PART 1 - CORPORATE SOCIAL RESPONSIBILITIES (CSR)

Conduct a research on the CSR initiatives/programmes that had adopted by Tesco Hypermarket for the past ONE (1) years.




  Tesco is a large company and its activities affect the lives of many people in societies around the world so they are accountable to all of these people. Based on the Tesco and Society report 2013, Tesco has adopted a lot of CSR initiatives and programmes for the past one year. They are using the scale for good to create greater value for society and getting to grips with the challenge, developing new initiatives and establishing long-term plans to make what matters better, together.

Here are some CSR activities that carried out by Tesco Hypermarket.

1) Creating opportunities for millions of young people around the world
  To reduce the crisis level of youth unemployment, Tesco draws from their capability to hire, train and develop people’s careers to address the challenge of creating new opportunities for millions of young people. They did it by inspiring, equipping and enabling these young people to succeed in the world of work.

To inspire young people to broaden their horizons and realise their potential
Program: Tesco School Outreach
  Tesco established a new UK school outreach programme. Tesco leaders will be matched with local schools, which they can visit to share advice and bring alive the enormous variety of skills needed in business careers. This could be a truly game-changing programme as they won’t simply inspire young people about traditional retail careers, they will also open up the world of business, from farming and manufacturing, through to design and the very latest digital technologies.


2) Improving health and through this help to tackle the global obesity crisis
  Since 1980, global obesity rates have more than doubled and in many of the countries in which Tesco operate. As one of the biggest providers of food and drink globally, Tesco believes that they need to help and encourage their colleagues and customers to live healthier lives in tackling the global obesity crisis. They encourage more balanced choices and healthier lifestyles, through promotions, layout and ranges.




Consumer insights and data:
  Tesco use the data they have on consumer behaviour to encourage a healthy balance in customers’ lives. They help their customer to make healthier choices in their own shopping by personalising the information customers receive and giving them relevant and clear healthy product recommendations. For example, they share the Clubcard data with their customers so their customer can understand how their shopping impacts their health.



3) Reducing food waste globally
 This highlights that in addition to food waste in Tesco stores, waste mainly occurs in agriculture and the supply chain and with our customers.

Surplus food management:
  Whilst Tesco first priority is minimising food waste, this initiative ensures that any surplus food is well managed and as much as possible goes to those in need. Tesco has built strong partnerships with food surplus charities. In Hungary and the UK they work closely with the Hungarian Food Bank and FareShare, respectively, to ensure that unsold food is put to good use.



4) Trading responsibly: Building customer trust
  Tesco put customers first and listen to their needs, their hopes and their concerns and respond to meet them.

Food Trust:
  To become the most trusted retailer around the world, Tesco demonstrate that their products are safe, sourced to the highest standards and are honestly labelled. They put in place better controls by implementing an unprecedented DNA testing programme and a market leading traceability programme for the UK which will be replicated in our Central European operations.




5) Reducing their Impact on the Environment: Increasing the efficiency in the way they use scarce natural resources

Efficient water use:
  In Asia, where water intensity is highest, Tesco are on the road to reduction. In China, their distribution centre in Jiashan, Zhejiang Province has been designed to use 40% less water than a traditional logistics warehouse. Their service centre in India introduced rainwater harvesting technology to collect surface run-off and rooftop water. This water is used to meet the centre’s water requirements as well as helping to replenish the water table which benefits the local community.




PART 2 – BUSINESS SUSTAINABILITY

a) What are the facilities provided by the company to their consumers?


 Facility is a place, amenity, or piece of equipment provided for a particular purpose. Tesco not only provides what customer needs and satisfied their needs but as well as facility which can convenient their customers and benefit in customer service.

There are some facilities provided by Tesco like free parking lot, information counter, food court at some specified places and more.

Free Car Park

As people nowadays driving instead of using public transportation, a large parking lot is one of the things a shopping mall could not be short of. Car park would directly affecting a shopping centre as if a customer is unable to find a parking, he or she would drive away and leave the mall. So, for the purpose of safeguard, Tesco has provided a big free parking lot for their customers in order to giving convenience and worry free. Tesco offers their customers a parking lot with no single cent charge, this is what makes them different compare to other companies like Jusco, Carrefour.



Food Court

A food court is generally an indoor plaza with the counters of multiple food choices and a self-service dining area. Food court is one of the facilities Tesco has provided to their customers. In Kepong Village Mall, Tesco has provided a various kind of food choices for their customers with different races and cultures like Indian food, Malay's, Chinese's. The average cost of a meal per person in Tesco food court is RM8.



Information Counter

Information counter in a shopping centre allowed customers to know further information and in details. For example, price about goods, latest promotions, and anything customers wanted to ask. In addition, customers able to register Tesco club card and get rewards at the information counter.



Price Scanner

A price scanner is a scanner which showing the price through reading printed barcodes. Tesco has provided some price scanners at some specified places in their stores. Price scanner able to give convenience to their customers in letting them to know the accurate price of every products. 




Online Shopping ( Delivery )

Many companies started to using online shopping through their official websites like Domino's, Tesco, Apple Inc as online shopping is getting more convenience and loved by Internet users. Online shopping benefits customers in time saving, fuel saving and convenience.

Tesco Online Shopping is the exciting new service from Tesco. This service allows customers to order a wide range of products from the comfort of customer's own home, and have them delivered directly to customer's door at a time to suit.


Steps of EShop 

Start shopping!
Browse the aisles by clicking on the departments e.g. bakery. You can then filter down to a smaller category using the filters at the top of the page.


Tesco not only provides fresh foods in their delivery but as well as grocery, baby products, drinks, household products and everything you need.


Put everything you wants into your trolley just like how you did when in supermarket.


Choose your time slot
There are delivery slots available in 2-hour delivery windows. These are available from 10am to 10pm, 7 days a week. Customers can order their shopping up to 3 weeks in advance. 
Select your payment type!
For the payment, customers can pay at the door by card including Visa, Master and Debit Cards. In this case customers will not be charged for their shopping until after it has been delivered. Unfortunately Tesco will not accept the cash as payment for customers shopping, this is because Tesco Customer Delivery Assistants cannot carry cash with them due to safety reasons.


Receive your shopping!








Type of Business

  Tesco is the third largest retailer in the world, measured by revenues and the second largest, measured by profit. Tesco has around 5380 stores and over 530,000 colleagues around the world. Tesco is defined as a global business because it has a large number of stores in 12 countries across Asia, Europe and North America. Tesco is in the primary sector (raw materials) and the secondary sector (manufacturing). 

Types of Business: 

  • Manufacturing business (e.g. Tesco products) 
  • Service Business (e.g. Tesco Bank) 
  • Marketing Intermediaries (e.g. Retailer of other brand)


  Moreover, Tesco is the leader grocery market leader in the UK and 30% of market share is owned by it too. It also is the market leader in Malaysia, Republic of Ireland and Thailand. Tesco’s ownership is based in a lot of shareholders. Earlier it had a market chain of only food supplies. However, over the years its business expanded into markets such as consumer electronic goods, selling and renting DVD's, clothes, internet service, consumer telecoms, compact discs and music downloads and financial services. 




  Other than that, Tesco also involved in others type of business. Tesco Bank is a retail bank and a wholly-owned subsidiary of Tesco. In year 1997, Tesco Bank began life as Tesco Personal Finance, a joint venture between Tesco PLC and Royal Bank of Scotland PLC. Came to 2008, Tesco bought out Royal Bank of Scotland's share of the business and introduced the new name to the market, Tesco Bank and now operates under its own banking license. 

  Tesco Bank provides a various kinds of offers like insurance, current accounts, saving accounts, credit cards, loans, mortgages and travel products and online banking. To make life easier for their customers, Tesco offers all the products and services we offer are available online and over the phone. Most of the Tesco Bank customers enjoy the convenience of buying and servicing their accounts online. 

  Tesco Bank employees are not set individual sales targets and do not receive incentives. This is because we want the focus to be on listening to customer and serving their needs. This is what makes them different from others. In year 2014, Tesco Bank has announced their customer accounts reaches 7 million. In addition, £1 billion is spent on Tesco Bank credit cards each month and 1.8 million customers have Tesco Car, Home, and Pet Insurance with us, and £ 6.1 billion in saving deposits.


PEST analysis

c) Under the PEST analysis, students are to analyse only Social and Technological factors of the company 
and share your findings.


  A PEST analysis looks at how external environment affect a business’s activities and performance, to determine an organization’s overall outlook for success.  External environment is the factors, forces, situations, and events outside the organization that affect its performance. Therefore, external environment is scanned thoroughly and analyzed for the development and success of Tesco’s strategic decisions.


Social factors
   For Social analysis, it examines the social environment of the market like cultural trends, demographics, and population analytics. Current trends indicates that consumers nowadays usually do shopping in bulk which is due to the social changes occurring in the last decades. Since this has influenced consumers’ shopping behaviour, Tesco has expanded its inventory of non-food items. This will be easy for consumers when do shopping in bulk.




  Besides that, types of products and services demanded by consumers is a function of their social conditioning and their consequent attitudes and beliefs. Due to the credit crunch in order to reduce expenditures and because of healthy eating, people buy health foods at supermarkets as it is more affordable. As a result, Tesco adapting its product mix is to accommodate the increased of demand for organic products with lower prices. This has increased Tesco sales volumes, as they offer lower prices than their rivals.



   Furthermore, demographic factors such as increase of women employees, increasing trend of frozen foods and aging population, make retailers to consider these changing factors to update the organization accordingly (Drejer, 2000). Thus, Tesco comply with these changes by emphasizing operational improvements and supply chain management. This has increased Tesco’s overall organizational performance.






Technological factors

   As for technological analysis, it pertains to the innovations in technology that may affect the operations of the industry and the market favourably or unfavourably.  The technology which brought the largest impact and had become the key driver in the global business arena is the internet technology. Tesco’s online shopping is one example of this, as they account for 66.2% of the online food and grocery shopping in UK. 




Furthermore, Tesco is technologically efficient by providing electronic scanners such as electronic Point of Sale (EPS) and Electronic Funds Transfer Systems (EFTS) and barcode reader, to improve the efficiency of distribution services and other inventory related activities.


The way for business to achieve sustainability

d) Recommend one way for the business chosen to achieve sustainability.


There are many ways for the business to achieve sustainability and larger your customer base will be one of the way to sustain your business. You might wonder how to increase your customer base. Below is those few simple ways to help you increase your customer.

1) Asking opinion from the customer
Requesting customer to filled in a short survey for your business. Normally, people are happy to express their feelings and experiences. You can use survey to conduct industry research, customer experience or measure customer satisfaction.||

2) Keep your website content fresh
Fresh and informative content is one of the element to attract more customer. Keep your website fresh that reports the latest business news, hot topic within your industry and keytakeaways from whitepapers.

3) Keep up and maintain excellent customer support and service
A customer who contacts customer service about their first order is just as important as a customer who contacts customer sevice about their tenth order. Treat each customer with respect and take appropriate action. A happy customer is likely to tell at least three friends about the positive experience and great customer service leads to increased sales.