provide information counter right next to the entrance to help out consumers who needs help. This can save consumers time if they have any inquiries or complaints, they can just ask for helps at information counter. At the information counter, customers can register for the membership card, Clubcard. Customers can also claim their vouchers at information counter.  



Type of Business

b) The types of business(es) that the company is currently involved in.


Tesco is headquartered in the UK, a supermarket, is the UK's largest retailers, global and inclusive of local sales. It is the fourth-largest supermarket chain after worldwide, U.S. Home Depot and Wal-Mart and France's Carrefour. October 2006, it has 29.090 one billion pounds of market sales.
Previously it has only the food supply chain market, however, over the years expanded its business into markets such as consumer electronics products, sales and rental of DVD, clothes, Internet services, telecommunications consumption, CDs and music downloads and financial services.
This huge market chain by a man named Mr. Jack Cohen founded in east London. The company's first brand in 1924, opened its first store in Burnt Oak, Edgware, London in 1929.

Tesco Bank


 








Tesco Bank is a UK retail bank was founded in 1997 and has been owned since 2008 by Tesco PLC. Bank was originally founded as a 50:50 joint venture between the Royal Bank of Scotland and part of Tesco, Britain's largest supermarket. Tesco was later acquired the stake of the Royal Bank of Scotland led the bank to become a wholly-owned subsidiary, currently operates its own banking license under the Financial Services Compensation Scheme.

The bank offers a variety of insurance, credit cards, loans, deposits, mortgages and travel products, and later this year will launch a current account. Tesco unique selling banking products, banks can take advantage of its large customer base to cross-sell financial services products, customers can accumulate when they buy financial products Tesco club card points.

As of February 2014, the bank has about 7 million customer accounts and policies.

Internet retailing


 











Tesco.com Tesco UK website operators through home shopping service.

May 1984, in Gateshead, England, is the world's first recorded online home shopper, Ms. Jane Snowball, purchased from grocery shopping from the online home of her local Tesco store a record of the world's first transactions. Tesco operating since 1994 on the Internet is the world's first retailers to provide a powerful home shopping service in 1996. Tesco.com officially launched in 2000. Supermarket sales, the delivery can range selected stores, goods are hand pick each store, in contrast to the warehouse model followed by Ocado. Tesco offers an internet-based DVD rental service, which is done by LOVEFiLM and a music download service.

In 2011, the music buying Blinkbox, wherein the selected DVD online movie streaming service, which is available for free streaming online purchases at the store. June 2012, the Company acquired streaming music site We7's.

Harris and Hoole




Not content with dominating the UK has 2,975 supermarkets and convenience stores; Tesco is preparing to launch a series of "craftsman" cafe.

The first dozen cafes in the company Amersham, Buckinghamshire open before the end of this month. But residents of the town of upscale Chilterns may not realize that the new cafe is fitted out in Indus Road is part of Tesco's growing empire. The new coffee chain named after Harris and Hoole Samuel Pepys' diary coffee-loving characters will not display any information, inform customers that the company is up to 49%-owned supermarket company. Chain will be behind Taylor Street in London's upscale cafe fellow Australian run. Nick, Andrew and Laura Tolley, who established the Taylor Street in 2006, will have a majority stake in Harris and Hoole.

Dobbies Garden Centre




Dobbies Garden Centre is the center of the garden, now owned by the British Tesco chain.

Enterprise was founded in 1865 by James Dobby, who created a company called more than was awarded the Royal Warrant and gardeners and Nurserymen to the royal seed business, the company expanded to seed catalog business, where it has established a customer 50000 base in the next century. In 1969, the company expanded its base in Scotland to England and listed on AIM in 1987, continued until 1984 dobby primarily as seed merchant operations. This bought by David Barnes, Managing Director, drinking at the time. From 1984 to 1989 dobby opened five new centers garden in Scotland.

The company floats on the Stock Exchange in 1997, which led to the expansion of operations dobby own garden centers further south to England. In 2008, after a much-publicized court battle with Sir Tom Hunter's West Coast Capital, the owner of rival Wyevale, the company fully acquired Tesco. Dobby is now working in England, Scotland and Northern Ireland 34 garden centers and restaurants, as well as several major attractions, including Magic Botanic Gardens, near Coventry.


May 10, 2009, dobby announced that it has made one million pounds of its sales to grow their own range so far in that year. Develop their own allows many dobby 10 million customers grow salads, vegetables and fruit from home in the past two months has sold more than 100,000 tomato plants. As of early 2009, the turnover of 97 million pounds. In 2010, in Northern Ireland and dobby opened their first outlet store, near Lisburn, opened in September 2010

PEST analysis

c) Under the PEST analysis, students are to analyse only Social and Technological factors of the company and share your findings.


PEST analysis is a tool used by organization for understanding market growth or decline, to see the potential of future business activities. It is an acronym for political, economic, social and technology factors.
The purpose of PEST analysis is to examine the market, target consumers and other influences on a company.

Political factors 

Political is a factor which determines the extent to which a government may influence the economy or a certain industry. Tesco now operates in 6 countries in Europe i.e UK, Republic of Hungary, Czech Republic, Slovakia, Turket and Poland. Not only that they also operates in Asia: South Korea, Thailand, Malaysia, Japan and Taiwan. This shows that Tesco Hypermarket is operating in globalized environment.
The government encourages retailers to provide a mix of job opportunities from flexible, lower paid and locally. Tesco understand that retailing has a great impact on jobs and people factors. Tesco therefore employs people from different backgrounds i.e students, disabled, elderly workers and often paying them at lower rates. In an industry with a typically high staff turnover, workers offer a higher level of loyalty and therefore represent desirable employees. 


Economical factors

Economic factor is the determinants of an economy's performance that directly impacts company.
Economic factors are a major concern of Tesco because they are the factors that are most likely to affect and influence demand, costs, price and profits of the company. One of the most influential factors on the economy is high unemployment rates which leads to a decrease in effective demands for goods and affecting the demand required to produce such goods. 

These economical factors are the external factors, meaning that they are largely outside the control of the company. It affect the company's performance greatly and the marketing mix can be profound. 

Social factors

Social factor examine the social environment of the market like cultural trends, demographics, population analytic.
Things that may affect the company is a social factors such as increased in birth rate and education.  
Birth rate: Tesco may look upon at selling children's toys as a new market in the company in order to extent the ranges which in the long run will lead them into making more profits because they will have extra market that parents and children will be interested in.
 Education: Tesco also focuses on education. As you can see from their adverts, they provide their consumers by selling school uniform for children that are at a certain age - mostly primary school. They tend to use the theme of "Back to school" on adverts or commercials. This opens a whole new market for Tesco which will be beneficial for them.

Technology factors

Technology factor pertain to innovations in technology that may affect the operations of the industry and the market favorably or unfavorably.  Having an advancement in technology for a company is an important thing. This is because they could provide better services for their consumer and their consumer's needs as well as improving customer satisfaction. Technologies that are used in Tesco stores are:

Electronic shelf labeling
Electronic Point of sale
Self check out machines
Bar code scanner

By providing such technology in the company will allow the customer to feel more convenient as product is readily available to them. The above mentioned has helped Tesco in improving their stocking and distribution process.

Saturday, April 26, 2014

Recommendation

d) Recommend one way for the business chosen to achieve sustainability. 




           The way for the business I chosen, to achieve sustainability is to take part at corporate social responsibility. Most of the company normally will use corporate social responsibility as a tool to address societal and environmental issues. So basically, sustainability incorporates with societal and environmental issues as building blocks within a business model which will make it more strong and stable. Therefore, Tesco should do more corporate social responsibility so that it will be well recognize by the public, and it can achieve business sustainability. If a person knows that, Tesco is currently doing the corporate social responsibility, there will be higher chance for people to make some purchases at Tesco, because they know if they purchase the items from Tesco, they are also took part at doing the corporate social responsibility and to keep the environment clean. Tesco should do some corporate social responsibility work which will easily recognize or know by the public. For instance, make some donation to the old folk’s house, orphanage, and zoo and so forte. Besides that, Tesco should also make some advertisement about keep the environment clean, save water, and more. Currently, Tesco also doing some corporate social responsibility which is they will charge their customer 20 cent per plastic bag at Saturday , they want their customer to bring their own recycle bag to reduce the usage of plastic which will pollute the environment because plastic bag cannot be decompose easily, it will need more than 100 years to be decompose. So for Tesco to be a sustainable business, Tesco must do some corporate social responsibility practices so that can benefit itself and the society as well. There are a few more ways to achieve business sustainability but I choose this corporate social responsibility because personally I feel this is the best way to achieve business sustainability compare to the other ways.