New products and services: Tesco have to keep offering new products and services to its customers to keep them coming back for more. If Tesco stopped creating and promoting more deals and products then customers will go elsewhere for its products and services. It’s important for retail supermarkets, not just Tesco to make sure its customers are satisfied. Also keeping with the time is key because technology products are getting more advanced and supermarkets are competing with companies to PC world and other supermarkets. Although some technology products are sold cheaper in other technology based shops you don’t get the club lard points as you would when you bought it at Tesco. Tesco have mastered the club card. By doing the fuel saves, as well as sending you money off grocery’s and theme park tickets.
Location of Production: Tesco is in the tertiary sector which means that they are not creating any of the products sold, it just sells them. However Tesco does have its only ‘every day value’ that is very popular.
Skills Requirements: Every store has different people working in it. However most Tesco stores will have a variety of age, gender and experience working there. Everyone who works for Tesco has to get trained up on that department to the best of their ability. On each department training is graded bronze, silver, gold and platinum. In the first 6 months you have to be trained up to bronze the rest is your decisions. It is in your best interest to do this as you will receive more over time because you will seem dedicated to your job. Not all supermarkets are given this choice.
External planning factors:
Government minimum wage: they pay more than this labour market competition
Labour costs and Labour Market Competition:
As you can see by the table I have created Tesco is the highest hourly paying Job out of all the super markets listed. Having a competitive wage like Tesco is also attractive for people looking for work, as they would be doing the exact same job but will be working for Tesco and getting paid more than if they work for Morrison’s. When I spoke to my class I told them that Tesco had a high hourly pay rate than Waitrose they were shocked. They were shocked because Waitrose is more a premium type supermarket where as Tesco is in the middle. Tesco pays its customer service staff the same wage even if they are 16yrs old – 50yrs old for example. They do this because it makes it fair. Paying staff a fair wage will make them is committed to work as well as enthusiastic. Making your staff be committed will make them want to come to work, and for them to be happy. Happy staff makes happy customers, happy customers spend.
Workforce Skills: When Tesco want to create