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Unit 1 BTEC Business
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Full detailed report on Tesco's background, scope, sector, revenue, aims and objectives all of which is required in BTEC Business unit 1. Compare 2 contrasting businesses.
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Business A: TescoBackground:
Jack Cohen began selling surplus groceries from a stall in the East End of London in 1919.
He left the Royal Flying Corp at the end of the Great War and used his demob money to
buy the first day's stock. From day one, Jack believed in putting affordable food in the reach
of everybody. At the end of the first day, Jack Cohen made a profit of £1 on sales of £4. The
first own-brand product sold, which Jack promised would bring unequalled value, was
Tesco Tea - before the company was called Tesco. The name comes from the initials of TE
Stockwell, who was a partner in the firm of tea suppliers, and CO from Jack's surname. Jack
Cohen opened the first Tesco store in Burnt Oak, Edgware, and north London. The store
sold great value dry goods and the first ever branded product, which, unsurprisingly, was
Tesco Tea. Jack Cohen bought a plot of land at Angel Road, Edmonton, north London to
build a new headquarters and warehouse. It was the first modern food warehouse in the
country. New ideas for stock control brought greater savings for customers. The 1930s saw
Jack Cohen buying stores and growing the business. Tesco expanded across London, into
the suburbs and neighbouring counties. At the outbreak of World War II, Jack even
introduced rationing ahead of the government, so that everyone was treated equally, rich or
poor. Tesco bought 19 Burnard’s stores. Over the next five years, 500 new stores were
purchased. 500 stores were bought in just 5 years the first supermarket opened in Maldon,
Essex. The new format store included a counter service selling cheese, butter and meats
weighed by sales assistants. Tesco launched their own-brand healthy eating range. Tesco
were the first major retailer in the UK to introduce healthy own-brand products at
affordable prices. Sir Dudley Moore starred in a high profile ad campaign highlighting our
great range of high quality affordable products. Computers for Schools was launched. Since
1992, the scheme has raised £185 million worth of equipment for schools around the UK.
The first Tesco Metro opened in Covent Garden. The new, smaller format brought value into
the heart of towns and cities. Tesco would launch other formats including ‘Tesco Express’
and ‘Tesco Extra’ later in the decade. Their Extras brought new homeware and electrical
goods to customers. The first Tesco Metro was opened in 1992. The Every Little Helps
strapline was launched. The new campaign attracted 1.3 million new customers between
1993 and 1995. Expansion into Central Europe with stores opening in Hungary. Within a
decade we would open stores in the Czech Republic, Slovakia, Poland, Ireland, Thailand
and Malaysia, and enter India. This major event happened in 1995. Also the very popular
, ‘Tesco’s Clubcard’ was introduced in 1995. Tesco Personal Finance launched. New saving
accounts exceeded all expectations and over 300,000 applications were received.
Ownership:
Tesco is owned by thousands of people. This is because Tesco is a public limited company
or plc. The reason for Tesco being a PLC is because of its mammoth size. Due to its size, it
would be hard to raise enough funds for Tesco if it was owned by a sole trader or by
partners whereas in a PLC, the company is owned by shareholders who fund the company.
This happens by the people buying shares in the company and becoming shareholders. A
stakeholder is a party that has any interest in a company and can either affect or be affected
by the business. The primary stakeholders in a typical cooperation or its investors,
employees, customers and suppliers.
Scope:
Tesco's scope relates to the extent of the market into which it sells its products and
services. It is already the largest retailer in the UK and is planning to expand to the United
States. It already has wide markets in Europe and Asia. A key consideration for a firm is to
identify what areas of activity to pursue in its markets. In the graph shown below
(https://www.statista.com/statistics/490890/tesco-group-number-of-employees-worldwide
/), we can see that tesco had 319303 employees in 2020 (UK and Republic of Ireland). Then
there has been an increase of employees. Now (2021) Tesco has 336392 employees (UK
and Republic of Ireland). However this graph also shows that Tesco does not operate very
well in Europe as they only have 30,000 employees and now in 2021 there has been a
decrease of 4285 employees, Hence why we can see a dramatic closure of stores globally (
shown in the next paragraph).
Size:
Tesco operates globally with stores in India, Czech Republic, Slovakia, Poland, Ireland and
Malaysia. The Tesco brand value worldwide is $10.7 billion. In the UK, Tesco’s brand value
is £7.68 billion (2020). In the picture shown below
(https://www.statista.com/statistics/238667/tesco-plc-number-of-outlets-worldwide/) we
can see that Tesco had the highest number of stores in 2014 with 7305 stores worldwide.
However this has decreased dramatically in 2020. The reason for this in my opinion is due
to COVID-19. COVID-19 has caused many global lockdowns, therefore Tesco has had to
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