Understanding Tesco's Global Operations

This assignment delves into Tesco PLC's global operations, examining its strategic decisions regarding international expansion. It explores the diverse perspectives of stakeholders, including consumers, employees, and local communities, highlighting the impact of Tesco's activities on both a national and global scale. The analysis also considers consumer perception and how it influences Tesco's brand image and market success in different cultural contexts.

Autumn 2017 Portfolio
Effectiveness in the Business World (EBWO3001)
Student Name:
Student Number:
Lecturer Name:
Assessed Learning Outcomes:
1. Demonstrate an understanding of the concept of the organisation and the
environment in which it operates, including determining the competitive
advantage for an organisation.
2. Identify and analyse organisational operations, responsibilities
3. Discuss the needs of the consumer and people who work in a business.
4. Recognise a range of issues related to business and how they interlink.
Week Contents (350-400 words per task) Learning

Page outcomes
Week 3 a. Describe the main features of a public limited
company (PLC), giving an example.
b. Identify two key differences between a PLC and a
charitable organisation.
3 LO1 / 2
Week 4 a. Who is a ‘customer’? Give THREE reasons
businesses must understand customers.
b. With at least one example, describe how
‘perception’ influences consumer demand?
4 LO3
Week 5 a. What is ‘globalisation’?
b. Describe THREE advantages & THREE
disadvantages of ‘globalisation’?
5 LO1/4
Week 6 Describe TWO advantages and TWO disadvantages of
‘group decision-making’ from the staff perspective. 6 LO3
Total word limit: 1500 words (+/- 10%)

ASSESSMENT - PORTFOLIO
Week Task 1 Learning
outcomes
Week 3
a. Describe the main features of a public
limited company (PLC), giving an example.
b. Identify two key differences between a PLC
and a charitable organisation.
LO1 / 2
Your answer should go in the box below.
Answer a. Features of a public limited company are Limited liability, capital,
transferable shares, board of directors, life span, number of members and financial
privacy.
Example of Public limited company- Tesco PLC is counted in the list of largest
retailers in the world, with more than 2300 stores and supermarkets. They provide
employment to 326,000 people (Reuters, 2017). The main business of Tesco PLC is
in Britain, where it is the largest food retailer.
Features of Tesco PLC
Tesco Board and Executive Committee- The Board of Tesco involve the Chairman,
Chief financial officers, Group Chief Executive and Non-executive Directors
(Tesco PLC, 2017).
Limited liability
Liability of shareholder is limited in a company up to their contribution in shares
only. This makes a company a separate legal entity. A person cannot own whole
company, person can only own a part of it.
Transferable Shares
Shares of Tesco PLC are traded in the stock exchange market. Shares of Tesco are
transferred to its members and people who are trading in the stock exchange.
Lifespan
The death of one shareholder of a public limited company does not affect the
company, but the shares of the shareholder are transferred to his/her family and
company continue its operations. If the director of the public limited company dies
then an election is placed to replace deceased director (Mack, 2017).
Capital
Public limited company raise capital by issuing shares to the public. In PLC
additional capital can also be raised by issuing bonds and debentures in stock
market.

Answer b. (1). Listed companies must adopt and follow provisions of company law
and listing rules. Listing rules for example in UK company has to adopt Combined
code, it applies a number of requirements on PLC like committee structures, non-
executive directors, etc.
On the other hand, it is important for Charitable organizations to obtain recognition
by a charity authority of the country to work and then they get the discounts that
charitable status confers. This contains sympathetic tax treatment and altered
reporting requirements. Since charities are not public companies they do not require
to follow listing rules but depending on the rules of the country they need to be an
audit and should fulfil some requirements for reporting.
(2). PLC survive mainly to make profits and financial return for their stockholders.
It means they appoint people, including director to increase their long-term profits
and cash flows. By creating the shareholder wealth value can be added and it can be
measured in terms of cash flow, profits, share price, etc.
On the other hand, the main purpose of a charitable organization is to support the
generous cause of the organization. It is likely to be a social cause and donation is
provided to support that generous cause (Strategic Management Accounting
Knowledge. 2011).

Week Task 2 Learning
outcomes
Week 4
a. Who is a ‘customer’? Give THREE reasons
businesses must understand customers.
b. With at least one example, describe how
‘perception’ influences consumer demand?
LO3
Your answer should go in the box below.
Answer a. A person that takes or consumes products and services with the capability
to select a supplier of the related product (Marketing Teacher. 2017). The customer is
also known as a purchaser, buyer or client. Customers are categorized into two types:
An entrepreneur who purchases goods for resale and end user who purchases goods
for consumption.
Reasons for businesses to understand customers
1. Business can design their marketing programs according to their customer’s need-
Today it is possible for a business to understand what customer cares about which
was not possible before. The internet and social media creates an unparalleled range
of transparency in the market and can help business to understand what’s there in the
mind of the customer.
2. Business can concentrate on the customer’s business problem- It’s a saying, but a
true one: customers buy solutions not the product. But until business will not
understand what their customers are trying to solve but can’t provide them a solution,
and understanding customers will provide the details of the solution that customers
are searching for.
3. Business can line up the solutions according to the customer’s changing needs-
Whereas it has been said that customer is always right, but the truth is they may be
not what they are searching for or asking the right solution. This is because the
customer does not know about the options available in the market or they have a
budget problem (Herscher, 2012).
Answer b. The ability of the business to maintain and attract customers that are ready
to buy goods and services at the reasonable price is the reason for the business
success. Perception of the consumer defines how existing customers and potential
customers see product and services of the company (Mack, 2017). Perception of the
consumer is very important for the profit of the business as it influences the
behaviour of the consumer. For influencing the perception of the consumer business
spend a large number of resources. For example- If the reputation of a restaurant is of

providing the best pizza in the town, so the normal perception of a consumer in the
town will be positive and will refer others to visit there to experience delicious pizza.
This feeling will influence the profit of the business and demand of the customer. On
the other hand, the negative perception of the consumer can hamper the reputation
and success of the company (Hamel, 2017).
Week Task 3 Learnin
g
outcome
s
Week 5
a. What is ‘globalisation’?
b. Describe THREE advantages & THREE
disadvantages of ‘globalisation’?
LO1/4
Your answer should go in the box below.

Answer a. The movement of people, goods, and services freely across the world
smoothly and a combined way is known as Globalization. Globalization can be done
by opening the business in other country and increase in the trade between different
nations. In other words, trade between two countries and foreign investment open
their economies and go global is the result in improving the relations and economies
of the world is known as Globalization. Further, the meaning of globalization is that
the different countries ease up their rules and regulations by welcoming foreign
investments. It means countries open their economies to attract global capital.
Further, for the smooth movement of people from one country to another, countries
liberalize their procedures and rules of visa (Management study guide, 2017).
Globalization is based on the comparative advantage theory which says that countries
that produce a particular product of good quality can export that product in other
countries which are not efficient in producing that particular product. According to
assumption all the countries are not good at producing all the goods effectively that is
why they initiated trade with each other. In addition to this, due to difference in the
wage system of different countries, they gain the benefit of trading with each other.
Countries follow rules and regulations formed by the World Trade Organization of
trade between different countries.
Answer b. Advantages of Globalization
1. Globalization provides foreign capital and technology advancements to the poor
countries that help them to develop their economies and by scattering wealth,
generates the circumstances in which equality and respect for human rights may
develop.
2. Slowly Globalization is helping in creating world power instead of classified
power sectors. Politics integration and decisions that are taken is for the benefit of the
people all over the world.
3. Globalization results in knowing the different cultures of different countries and
respect for other cultures increases. It also increases the knowledge of culture and
helps country to know more about the people of the different culture which will be
beneficial for the country while trading with another country (Collins, 2015) .
Disadvantages of Globalization
1. It is being said that Globalization is making the rich wealthier and making the non-
rich poorer. Globalization is pleasing for investors, managers, and owners, but hell
for workers.
2. Globalization generally results in an increase in imports as compared to exports. It
makes one country to depend on another country for some particular goods.
3. Globalization encourages the technology development and increase of productivity
helps in increasing the job opportunities and increment in salary but from last few
years, such changes in technology in countries results in loss of jobs (Sethy, 2017).

Week Task 4 Learnin
g
outcome
s
Week 6 Describe TWO advantages and TWO
disadvantages of ‘group decision-making’
from the staff perspective.
LO3
Your answer should go in the box below.

Answer. Advantages of Group Decision Making
1. Diversity in opinions- There are number of members in a group who come from
different backgrounds with unique ideas and perceptions about the matter they are
working. All the ideas in a group may be unique and are better as compared to the
individual decision making. With the help of unique ideas, business will develop
various alternatives and can result in the success of the business.
2. Participation- If an individual is focused and interested towards his/her work then
that person provides more innovative ideas. When interested individual provide their
idea in the group then there will be the participation of all the members in the
discussion. The active members may not be the subject expert but their views are
important due to their dedication and participation.
Disadvantages of Group Decision Making
1. Time-consuming- Method of group decision making generally consumes more
time in providing the solution or conclusion which is accepted by all the members or
the group because each member of the group has their own, unique idea and
perception that provide number of options that to be considered.
2 Differences in ideas and opinions- Group is comprised of number of members with
their own ideas. The difference in ideas and opinions bring disputes among the team
members which is not good as it leads to the personal conflicts between the members.
This results in the barriers to the decision-making process and decreases the
efficiency and quality of decision making (Wise step, 2016).

References:
Differences between Charities and Listed Companies,
<http://apmstuff.blogspot.in/2011/08/differences-between-charities-and.html> accessed
17 November 2017.
Features of Public Limited Company, <http://smallbusiness.chron.com/features-public-
limited-company-18143.html> accessed 17 November 2017.
Globalization: Meaning, Advantages and Disadvantages,
<http://www.yourarticlelibrary.com/globalization/globalization-meaning-advantages-
and-disadvantages/63041> accessed 17 November 2017.
Group Decision Making, <https://content.wisestep.com/group-decision-making-top-
advantages-disadvantages/> accessed 17 November 2017.
Importance of Consumer Perception, <https://bizfluent.com/info-8406791-importance-
consumer-perception.html> accessed 17 November 2017.
Role of Perception in Consumer Behavior, <http://smallbusiness.chron.com/role-
perception-consumer-behavior-67136.html> accessed 17 November 2017.
Tesco PLC, <https://www.reuters.com/finance/stocks/company-profile/TSCO.L>
accessed 17 November 2017.
Tesco’s Board and Executive Committee, <https://www.tescoplc.com/about-us/board-
and-executive-committee/board/> accessed 17 November 2017.
The Pros and Cons of Globalization,
<https://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-cons-of-
globalization/#459e8a43ccce> accessed 17 November 2017.
Top 5 reasons to understand your Customer’s Customer,
<https://www.huffingtonpost.com/penny-herscher/top-5-reasons-to-
understa_b_1498320.html> accessed 17 November 2017.
What is Globalization? – Meaning and its Importance,
<http://www.managementstudyguide.com/what-is-globalization.htm> accessed 17
November 2017.
Who is a customer? <http://www.marketingteacher.com/what-is-a-customer/> accessed
17 November 2017.

End of Portfolio