TESCO PLC

Tesco PLC

Table of Contents

Introduction3

Company Background3

Strategic Objectives4

Strategies that are making Tesco a successful company6

Quality audit8

Irresponsible behaviour12

Consequences13

Current situation and demands14

Recommendations14

References15

Tesco PLC

Introduction

The paper is about evaluating the strategic objectives and quality audit system of an organisation. We have chosen Tesco PLC for the evaluating purposes.

Company Background

Tesco is a distribution company based in the UK and works internationally in many countries. It is the number one distribution group of Britain (having more than twenty two hundred stores in the United Kingdom alone) and it is considered as 3rd in the distribution group of the World. The functions of the company revolve around 3 areas: distribution in the United Kingdom, distribution in other countries and financial services. The company deals in the food and non-food items which includes pharmaceuticals, textile, optics, computers, home appliances, TV Hi-Fi Video and travel etc. The company also offers telephone services via Tesco Mobile to numerous customers and a number of industries in Britain. This service was created in 2003 in partnership with O2. Furthermore, the company has an online shopping site, which is www.tesco.com. The company operates in Europe with 825 stores across 6 countries (313 in Poland, 117 in Ireland, 74 in Slovakia, 164 in Hungary, 30 in Turkey and 127 in the Czech Republic), and it deals in Asia with around 1,136 stores (614 in Thailand, 137 in Japan, 30 in Malaysia, 4 in Taiwan 280 in South Korea and 71 in China).

Tesco PLC, the leader of the food sector in the United Kingdom, has been diversifying its business over time and now, it is present in various markets such as banking or telecommunications. In its 1,800 stores in Britain, customers can find all the items which are needed for daily life. Even though, time has acquired the company an unquestionable international reputation and it ranks third among the world's largest retailers, it still generates eighty percent of its turnover in the United Kingdom. It started in 1919, when a person, Jack Cohen, established the very first store of Tesco in London, which was founded for the sale of excess production. In 1961, the establishment of Tesco in Leicester made its entry into the Guinness Book of Records as the top retailer of Europe which was final consumer oriented. With a strategy that focuses on the continued growth - which involves the redevelopment of a large part of its premises - the industry group of Tesco faced the challenge of developing their business activities without interrupting normal operation of sales (Rejer 2000, 206).

Strategic Objectives

In 1997, Tesco has deployed the policy for developing the main business and to diversify with new services and products in new markets and the existing ones. The policy allowed the company to generate growth as both, high and durable for 14 years. They followed the tendency of customers to expand markets in the United Kingdom, for example financial services, telecoms and general merchandise, and to the new markets outside the country, first in Asia and more recently in the ...