Tesco Essay Example | Topics and Well Written Essays - 1000 words - 1

Tesco - Essay Example If the global sales and domestic market share of the company is taken into account then it is found that the company is the largest British retailer by far. The profit of the company exceeded ?2 billion for the year 2008 and it is believed that the profit will be much higher in the year 2009. The company mainly focuses upon food and drink but it has also started dealing in clothes, financial services, internet services etc. â€Å"Tesco started life in 1919 when Jack Cohen started selling surplus groceries from a stall in the East End of London. Mr. Cohen recorded a profit of ?1 from total sales of ?4 on his first day.† (A History of Tesco) The brand Tesco first appeared in the year 1924 when Jack Cohen supposedly bought a tea shipment from Mr. T. E Stockwell. The year 1929 marked the opening of a store in North London and the company rapidly developed from there on. The head quarters of the company was first established in North London in the 1930s. In the year 1932 the compan y became a private limited company, another feather in the cap of Tesco. PESTLE PESTLE is an acronym for Political, economic, sociological, technological, legal and environmental factors. Let us examine how strong the organization is after conducting a PESTLE. SWOT analysis and PESTLE are conducted to assess the strengths and opportunities available to an organization. The current success of Tesco is largely because of the favorable political climate, Tesco has managed to penetrate into nations which were previously considered difficult to penetrate into and this is certainly paved the way for success. Politically the organization has helped in solving the unemployment problem in the UK, the credit crunch has taken a toll on the employment rate but Tesco has still managed to provide job opportunities hence bringing down the unemployment rate in the UK. The EU laws largely favor Tesco, the EU laws tend to favor organizations that have a large presence in a country, Tesco not only has a large presence in the UK but it has also expanded rapidly in other countries as well and this has certainly worked to the advantage of the organization. Tesco needs to be aware of the planning permission because it has plans of further expansion and things can go horribly wrong should an organization avoid planning permission. It is extremely important to pay attention to the marketing strategy of Tesco, the organization has put in a lot of efforts into marketing, and they have captured almost every opportunity to grow. The specialty of the organization was initially in drink and food business but the giants gradually decided to enter into consumer products like music players, CD players, computers and other products that sell like hot cakes. The competitive marketing plan of the organization is right up there with the best, each store is a different segment and steps are taken on every store to increase the sales and generate good profits. The SWOT is in favor of Tesco, the bigg est strength of the organization is its workforce, as mentioned earlier the employees are very affable and friendly. The customers feel good when they share their problems with the employees. Another strength of the organization is its global reach, the stores are spread across in several countries which is no ordinary achievement. Jack Cohen started on a very basic level and within no time the organization