Tesco: Internal and External Analysis

Tesco: Internal and External Analysis INTRODUCTION Tesco was founded by Jack Cohen in 1919 when he began to sell surplus groceries from a stall in the East End of London. The first Tesco store was opened in 1929 in Burnt Oak, Edgware, Middlesex. Today Tesco Plc is Britains largest retailer by both, global sales and domestic market share with profits exceeding  £2 billion. By 1939 Jack Cohen had opened a number of stores, and backed them up with his creative innovations in warehousing and stock control. At the beginning of World War II jack introduced food rationing before the government did to ensure that everyone received an equal and sufficient amount of food. This capitalism may go some way to explain the fondness that working class people have maintained for the company. It proved that business is most effective when ethics and efficiency are together. The history of Tesco since the second world war has been one of continuous expansion and success both in the UK and, more recently, in the new EU countries, including Slovakia, Czech Republic, and Hungary (Budapest). ­Ã‚ ­Ã‚ ­Ã‚ ­Ã‚ ­Ã‚ ­Ã‚ ­Ã‚ ­Ã‚ ­Ã‚ ­Ã‚ ­Ã‚ ­ Tesco is now Britains largest food retailer, employing over 240,000 people worldwide and has net yearly profits of over  £1 billion. the website of this groupis one of the most popular in the UK, with over one million registered users. In 2008 it became the world fourth largest retailer, which was the first movement among the top 5 since 2003. Originally specializing in food and drink, it has diversified into areas such as clothing, consumer electronics, consumer financial services, retailing and renting DVDs, CDs, music downloads, Internet service, consumer telecoms, consumer health insurance, consumer dental plans and software . Apart from Great Britain, Tesco has its international operations in United States, Turkey, Thailand, South Korea, Slovakia, Poland, Malaysia, Japan, Hungary, France, Czech Republic and recently entered the Chinese market in 2004. PROFILE Type Public(LSE:TSCO) Founded 1919 inEast LondonbyJack Cohen Headquarters Delamere Road,Cheshunt,Hertfordshire, England, UK Key people David Reid(Chairman), Sir Terry Leahy(Chief Executive) Jack Cohen(Founder) Industry Retail Products Groceries,Consumer goods, financial services, telecoms Revenue ââ€" ²Ã‚ £59.4 billion (Year ending 28 February 2009)) Operating income ââ€" ²Ã‚ £3.128 billion (Year ending 28 February 2009)) Employees approx 440,000 (2008)) number stores +3,729 (2008)) Subsidiaries Tesco Stores Limited Tesco Ireland Limited Tesco Bank(100%) Website www.tesco.com Tesco has been successful in opening up new growth markets in Central Europe and Asia. The proportion of total Group space outside of the UK grew to 38% at our half year. We now operate in Hungary, Poland, Czech Republic, Slovak Republic, Thailand, South Korea, Taiwan and the Republic of Ireland. In December we announced of our intention to develop hypermarkets in Malaysia where our first store will open in 2002 TESCO, PESTLE ANALYSIS APESTLE analysis of Tescoexamines the main external factors impacting on the company: There are many factors in the environment that effects the decisions of the managers of any organisation. Tax changes, new laws, trade obstacles , demographic change and government policy changes are all examples of macro change. To help analysis these factors managers can categorise them using the PESTEL model. This classification distinguishes between: POLITICAL FACTOR These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidising firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system. Many governments can be involved. For instance, Tesco might have to deal with British and Columbian politics in regards to its coffee supply. ECONOMICAL These include taxation changes, interests, inflation and exchange rates, economic growth, interest rates. As the â€Å"Foundation of Economic† book economic change can have a major impact on a firm behavior . For example: Higher interest rate may deter investment it because it costs more to borrow . A strong currency may take exporting more difficult because it may raise the price in terms foreign currency. Inflation may provoke higher wage demands from employees and raise cost. Higher national income growth may boosts demand for a firms products. Economic factor have large impacts. Fluctuation in the stock market, or tax increase .can seriously affect the bottom line of a company like Tesco. SOCIAL FACTORS If there is Changes in social trends can affect on the demand for a firms goods and the availability and compliance of individuals to work. In the UK, for example, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staff are living longer. It also means some firms such as Asda have started to recruit older employees to tap into this growing labour pool. The ageing population also has impact on demand: for example, demand for sheltered accommodation and medicines has increased whereas demand for toys is falling.These factors can vary from the impact of immigration, to changes in fashion. TECHNOLOGICAL FACTORS New technologies construct a new products and new processes. MP3 players ,high definition TVs, computer games, online gambling and computer games are all new markets created by technological advances. Online shopping, computer aided design, bar coding are all improvements to the way we do business as a result of better technology. Technology can reduce costs, improve quality and lead to modernism. These developments can benefit consumers as well as the organisations providing the products. Newtechnologieshave had a great impact. For instance, online shopping has become a major factor in Tescos recent success. LEGAL FACTORS The legal environment in which firms operate. In recent years in the UK there have been many significant legal changes that have impact on firms behavior. The introduction of legislation, age discrimination and disability discrimination and greater requirements an increase in the minimum wage for firms to recycle are examples of relatively recent laws that affect an organizations actions. Legal changes may affect a firms costs (e.g. if new systems and procedures have to be developed) and demand (e.g. if the law affects the likelihood of customers buying the good or using the service). Different categories of law include: consumer laws; these are designed to protect customers against unfair practices such as misleading descriptions of the product competition laws; these are aimed at protecting small firms against bullying by larger firms and ensuring customers are not exploited by firms with monopoly power employment laws; these cover areas such as redundancy, dismissal, working hours and minimum wages. They aim to protect employees against the abuse of power by managers health and safety legislation; these laws are aimed at ensuring the workplace is as safe as is reasonably practical. They cover issues such as training, reporting accidents and the appropriate provision of safety equipment. ENVIRONMENTAL FACTORS: Environmental factors include the weather and climate change. Changes in temperature can impact on many industries including farming, tourism and insurance. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a important issue for firms to consider. The growing voracity to care for the environment is having an impact on many industries such as the travel and transportation industries (for example, more taxes being placed on air travel and the success of hybrid cars) and the general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities. Large organization has anenvironmentalimpact. For instance, Tesco uses fossil fuel in its transport network. Reducing this demand is a major challenge. Goals of Tesco Tha strategy of Tesco includes for a into the low risk areas, less sophisticated retail market where they can easily cop up with the challenges. The goal of the Tesco achieve by opening small retail market and then switching to the hyper market and thus, increasing the number of customer and ultimately scale up the sale. MICHAEL PORTERS FIVE FORCES:- These five forces are very important in doing businesses worldwide. Due to these forces one can analyze the companys current position and the forecasted position of the company after few years. Bargaining power of supplier: Bargaining power of Tesco is low as Tesco buys in huge amounts. High number of suppliers all over the UK. Reasonable costs are offered by the supplier to gain profits over the bulk of products. Bargaining power of buyer: As the popularity of Tesco is increasing the number of buyers is also increasing. Variety of products with good quality and in reasonable rate is demanded by the buyer. Price is seen as an important part by the buyer. Plenty of competitors are in the market offering same products but the prices are having slight differences. Bargaining power of buyer is high. Competitive rivalry: Main competitors are ASDA, Sainsbury, Marks and Spencer, Waitrose, etc Some local competitors as well outside UK. Threats from substitutes: Competing with other super markets on the basis of price of the product threats are often low as it drive both the company down. Internet shopping is one threat of substitutes. Corner shops. Threats from new entrants: Increasing number of supermarkets. Very tuff competition from local competitors makes very hard for new entrant. Every new entrant in supermarkets alters the variety of products as diversified products. Big deals offered by the new entrant. INFORMATION SYSTEMS Supply chain systems create effective stock control and product availability for all our customers. Every customer experiences the checkout process, meaning our systems and processes at the tills need to be simple, smart and at the same time sophisticated. Then there are new ideas like the Self Scan Checkout (which, incidentally, our customers love).Or what about the things you dont see like technology which neatly predicts when we need to open more tills, before the queues have even started to form. Technology is integral to all our business operations from our numerous internal systems, electronic links with our suppliers and over 5,000 office based users to support IT is truly a business partner. EXTERNAL ENVIRONMENT The Organization that is dealing with external environment should have a purpose and should be made up of people who are grouped in different fashion. All Organization develop a taxonomic structure that defines and limit the behavior of its member . Stable Environmental Organizations are mechanistic as they are composed of regulations and procedures framed by authority. Unstable Environmental organizations are organic, as they can be altered and are volatile to the changing scenario. PROFESSIONALISM this is necessary because any growing company needs workforce to work in, for this it has to provide training to the amateurs. For this, there are two types of training, low level training for the crew members and high level training for the executives. SIZE OF THE ORGANIZATION the size of an organization depends upon the size of staff, number of stores, and the number of the customers visiting the store. Taking all these issues in the consideration Tesco is the large size organization. ORGANISATIONAL MINDSET These may be of two types of organizational mindset, mechanical and biological. In mechanical a organization cant take decision instantly for the change while in organic it can be changed in flow of the external as well as internal environment. SERVICE SECTOR MANAGEMENT The management can be related to any type of organization. Service sector is one of the area in which management is compulsion. The management should be taught at the school level. http://www.oup.com/uk/orc/bin/9780199296378/01student/additional/page_12.htm Triaging in a Major Disaster: Haiti Earthquake Case Study Triaging in a Major Disaster: Haiti Earthquake Case Study Haiti Earthquake On January 12, 2012, the country of Haiti was hit by a catastrophic 7.0 magnitude earthquake that changed the lives of people living across the nation. The earthquake struck inland before 5pm and was approximately 25 kilometres west of Haitis capital Port-au-Prince1. It was estimated that as many as 3 million people had been affected by the earthquake2. The estimated death toll was over 220,000 and many more significantly injured at the time2. The widespread destruction and damage throughout Port-au-Prince and elsewhere severely damaged or destroyed vital infrastructure including hospitals, communication systems and air, sea, and land transportation facilities3. Many countries responded to this massive disaster by dispatching rescue and medical personnel, and supplies. In the aftermath of the devastating Haitian earthquake, medical teams had stumbled upon difficult ethical decisions due to the medical needs far exceeding the accessible resources. The medical providers in this situati on speculated when and how they should limit treatment for existing patients currently under their care, or reserve resources for new casualties who were additionally in need of medical care4. Thus triage systems needs to be readily available and prepared for all types of major disasters and incidents. Overview Haiti is the third largest Caribbean nation with 27,750 square kilometres of land5. Haiti’s population during 2010 was 9,896, 000 with just under a million of whom live in the capital city, Port-au-Prince5. Prior to the earthquake Haiti World Health Organization estimated that only 43% of the target population acquired the recommended immunisations and disease was very common, along with extreme poverty, political unrest, violence and weak infrastructure5. Additionally, it is the poorest country in the Western world. When it comes to poverty and health in the country, the earthquake has Haiti left in a poorer and desperate economic condition than before. World Health Organisation defines disaster as a serious disruption of the functioning of a community or a society causing widespread human, material, economic or environmental losses which exceed the ability of the affected community or society to cope using its own resources.6 In Haiti, the strong and destructive 7.0 magnitude earthquake shocked the region and its people. The U.S Geology Survey reported with as many as 59 aftershocks with a magnitude of 4.5 or greater from the period of 12th January 2010 to 23rd February 20101. The Haiti earthquake occurred at a fault that runs right through the boundary region separating the Caribbean plate and the North America plate1. These plates are enormous rocky chunks that cover the planet and fit one another like a gigantic jigsaw puzzle. The movement (the slipping along the two plates) is vigorous and there is friction between the North American Plate and the Caribbean Plate. Pressure then is built up amongst the two plates until it is set loose as an earthquake. The earthquake occurred at shallow depth thus meaning the seismic waves have to travel a minor distance through the earth crust to reach the surface so maintain more of their energy1. The overall annihilation of infrastructures caused numerous people in Haiti to sleep outdoors on mattresses, in their cars, because their homes had been demolished, or they feared standing structures would not endure aftershocks3. Although buildings and homes were ruined, the numbers of injuries and deaths were rising. Acute medical emergencies The International Federation of Red Cross and Red Crescent predictable as many as 3 million people had been affected by the earthquake and thus the appeal for humanitarian aid7. Rescue efforts began in the immediate aftermath of the earthquake, Haitians took recover efforts into their own hands with able-bodied survivors extracting the living and the dead from the debris of the countless structures that had collapsed8. Most of the people who survived the earthquake had injuries ranging from â€Å"open fractures, established compartment syndromes, spinal fractures with paraplegia, multiple dirty, open wounds, and many closed fractures.†9 The most common injury was primarily major musculoskeletal injuries as well as a large amount of disparagingly wounded patients impending or established sepsis due to neglected wounds. 9 In regards to other injuries it was proven fatal if any patient with head, chest, or abdominal injuries9. Due to the limited resources and poor facilities that remained, medical personnel had to develop and utilised a triage system to prioritise treatment and management as well as to maximize the use of scarce medical supplies. A problem that that clinicians faced was patients with open wounds and infection10. Several patients had critical infections with obvious dead tissue often requiring amputation, the highest priority for surgical debridement, as well as hours of operation, united with anticoagulation and close continuations check-ups to retain the muscle flap from thrombosis10. Whilst the treatment is essential and lifesaving, the number of patients required amputation led to major problems as disability is poorly accepted in Haiti therefore a number of patients of patients refused the surgery as they were afraid of amputation or departed the hospital despite knowing that the alternative was probably death9, 10. The difficulty in this case was determining how to allocate limited treatment, time and other resources between existing patients and potential patients not yet under care. Incident triage system In the result of the overwhelming Haitian earthquake, nations from all over the world sent personnel, medicines, equipment, and other aid to Haiti. In particular, one medical team of 16 members was dispatched to Hospital St. Nicholas, in St. Marc roughly 128 kilometres from Port-Au-Prince. The medical team with the help of local volunteers developed a structured Triage scheme:9 A Surgery today to save life B Surgery today to save limb C Surgery as soon as possible for wounds D Surgery when possible for closed fracture E Evacuate when able F Observe The triage scheme implemented by these medical professionals fairly simple as triage category’s A, B, C and D is self-explanatory with initial urgency being specified to septic patients9. Patients who were category ‘E’ were clinically stable, as well as being adequately perfused and hydrated were hoped to be evacuated when possible9. However, the medical team stated that its first helicopter flight did not happen till 11 days after the earthquake. The patients who were Category â€Å"F† would have remained the utmost priority for care in diverse situations but, in this circumstance, these patients had major complications that were outside the teams capability to treat or whose treatment would be too resource needy9, 11. These individual’s clinical conditions were an ethical dilemma for the medical team as perhaps the most difficult decision in clinical medicine. Although the care of these patients would be considered as being the highest priority in a standard medical setting however, in the disaster scale event, it is too time consuming and will also prevent the team from treating other patients. In order to provide life-saving aid the team established a principle, to maintain hydration, use antibiotics, and provide pain relief, and offer cherishing to those who were triaged not to receive surgical treatment9. This method allows each and every patient to deserve the compassionate and sympathetic care without agg ravating the wellbeing of those with a likely to live. In Haiti, clinical judgment and the restricted obtainable resources determined how triage and treatment may occur and eventually impacted every patient’s chance of survival. At the time improvisation and innovation were crucial when providing care. One study of the triage system adopted during the Haiti earthquake, by emergency response team from Stanford Hospital in a third-world disaster is â€Å"done by everyone and anyone able to recognise victims in need of help.†11 It is essential, in disaster triage, providing life-saving aid is the ideal main emphasis as well as focusing exclusively on the individual’s injury and the implementing the method of care. The Stanford team prioritised patients to their own instincts and beliefs in this case patients who needed the most attention at the time. One nurse from the Stanford emergency response team states that it was problematic and different to use and practice the disaster triage principles as they would rarely use it in the United States11. Another factor that arose for medical professions was the lack of documentation and history taking when dealing with vast amounts of patients11. Due to circumstances these patients being faced in a third-world country, knowing that numerous of those who died would have survived or would have an increased chance of survival if they had been accessible. Current international major incident triagesystems The definition of triage is ‘to sort or sieve’12. In medicine, it is the process of organising patients in the categories of priority for treatment and evacuation. Although there are different forms that triage may operate at, overall the main purpose is to provide the right patient with the right care at the right time and place. The triage tool which originated in the UK, Major Incident Medical Management and Support System (MIMMS), utilises the ‘sieve and sort’ of several physiological parameters to identify the priorities for treatment12. This triage system uses colour coding scheme to easily determine the different expectant category. The triage priorities and levels are separated into four different colours: Red (Immediate – Life threatening), Yellow (Not Immediate – Required medical intervention within 2-4 hours), Green (Minor Injuries – Not life threatening) and Blue (Deceased or limited resources to save patient)12. When it comes to sorting the priority of a patient, further information must be obtained by recording Glasgow Coma Score (GCS), Respiratory Rate and Systolic blood pressure12. This information provides an accurate and assists with documentation of patients records. When implanted into a disaster situation, this triage would be reliable as well as fast, str uctured and easy to use. Recommendations for the country’s incident triage system Haiti being one of the worlds the poorest country in the Western world may not have the readily available resources in disaster conditions. Although, method of allocating scarce resources was not reasonable, the country should have implemented the MIMMS triage tool throughout their disaster plan. The triage tool is fast, easy and reliable which provides maximal treatment to prioritised patients. As strategic disaster response become more regular, it is likely the study of disaster response would increase thus providing perceptions into disaster epidemiology that may guide response patterns in these circumstances. Conclusion Due to minimal resources triaging patients in Haiti was no simple task. The earthquakes devastated the lives of many and prompt that triaging in a major disaster needs to be improved to a standard. As triage remains at large the most vital tool for medical team’s disposal when dealing with major incidents and/or disasters. References 1.USGS USGS. Magnitude 7.0 HAITI REGION. 2013 [cited 2014 2 October]; Available from: http://earthquake.usgs.gov/earthquakes/eqinthenews/2010/us2010rja6/#details. 2.OConnor MR. Two Years Later, Haitian Earthquake Death Toll in Dispute. Columbia Journalism Review. 2012. 3.ROMERO S, LACEY M. Fierce Quake Devastates Haitian Capital The New York Times. 2010. 4.Hoppes E. In the Wake of Tragedy: Medical Ethics and the Haiti Earthquake. Wake Forest University Center for Bioethics, Health Society, Documentary Film Program, 2011. 5.Division LoC-FR. COUNTRY PROFILE: HAITI. 2006. 6.WHO WHO. Definitions: emergencies. 2008. 7.Inc. CI. Red Cross: 3M Haitians Affected by Quake. 2010 [cited 2014 4 October]; Available from: http://www.cbsnews.com/news/red-cross-3m-haitians-affected-by-quake/. 8.Cooper A, CNN. Haitians dig themselves out as quake damage slows outside aid. 2010 [cited 2014 4 October]; Available from: http://edition.cnn.com/2010/WORLD/americas/01/14/haiti.earthquake/index.html. 9.Smith RM, Dyer GSM, Antonangeli K, Arredondo N, Bedlion H, Dalal A, et al. Disaster triage after the Haitian earthquake. Injury. 2012;43(11):1811-5. 10.Eyal N, Firth P. Repeat triage in disaster relief: questions from haiti. PLoS currents. 2012;4:e4fbbdec6279ec. Epub 2012/11/13. 11.Camacho-McAdoo G. Triage following a Natural Disaster: A Haitian Experience. Journal of Emergency Nursing.36(4):385-7. 12.Smith W. Triage in mass casualty situations. Western Cape Department of Health and Division of Emergency Medicine, University of Cape Town and Stellenbosch University, 2012.