Tesco: A Global Retail Powerhouse Since the 1920s

Introduction

Tesco is amongst the worlds leading international retailers. The company first used the trading name in the mid-1920s since then Tesco has expanded into different formats, different markets, and different market sectors. Whereas, Nike is an international brand almost known by every human in the world. Nike was founded on the 25th of January in the year 1964 in the united states by Phil Knight and Bill Bowerman.

My two chosen organizations are Nike and Tesco I chose these two contrasting businesses Nike and Tesco because they are both very successful and are both continuing to grow.

Tesco is a retailer, whereas, on the other hand, Nike is a large organization that markets its logo and its products are made through other sectors of their organization. I look forward to exploring these two fascinating businesses.

Tesco is the market leader in the UK at the moment with 28.8% of the shares in sales. Tesco is a public limited company which is owned through shares traded on the exchange market.

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This, therefore, allows the public to buy shares and own them for as long as they want to or if they wish to sell them for profit. The fact that Tesco stayed as a PLC has helped them a lot as it's been able to dramatically grow and in the long term help them make a profit which is one of their aims. Making huge profits has enabled Tesco to expand throughout the world which is one of their objectives. Tesco has a famous phrase which they practice "we treat people how we like to be treated".

This phrase is often found on their website. Tesco is trying to imply that they will do everything they can to make their customers feel welcome and comfortable in order to ease their shopping. In fact, they have successfully done that by providing car parks to help people who travel in cars, customer toilets so that they not need to rush out of the store to have a relaxing time shopping. All of these are conveniences to customers. Tesco has encouraged huge sales growths as recent surveys have found out that people tend to stay longer in Tesco's rather than other stores.

Stakeholders are those who have an interest in business however also have equity or stake within the business. Tesco is extremely committed to the high standards of its products and ensures its stakeholders that their own branded products including food, clothing and home products are to high standards and have the best quality regardless of the fact if they are purchased in-store or online.

Tesco is a private sector organization the fact that they are a private sector organization means they are not under the direct influence through state control because they are a private sector organization it means that the company has many shareholders and has no involvement through or ownership through the government.

The company has limited liability. The liability of Tesco's is financial debt and obligations that arise over the course of their business operations. Limited liability means that the shareholders are legally responsible for the debt of the business only to the extent of the initial value of their share. This then means that shareholders are secure, in the terms that company debts are not an issue for them so in this case, they will just lose what they invested into the company this is unlike unlimited liability. The purpose of a public limited company is to provide customers with the best possible service, whilst ensuring that they have the products required. This would mainly maximize profits for its shareholders, whilst having a good reputation and relationship with its customers and stakeholders.

Tesco has the motto of "every little helps" they aim to provide high-quality products including food and daily needs such as clothes and basic home furnishing. As an organization, Tesco comes under the tertiary sector. Tesco PLC is an international business scope business as they have 6000 stores across 13 different countries including Poland and India, as well as the UK they have the majority of their stores in Europe alone and the remaining hundred stores being in Asia, specifically India and the Middle East. Tesco PLC is considered a large organization, as Europe's largest employer because it has roughly half a million employees worldwide. Tesco has a tall structure because it has a large organization with many layers of hierarchy. The advantage of having an organizational structure is that so employees know who they are responsible for and also what they are responsible for. However, it is ineffective communication because it takes a long time to travel around all the staff.

The Aims And Objectives Of Tesco Are:

• To grow the UK core.
• To be an outstanding international retailer in-store and online.
• To be as strong as selling everything just like they are when they sell food.
• To grow retail services in all their markets.
• To put their responsibility towards their community too.
• To be the creator of the high-value brands.
• To build their team so that they can create more value.
• Provide goods and services that are cheap and affordable to the general public.
• To maximize sales.
• Grow and maintain the number on retail in the UK.
• Outshine competitors and remain the market leader.

The aims and objectives are realistic because they are already fulfilling most of them such as aim number 5 because they have a food bank in store which the public can donate their food to which then goes to a food bank which eventually gets distributed to the homeless. They also already have their own home brand which will also help them with objective 6 because they can just improve the quality.

Tesco's customers want a quality product they can buy for a reasonable price. They want these products to be of good standard because the customer is spending their money on the products. Customers want the money they spend on purchasing these products to be worth it and that the quality they receive from the amount they have paid to be of a good standard. Tesco responds to this need by making sure to they sell the right products for their store because if they do not they could lose a valuable customer; customers are the one putting their money into the revenue of the company. Tesco's business objective of 'To be a creator of highly valued brands' is influenced by the customer stakeholder. This is because the part of the objective 'be a creator' this means that they want to have a high valued brand to make sure the customers return again to buy their products that they are selling in the store.

Tesco's as large national business will be impacted by many economic impacts. In 2016 the UK vote leaves the EU. This would impact Tesco's because tariffs (Import/Export Taxes) may be imposed on Tesco's products they export and import around Europe and around the world. This would then lead to an increase in expenditure for the business. However, Tesco's as a business may decide to pass this cost onto consumers and customers this would then, therefore, make themselves less competitive against competitors. This would result in customer dissatisfaction and will then lead to a decrease in sales and profits and market share and market power. This will then dissatisfy shareholders because they as their investment in the shares will decline.

Nike is the known manufacture of footwear and is well known for its development, design, manufacturing and worldwide marketing. Nikes world center is situated on a 177- acre campus near Bear Orton, Oregon, United States. It has more than 800 outlets throughout the world and they also sell their products through different intermediates. It is one of the most valued sports brands across the globe. It is in the manufacturing business and it provides one of the best sports apparel, shoes and equipment. It tries to manufacture the best sports apparel which can help the people and athletes in improving their performance.

Nikes' objective is to provide a product with excellent quality for reasonable prices by keeping their manufacturing costs low. This helps the business increase their sales and help increase their revenue which furthermore means that they can increase their profits and also satisfy shareholders, which can help them expand their business further. Nike is falling in chinas market but its objective is to work through excess inventory, reorganize their policies as well as rethinking their publicity tour which includes sports teams such as NBA.

Nike is a PLC (public limited company) like Tesco its share is available on the stock exchange which means anyone from the public can purchase shares. It has limited liability which means the shareholders would only lose what they have invested in. Nike is in the second factor as well as the tertiary sector as it assembles its products through the secondary sector and exchanges its products through its employees with many different branches throughout the world which clearly differentiates its sectors clearly. Nike is a large scale business as it has its outlets in nearly every country and it has more than 44,000 workforces.

The motto of Nike is "Just Do It". Accompanied by the familiar Nike tick, it appears on bags, T-shirts, and billboards all over the world. As a statement it sums up the sports brand: it is competitive, forceful, direct, as lean and powerful as the athletes that appear alongside it in Nike's ads such as Cristiano Ronaldo and Michael Jordon.

It has more than 500 locations around the world and offices located in 45 countries outside the United States. Most of the factories are located in Asia, including China, Taiwan, India, Turkey, Thailand, Vietnam, Pakistan, the Philippines, Malaysia, and Korea.

The Aims And Objectives Of Nike Are:

• Minimize Environmental Footprint.
• Transform Manufacturing.
• Unleash Human Potential.
• Make profit for its shareholders.