Tesco Case Study

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Tesco plc is a public limited company (a company that offers shares to the general public and has limited liability). Tesco is a British multinational grocery and general merchandise retailer headquartered in the UK with over 476,000 employees in 11 countries. Tesco offers a wide range of products and services from groceries, household products, clothing to travel insurance. The British Red Cross Society is a not-for-profit organization (this type of organization does not earn profits for its owners as all the money earned is used in pursuing the organization’s objectives). British Red Cross helps people in crisis, whoever and wherever they are, responds to natural disasters and conflicts around the world, working with the rest of the International…show more content…
Shareholders want increased profit for the company they are investing their finances in. The strengths of Tesco’s ownership are that Tesco has a limited liability for the shareholders; the business can raise a large capital sum as there is no limit to the number of shareholders. The threats are that the original owners may lose control; there are no strict controls and regulations to comply in order to protect the interest. Figure 1 shows the major shareholders of Tesco with their shares. As a non-for-profit organization, British Red Cross does not belong to the government or a private owner. Instead, there are only controlling members (trustees), who cannot sell shares to investors or personally benefit from the organization. The main purpose of Tesco plc is “Serving Britain's shoppers a little better every day”. The objectives of Tesco plc are to provide goods and services that are cheap and affordable for the generic public, maximize sales and grow and maintain the number of retail in the UK. To achieve its objectives Tesco has a strategy which consists of three…show more content…
Customers and consumers- Customers and consumers are the key stakeholders for Tesco. Tesco needs to keep their customers satisfied, because otherwise, they will move to Tesco’s competitors. This will result in Tesco losing customers and gaining a negative reputation. Without its customers, Tesco would not achieve its objectives and aims. 2. Employees- These stakeholders want a secure job, good working conditions, and rewards. Employees are the people who represent Tesco as they are the ones that talk to customers and provide good service. If employees are unhappy with Tesco, they will not represent the business right. This will result in Tesco losing customers and gaining negative reputation. 3. Suppliers- These stakeholders provide Tesco products and services that Tesco sells to its customers. Suppliers want a reliable and consistent source of finance. Without suppliers, Tesco would not be able to provide goods to its customers. Tesco needs to maintain an open relationship with its suppliers in order to meet its

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