DECISION MAKING

Decision Making For Business - Sales Declining of TESCO



Decision Making For Business - Sales Declining of TESCO

Introduction

Tesco plc is the largest global grocery store based in UK. This is the second largest retailer in the world when measured in terms of benefits and third when measured in terms of income. In the UK, Tesco has a market share of 30%. Tesco plc founded in 1919 by Jack Cohen and the first store opened in 1929 (Graise & Scott T, pp.10). Tesco plc is a flat, hierarchical structure where each proposed action must pass management. There are six levels that are between the staff of the box and CEO. The company has employed more than 326,000 employees around the world where 237,000 of them in Europe where it has its largest private employer (Flavián, Haberberg & Polo, pp.125).

Tesco plc has been using the strategy of the stack as high, sell as cheap as a way to minimize production costs. The mission and vision of this company is to provide a superior technical performance, and add value to its products and its customers by providing highly innovative solutions for the design of customer requirements, and manufacturing of supply. This is normally happened by improving quality, productivity and the services of a competitive advantage (Dennis, Enech & Merilee, pp.179-185).

Discussion

TESCO Plc had to face sales decline. This sales decline causes the negative impact on the profitability, sales volume, and market share of the store. The impact of sales decline on company's operations, and the factors, which caused, this sales decline are present in detail below. These all factors caused the sales decline for the company, and created a negative impact for the company's business procedures (Acur & Bititci, pp.388). The market share of the company lost, company also has to see the negative turndown in the profitability, also has to see the negative impact on the cash flows.

Sales Volume

Sales volume always affected by the costs, and prices of products offered and the inflation rate. The world has experienced economic decline and, therefore, the appearance of the purchase of products has been greatly affected in all societies without exception of Tesco plc. This indicates that there is an increase in the value of money, reducing the cost of living and increased purchasing power in return (Balchin, pp. 46). Since Tesco plc has a number of stores not only the UK but also worldwide, its cycles are not severely affected as there are sales throughout the year. Current economic growth has affected the purchasing power of buyers thus reducing the number of sales made by this company. In addition, the income level in the UK is quite uneven so make some people fail to pay for products offered by this company (Graise & Scott T, pp.11).

In the process of assessing the competitive advantage of this company, there are six forces that Tesco must meet and influence the macro. These forces include, political, economic, socio-cultural, technological, environmental and ...