Business studies. Activity 3 – TESCO
Customers have a range of different expectations when they use Tesco’s. For example * good value products * rapid responses to enquiries * clear honest and detailed information * Information about suitable products * Care and attention both with the customers, and the products. * After sales care
Good value products Good value products, means that the product is worth the money paid. This is the minimum expected from any business, whether it be through a products or service. This means that we expect a better quality product/service, for a higher amount of money. An example of this is you would expect a better quality TV if you paid £400; than if you paid £50. The top
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Also word would spread about how bad their customer service and again add the loss of business.
How customer service is measured and monitored Tesco knows their customers are satisfied by monitoring the quality of the customer service that they provide. They do this by: * Surveys * Website/internet * Observation of customers * Focus groups * Analysing surveys
Surveys
Tesco is always looking at ways to improve their store, and their customer service. They do this trough surveys. They are a very efficient way of finding out what people think of the store, and how they can be improved. Upon purchasing anything from Tesco’s today, you will have a question printed on your receipt saying ‘how did we do’ (see figure 1) and under is a link to a web page with a survey (see figure 2). Once completed employees of Tesco look through all of them, and any issues that appear several times, are noted and then taken into consideration.
Website/internet
On most websites, you will have pop ups either telling you you have either won £1,000,000 or anyother item (see figure 3) or asking you to partisipate in questionaires about companies. Some people can even pay websites to send out questionaires to members (see figure 4). This is a widely used method which is efficiant and cheap. It also allows the
| The customers would be influenced because if the company are financially struggling the customers are there only hope to stay profiting. If the company was to go bust it means customers will no longer be able to shop there. The customers would be an external stakeholder, they can get information by advertisements and even check their annual report on the businesses website.
Much will depend on the quality of the products or services. How we deal with customer enquiries or complaints can be just as important.
It is important for Tesco to have motivated employees which can help them succeed and gain awards for the best customer services. Tesco’s employees also need to help the customers and other stakeholders in order for them to return. This could also lead to people buying more shares in the business. The influence is customer satisfaction, stock, whether the customer returns because of Tesco’s quality products and prices or whether their service is good, if they don’t then Tesco’s customer service is not good enough.
into a product ready to be sold and bought out to the market. In order
Tesco’s is a private company which is owned by directors and shareholders who fund the business and the sole purpose is to make money. Tesco’s main purpose is to sell and make profit on products they sell such as food and online service. Tesco’s will provide excellent customer service and make sure all customers come back which
§ Non-food business: We now have a 6% market share. Our goal is to be
Tesco's have different stakeholders who effect the business. One of their stakeholders are the customers, because these are the people who buy from Tesco
They want to gain respect and value from their customers, so that they will become loyal to them and recommend Tesco to others as a good store which will improve their reputation and gain them more customers. So by making sure they listen and respond to all their customers’ needs there more likely to achieve this. If they did not treat their customers well and strive to meet their needs they would not have many customers, would not have a good reputation and they would there for not sell a lot and make hardly any money.
The aims at Tesco PLC is to be a leading retail supermarket and that excellent quality services are provided whilst products such as food and clothes are of a low cost. By also having cheaper prices than competitors such as ASDA. The objectives in doing this is to increase profits by increasing sales to the maximum. This is done by providing a better service of care so that the current customers stay and attracting more customers from the competitors such as ASDA. Therefore, profit will increase due to the cause of an increase in sales. This objective is measurable due to being Tesco PLC can keep track of the volume of sales. Another objective is to minimise the prices of products of food and clothes. Tesco PLC aim for householders to have a cheaper trip by Tesco PLC offering more deals so then customers can take advantage of, so their shopping will be cheaper. Furthermore, this aim can be achieved. An extra objective is to sell more healthier food related products so that more customers will be attracted of whom are interested in a healthier lifestyle. Also, the objective of developing an online site so this will attract more customers and increase in profit due to people who may not have the time to physically go to Tesco PLC will be to shop some way. As online shopping is more convenient for some customers. Final objective for this
The impact of economies and diseconomies of scale Tesco face As businesses grow and their output increases, they commonly benefit from a reduction in average costs of production. Total costs will increase with increases in output, but the cost of producing each unit falls as output increases. This reduction in average costs is what gives larger firms a competitive advantage over smaller firms. This fall in average costs as output increases is known as Economies of Scale.
For this assignment, the two contrasting businesses where both businesses have different types of ownership and liability such as one being a for-profit business and the other one being a not-for-profit business. The two businesses are Tesco PLC and RSPCA which Tesco PLC is the for-profit business and RSPCA is the not-for-profit business.
they will have no customers and no customers means no money no money means no business
Further, it would open the business up to an increased amount of processing error. This could result in unhappy vendors who might cease working with the store, giving The Store a bad reputation resulting in loss of products in market consequently the potential decline in revenue.
Helen’s is an upmarket fashion boutique store in Sydney’s east. Falling sales have been reflected by surveys that reveal consumers view the business as outdated and no longer relevant to consumers’ needs. Strong competition in the area has placed considerable pressure on pricing. The business’s target market, 50-65 year old females, no longer dominated the now younger demographic character of the area.
As a business Tesco needs to be aware of the social markets around them as and when they arise. For instance in August leading up to the new school year in September they will have school uniforms, stationary and other school equipment in stock. If they didn’t then parents may choose to do other shopping such as groceries in competitors stores who do provide such merchandise or who are closer to specialist retailers to save on multiple trips. This could impact on the businesses profits, especially if the store was in an area which had a high, school age population.