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. to maximise profits to provide high returns for shareholders

. to increase sales or market share as much as possible

. advertising should appeal to all customers in a relevant

Tesco’s main mission statements:

. To be world’s best and largest supermarket retailer.

. Completely increase value for customers, and to earn their time loyalty.

How Tesco is going to achieve these objectives?

What Tesco expects from its staff in order to achieve this?
Tesco staff:

. Are all retailers, working as a one team.

. Trust and respect each other.

. Respect all customers, the community, suppliers and the competition.

. Strive for personal excellence in everything they do, leaving no stone unturned in order to get it right.

. Are encouraged to take risks, give support and do not blame others.

. Are rewarded for creating value for customers.

. Are talked and listened to: and their knowledge is shared, so that it can be used.

. Have fun, celebrate success and learn from failure.

What is the comment Tesco has to its customers?
Tesco customers want the best possible value for their money. Tesco is determined to offer its customers quality products, good service, attractive stores and low prices.
To meet this aims, Tesco:

. works closely with suppliers to ensure products are of the highest quality and are delivered to stores in the best possible condition.

. makes sure that its staff are committed to giving the best possible quality of service.

. aims to create in its stores an environment which makes shopping easy, interesting and comfortable.
For example, in 1993 Tesco introduced Value lines, which offer exceptional value for money, followed by New Deal Pricing on leading commodities and brands in 1994. In 1996, Tesco introduced Unbeatable Value with the pledge that nobody would sell the equivalent product for less price.

E3

Organisational functions.
All organisations require resources to carry out their functions. One way of judging the success of a business is to compare the resources it uses with the value of the product that results. For example if it is a small business running by it’s owner, for example small shop, so it doesn’t need any workers, large piece of land and big capital, owner can work alone. But if it is a very large business like car manufacturing so it requires a lot of workers, very large piece of land and big capital.

The resources of the business.
One way of considering the resources used by a business is to classify them into the factors of production. The main capital of production are capital, labour and land.

- CAPITAL refers to any manufactured product used by the business to make other products. This category therefore includes all machinery, vehicles and office equipment used in businesses. It also includes the company’s buildings.

- LABOUR is the human resources used by business organisations during production.

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