Tesco is a global general merchandise and global grocery retailer that has established its presence in 8 countries. Presently, Tesco is the 9th largest retailer in terms of revenue and 3rd largest in terms of profit (Martínez-Ruiz et al., 2016). From the beginning, Tesco has focused on providing superior quality of services for achieving major share of the market. Tesco’s product offerings include grocery products, electronics, clothing, music, CDs, DVDs and financial services for enhancing the sales volume even further.
Tesco was established in 1919 and gradually expanded its stores numbers up to 6553. The revenue level of the organization accounted around $55,917 million with an employee size of more than 476,000. It has allowed the organization to strengthen its foot stepping in the global market (Chowdhury, 2016).
The mission statement of Tesco focuses on earning the lifetime loyalty from the customers with the superior quality of provided products and services. On the other hand, the vision statement of Tesco focuses on providing highest value to all the customers and communities for achieving sustainable growth from in the competitive market.
The corporate strategy of Tesco has always focused on developing specific and clear principles, values, goals and purposes for reaching to the service excellence goals. Moreover, the corporate culture of Tesco has focused on providing similar importance of keeping both customers and employees at the desired level (Kaur, 2015). The corporate strategy of Tesco has also focused on using innovative advance technologies for creating desired impact on the market.
Tesco has differentiated its retail outlets in six different categories such as Tesco Extra, Tesco Metro, Tesco Superstores, Tesco Express, Tesco Homeplus and One-Stop based on size and range of product sold.
The service culture of Tesco includes 8 different components including Service mission, Products & Service offered, Delivery System, Training, Motivators and Reward, Policies and Procedures, Employee roles and expectations and management support. It has allowed Tesco to reach very close to the desired level of service excellence.
Tesco has focused on including different advanced technologies for providing all the ordered products of the customers on time. Specifically, inclusion of online ordering services has increased the overall convenience level of the customers at the time of purchasing any products from Tesco (Zhao, 2014). However, enhancing of delivery system has induced Tesco to invest lump-sum amount on operational procedure, which will increase the cost in a significant manner.
Tesco has also focused on providing appropriate training and development facilities to all the new entrants in order to ensure that they can able to adjust with the present corporate culture effectively. Tesco’s training facilities also focus on appropriate enhancing the present level of knowledge of the employees so that they can perform all the responsibilities appropriately. However, Tesco has not focused too much on providing training facilities to the senior employees for ensuring continues improvement of the service procedure.
The business goals of Tesco have focused on providing analyzing the performance level of each employee in order to provide proper reward and facilities. Moreover, Tesco has also focused on capturing appropriate feedback from the employee to make necessary adjustment in the present quality of the provided services.
Tesco has focused on developing healthy working culture where employees can give goes beyond their provided responsibilities. The management of Tesco has initiated specific measures with clear communicational structure in order to avoid any possibility of confusion at the workplace (Mason & Evans, 2015). As a result, it has induced employees to fulfil all the provided responsibilities of the organization in a comprehensive manner. Tesco work culture has also focused on allocating responsibilities to the employees based on their specialization for enhancing the overall effectiveness of operational procedure.
Tesco has developed specific rules and regulations for maximizing the effectiveness of the operational procedure. For instance, Tesco has developed 24x7 customer service facilities with the promise of resolving any queries with 24 hours (Kim, 2013). It has increased the satisfaction level of the customers greatly. Moreover, the management of Tesco has made a conscious effort in going beyond the cultural, religion or educational barriers at the time of providing customer services.
Tesco’s service mission focuses on providing value added service to all the regular customers for keeping up their requirements. For instance, Tesco has provided loyalty card facilities to all the regular customers for retaining the customers for long period of time.
Management Support and Products & Services (Slide 12):
Tesco’s leadership style has focused on providing effective support services to all the employees in order to resolve issues of the service procedure. The management has created open communicational platform where all level of employees can ask for help from the senior management. It has allowed Tesco to enhance the overall quality of the service procedure.
As mentioned earlier, Tesco has diversified its business into different segments for maximizing the profit level appropriately. For that reason, Tesco has focused on providing special offers on different products at different times of the year. It has helped Tesco to keep connected with customers regularly,
Recommendations for Enhancing the Service Culture of Tesco (Slide 13):
Tesco needs to focus on analyzing all the strategies initiated by the competitors for achieving service excellence in the market. The management of Tesco will also have to provide equal training and development opportunity for both junior and senior employees for maximizing the impact on service quality. Moreover, Tesco will also have to focus on reducing the communication gap between senior and junior employees even further for maximizing the quality of the provided services.
Chowdhury, B. N. (2016). A critical analysis of customer loyalty and customer satisfaction-a case study on Tesco Club Card (Doctoral dissertation, University of East London).
Kaur, N. (2015). Innovation in service industry. ACADEMICIA: An International Multidisciplinary Research Journal, 5(3), 348-354.
Kim, G. C. (2013). A Study on the Effects of Super-Supermarket Service Quality on Satisfaction in Store Selection. Journal of Industrial Distribution & Business, 4(2), 41-49.
Martínez-Ruiz, M. P., González-González, I., Jiménez-Zarco, A. I., & Izquierdo-Yusta, A. (2016). Private Labels at the Service of Retailers’ Image and Competitive Positioning: The Case of Tesco. In Research on Strategic Retailing of Private Label Products in a Recovering Economy (pp. 104-125). IGI Global.
Mason, R., & Evans, B. (2015). The Lean Supply Chain: Managing the Challenge at Tesco. Kogan Page Publishers.
Zhao, S. (2014). Analyzing and Evaluating Critically Tesco’s Current Operations Management. Journal of Management and Sustainability, 4(4), 184.
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