ipl-logo

Tesco Economic Factors

1313 Words6 Pages

1. INTRODUCTION OF THE COMPANY
Tesco Public Limited Company is one of the largest companies known worldwide, they are the multinational grocery and general stores that has many branches around the Europe as well as Asia. They have been labeled as the grocery market leader in the UK and the third biggest retailer due to its profit measures. Tesco was originally founded in the year 1919. The founder of Tesco was a person by the name Sir John Edward Cohen or also known as Jack Cohen, he was a market stall holder in Hackney, London and soon started a wholesale business.
Not until the year 1924, Jack Cohen officially created the Tesco brand name from a tea supplier initials, by the letters, T & E Stock well, and combine the T E with his first two …show more content…

As this plays an important part because as the income level is relatively lower, the income per capita of Malaysians will result in a low purchasing power that makes Malaysia a price sensitive market. So the solution is that Tesco may have to change the products, such as lowering the quantity, lowering the price so that consumers can spend the product that they can afford in relation with their income levels.
The increase in unemployment level of citizens in Malaysia has been a major concern for the government. Therefore the Malaysian government appoints employment restrictions for all the multinational companies in Malaysia to hire their local people. Tesco may take this as a challenge due to the pressure of hiring Malaysians and train them in comparison to foreign employees. As they know foreign employees is more skillful in handling the management of the company and much more efficient. By taking the local people at Malaysian, Tesco will have an increase in operational cost due to training the local to meet their skills requirement. Providing training for the local staff will be expensive and it is a time consuming …show more content…

In Malaysia the concept of Halal food is strictly monitored. The Halal and non-halal of product consumption is an important issue in any Muslim country, such as Malaysia. Malaysia is an Islamic country and the demand of Halal food is quite high compared to the non-halal ones. First thing consumers look for is the certified Halal label. Tesco will need to have a certified Halal certification on all of its products and they will have to show the logo of Halal on each of the certified halal product. To get the Halal certification it will cause a rising of its operating cost on every product that they certified on. With a short term of validation only for one year, Tesco will have to manage the cost of the operating cost of Halal certification every

Show More
Related
520 Words | 3 Pages

Navbar Jerusalem Halal Meats About Services Contact --------------------- Largest Middle Eastern Grocery & Restaurant in Texas Selling fresh halal meats such as; beef, lamb, goat, chicken, and other Middle Eastern products. *button Call us today! (Image 1)

Read More
329 Words | 2 Pages

4.3 Evaluate the impact of policies of the European Union on UK business organisations, with reference to planned Production Company in England The European Union affects business by setting forth policies which must be complied with any other country who would like to do business in Europe. The European Money Union is the most obvious factor of the UK business. If any business organization wants to do business in the EU, it must have to deal with the EMU (European Money Union) and in the common currency of the EU, the euro. In addition European Union influences the UK business by implementing the Employment policy, Education and training policy, Regional policy, Inflation policy, Taxation policy, social security, international policy, VAT

Read More
171 Words | 1 Pages

C4.3 Evaluate the impact of European Union (EU) policies on UK business organizations Policies are executed as procedures when organizations are making decision to achieve particular goals. The board of authority within the EU has formed policies which their aim is to govern the decisions made by senior administrative officials of business organizations in UK. For instance, EU has policies that seek to eliminate risk and promote positive benefits during the acquisition process. The company stakeholders of British Airways are protected from the influence of powerful investors and politicians under the policies of the EU. The European Union has implemented policies for the security and safety measure for both the workers and the travelers.

Read More
1602 Words | 7 Pages

PEST ANALYSIS POLITICAL This factor reflects how UK government policy effects our company profit and success. Team Pulse needs to consider these followings political factors: • Tax o VAT: We need to pay 20% VAT on goods imported from outside the EU. (GOV.UK, 2016) o Corporation tax: We pay 20% corporation tax if our profits under £300,000 and 21% if our profits over £300,000. (GOV.UK, 2016)

Read More
1509 Words | 7 Pages

2. Overview of Tesco Tesco

Read More
978 Words | 4 Pages

money they save the more profit they make. Unemployment UK The number of people who are unemployed in the UK fell from 161,000 to 2,16 million,this brings the unemployment rate to 6.6%. Impact on Tesco Tesco stores will be affected by unemployment in various ways,this will depend on whether or not the unemployment is low or high,increasing or decreasing.

Read More
1680 Words | 7 Pages

Tesco is amongst the largest food retailers in the United Kingdom (U.K) with over 3,400 stores and staff amounting up to 310,000. Tesco operates predominately in Europe and America with their headquarters located in the U.K. Tesco has the greatest market share in the U.K dominating approximately 28% of the overall market at the end of 2017. However, there is a constant battle in the highly competitive U.K supermarket industry with the four major players being Tesco, Sainsbury, ASDA and Morrisons. In recent years, Tesco has had to change their business model as well as their services to stay a market leader and differ-entiate from the competition. To find the main sources of competitive advantage that Tesco has over its competitors an analysis of the structure of the industry should be under-taken (Porter, 1980).

Read More
805 Words | 4 Pages

Tesco 's ownership is owned by several partners due to it being a PLC. Thousands of people have shares within the company which means it is owned by shareholders who fund the company. The advantages of this ownership are being a PLC means you have limited liability which means you only lose what you put into the company. It is easier to access capital as you can raise share capital from existing and new investors. Shareholders are able to buy and sell their shares which can sustain the liquidity of the business.

Read More
1170 Words | 5 Pages

Tesco is a British based superstore with almost 4811 stores at present operating in 14 different parts of the world (Tesco PLC 2015). Currently more than 280,000 staff are employed in Tesco specifically in UK, however 202,000 thousand employees are working in other 14 countries. With greater success, Tesco is able to increase their sales and profit margin, the annual report of the company revealed that in 2012, Tesco was able to make £62,537m Group sales and the group revenue of around £56,910m as £5.5 billion working profit (www.tesco.com,

Read More
2868 Words | 12 Pages

Introduction Brand Equity: The premium value realized from a particular product which has a well-established name as compared to any other generic product available in market is known as brand equity. Brand equity has many aspects such as loyalty, awareness, preferences, familiarity, associations and image in minds of customers. Brand equity is always considered to be an intangible asset because the brand value is not a physical asset and is ultimately depends on perception of the brand by consumer. A brand's equity contributes to the overall valuation of the company's assets as a whole. Positive brand equity:

Read More
1030 Words | 5 Pages

a) Generally, value has been taken to mean moral ideas, general conceptions or orientations towards the world or sometimes simply interests, attitudes, preferences, needs, sentiments and dispositions. But sociologists use this term in a more precise sense to mean “the generalized end which has the connotations of rightness, goodness or inherent desirability”. “Values are socially approved desires and goals that are internalized through the process of conditioning, learning or socialization and that become subjective preferences, standards and aspirations”. A value is a shared idea about how something is ranked in terms of desirability, worth or goodness. SINAU ABDULLA, MA 42, 22082 P a g e 14 | 30 Familiar examples of values are wealth, loyalty,

Read More
1007 Words | 5 Pages

TRAINING: DEVELOPMENT: Training is the acquisition of knowledge, skills and competencies as a result of teaching. Training is a program organized by the organization to develop knowledge and skills in the employees as per the requirement of the job. Development teaches how to become more productive and effective at work and at the company. Since Tesco aims to expand and diversify, that required the business to select the right people, in the right place, because customers’ needs and wants are different and the culture of each area varies. Tesco need to have flexible employee who are able to adapt the change in order to satisfy the customer.

Read More
1034 Words | 5 Pages

A polycentric staffing also has its drawbacks. Host-country nationals have limited opportunities to gain experience outside their own country, and thus become difficult to progress beyond senior positions in their own subsidiary. Furthermore, in the event of over relying on locals, there may be some disconnect in perspective and interests with the headquarter because locals may put local interests above the headquarters’ boarder interest. iii)

Read More
976 Words | 4 Pages

The value chain analysis indicates the firms that strive to create superior products or services through focused differentiation strategy. To ensure the activities are tailor to the strategy Value Chain is used. How each activity generates value and linked to the strategy in UFS? Table 4: Value Chain Analysis Primary Activities

Read More
2066 Words | 9 Pages

Introduction Tesco Stores (Malaysia) Sdn Bhd owns and operates hypermarkets in Malaysia. It offers fresh produce, groceries, household items, and apparel and its own food and non-food products. The company was incorporated on 29thNovember 2001, as a strategic alliance between Tesco PLC UK and local conglomerate, Sime Darby Berhad of which the latter holds 30% of the total shares. Tesco opened its first store in Malaysia in February 2002 with the opening of its first hypermarket in Puchong, Selangor. Tesco Malaysia currently operates 49 Tesco and Tesco Extra stores nationwide.

Read More

More about Tesco Economic Factors

Related Topics

Open Document