TESCO

Tesco

Tesco

Introduction

Tesco is a multinational chain of stores retail headquartered in the United Kingdom. In 2008, Tesco became the fourth largest retailer in the world, displacing the fifth largest distributor Metro AG, the first movement of positions among the top five companies in the sector since 2003. Originally specializing in food and drinks, has diversified into areas such as clothing, electronics, financial services, selling and renting DVDs, compact discs, digital downloads , Internet service , telecommunications , medical and dental insurance and software (Fills, 2009, 121-123).

Its capitalization is 34.84 billion at 11 July 2008 and its turnover is 80 billion Euros in 2008. Its activity revolves around three areas: distribution in the UK, international distribution and financial services. Tesco operates in Europe with 825 stores across six countries (117 in Ireland, 313 in Poland, 164 in Hungary, 74 in Slovakia, 127 in the Czech Republic and 30 in Turkey ) and Asia with 1,136 stores (137 in Japan , 614 in Thailand, 280 in South Korea, 30 in Malaysia , four in Taiwan and 71 in mainland China).

Discussion

The Tesco business originated in 1919 when Sir Jack Cohen Licensing used the gratification of his military service in the World War I to sell fruits and vegetables in a market stall in London's East End. At the end of the 20's, Tesco (TES comes from TE Stockell, a wholesaler of tea that he used, and CO from Cohen) sold from stores open to the street in the shopping streets of London, having established the first store in Burnt Oak, Edgware. Cohen's motto was, 'Large quantities, low prices, "referring to the idea that Buyers want cheap products in comfortable and the volume would motivate the benefit. Sir Jack had focused his sights on expanding the business, thus pursuing growth in the industry. At the beginning of World War II, Tesco had about 100 stores in competition Sainsbury's open, set out above. In 1947, Tesco decided to trade their shares in the London Stock Exchange at a price of 25 pence per share (Fame, 2010, 30-38).

Tesco helped establish its ??reputation as a retailer that offered real power value to their customers. However, the discount retailers could offer their customers was, until 1964, limited by the system of Resale Price Maintenance (RPM, acronyms in English). This system allowed the producers to specify the minimum price at which the products could be sold by the retailers. The consequence was that Tesco was not authorized to convey the full effect of economies of scale in bulk purchases to its customers in form of greater price reductions. Given this fact, Sir Jack took a double way: on the one hand, began a campaign in the Parliament for the abolition of RPM . Furthermore, introduced the Green-Shield stamps as a form that would enable effective, despite the law, reduce their prices. In this scheme, customers received the seals on their purchases. Seals had a big hit with customers of Tesco and helped to expand by subtracting customers its competitors, but ...