REFLECTION ON THE MODULE
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The modern organization is a dynamic structure, an open socio-technical system, which is in constant motion, changing and adapting to the environment, learning and rebuilding according to the needs of the market and is also able to influence the market. Tesco has its own internal dynamics and is constantly subjected to the influence of a large number of business environment factors. Tesco at the same time, actively affect the change in the business environment through the implementation of price and assortment policy, procurement policy, the policy in the field of personnel and finance management, innovation policy and technical re-equipment.
Political factors seriously affect Tesco. There are such important driving forces, as a change in the socio-political system, the outbreak of religious intolerance and the revival of nationalism. We cannot ignore the threat of armed conflicts, terrorist attacks, an embargo and various trade sanctions. Some aspects of the political situation are for Tesco executives of particular importance. One of them is the attitude of the administration, legislative bodies and courts to the business. This position affects the actions of the government, such as the income tax, the establishment of tax incentives or preferential trade duties and legislation on consumer protection, the safety standards, a cleaner environment, control of prices and wages. The VAT rate decreases profits (BBC News, 2011). The political environment is not friendly, however, Tesco can have a comparative advantage. Tesco should adapt and respond. The example of such response on "fat tax" was "healthy food range for people "on the go" (Tesco plc, 2014).
The economy of the UK recovers slowly. In 2015, GDP showed 0.5% growth (Cadman, Bernard and Pearson, 2016). However, the topic of unstable recovery and slowdown is still hot. Business spending decreased in the final quarter of 2015 (Allen, 2016). The law of demand does not work for an excessive demand of goods; when there is a massive purchase of goods caused by expectations of higher prices or inflation. Certain characteristics of the changing demand for goods are the result of changes in customers’ income. This specificity is associated with the division of goods for goods of the highest category ("normal goods") and commodities of the lower category. "Normal goods" include those demand for which grows with the increase of the consumers’ income and vice versa. The inferior goods include products for which demand decreases with the increase of income and vice versa (potatoes, cheap clothes and shoes). That is why Tesco can promote inferior goods, and make of this unstable situation an advantage.
Tesco cannot ignore the cultural environment in which it occurs. It is about prevailing social life values and traditions. On this background are based behavior standards. For example, public opinion can put pressure on the company, having the connection to the blameworthy in the society organizations, groups and possibly countries. The daily practice of retail stores and supermarkets depends on the consumer opinions on the quality of services. The result of social and cultural influence on the organization became a growing emphasis on social responsibility. Tesco is constantly improving the customer experience (Rigby, 2015).
The UK has high living standards. That is why costumers used to buy the best quality products. Taking this into account, Tesco refused to sell sweet drinks to stop the rate of obesity among children (Williamson, 2015). Still Tesco should monitor the new measures. Tesco removed chocolate from checkouts, but some stores replaced them with crisps which are much more unhealthy. The UK people think about the quality of food, its impact on health and wellbeing. The popularity of vegetarianism is growing. Together with this, there is a demand for organic products, which do not contain harmful substances and chemicals. Tesco's mission can be to make people healthier and happier because of natural and high-quality products, excellent service level and the active promotion of the principles of healthy nutrition in the community. In the Tesco should be easy to find organic products. It does not contain GMOs and food additives and is made under special conditions, which completely enclose the products from the effects of inorganic substances.
In fact, the main purpose of data analytics to make the Tesco shopping process more convenient and enjoyable for customers. The use of customer segmentation techniques, the formation of targeted proposals, working with Data Mining (market basket analysis, pricing optimization, demand forecasting) in retail helps in the personalization of services for the buyer, and customer segmentation. The Internet has become an integral part of modern life. Analysts suggest that in the near future, people will buy more and more through the Internet. The main advantages of online store Tesco are: availability - to purchase any product in the online store client does not need to leave the house. It is especially important for people with limited mobility, old people and young mothers who love shopping, but do not know with whom to leave her baby. Saving the time - making purchases at Tesco online store, the customer greatly saves the time. After all, he does not need to look for store locations, to get to it, to park or wait for public transportation, for a long time wander around the supermarket in search of the right product. On the Internet, everything is much easier and faster. The client only needs to enter the product name and choose the best offer. Buying goods in Tesco's online store customer has the ability to quickly find the right and most detailed information about the product and on the basis of the information received he can make a choice. Shopping in Tesco online store can make people's lives much easier, especially the residents of cities, where many kilometers of traffic jams sometimes become an insurmountable obstacle on the way to the store. New business opportunities keep pace with major challenges: competition, the need to understand the enormous audience requests, and analyze large amounts of information. Any business success is in changing the approach to ordinary things and the ability to predict the future development of mankind. This trend already requires from Tesco the new view of the changes in the conduct of business and the world.
The level of service (quality of service) refers to the main indicators of competitiveness, an integral part of any enterprise. Often, the level of service is represented as a measured by customer results of enterprise systematic actions in order to meet customer needs in accordance with the competence of the company and individual employee. In sales management, one of the leading places takes management of customer service process in the store. Implementation of this function should be given a lot of attention because of its high importance in ensuring the development of the store and improving the effectivity of its operations.
First of all, providing a high-level customer service in Tesco stores is one of the most effective forms of commercial enterprise involvement in the consumer market competition, the formation of its competitive advantage.
The management of customer service process is a complex set of solutions generated by managers, taking into account the competitive position of the store in the consumer market, the stages of its life cycle, the available capacity of manpower, material, and financial resources. The formation of the high culture of Tesco customer service is achieved with the help of training for employees and additional consulting support. Business image of Tesco is also an advantage, as consumer confidence in the competence and professionalism of the staff contributes to the growth of Tesco. Business requires constant monitoring and evaluation of the service performance results.
In their annual report, Tesco stated that: "every colleague holds the key to better customer service" (Annual Report and Financial Statements 2015, 2015). Although the objective of retail trade, in fact, does not change, customer service is constantly being improved. So, with the introduction of self-service, the responsibility for selecting the goods fell on buyers. Marketers are the following qualities necessary for the seller: the ability to communicate with customers, to find a non-standard solution, confidence, ability for analytical thinking and creativity, the art of persuasion, kindness. Between buyers and sellers should be established good, friendly relations. They contribute to the preservation of old customers and attraction of new ones.
BIBLOGRAPHY
Allen, K. (2016). UK economic growth reaches 0.5% but slowdown fears persist. [online] the Guardian. Available at: http://www.theguardian.com/business/2016/feb/25/uk-economic-growth-confirmed-at-05-but-fears-of-slowdown-persist [Accessed 31 Mar. 2016].
Annual Report and Financial Statements 2015. (2015). 1st ed. [ebook] Tesco PLC: Tesco PLC, p.151. Available at: http://www.tescoplc.com/files/pdf/reports/ar15/download_annual_report.pdf [Accessed 31 March. 2016].
BBC News. (2011). VAT rate rises from 17.5% to 20% - BBC News. [online] Available at: http://www.bbc.com/news/business-12099638 [Accessed 30 Mar. 2016].
Cadman, E., Bernard, S. and Pearson, T. (2016). The UK economy at a glance. [online] Financial times. Available at: https://ig.ft.com/sites/numbers/economies/uk [Accessed 31 Mar. 2016].
Rigby, C. (2015). Tesco promises to keep improving the customer experience - InternetRetailing. [online] InternetRetailing. Available at: http://internetretailing.net/2015/10/tesco-promises-to-keep-improving-the-customer-experience/ [Accessed 31 Mar. 2016].
Tesco plc. (2014). Tesco launches brand new healthy food range for people ‘on the go’. [online] Available at: http://www.tescoplc.com/index.asp?pageid=17&newsid=1005 [Accessed 31 Mar. 2016].
Williamson, O. (2015). Tesco to ban children's sugary drinks from its stores. [online] Telegraph.co.uk. Available at: http://www.telegraph.co.uk/foodanddrink/11765353/Tesco-to-ban-childrens-sugary-drinks-from-its-stores.html [Accessed 31 Mar. 2016].
