For this assignment I will be focusing on the company Tesco’s. Tesco’s is a supermarket in the United Kingdom. Tesco’s was first founded in hackney London in 1919 by jack Cohen. Jack Cohen started with only a few stalls in a market and it was only in 1942 that he introduced the name Tesco. It was not until 1929 that the first Tesco store was opened in Burnt Oak, Middlesex. The main product that Tesco sells is groceries however now in 2013 Tesco offers services and products including groceries, technological products (i.e. mobile phones, pads and tablets), bank service and cloths.
Tesco’s has many different shareholders. These include:
Shareholders basically fund the business so they invest their money in the business in the hopes that the business will flourish and then they will later gain profit from their previous investments. Shareholders are extremely interested in how much profit the company makes because the more profit the company makes the more profit they make as shareholders. Often the shareholders money is used to expand the business so for companies like Tesco’s, the more shareholders they have the more they can expand their business. As Tesco has grown and gained more shareholders this and the shareholders money has allowed the company Tesco’s to grow to become one of the largest supermarket company’s in the world after America’s Walmart.
This is showing how the amount of shareholders that Tesco has, has been growing over the past year which suggests that it is partly that reason that Tesco’s has been able to grow and make more profit between last year and the year before.
This table shows how over the last two year Tesco’s revenue has increased partly due to the increase of shareholders which has allowed the company to expand and invest money into improving the company therefore making the company more attractive to customers and making them want to buy more of their products.
The increase of shareholders may have also been what allowed Tesco in past years to Brach off from their main activity of selling groceries to expand their company to also providing services like mobile phones, electronics, cloths and banking services. The shareholders would be extremely interested if the company wants to expand because they may want to invest in certain parts of the company i.e. they may want to invest more money into the electronic part of the company because they believe that part of the business will make them the most profit.
2. Customers – customers are the people who purchase the products or service that the company provide. They, like the shareholders help to fund the business. Customers are most interested in the quality of the products of the business, so they are stakeholders in the business that they are interested in the company’s quality of their products. Customers are particularly interested in a business if there is a scandal about that company that paint it in a negative light then the sales for that company are most likely to decrease. For example in 2012 there was the horse meat scandal which made a lot of people angry and caused them to boycott the meat products in the Tesco’s stores and some people even boycotted the whole store. This scandal painted the company in a very bad light which reduced the company’s sales. The way in which customers can affect a company like Tesco’s is to stop buying their products which would reduce their sales, revenue and profit this means that the company has to find a way to increase their sales again.
“Tesco revamps Finest range in attempt to reverse poor UK sales”
The firm said it had added 400 new products, improved 750 existing lines and discontinued 200 others that were deemed no longer relevant, uncompetitive or not as good as customers expected them to be
3. Smaller local businesses-