Tesco's Success Story: Entrepreneurship, Economy, Society & COVID

This essay delves into the entrepreneurial journey of Tesco Plc, a multinational retail and retail banking company and the UK's grocery market leader. It evaluates the personality traits of the entrepreneurs behind Tesco's success, the innovative products and services they introduced, and their str...Read More

entrepreneurship
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
(A)....................................................................................................................................................3
Evaluation of the personality traits of the entrepreneurs.............................................................3
Entrepreneur analyze the opportunity or entrepreneur create the opportunity............................4
Innovative products and services introduced in the market and evaluate innovation is
important for an organisation.......................................................................................................5
(B)....................................................................................................................................................5
Process of entrepreneur build the entrepreneurial team..............................................................5
Identification of entrepreneur’s role as leader and applications it takes to become a successful
leader............................................................................................................................................6
Tesco and its business growth.....................................................................................................7
(C)....................................................................................................................................................8
Tesco and its contribution to the economy and society:..............................................................8
The survival issues faced by the organization due to the global pandemic.................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Entrepreneurship, in a narrow sense, means opening up a business and expanding it to make
a profit. But when considered in its broadest sense, entrepreneurship stands for the act of
transforming the world around us by creating innovative products to solve real world problems
(Leonidou and et.al., 2020). Tesco Plc is a multinational company that operates in the field of
retail and retail banking. Within the UK, it is the market leader of groceries. The following essay
covers the personality traits of the entrepreneurs who are behind the success of Tesco Plc, the
innovative products and services introduced by these entrepreneurs, how they went about
building an efficient team and providing it a strong leadership, to make Tesco Plc a thriving
business. The essay will then evaluate the contribution of Tesco Plc to the economy of the UK
and the role it plays in the society at large. At lasts, it details the survival issues faced by them
due to the COVID-19 pandemic.
MAIN BODY
(A)
Evaluation of the personality traits of the entrepreneurs
 Discipline: Entrepreneur always considers to maintaining discipline because they have
responsibility to manage various factors. Tesco industry entrepreneur decide that they
provide grocery services in market and they decide to develop stores where inivdiual can
easily by their product on the basis of their requirements. So they have major
responsibility to maintain discipline in work for performance improvement (Youssef and
et.al., 2021).
 Self-awareness: Inivdiual entrepreneur when they decide to set new business they
always consider in being self aware because many people believes in guide on wrong
direction. Furthermore, Tesco company entrepreneur has capability of self awareness
because they identified factors which things useful for long term business growth.
 Creativity: It very obvious that when inivdiual decide to set their business they always
found creative and innovative practices for differentiation expansion within business
activity. Propel get only attract with new business and product concept. Tesco
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entrepreneur consider to develop stores and they provide grocery products which is useful
and creative because when they start this business other not business has this type of
business.
 Process oriented: Continues new activities involvement within in business is all above
refers to effective approaches which has power to resolve issues and maintain efficiency
within organization practices (Agarwal and et.al., 2020). Idea about this term that
entrepreneur has capability to being process oriented because survives in the competitive
market its important to develop variation in overall business activities.
 Risk taker: Entrepreneur has capability to take risk that’s the only reason they start new
start-up and new business. Tesco industry has potential to resolve issue and engage
essential aspects for solution expansion of any problem. Tesco organization entrepreneur,
manager and their members face challenges from other retail industry which also decide
to set their business like this.
Entrepreneur analyze the opportunity or entrepreneur create the opportunity
Entrepreneur when start new business activities they always decide that they have to
involve various practices an select best option which has power to increase revenue or new
growth opportunities. Tesco industry entrepreneur and business organizer mainly consider
involving new practices which has power to develop new opportunities with great manner.
Emphasis: It essential that entrepreneur mainly focuses on activities which has power to control
rather then evaluation of external and other factors. And entrepreneur has power to find best
activity which has potential to provide revenue as well as increase business activities. Tesco
entrepreneur decide to survive in the competitive industry its essential to involve new practices
for new opportunities so they involve banking services, patrol, fuel, telecom, toys, furniture and
many more.
Shift: This term is all above refers to include activities which have power to resolve issue and
sifts on old activities which not provide benefits according to analysis. Tesco industry
entrepreneur not decide to shift their business activities they only engage new plans and products
for more efficiency expansion within business practices. And entrepreneur when decide to set
their business for long term they mainly applies this term.
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Open minded: Entrepreneurs has skills to identify and involve best and sustainable practices
which has power to generate revenue with good manner (Tiberius, Rietz and Bouncken, 2020).
So open minded term is all above refers to that inivdiual engage and involve activities which has
power to create new opportunities with identification and research on which products and
services has power to increase business activities. Tesco organization entrepreneur or owner
always believes in open minded that’s the reason they expand their business activities with great
manner.
Innovative products and services introduced in the market and evaluate innovation is important
for an organisation.
Products and services and involvement of innovative practices in Tesco industry: Tesco is
all above retail industry in UK. It mainly includes products and services which provides into
market like grocery, books, financial services, electronic products, petrol, toys and many more.
Also they decide to provide fast services at good prices and believes in develop structure to
resolve issues. Firstly this business mainly start with only selling and provide services of grocery
products because it has power and potential to attract people and it require on daily basis. So this
idea of this business entrepreneur or owner is most effective term (Rosca, Agarwal and Brem,
2020). Completion of some year they analyze that they have to involved new practices for
survives in the competitive area. Knowledge about this term they engage innovation in business
activities like technological advancement which is easier to evaluate competitive industry
activities, customer demand evaluation of changes in cultural activities and many more.
Application of innovative practices is one of the best term for survives and revenue generate in
competitive market.
(B)
Process of entrepreneur build the entrepreneurial team
Max Weber’s theory of social change by entrepreneur: It mainly refers to entrepreneur play
major role for expansion effectiveness in economic and culture activities stability because it
provides employment in society people so they can increase their lifestyles and influence new
opportunities as well. So entrepreneur has play major role in entrepreneurial team dvelopmeenet
with impressive manner. Tesco organization entrepreneur or owner do great job in employment
expansion in UK, it increases higher efficiency in business activities and it increase business
good will as well.
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Application and involvement of some aspects are helpful for entrepreneurial team development
is as follows,
Keep it simple: Entrepreneur try to develop continues practices for making and creating good
entrepreneurial team development. They mainly consider providing information with effective
manner so inivdiual can easily understand. Inivdiual employee who performing within their
business they provide skills about how to communicate with effective manner and which things
essential to involve for efficiency expansion in business activity (Jena, 2020).
Ask to self depended: Entrepreneur has power to build entrepreneurial team with great manner
they mainly includes activities like as to being self depended which means motivated them about
inivdiual has potential to that they have to focuses on their goal and apply effective approaches
for completion of multiple tasks. Company provide their services in other countries as well so its
owner and management team has responsibility to develop leaders and provide them work that
they have to manage other stores and engage new technological application with effective
manner. So when they get responsibility so they feel more motivated and they try to become
successful team leader and developer.
Remain flexible: Organization entrepreneur have to being relax in some aspects when employee
require leave in unexpected situation and they understand their feelings. This concept will
defiantly helps and it provides better and impressive results to make and resolve multiple
aspects. Entrepreneurial team expansion is mainly refers to develop by flexibility development,
Tesco industry entrepreneurs evaluate that if they have to develop entrepreneurial team they have
to develop flexible work environment and not pressure develop on their existing employee
otherwise they not openly communicate their feelings and thoughts.
Identification of entrepreneur’s role as leader and applications it takes to become a successful
leader
Entrepreneur role as leader: This term is all above refers to includes various activities for
efficiency development in organization or business with expansion of great team and
management of multiple people. Entrepreneur has skills to become leader because of
management or business with great manner, without leadership skills they will not properly
manage various aspects with impressive manner. Tesco entrepreneur has ability to resolve
problems and make better outcome with their knowledge and effective decision-making power.
Company management team believes in continues add resources which has power to influence
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business activity and continues improvement in skills and training distribution according to
requirement is best and most sustainable approach for business.
Application of democratic leadership is one of the most effective approach when
company’s leader applies this approach its defiantly sure that business get increase their
performance with great pattern. It mainly includes activities which is essential to perform by
leader is good communication , problem solutions making, require training distribution, maintain
good relation, politeness in behaviours, proper work distribution and many more. Tesco
company believes in apply this techniques for continues new opportunities development. So its
clear that Tesco organization play effective role and their management team develop teams and
leaders which increase and improve their skills and its useful for knowledge dvelopmeenet as
well.
Tesco and its business growth
For the sound and continuous growth of an organization, The entrepreneurs need to
establish right organizational structure, HR policies, a positive work environment that promotes
innovation, effective teams and a mechanism to measure progress. Jack Cohen founded Tesco in
1919 when he migrated to the UK from Poland. It all started when he set up a grocery stall in
Hackney, in east London (Tesco, 2013). With his dedication and smart work and his family's
support, business expanded. During 1950s and 1960s, he opened more than 800 shops. Making
use of the latest technology available at that time, the company introduced self-service stores,
reducing the labour costs of Tesco.
Tesco has also benefited greatly because of the increased female participation in the
labour force in the last half of the twentieth century. It allowed Tesco to hire low-wage female
labour for services. Another socio-economic factor that contributed to the growth of the
organization was the participation of both husband and wife in the labour force. The money-
savvy entrepreneurs of Tesco took advantage of this opportunity and started promoting canned
foods and fish steaks in their stores. They kept a high profit margin and benefited greatly. In
2001, company launched 'Tesco Online', which has become the most successful online grocery
shopping service in the world (Oberender, 2012).
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(C)
Tesco and its contribution to the economy and society:
Entrepreneurs play a significant role in the economic growth of a country. They bring
about both the economic growth as well as the economic development of the country. Economic
growth is the increase in the GDP or the Gross Domestic Product of the country, i.e. the total
goods and services produced in the country. Economic development, on the other hand, means a
rise in the per capita income of a country. Economic development is a better measure of the
economic progress of a country and its people. Entrepreneurs ensures economic development by
generating employment and providing income to several families. Tesco provided 53 billion
Pound sterling in GVA (Gross value Added) for the UK economy in 2020-21, an amount that is
equivalent to the entire economy of North East of England. Tesco has over 3500 stores all over
the UK and it employs over 300,000 workers. The company pays a total tax of 1.7 billion Pound
sterling. In fact, Tesco is the forth largest taxpayer in the UK (Tesco, 2021).
Tesco Plc takes capital, labour and technology and put them to productive use. It plays a
catalytic role in bringing about a technological revolution every once in a while (Lipset, 2018).
When the firms in business have been using a particular process to make products for some time,
there comes a new business with a new and efficient way to make the same product, saving both
cost and time. This is how entrepreneurs perform a revolutionary role in the economy.
Tesco is listed on the London Stock Exchange is included in the FTSE100 Index.
Entrepreneurs mobilize public savings by issuing bonds and debentures, which they use for
industrial development and thus capital formation. This is productive for the economy as it
utilizes the idle money in the banks and also gives citizens an opportunity to earn better returns
as compared to a traditional investment instrument like an FD (Fixed Deposit) (Boudreaux and
et.al., 2019). Entrepreneurs create wealth by transforming resources like land, labour and capital
into manufactured goods. They supply goods into the economy and provide public with essential
services.
When a new business is set up, it generates employment in both direct and indirect ways.
A large organization like Tesco provides direct employment when it hires contractors to build its
stores and when it hires staff to run its stores. As mentioned earlier, Tesco employs more than
300,000 people in its various stores, not including the staff in its overseas branches. It generates
employment in an indirect way, in the form of the ancillary businesses that come into existence
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to supply Tesco stores the products and services it requires to run its stores. Tesco spent 40
billion Pound sterling, that is 80% of their total spendings, on local suppliers in 2020, supporting
thousands of businesses across the UK.
By setting up stores and industries in rural areas, entrepreneurs behind Tesco, are taking
advantage of the subsidies offered by the government, while at the same time, giving these rural
areas opportunities for their economic development. Therefore, they help the government in
removing regional disparities (Dwivedi and Weerawardena, 2018). By producing articles on a
mass scale, Tesco Plc are able to offer quality products to public at affordable prices. They help
improve the living standards of the public.
Different entrepreneurs in the same arena are constantly looking for opportunities to
become more competitive by improving their products and the processes by which the products
are made. They thus encourage innovation. Because it is their goal to make innovative products,
they require innovative staff. To increase innovation in their employees, businesses try and find
ways to improve their organizational structure. This intense competition makes businesses more
efficient, innovative and competitive.
Tesco plays an essential role in local communities by giving people opportunities to build
careers and the necessary skill-sets. In a typical constituency, on an average 1500 people are
employed by Tesco (Brush and et.al., 2019). It works closely with governments to give
apprenticeships to a number of young people and those looking to get a second chance in life.
The Tesco supermarkets are at the heart of local communities. They are a convenient location to
go for weekly grocery shopping and meet neighbours. They support local charities and food
banks by organizing charity drives and food donation camps.
The survival issues faced by the organization due to the global pandemic
The pandemic that caused more than 5 million people worldwide to loose their lives,
brought about a social and economic disruption in the lives of a common man, also had a
damaging impact on the global and local supply chains (Ketchen Jr and et.al., 2020). With closed
borders and trade restrictions in place, the global economy that come to depend on international
and intercontinental supply of goods and services, was expected to face challenges. While the
supply of goods was limited, the demand kept on rising. This is particularly true for consumer
items and groceries, which Tesco Plc sells. In the early days of the pandemic, the stores sold out
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most of the essential products like toiletries, flour and canned foods. In the coming weeks, they
didn't have products to fill the shelves. But they were quick to adapt. They switched vendors and
resorted to local supply of articles to bridge the gap between supply and demand. They provided
their workers with sanitizers and protective gear like headgear, PPE(Personal Protective
Equipment) kit, etc. The employees were trained to follow the COVID-19 guidelines strictly and
to make sure physical distancing norms are followed strictly by the customers (Maritz and et.al.,
2020). In some areas, the pandemic brought attention to the already existing vulnerabilities.
Some stores that did not have proper infrastructure, struggled a lot more than those in pristine
working condition. It gave them the opportunity to make the necessary amends.
In the aftermath of the pandemic, Tesco Plc, in order to make their supply chains more
resilient, have increased investment significantly in supply chain technologies such as
AI(Artificial Intelligence) and automation. While including robotic process automation in their
supply chain management strategies, they are also careful that not many employees would have
to loose their jobs.
CONCLUSION
Entrepreneurs are highly motivated individuals, who start with an innovative idea and
build a successful business out of it. Tesco Plc was built by such dedicated entrepreneurs, who
had a vision and to fulfil that vision they took a risk and worked hard, to finally emerge as the
third largest retailer in the world. They saw an opportunity and diversified in areas such as
clothing, electronics, books, petrol, furniture, telecom and financial services. Tesco plays a vital
role in the economy by providing employment to thousands of workers in the UK and abroad.
They give back to the society by organizing food donations and charity drives. They better the
lives of their customers by providing them a range of affordable products. Innovation is their key
objective. They have invented and launched a plethora of innovative products. They are
constantly trying to improve upon their methods. The pandemic and its effects were challenging
for Tesco, but they adapted well to the circumstances. They are now building a resilient supply
chain. Owing to their determined, tech-savvy, business smart and versatile characteristics, a
national economy gains a lot more from entrepreneurs than they invest in them.
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Online:
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<https://www.grin.com/document/210398>
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<https://web.archive.org/web/20130208152825/http://www.tescoplc.com/index.asp?
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<https://tescoimpactreport.publicfirst.co.uk/>
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