Sustainability at Tesco
Sustainability at Tesco


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Table of Contents

Research Proposal: TESCO.. 3

1.1. Background. 3

1.2. Statement of Problem.. 5

1.3. Significance of Problem.. 5

1.4. Rationale of the Problem.. 5

1.5. Aim.. 6

1.6. Research Objective. 6

1.7. Research Methodology. 6

1.7.1. Research Philosophy. 6

1.7.2. Research Approaches. 7

1.7.3. Research Designs. 8

1.7.4. Descriptive Design. 8

a. Experimental design. 8

b. Surveys by Questionnaire. 8

1.7.4. Action Research. 9

1.7.5. Primary Data. 9

1.7.6. Secondary Data. 10

1.7.7. Sampling Technique. 10

1.7.8. Analysis of Data. 10

Literature Review.. 11

2.1. Introduction. 11

2.2. The Business Case for Sustainability. 12

2.3. PEST Analysis 13

2.4. Emerging Competitive Position. 14

2.5. Checklist for Sustainability. 15

2.5.1. Board of Directors. 15

2.5.2. Culture. 16

2.5.3. People. 16

2.5.4. Processes. 16

2.5.6. Technology. 17

2.5.7. Infrastructure. 17

2.8. SWOT Analysis. 17

2.9. Recommendations. 18

References. 20




Research Proposal: TESCO

1.1. Background

Tesco is a food retailer company and it is one of the largest food retailers. It employees about 325,000 people and operates many stores around 2,318. Tesco’s largest market is U.K (McLoughlin and Aaker, 2010). It works under four different banners in U.K, which are Express, Superstore, Extra and Metro. It is becoming one of the largest petrol retailers of Britain as the stores have gas stations (Fernie, Fernie and Moore, 2012).  TESCO, food stores founded in 1924, now represent the largest store in the UK with over 200,000 employees. Currently the company is 95 per cent of the UK population, offering your items to an estimated 4,000 customers a day. It is said that the success of this company is based on its tremendous market penetration in the UK and Europe, and its commitment to offer its online visitors and irresistible offers editorial information.

Tesco brand emerged in 1924 when Jack Cohen purchased a shipment of tea from TE Stockwell. He then used the first three letters of the supplier (TES), and the first two letters of his surname (CO), forming the word “TESCO”. In 1929 in Burnt Oak, Edgware, and Middlesex, the first TESCO store was opened. His business expanded rapidly, and by 1939 there were over 100 Tesco stores across the country. Tesco is listed on the London Stock Exchange and is a component of the index FTSE 100. Tesco in the year 1924 and company was listed in the London Stock Exchange in the year of 1947 (Hart, 2003). In 1956, Tesco opened its first supermarket in Essex and the major supermarket was opened in West Sussex in 1968. Creating value for customers in order to earn loyalty is the main aim of the company (Fernie and Sparks, 2009). An international retailer, Tesco plc has about 4,811 stores as being one of the largest retailers in the world (Griffin, 2010). The vision of Tesco is to gain lifetime customer loyalty is the vision of the company. Its vision is to create value for customers. It wants to be a modern, innovative and growth company. It wants to be winning locally by applying all its skills globally. Tesco’s mission is to create value for its customers. Its mission is to retain loyal people. It works on long term goals of company. Tesco aims to motivate the staff to achieve the targets. Tesco’s mission includes being loyal to both customers and employees.

Sustainable growth is one of the beliefs of Tesco. It is responsible, it is what its customers want and it makes good business sense. If it takes unsustainable decisions the whole will be harm by it. In the same way, it will be incompetent and raise its costs by being failed to reduce its environmental impacts. Tesco divided that into 5 different parts, which are Emissions, products, Climate change, Waste and Recycling and Resources (Griffin, 2010). All people know very well that supermarket is the place where people buy goods for their alive. And if supermarket has an environment responsibility in its marketing strategy, it will be effective in the environment protection.

Cost and effect to the environment became a cause to Tesco to make decision about opening buying offices in order to enlarge local sourcing and cut food miles. Green labels may transform food consumption, and Lucy Neville- Rolfe of British retailer Tesco said food’s green labelling show the products impact on the environment can lead to major changes in consumption (Fernie and Sparks, 2009).

1.2. Statement of Problem

Future sustainability is an important factor for businesses within the context of an emerging business environment.

1.3. Significance of Problem

Plans on Corporate Social Responsibility should not be and remain only on paper. It is a fact that this issue should start doing some of the DNA of organizations because, otherwise, the negative effects can be seen in the future. For last 20 years, we are facing one of the hardest market conditions, the increasing pressure exerted on the push enterprises to them to reduce costs and make operations more economical and effective. The companies in turn can leverage this challenging economic climate companies to become more sustainable and ensure its success this and future. Sustainability goes beyond compliance. Through innovation, to create new opportunities for competitive advantage and direct cost reduction programs.

1.4. Rationale of the Problem

For many organizations, the first thing is to pinpoint your current criteria sustainability. Then plan and implement transformation programs more effective and economical to become true sustainable organizations. In order to succeed, sustainability must be entrenched in the DNA of the company and cover each and every one of the members, from workers to clients, passing by suppliers, partners and investors. We need a new framework for decision- decisions, where environmental and societal concerns are also key get business operations.

1.5. Aim

The aim of this study is to examine whether TESCO has a sustainable future in the competitive business environment or not.

1.6. Research Objective

The objectives of this research are as follows:

  • To develop an understanding of the history and background of TESCO
  • To analyse the importance of sustainability in businesses
  • To evaluate the impact of not having a proper future sustainability plan by organisations
  • To analyse if future sustainability is an important factor for businesses within the context of an emerging competitive environment?

2.2. The Business Case for Sustainability

Companies that distinguish and welcome the key sustainability indicators collected on a future reward in the form of opportunities market and efficient business operations. Through various studies, such as that conducted by Atos Origin and IDC, shows that companies that have mature sustainability programs obtain maximum profit margins (Fernie, Fernie and Moore, 2012). Consolidated sustainable are better positioned to stay the course. These companies benefit efficient operations, the increased value of their customers, stronger supply chains and business risk reduction efforts by sustainability. The way to be a justly sustainable company is not to focus exclusively on direct factors such as savings and augmented profits. It should also cover indirect factors such as environmental and social aspects and involvement of employees, customers and suppliers (General Books LLC, 2010).

If these factors Indirect identified in time, can be measured and become drivers of sustainability very important. The Five Capitals Framework, developed by Congress Forum for the Future (Forum for the Future) is a framework for analyzing the benefits, which distributes sustainability elements into five capitals (Natural, social, humanistic-intellectual-productive technological and economic), providing a structure useful for the understanding of the direct and indirect on a more sustainable approach (Slack, Chambers and Johnston, 2007). Sustainable development is the most sensible way managing long-term assets. It is a process dynamic with which companies can achieve balance of activities. Last year a new trend was observed in companies: companies acquiring a strategy proactively to achieve balance in their initiatives environmental, social and economic objectives of sustainability. The proper definition of sustainable initiatives and taking advantage of the change implies for companies can be quite challenging. To that successful and welcomed by all stakeholders, requires that the objectives are clear and are obtained desired results and potential for each initiative.

2.3. PEST Analysis (Curtis, 2007)

P: PoliticalThe political aspect of TESCO is very strong as investing in customer service; supermarkets renovate and open new business units. With these activities in mind, British retail chain (Tesco) has more than 290,000 employees.
E:EconomicTESCO provide strong economic benefits to UK. In spite of the large percent of employment TESCO offers, the company heavily invests in the London Stock Exchange and will create 20,000 jobs over the next two years. The company’s earnings rose 1.3% in total. The company reported that profits in the UK declined by 1% to £ 2.5 billion while international grew 17.7% to £ 1.1 billion. To enhance the business in the UK, Tesco announced it will invest £ 1 billion investment.
S:SocialThe growth of sales of TESCO was mainly lead by Asia and China which shows that the sociability of the company is high. There is a high demand of new products.
T:TechnologicalTechnological aspect has the most significant impact on the performance of TESCO as the start the facility of online shopping and delivery service has boosted their sales tremendously.


2.4. Emerging Competitive Position

The world economy is witnessing the profound changes alter the competitive position of companies and, therefore, affect national economies and welfare of citizens. Continuous change, increasing doses required flexibility, has become the protagonist almost every day actor on stage performance of operators. Among the transformations in recent years, disposal of obstruction to economic activity in general, and reduced transportation costs and telecommunications with the trade liberalization in particular have figured prominently. All This has led to a global expansion unprecedented trade and knowledge (Griffin, 2010). If in a context of high and grow- competitiveness will as has been con- formed, the advantages are evident to promote freedom of action economic agents, as Manager highlight the abundance empirical evidence, one would expect the European Union leave the contemplative attitude that characterizes Europe in these changing times.

Actions of businesses to different conditions must be considered, as these affect their instant niche market and environment in logistic strategies. In logistics strategy at Luton, the value chain is helpful in decision making. Tesco is one of the international retailers. It has more than 3,000 outlets. The transition between the legendary Terry Leahy and Philip Clarke head of retail giant Tesco is it more turbulent than expected? While the new boss spoke only continuity during handover a year ago almost to the day, the British group accumulates setbacks and recognizes “face funding problems “in its business model. In January, after a failed Christmas season, Tesco has launched its first profit alert in twenty years, which earned him a drop of 16% on the stock market in one day. And at the end of last week, Kantar World panel office has calculated that its market share in the UK, which still represents the bulk of its sales and profits fell in January to its lowest level since 2005, 29.7 percent. Certainly, Tesco is still a thriving business with profits of 3.7 billion pounds in 2011 to 68 billion in sales. But after decades during which one of the most difficult tasks of the group was to obtain local permits to build new plants and increase its firepower, this strategy is not necessarily the solution to take future growth (McLoughlin and Aaker, 2010).

2.5. Checklist for Sustainability (Barnes, 2008)

2.5.1. Board of Directors

Unsustainable: strictly centred approach short-term results incomplete indulgence of the value chain with which the company operates; lack of association between the Board and major stakeholders, lack of clarity regarding the values of the organization are others, besides the economic benefit.

Sustainable: greater emphasis on value creation Long-term partnerships and synergy with major stakeholders. Leadership Based on the values, which means that the value what and how (not just profits) represents all stakeholders.

2.5.2. Culture

Unsustainable: isolated structure and state of mind; inadequate understanding of the value or impact the company has on the public, the environment and in the value chain in which it operates; objectives focused, almost entirely, on objectives Short-term financial.

Sustainable: customer-focused company with solid awareness about the value and impact on society and the environment. Openness, creativity and hospitality are identical good working environment, in spite of of department or office.

2.5.3. People

Unsustainable: the main motivation is the interest itself: fear of not achieving the economic objectives; others blame speed, low levels of motivation; high degree of wear.

Sustainable: the main motivation is to keep united company values and offering added value Customer; feed and intellectual skills emotional employees; qualified and a clear understanding of how their actions affect others, and the planet making profits; sense of wellbeing and belonging, low wear, high level of motivation.

2.5.4. Processes

Unsustainable: limited partnership in the chain value, development-oriented approach of product; null measurement of value and impact on people, planet and benefits.

Sustainable: network of collaborating groups in the chain value, to provide a focused processes Customer lasting value, while to maintain the values of the company, management called Sustainability Performance Management (SPM) is inherent to the value chain.

2.5.6. Technology

Unsustainable: dispersal of information and place work are restricted by technology, the attainment of a single view of the client or vision the value of the product in terms of people, the sphere and revenue, are incomplete by the technology.

Sustainable: informed decision making based in capacity building from top to bottom and with respect to any parameter related to the people, planet and profit. Technology allows measurement and quality management along the entire value chain, promotes technology collaboration between the different functions and interest groups.

2.5.7. Infrastructure

Unsustainable: temporary housing and short approach term of office paraphernalia and knowledge.

Sustainable: buildings designed for effectiveness energy and a good work environment. Invest in new technologies or infrastructure only when obtained more effective and sustainable services. For example, it is advisable to renew the servers every three years to improve its performance while desktops that can be used up to eight years.

2.8. SWOT Analysis (Hart, 2003)


  • Secured commercial standing
  • High level customer service
  • Brand value
  • Growth in International market
  • Unique products

  • Reliance upon the UK markets
  • Grocer outlets in specific areas
  • Business model
  • Fall in a sale of high priced products
  • Finance

  • High degree of buying power
  • Further International growth
  • Online sales
  • Tesco mobile
  • Technology

  • Markets affected by economic concerns through the credit crunch
  • Rising raw material costs
  • Change in buying behaviour
  • International expansion
  • Competitors



2.9. Recommendations

To become a more sustainable company, firstly necessary to establish at what point of the adulthood arc and where we want to look in three years. Precise dimension of sustainable proposals allow those responsible for decision making achieve this knowledge and identify what works and what fails. SPM management emerges as a business tool to establish baselines, track and cost control initiatives and those that have not produced the results expected. A solid SPM administration process provides integrated responsibility for decision information from various points of view, both concrete and insubstantial, in order to obtain a holistic view of performance sustainable initiatives and ensure greater sustainability. The main challenge is how to make pathways in the most effectual style possible, know what to measure and code preparation and reporting needs. The changing nature and inaccurate information from crowd sources within the company, makes the process tracking. Reports should contain the most valuable information necessary for responsible decision; identifying those areas do not reach their goals (Griffin, 2010).

Also, in accordance with law, reports must be transparent, auditable and accounting to be shared with stakeholders. Those responsible for making decisions may identify parameters that lead to optimum performance only through a vertical analysis information. Without this ability of measurement, companies would change groping, without knowing whether the investment obtained the desired benefits or could have achieved higher profits. Using the SPM can make a monitoring of the following areas: What activities and processes have the greatest impact on environment? What impact will reduce investment in ‘ emissions on the production costs and profitability? Where are the quick triumphs that can be obtained with least impact on costs? Do you add up all the members of the company to ‘ sustainability values? What staff members should be models ‘ sustainability for their individual performance against Key Performance Indicators (KPI) sustainability? Where are the specific examples ‘ company showing the benefits for people, planet and profits that can communicate through the value chain to emphasize the “lead by example” (General Books LLC, 2010)?




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