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Unit 15-M1 M2 - Merts criteria
Business Finance and Management
University of Westminster
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Table of Contents
Structures of Tesco ..................................................................................................................................
- Avelyn Rodrigues
- Introduction
- Structures of Tesco ..................................................................................................................................
- Satisfying customer needs for Tesco
- Structure of Primark and satisfying customer demands..................................................................
- Similarities and differences of satisfying customer needs for Two business
- How Tesco respond to change to stay at the top
- Covid regulations
- Online sales increase
- Organizational change at Tesco..................................................................................................................
- Porters 5 forces.................................................................................................................................................
- References..........................................................................................................................................................
Primark is an international retail store and uses a matrix structure in which employees work in a manner comparable to that of a functional organization, managing function-based departments and reporting to their associated management, they may, moreover, be assigned tasks by managers and supervisors from other areas at any time.
It is the most affordable high street retailer that offers latest fashionable products to consumers at significantly low prices.
They sell clothing and accessories for lower prices for instance they import their products from countries like India, Bangladesh, turkey.. large quantities for affordable sales to customers in the UK. Primark offers customer satisfaction wherein customers are usually satisfied after purchasing Primark, as shopping at Primark changes customers perception for example a customer with £20 can buy many items that look nice and the customer would feel that it’s a bargain, this would create a positive sensation and help the customer to keep coming back to make purchases in the future while also recommending shopping at Primark to their friends and family.
Furthermore, they provide free Wi-Fi in all of their locations, allowing them to communicate with anyone. Offering free Wi-Fi will not only please them, but will also encourage them to return to the store and make future purchases.
Primark serves its consumers' requests in several ways. For instance, they also provide a large selection of products, including women's apparel, men's clothing, home, accessories, and so on, all at a reasonable price when compared to their competitors. They were able to satisfy client expectations due to low product prices, contemporary clothing, and a wide choice of products. Increased in their revenue shows customers are truly are satisfied with it. Another way that Primark was able to satisfy their customer needs is by offering instant refunds and exchanges within 28 days of purchase on showing a valid till receipt, provided the item must have all the tags attached and is in resale condition. The latest date of return on an item can be found on the till receipt.
Similarities: One similar way that both Tesco and Primark satisfy their customers’ demands is by offering different types of payment methods such as cash, contactless payment etc. Contactless payment was one of the payment methods that customers mostly liked because customers they’d simply would have to tap their card and this saves their time at the checkout and this would therefore improve their shopping experience. The advantage of using contactless payment is that it is effortless, cards aren't the only way to make contactless payments but phone can also interface with NFC technology such as Apple pay. Apple introduced Apple way that enabled consumers to pay with their phone if they had neglected their card or whether it was out of reach. However, the disadvantage of contactless payment is that there is a low limit.
Differences: Tesco provides home delivery as one of the ways it meets customer needs, whereas Primark does not. Tesco mostly delivers groceries items such as food, beverages, and other items.... Primark, on the other hand, mostly sells clothing, such as women's fashion, men's apparel, accessories, and on and on, and buyers must generally visit the store to purchase the things. Tesco’s home delivery makes it convenient for customers to get their groceries delivered home. Customers can also select their suitable timings for delivery making customer experience better. I've described how these two companies, Tesco and Primark, meet the demands and expectations of their customers. I've also discussed the variances and similarities in the methods they meet their requirements.
Competitiveness is defined as the capacity of a firm to provide buyers with more value than its rivals. Tesco has various of competitors which includes Asda, Sainsburys, Morrisons. To begin with, understanding what customers want and then reacting to their demands faster than competitors would provide a significant competitive edge in a competitive market. To maintain a competitive advantage, it is necessary to guarantee that the primary focus of the firm is on the customers. Also understanding the other competitors’ weaknesses and strengths and how they would react to the customer demands and changes in the industry, to stay a step ahead.
During covid-19, one of the ways that Tesco has responded to this change was they have implemented new restrictions that are designed to make customers more conscientious about wearing their masks at the store and the employees at Tesco makes sures that the trolleys and carts are sterilized, as well as to adequately based on the aforementioned separation amongst consumers. As well as this they have also implemented the system called “one-in, one out” this is to ensure that there are not many individuals in the store at the same time. Additionally, hand sanitizer is available within the store for both employees and customers to use, demonstrating that they truly care about their customers. Tesco values their customers more than its competitors, which has helped them maintain their position at the top. Furthermore, during covid-19 sales has fallen by 8% they were concerned about this so therefore they started doing online delivery more and restricted opening hours due to this. They've also contributed over £60 million worth of meals to food banks and charities that help those in need, bringing in new consumers as a result of their willingness to support the initiative which therefore led them stay at the top of its competitors, as their rivals hasn’t done that much compared to Tesco.
Online sales increase
Tesco being one of the essential retailers during lockdown has seen sales rising by more than a quarter as customers bought more food and groceries in the pandemic with a drastic increase in online orders. While more customers continued to turn to online shopping as demand for food rose, Tesco doubled their online home delivery capacity as well as opened urban fulfillment centers to reach out to customers who also were allocated separate priority slots for delivery. The company was overwhelmed with demand as an essential retailer that was allowed to stay open in the lockdown as many of its competitors had to temporarily close and most of them did not offer home delivery service to customers.
Organizational change at Tesco..................................................................................................................
Tesco has seen a tremendous change in terms of developing and implementing a self-service checkout system across its whole operation. Tesco's decision to implement this new payment method is undeniably a strategic plan shift. A self-check-out system is an innovative form of payment that goes beyond traditional payment plans in terms of financial processing. A teller was required for cash payments, but with the payment system, there is little need for one. Self-service introduces a new approach or technique to help clients. The new method better serves clients and delivers a decent experience without requiring them to spend a lot of time in the stores. When integrated inside, this self-checkout system, developed by Tesco, allows clients to improve their shopping experience and make purchases more efficient. This was intended to make customers feel like they were a member of the Tesco family. Therefore, this change will help them to stay at the top of their rivals.
Quality over competitors
Customers expect Tesco to sell products of the greatest quality and that are obtained appropriately. Tesco's customers have faith in them to make sure that all of their products are safe and that they follow all relevant guidelines and restrictions. As well as this, Tesco has a dedicated development team and hard-working team to bring great quality, innovation, and value for money products to the stores. They also have a dedicated team of food researchers and chefs always reviewing food trends and approaching new food ideas that meet customer needs and remain competitive.
References:
Tesco PLC. (2021). Covid-19. [online] Available at: tescoplc/covid-19/
[Accessed 23 Nov. 2021].
Meng, M. (2014). Tesco Company Organisational Structure Chart Example | Org Charting.
[online] Orgcharting. Available at: orgcharting/tesco-company-
organisational-structure-chart-example/ [Accessed 23 Nov. 2021].
Unit 15-M1 M2 - Merts criteria
Module: Business Finance and Management
University: University of Westminster
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