- Explain why scarcity and choice are important concepts to the definition of economics. What are the costs of choice?
- In the coordinate system of graphs, there are two main relationships between two variables. With the use of numerical examples, describe these two relationships.
- How can economics help us to better understand society?
In order to critically analyse the market environment Tesco operates in, we need to identify their mission and vision and do the appropriate research in order to assess if their marketing approaches are efficient and satisfying. Tesco’s vision is ‘to be the most highly valued business by: the customers we serve, the communities in which we operate, our loyal and committed colleagues and of course, our shareholders.’ (Tesco PLC). As we are talking about a changing world especially in this industry, companies like Tesco are focused businesses and they have a core vision that remains unchanged while business strategies, practices, customer needs and markets change. Tesco’s vision is an aspiration for certain goals that the company has, so they came up with a business strategy divided in several parts to help them build their vision. We therefore have a benchmark for what it aims to achieve: indispensability; growth with plenty of opportunities; modern and innovative ideas; inspiring, earning trust and loyalty from customers, colleagues and communities. Along with their marketing strategies, the vision and mission are correlated, so their mission stating ‘Serving Britain’s shoppers a little better every day’ (Tesco PLC) follows the vision of the company to efficiently succeed in placing the customers at the heart of everything they do. The aspirations of the managers are outlined in Tesco’s vision and thus it is driving the business while embedding the strategic planning process. MARKETING ENVIRONMENT In order to be able to assess how Tesco built a dominant position in the retail market within the UK it is essential to evaluate the environmental trends that the company is actively engaged in. We will therefore look at the micro and macro factors that Tesco needs to overcome while strategic planning. Also, we will undertake a SWOT and PESTLE analysis to fully understand the marketing environment and to provide a more in depth picture of internal and external factors that are the focus point behind every business or marketing strategy. (S)trengths One of the most important asset that Tesco currently has in comparison with its competitors is that it is the leader in terms of market share with a percentage of 27.8%. At this scale it is not hard to predict that they have the highest number of customers, 66 per second respectively, so the standard need to be set high in order to meet the demands of each customer. So they introduced Tesco Values, an own-label branch that underpins the growth, success and strength of the company. Apart from that, Tesco is actively engaged in meeting the ever-changing standard of the society and in bringing new and old customers in its stores again, thus they want to reward its customers with Tesco Clubcards as a way of saying thank you. The power of this marketing strategy lies within the parameters of giving the company insights into consumer habits, preferences and trends. The marketing team is then ready to offer customers personalised promotions and additional incentives for them to shop further with Tesco. On the other hand, they have Tesco own-brand products which are of substantial importance for the company as they are an opportunity to grow strategic advantage especially because they have the advantage of being the first supermarket to launch a Value range in 1993(Tesco PLC). The group has found the right path to innovation and, therefore, their Finest and Everyday Value products are now the largest food brands in the UK. (Tesco PLC). Among the market advantages that Tesco has is that it is efficiently involving in environmental issues and thus they are the first supermarket to open the first zero carbon store and, according to Tesco’s chief executive Sir Terry Leahy, the new store cost 30% more to build, but it uses 50% less energy, which sent Tesco right at the top of supermarkets’ race to be green.>GET ANSWER