Introduction to Business Organisation

Business Organisation

Table of Contents
INTRODUCTION...........................................................................................................................1
Background of Tesco ......................................................................................................................1
Business environment of New Zealand...........................................................................................3
Analytical approach of this country.................................................................................................5
Data and graphs ...............................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8

INTRODUCTION
Business organisation means individuals and group of people who collaborates to attain
specific business goals. Some are incorporated to earn profits for owners and few are formed as
non profit institutions. There business includes raising money and utilizing it for social welfare
programs. Organisations consists a specific hierarchy and working culture. Different business
concerns have different policies and objectives. This report is about Tesco which is one of largest
international retailer chain in UK. In this background of this organisation will be discussed
which may include financial information about company, annual reports, market share and
number of workforce in last three years. Business environment of this company also be analysed.
It will also consist identification of internal factors such as strengths and weaknesses and
external factors including opportunities and threats related with business. Porter's five force
model can be used to analyse micro environment of this organisation. It will help in developing
the competition in market place. This study is to identify feasibility of this organisation to enter
in new country i.e. New Zealand.
Background of Tesco
Tesco is an British multinational grocery retailer in UK. It is amongst third largest retailer
company in world and ninth largest in terms of profits. This organisation has its stores in around
12 countries of Asia and Europe. In UK, It is market leader in grocery sector.
Tesco was founded in as an market stall in Jack Cohen in 1919. First store of this firm
was opened in Barnet in 1931. This business expanded very fast and it had around 100 stores all
over the country till 1939. Initially, they were involved in retailing of books, clothing,
furniture, toys, electronics, petrol and software. It is listed in London Stock Exchange.
This company is committed in creating value for shareholders and they are developing
consumer focussed strategies through innovation. They are providing quality products and
services with guaranteed good prices. It is more focussed towards building consumer value and

loyalty towards their brand. They offers standard quality goods with wide range of possible
choices.
Currently, it has around 6,533 stores all over the world. Its subsidiaries are Tesco stores
Ltd, Tesco mobile, Tesco bank, Tesco family dining Ltd. Etc. Main aim of this organisation is
to remain market leader in retail sector by providing good quality services at reasonable costs
and achieve competitive advantages. They also wants to expand their business amongst all those
countries where it has not reached till now. It also aims to develop its online shopping site to
provide easy access to its customers and increase its market range.
Corporate policies- This company makes strategies for its own brand products. It
describes its core business purposes, principles, values and goals. One of their important
corporate strategy includes focussing on people that includes its customers and employees. Their
expansion strategy includes adopting new and innovative technologies in order to achieve
competitive advantages in today's scenario. They are providing services like mobile payment
wallet, barcode technology and payment through mobiles which facilitates ease in buying to its
customers. It is also focussing on Corporate Social Responsibilities which includes providing
some part of its profit for social welfare like education and health issues.
Financial information- Financial position of this firm is quite impressive during last
three years. In 2015, it had annual turnover of approx 55,197 and net profit of approx 54
millions. In 2016, it had turnover of 53,933 and revenue of 129 million. It has been a good year
for this company. There was huge improvement in sales ratio due to which profit has increased.
It had strong performance all over its stores. International sales also grew up by 1.8 % with
constant exchange rate. International profit increased by 11.4 %. It has strong strategies for
investment in financial resources which makes its financial scenario more efficient.
Market share- Tesco has approx market share of 30.2% in UK retail sector. Competition
is very intense in this sector as competitors like Sainsbury and Primark are developing their
business very effectively. Instead of that, it was successful in capturing largest market area due
to its quality standards and strong brand image.
Employees- It has around 476,000 workers employed which makes this company
amongst highest employment providers. There are effective policies and strategies for benefit
and welfare of its staff due to which it has highly motivated workforce working for its growth.