Business Report: Comparing Tesco and TUI in Retail and Hospitality

This report provides a comparative analysis of two prominent businesses: Tesco, representing the retail sector, and TUI, from the hospitality industry. The analysis begins by examining the nature and purpose of each company, highlighting their focus on providing goods and services to meet customer demands, particularly those of the high-class market. It delves into their legal structures, differentiating Tesco as a public limited company and TUI as a subsidiary of a privately-owned group. The report further contrasts their organizational structures, with Tesco employing a hierarchical structure and TUI utilizing a divisional structure to manage its operations effectively across regions. The goods and services offered by each company are also compared, with Tesco providing household groceries and merchandise, and TUI offering hotels, airlines, resorts, and holiday packages. The second part of the report explores stakeholder needs, discussing how Tesco caters to the diverse requirements of customers, employees, and suppliers. It concludes by assessing whether each organization effectively meets these needs, acknowledging Tesco's success while also suggesting opportunities for improvement, such as addressing the needs of the middle-class segment.

Business

Table of Contents
INTRODUCTION:...............................................................................................................................3
PART A ................................................................................................................................................3
PART B.................................................................................................................................................5
CONCLUSION:...................................................................................................................................5
REFERENCES:....................................................................................................................................6

INTRODUCTION
In the present era, it is very important to identify and meet the demands of people. This is done by
segmenting the market and developing effective strategies to identify their needs. It helps business
to sustain for a long time in the industry. This assignment throws light on comparing two business
that belongs to retail and hospitality sector respectively. It will compare these businesses on the
basis of their nature, structure, legal form and services that they provide. Further, it will show the
needs of stakeholders and whether they are able to meet their needs or not.
For undertaking this, the two organisations selected are Tesco and TUI Thomson. The
existence of these companies on such a great level is required to meet their customers demand.
(Sekaran,and Bougie, 2016) Thus, this article will help in describing their products with customers’
demands.
PART A
Factor TESCO TUI
1. Nature and purpose The nature of Tesco is to
provide quality products to
customers by changing their
standard of living. Their
purpose is to help customers to
enjoy better quality of life by
providing products at great
value. The scope of
organisation is long term
growth within changing
environment by meeting
customers’ needs (Bryman. and
Bell, 2015) This has helped to
be the world's number one
industry in retail sector.
On the other hand, TUI belongs to
hospitality sector so its nature is to
provide best possible holiday packages
to their customers all over the world.
This is done by combining various
elements like airlines, cruises, hotels
and resorts, etc. (About Us, TUI Group.
2017). And providing them to
customers. With diversified employees
and staff, they are easily able to meet
customers’ demands. This has enabled
them to world's number one tourism
business.
2. Legal form It is a public limited company
that is operated and run by
TUI is the subsidiary of Thomson
travel group that operates in UK. It is

public. It is a MNC that mostly
operates in Europe and has the
largest market share. There are
almost millions of shareholders
of Tesco around the world.
These shares are listed in
London stock exchange that
allows people to sell and buy
them.
known as TUI group and is a privately-
owned group (Storey, 2016). It was
founded by Roy Thomson and is now
operated by Nick Longman.
3. Structure Hierarchy structure of Tesco is
divided into two parts. First is
its corporate governance
structure that consists of board
of directors, and under it
various committees are formed
such as audit, CSR, etc. Second
is store structure that consists
of RM, store manager and
under them different managers
are there. It generally follows
functional structure (Scholes,
2015).
TUI structure is based upon the
different regions of operations. It
generally follows divisional structure
that divided company according to
regions. They will divide it in three
different regions such as northern,
central, western regions. This enables
them to effectively managing and
controlling overall company objectives
and goals.
4. Goods or services Tesco products are related to
house hold grocery and
merchandise. These are
available in hyper market,
super market or in super store.
These products provide finest
value to high class people.
TUI provides products of different
types depending upon the needs of
customer. These products are hotels,
airlines, resorts and various holiday
packages (Zikmund, and et.al 2013)
These products are highly expensive
and available for high class people.
First of all, both companies provide goods and services to high class people. Their nature is to
maintain a dignity in market by creating high product value. Both of them purpose is to identifying
needs of high class people and satisfying them that will change their standard of living. Difference

between them is legal form of public and private limited company. They differ in structure also as
Tesco is divided into two parts whereas TUI works on divisional structure that helps in effective
operations in many regions (Drucker, 2017). Goods of Tesco is related to fulfil requirements of
daily life while TUI provides services to have fun and enjoyment in life. In this way, they are
number one company in the world in their respective field.
PART B
TESCO stakeholders belong to different groups including customers, employees, suppliers, etc.
These people help Tesco to run and operate business in the market. As there are diversified people,
their needs are different and according organisation provides goods to satisfy their needs. These
people want to improve their lifestyle by using a high-class grocery products. The needs of
suppliers are to earn profits from the customers and employees want to fulfil their own needs. So,
Tesco provides platform to identify and meet different needs of people. Further, they have expanded
through technology by coming up with online business. This is useful for people who do not get
enough time from their professional life and prefers online shopping. Tesco is having a wide range
of products for different people. Yes, in my opinion organisation is able to meet their needs in
efficient and effective way. Through these goods company is able to change the lifestyle of people
and enhanced their way of living in the society. That has brought a huge variation in economic
development of country and earning of people. But on the other hand, the gap between middle and
high-class people is increasing (Crane and Matten, 2016). In order to fulfill that TESCO should to
identify their needs to produce requirede goods for them. It will create new market segment and
they will be able to earn greater profits.
CONCLUSION
From this report, it is concluded that both companies ie. TESCO and TUI are effectively doing
business in their respective industry. By creating high product value, they satisfy the needs and
wants of customers. Their customers belong to upper section of society that helps them to maintain
their dignity and reputation in the market. In this way, they enjoy greater market share and have
become number one in the industry.

REFERENCES
Books and Journals
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and sustainability
in the age of globalization. Oxford University Press
Drucker, P.F., 2017. The Theory of the Business (Harvard Business Review Classics). Harvard
Business Press.
Scholes, M.S., 2015. Taxes and business strategy. Prentice Hall.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach. John
Wiley & Sons.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Zikmund, and et.al. 2013. Business research methods. Cengage Learning.
Online
About Us, TUI Group. 2017. [Ponline]. Available through: <https://www.tuigroup.com/en-en/about-
us>