STRATEGIC AND OPERATIONAL ISSUES IN TESCO GROCERRY STORE Case Solution
Background of the Organization
Tesco is a UK based company, a leading merchandising and international grocery store, having over a thousand hypermarkets, supermarkets and other stores in Ireland. The specialization of Tesco is the food but they diversified product line in areas that include clothes, consumer electronic, financial services, and telecommunication and budget software.
Numerous of the stores are situated in 12 different countries that are located in Asian and European continents. The market share is around 28 % in UK, listed in London stock exchange. Tesco had a market capitalization of GBP 18 billion in the current year. Tesco is one of the fasting growing business facing various opportunities. Their motive is to inspire and loyalty from the customer and earning trust.
In addition, Tesco is continuously trying to improve employee skills and customer service, for meeting the consumer expectation. There are 500,000 employees working for Tesco. The revenue has risen up toGBP 62 billion in 2015. Basically it comes under the retailing industry and was founded in the year 1919. In terms of gaining profit, Tesco has been ranked as the third largest retailer in the world; while in terms of revenue, Tesco ranked as second.
Problem Statement
1. The number of staff present during job timing was on third as compared to fresh and easy store. The problem was diagnosed when self-scanners were improperly scanning items to machines and it fails to accept the coupon to credit card reader. Those customers who don’t speak English were observed facing challenges that resulted from language barrier.
2. In sharp contrast toUK’s other grocery stores, Tesco hasan entire ystem made up of self-checkout machines. It scans the whole body and is part of a strategy of Tesco’s attempt to keep the labor costs minimal; but it creates a lot of difficulties for the shopper. (Harrison, 2005)
Inadequate Staffing
This operational problem has been observed by study of pared-down staffing model. According to the documentation that results from a survey, Less than four employees were observed working at a given time. So it determined that half the rate estimated for Tesco’s UK store. The staffing rate of Tesco were too low and the upper management rehiring another 20,000 additional staff in the period of two years. An analyst realized and pointed out the impact of UK under staffing by investigating how cuts could hurt the core operations in the store.
“If the fresh offer couldn’t be identified, employee will not monitor by the employer so the customers gradually won’t satisfied with fresh offer hence it loose sales”
Self-Checkout Creates Headaches
This was undermining the loyalty of customers and causing frustration. Researchers observed frequent problem with this issue. After 34 hours of observation they came to a conclusion that customers require assistance from employees to use self-check out machine......................
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.
Related Case Solutions & Analyses:
Procter & Gamble in the 21st Century (C): Integrating Gillette
Negotiating on Thin Ice: The 2004-2005 NHL Dispute (B)
Lehman Brothers (D): Reemergence of the Equity Research Department
Ancora: Private University Providing Healthcare for the Poor
Trench Town Rock: The Creation of Jamaicas Music Industry
Data Vast INC: The Target Segment Decision
SIX SIGMA AT ACADEMIC MEDICAL HOSPITAL (A)
Better Works
Energy Gel: A New Product Introduction
Fambul Medical Practice
