Tesco_–_an_Expanding_Giant

Will Tesco take over your lift' 1. Sum up the facts about Tesco as to • Number of countries they operate in: 13 • Number of UK stores: 1,800 • Number of employees worldwide: 350,000 • Estimated profits in 2006: £2.5 Billion • Future plans: To expand to the US. • Product ranges: Food, Clothes, Health, Petrol, Financial services, Home & Garden, entertainment, telephone & Internet and Funeral services 2. Why do so many people find Tesco appealing' - They have the cheapest prices around - You can buy everything: Groceries, clothes, music, entertainment products, electrical goods and furnishings. - They have opticians, pharmacists and insurance salesmen. - They are getting involved in every market these days. 3. Explain why Tesco can sell their products at the cheapest prices around. - There are several reasons: o They employ fewer staff than the same number of smaller business o They have enormous buying power 4. Explain what a Clubcard scheme is. Do we have such loyalty schemes in Denmark' - It is a bonus scheme where the costumers recive rewards for every pound they spend in store. 5. What are the advantages for Tesco of operating the Clubcard loyalty scheme' - That the information they become is sent to a mega database that gives Tesco a customer profile of almost every UK household from their choice of products and this information they can use to develop their marketing strategy 6. Why do some people criticize Tesco' - Because they bribe local councils if they’re refused planning permission. If that doesn’t work they pursue endless appeals which local officials can’t afford to fight. - They have been accused of hoarding land to prevent rivals from setting up shop near by. - They have reduced their prices so much when they open new stores that they were driving small rivals out of business 7. How does Tesco answer the critics' - That he understands that people want reassurance that their success has come at a fair proce, and not at something else’s cost. 8. What is the role of the British government’s Competition Commission' - They should carry out a two-year study into Tesco’s ecpansion