Analyzing the Level of Customer Satisfaction in Tesco Express
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Running head: ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS Analyzing the level of customer satisfaction in Tesco Express Name of the Student: Name of the University:
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1ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS Executive Summary The study is summarized on the level of customer satisfaction of Tesco Express. By means of various situation analysis tools, the interior as well as exterior commerce environment of Tesco Express is to be determined. Based on analyzing the business environment of the business, there are both positive as well as negative changes into the business. The researcher is performed primary research by means of survey as well as tools for situation analysis such that the company can able to identify its internal issueswhichtheyarefacingwhileoperatinginthemarket.Thereasonsbehind customer satisfaction level are being measured using the situation analysis tools. The aim of research study is done for raising the stage of customer satisfaction along with lead to make profitability such that they can attract more and more customers towards their food industry. The primary research study is helped to analyze the statistical data using survey by which they can evaluate customer’s requirements and components for the client satisfaction.
2ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS Table of Contents Component 2:....................................................................................................................3 1. Introduction................................................................................................................3 2. Situation analysis.......................................................................................................3 2.1 Background of case study organization...............................................................3 2.2 Business analysis tools........................................................................................4 3. Problem identification.................................................................................................7 3.1 Data collection methods and tools.......................................................................7 4. Proposed solutions/possibilities.................................................................................7 4.1 Assessment of approaches and justification of approach chosen.......................7 4.2 Primary data.........................................................................................................8 4.3 Cost based analysis and business case to assess options...............................11 4.4 Risk assessment and stakeholder analysis.......................................................11 5. Plan of action...........................................................................................................12 5.1 Work breakdown structure.................................................................................12 5.2 Critical path analysis..........................................................................................12 5.3 Gantt chart..........................................................................................................15 5.4 Resource planning charts...................................................................................20 5.5 Aim and objectives.............................................................................................23 5.6 Risk assessment................................................................................................23 5.7 Stakeholder analysis..........................................................................................26 5.8 Detailed plan of action........................................................................................27 6. Conclusion...............................................................................................................28 References.......................................................................................................................29
3ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS Component 2: 1. Introduction In this paper, there is interior and exterior analysis of business case of Tesco Express so that the company can gain higher level of customer satisfaction. By means of situation analysis tools such as SWOT, porter’s five forces, PESTLE and BCG matrix, the commerce environment is analyzed. In order to determine the issues within Tesco Express, primary data collection method is used. It is performed from the side of the customers by taking their responses using questionnaire method. In order to analyze the approaches for the company, risk assessment as well as stakeholder analysis tools arebeingused.Inthisstudy,aplanofactionisimplementedbasedonthe considerations of project management approaches like project schedule, planning of human resources, and work breakdown structure along with critical path analysis. 2. Situation analysis 2.1 Background of case study organization As a sub brand of Tesco, Tesco Express is operated in UK market in area of Cranford, Bath road. The company is making profits into the business by meeting with the customer’s demands by providing them food items such as sweets, processed foods, biscuits and others. The company gained a market share of 25% to make more profitability. It is seen that 9.08bn USB is the brand value of the company and there is grocery sales is 46.6bn USD (Tesco plc 2016). The company is operated a total of 277 stores so that it can promote their sales and also profits.
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4ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS 2.2 Business analysis tools SWOT analysis of Tesco Express Strengths:Tesco Express is introducing various fresh as well as healthy foods so that they can achieve a higher market share. Higher standards are to be achieved by Tesco Express so that the customers can access to higher quality of products. They can achieve a higher market position to become one of the leaders in the supermarket of UK. They are recently addition of 800 stores in the product lines. Weaknesses:InthemainstoreofTescoExpress,thepricefactorisnot considered as good. There is also limitation of wide varieties of stores of the company. Because of the smaller departmental stores, there is weak turnover of their store inventory. The staffs are not able to respond to the customer’s queries on time which causes to increase in customer dissatisfaction. Opportunities:The Company is leveraging their business into the Euro Zone for attracting more customers towards their food businesses. The organization is bringing up into the density locations (Tesco plc 2016). They are also thinking to expand into the international market so that they can get private labeling schemes into the business operations. Threats:There are some factors which have threatened the internal and external business functions of Tesco Express like credit crunches and economical recessions (Tesco plc 2016). Those factors can threaten the marketplace share in addition to productivity of the company. There is higher interest level in UK, due to which the company can face critical conditions into the foreign marketplaces. PESTLE analysis of Tesco retail FactorsDetails PoliticalThere is import of the food items as well as goods which can affect the organization when it is importing inventory into countries like East Asia and China (Tesco Plc 2016). The local council of UK proposed a
5ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS tax on the larger supermarkets while the government is being refused to overcome on price rises. EconomicThepricefactorcanprovideaninfluenceonthesupermarkets business of Tesco Express. They are focused to increase the cost which will decrease the profit (Tesco plc 2016). Due to increase into the customer’s demands, there is increase into the supply of the food items. SocialThe company has opened is food stores in and out of the UK so that they can meet with the customer’s requirements as well as demands (Capon 2009). For all ages and classes of customers, food products ofthecompanyareproducedsothattheycanmeetwiththe customer’s demands plus tastes to change in their lifestyle. . TechnologicalThe company is introducing automated system in their store instead of traditional system. They come with paperless payments so that there is change in the market value of Tesco Express. TescoExpresshasintroducedbillingsystemcall,Tillwherethe customers can pick and invoice (Johnsonet al. 2017). LegalThere is following of strict rules as well as regulations so that the organization can warm the customers about the legal issues. There should be smoking free environment into the business premises. EnvironmentalThere should be no usage of plastic bags and on time it is required to recycle it. There should be usage of renewable sources of energy and till the year 2030, there is generation of electricity (Tesco plc 2016). Porter’s five force analysis of Tesco retail Porter’s five force factors Details Threatofnew entrants(Medium) Innovation intothe foodproducts andfooddelivery services Lower the fixed cost per units caused due to economics
6ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS of scale Bargaining power of suppliers(Low) Effective suppliers to deliver the food products Higher competitions from supplier side Improvement over operational profit margins due to late payment of suppliers (Wysocki 2014). Bargaining power of buyers(Low) Large customer base is created Keeping food products price as low and better quality to achieve profitability Innovation over the products cause higher customer satisfaction Threat of substitute oftheproducts (Medium) Creating unique brand equity of Tesco Express 2.Increaseincustomer'sloads(Worthingtonand Britton 2015). Rivalryamong existing competitors (Medium) Determining a sustainable food product differentiations 2. Rise in market size due to market collaboration BCG Matrix of Tesco retail Stars High market growth Higher growth of Tesco Express due tocreatingnewfoodproducts, therefore the company invests more in food market. High market share Duetogaininghighermarket growth,incomingdays,Tesco would gain higher market share. Question Marks Low market share Low market share Thereislowrevenueofthe products as Tesco Express has smaller stores, leads to lower the market share. High market growth Higherdevelopmentofthe marketleadstopositive sourcesoftheproducts stability. Cash Cows High market share The food products of Tesco Express have reached its maturity point to achieve higher market share. Dogs Low market share There is improper managing of business units; the company has invested in other market leads to losses of products. HighMarketgrowth rate
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7ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS Low market growth There is required to have capital input for gaining lower growth, then cash cow is profitable for the organization. Low market growth There is low chance of the company to grow as there are issues regarding food items. 3. Problem identification 3.1 Data collection methods and tools In this research study, primary data collection is performed so that it can help to identify the issues which are identified from point of view of the clients as well as stakeholders involved into the Tesco Express. There are total of 20 participants those are selected for this study and age group considered is 18-45 years. Both male and female are involved into the primary data collection from West London. The primary research work is performed throughout using situation analysis tools. The primary data methodisconsistedsurveysplusdescriptiveresearch.Primarydatacollectionis conducted through using survey method along with direct communication with the project participants. It is useful to determine customer’s satisfaction level (Slacket al. 2018). This investigate study is mainly performed by the business of Tesco Express in order to modify food services and food items. 4. Proposed solutions/possibilities 4.1 Assessment of approaches and justification of approach chosen There should be conducting of in-depth research of the market situation of Tesco Express within Cranford, Bath road, by means of primary research. A market analysis is being performed using the primary research approach. Collected raw data help the investigatortodetermineandstudycurrentmarketpositionofTescoExpress (Association for Project Management 2012). The collected data provides data validity along with data reliability. The responses are being evaluated from the participants so that sensitive information is considered in this case. HighLowMarketShare Low
8ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS 4.2 Primary data Based on the research, there are total of 20 respondents are being taken and the respondentsareselectedfromWestLondonarea.Listedbelowarethesurvey questions to analyze the customer satisfaction of Tesco Express such as: 1. Your gender OptionsResponsesTotal respondentsPercentage Male142070% Female62030% From the above table, it is found that the respondents involved into the survey are 70% male and 30% female. 2. Your age group OptionsResponsesTotal respondentsPercentage Less than 25 years72035% 26-30 years72035% 31-45 years62030% From the above table, it is found that the respondents concerned into the survey are 35% between the age 26-30 years and less than 25 years. 30% are between the age group of 31-45 years. Thus, most of them are young aged. 3. When purchasing the fooditems, do you prefer to shop online or in-store? OptionsResponsesTotal respondentsPercentage Online172085% In-store32015% From the above table, it is found that the respondents involved into the survey are used of online services such that they can categorize the food items from higher list
9ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS of the food products. The online store can offer their consumers to reduce the shopping time and waiting time in the store. 4. How it would satisfy you to get customer satisfaction in the store in current visit? OptionsResponsesTotal respondentsPercentage Very satisfied1205% Satisfied122060% Neithersatisfiednor dissatisfied 42020% Dissatisfied32015% Very dissatisfied0200% From the above table, it is found that the respondents involved into the survey are 60% satisfied that they are gaining higher satisfaction level when they have visited the store. The satisfaction factors are staffs involved in providing services and delivered the services in the store. 5.Howsatisfiedareyouwithrespondtothecomplaintsfromcustomer representative? OptionsResponsesTotal respondentsPercentage Very satisfied0200% Satisfied102050% Neithersatisfiednor dissatisfied 52025% Dissatisfied52025% Very dissatisfied0200%
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10ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS From the above table, it is found that the respondents involved into the survey are 50% satisfied that their complaints are responded on time and taken at higher priority. The customer representative provides quality products as well as services to the customers those are visited the store. It helps to maintain a good position in UK and increase in market share. 6. Did the organization’s customer service make you feel like a valued customer? OptionsResponsesTotal respondentsPercentage Yes182090% No22010% From the above table, it is found that 90% of the respondents pleased with the purchaser services of Tesco Express by providing valued customers. It can meet with the customer’s demands. 7.Didthedescriptionofproductonthewebsiteaccuratelyrepresentwhatyou received? OptionsResponsesTotal respondentsPercentage Yes152075% No52025% From the above table, it is found that 75% of the respondents are satisfied with the details which are provided on the online website related to the products and services. 25% of other respondents are not satisfied as they are facing difficulties to handle the products due to lack of management control. Healthy products are delivered to the customers to deliver better food items.
11ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS 4.3 Cost based analysis and business case to assess options In this study, cost benefit is being done for evaluating the total cost based on the projectplantoanalyzethecustomerapprovallevelincomparisonofbenefit opportunities. It is done to analyze the implementation process conducted by the project team.Increaseintolevelofcustomersalongwithemployeesatisfactionlevelis intangible items which cause issues to measure the monetary returns. This return in increasing customer satisfaction level is measured by understanding direct outcomes of increase in satisfaction levels. Based on the primary research, the fulfillment level of the customers of Tesco Express is taken at higher priority. There is a challenge over measuring the satisfaction by using survey from point of view of their customers. The satisfied consumers are offered better referrals and offer reliable and proper results. 4.4 Risk assessment and stakeholder analysis There is analysis of two tools which are conducted in this research study which are risk assessment as well as stakeholder analysis. Risk assessment is such a tool used for analyzing and identifying the risks which are found into the project provides impactonlevelofcustomersatisfaction.Inthisprojectstudy,Qualitativerisk assessment tool is taken which can determine probability of risks which are occurred (Cameron and Green 2015). The probabilities of the identified risks are done by using SWOT and historical data analysis methods. Theprojectmanagementtooltermedasstakeholderanalysisisusedto determine the interior and exterior stakeholders those are interested and influenced into theprojectplan.Foreachoftheprojectstakeholders,responsibilitiesarebeing determined into business case. The management level stakeholders provide support to other project team members to get success and meet with customer satisfaction (Lock 2018). The main priority of this business organization is to meet with customer’s demands whichcan leadtoincreaseincustomer satisfaction level, increaseinto revenue as well as profits.
12ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS 5. Plan of action 5.1 Work breakdown structure Figure 1: Work breakdown structure (Source: Created by author)
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13ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS 5.2 Critical path analysis Figure 2: Critical path analysis (Source: Created by author)
14ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS Budget Plan The total cost of this project plan is£49,600. Tangible Benefits CategoryIn £ Initiation phase£3,000.00 Planning phase£100.00 Perform the primary research£5,000.00 Perform the situation analysis£4,000.00 Improvement over project planning and controlling£7,000.00 Additional cost£0.00 Total Tangible Benefits£19,100.00 Tangible One-Time Costs CategoryIn £ Development cost £ 3,000.00 Cost of the raw materials £ 5,000.00 Cost of the food items £ 1,000.00 Training cost of workers £ 2,000.00 Cost for preparation of items £ 2,500.00 Additional cost £ 3,000.00 Total Tangible One-Time Costs £ 16,500.00
15ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS Tangible Recurring Costs CategoryIn £ Cost of maintenance of the store £ 9,000.00 Increment in cost for storage of data £ 1,500.00 Increase in cost for communication plan £ 1,500.00 Innovative and automatic system £ - Supplier cost £ 2,000.00 Additional cost £ - Total Tangible Recurring Costs £ 14,000.00 5.3 Gantt chart WBSTask NameDurationStartFinishResource Names 0 Analyzing the customer satisfaction level in Tesco Express 70 daysMon 5/6/19Fri 8/9/19 1Phase 1: Project Planning30 daysMon 5/6/19Fri 6/14/19 1.1 Identify the scope of behind the customer satisfaction increase 2 daysMon 5/6/19Tue 5/7/19Project Manager 1.2Determine the project aim and objectives of Tesco 7 daysWed 5/8/19 Thu 5/16/19 Project Manager
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19ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS Figure 3: Gantt chart (Source: Created by author)
20ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS 5.4 Resource planning charts Resource NameWork Project Manager720 hrs Identify the scope of behind the customer satisfaction increase16 hrs Determine the project aim and objectives of Tesco Express56 hrs Implement a project charter based on Tesco Express market72 hrs Plan the project schedule48 hrs Achieve the milestone of the project8 hrs Delivery of the food items by the suppliers on time16 hrs Plan the project budget104 hrs Achieve the project cost24 hrs Making the project changes as per market requirements24 hrs Performing the historical trends in market of Tesco Express48 hrs Improvement over communication plan24 hrs Identify the project risks40 hrs Providing training to the users96 hrs Analyze internal and external market by SWOT analysis40 hrs Prepare a draft of the project40 hrs Release the project stakeholders32 hrs Final submission of the project32 hrs
21ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS Market Researcher360 hrs Implement a project charter based on Tesco Express market72 hrs Plan the project schedule48 hrs Coordinate and interact with the customers24 hrs Providing training to the users96 hrs Collection of data40 hrs Analyze external environment by PESTLE analysis32 hrs Analyzing internal and external market by BCG matrix48 hrs Market Analyst128 hrs Coordinate and interact with the customers24 hrs Identify the project risks40 hrs Performing the research work by survey method24 hrs Collection of data40 hrs Internal Customer80 hrs Selection of project participants32 hrs Identifying the porter's force factors48 hrs External Customer16 hrs Management support16 hrs Customer Service Representative136 hrs Management support16 hrs Selection of project participants32 hrs Collection of data40 hrs Identifying the porter's force factors48 hrs
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22ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS Sales Representative48 hrs Identifying the porter's force factors48 hrs Project Sponsor320 hrs Plan the project schedule48 hrs Delivery of the food items by the suppliers on time16 hrs Plan the project budget104 hrs Achieve the project cost24 hrs Making the project changes as per market requirements24 hrs Performing the historical trends in market of Tesco Express48 hrs Improvement over communication plan24 hrs Release the project stakeholders32 hrs Figure 4: Resource overview graph
23ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS (Source: Created by author) Resource NameStartFinishWork Project ManagerMon 5/6/19Fri 8/9/19720 hrs Market ResearcherWed 5/8/19Tue 7/23/19360 hrs Market AnalystFri 5/17/19Tue 6/18/19128 hrs Internal CustomerThu 6/27/19Mon 7/15/1980 hrs External CustomerWed 5/22/19Thu 5/23/1916 hrs Customer Service RepresentativeWed 5/22/19Mon 7/15/19136 hrs Sales RepresentativeMon 7/8/19Mon 7/15/1948 hrs Project SponsorWed 5/8/19Mon 8/5/19320 hrs 5.5 Aim and objectives The research study is aimed to analyze the reasons behind the satisfaction level of the customers which provide huge impact on profitability of Tesco Express to become competitive in West London Area. Below are the objectives of this study such as: To determine the demands of customers based on the food items required for them To analyse inner and exterior industry functions of Tesco Express To determine impact of customer satisfaction on business operations To determine causes of dissatisfaction level of the customers To analyze factors behind satisfaction level To focus on business profitability 5.6 Risk assessment The risk assessment tableshows thetypes of projectrisks, its probability, impacts, risk response strategies and risk owner.
24ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS Risk Id Risk DescriptionProbabilityImpactRisk level Risk responseRisk Own er 1The organization is failed to meet with the customer’s demands which lead to loss of the market of Tesco Express ModerateExtremeHigh risk Customer focused strategies are required to be implemented into the organization to meet with the customer’s concerns. Mark et Rese arche r 2There is lack of interaction among the members of the team involved into the project plan. ModerateExtremeHigh risk In this case, a plan is required on communication to interact with the clients (Lynch 2015). Proje ct Mana ger 3The participants are not interested to provide their responses for the survey questions. LikelyModerat e Medi um risk The participants should require motivating for providing their responses in order to do primary research (Maylor 2010). Proje ct Mana ger 4There is transforming into the economic business environment lead to low the profit margins. LikelyModerat e Medi um risk There should require building stronger relations with the customers in case it will lower down the cost. Proje ct Spon sor 5The company has no proper strategies to achieve competitive advantage. UnlikelyMinorLowPrimary research will help to implement strategies (Saunders, Lewis and Thornhill Mark et Rese arche r
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25ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS 2016).
26ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS 5.7 Stakeholder analysis Stakeholder role ImpactInfluenceImportant to stakeholderStakeholder contribute to the project Strategy for engagement of stakeholder Manager of the project plan HighHighThey can maintain the project schedule as well as estimate the project budget so that it leads to update in project progress. Interaction with the project team members for supporting the customer’s demands. Weekly based meetings and face- to-face discussion Market Researcher HighHighCollection of responses from the customers and analyzing the collected raw data in statistical form Perform the market research in UK food industries for analyzing the level of customer satisfaction Monthly based meetings Customer Sales Representative HighMediumThey can suggest data based on food products and items and update the details of customer’s preferences They are offering suggestions to the company that they can make innovative food items, healthy items for making profitability, rise in market share Weekly based meetings and face- to-face discussion Financial Officer HighMediumCollection of funds for the project plan and estimation of budget based on project requirements to conduct a research in UK market They are agreed with budget plan dependent on the project needs Quarterly meetings with the project team members Market AnalystLowHighDetermine the current market of Tesco Express by recording the buying habits of customers Collect primary data by market research of Tesco Express Weekly based meetings and face- to-face discussion
27ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS 5.8 Detailed plan of action Action Description Responsibl e Date to begin Due dateResources required Outcome Collecting of information based on the customer’s survey Project Manager and Researcher 2/6/20193/15/2019Survey formMonitor and analyze the collected data for determining the satisfaction level of the customers Analyzing the high drivers behind dissatisfaction level of the customers Market Researcher 4/16/20195/3/2019Presentation and email It is performed for determining the top priority issues for making improvements into the food items. Responding to the consumer’s queries Market Researcher 3/5/20195/2/2019EmailOffering thank you letter to the consumers those are participated into the survey Sending of email towards the customer’s feedback Market Researcher 3/29/20194/21/2019Presentation and email Findings of the data analysis
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28ANALYZING THE LEVEL OF CUSTOMER SATISFACTION IN TESCO EXPRESS 6. Conclusion It is summarized that a primary research study helps to establish the customer satisfaction level so that the company can able to determine its market share as well as profitability. The company can give new food items to their customers so that it can increase profit and revenue. The internal and external analysis is performed to identify the business related problems of the company. It is required to assemble with the customer’s demands as well as requirements to become number one supermarket into the business organization.
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