A mission statement shows the aim of a company. It shows the direction a company is going. And what they are doing to give their shareholders the best dividend. Tesco have a mission statement to encourage shareholders to invest in their company. You need to broadcast your aims to the public so that they can see what the company wishes to achieve e.g. Tesco want loyalty from customers and therefore this indicates that they will do everything possible to achieve this. Tesco needs the profits which only the customer can give and this is only possible if the company provides the right type of goods to satisfy everyone. Tesco has made sure that they stocks are goods and plentiful so that the customer does not need to go anywhere else because their aim is to satisfy each and every customer.
By setting an aim the company is able to set itself targets e.g. to become the leading supermarket and improve its market share every year. By setting targets the company can assess its performance. If things go wrong then they can take steps to improve and achieve their appropriate targets. The company will also attract every type of customer, which will lead to large profits which are desperately required to pay the shareholders dividend, expand the company, introduce new products and improve existing services.
In order to reach their aim Tesco set itself small objectives which are small targets and these help to meet their main aim which is to retain customer loyalty. Objectives are also important because they give the company a direction to work towards and achieve its success.
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Tesco achieves success through various ways and one successful method has been the Club card. I think one of the main reasons customers prefer to shop at Tesco is their facility of the club card. This is a loyalty card which gives customers free coupons to spend in stores and this is a huge attraction for the public. People enjoy the benefits of these vouchers because these are for the products the customers purchase regularly.
Tesco ensure they are keeping their customers happy by giving them a variety of goods they also provide them with special offers. Tesco diversified into non-food products, online shopping, club card, low prices and household items which customers require all these things. Tesco has done all this to retain their customers and not let them go to other stores. Tesco's competitors Asda and Sainsbury's failed at this scheme and Tesco were very brave to continue in this area. This has led Tesco to gain a 30% market share and the leaders in food and drink and this shows they met their aim and objectives of retaining loyalty. Grow Sales
Another one of Tesco's objective is to grow sales. Tesco buy in bulk, this means that one person from Tesco buys millions of products but they get it cheaper. They sell their products through the Internet as well as their 1100 stores. The 1100 stores have helped to contribute a lot of profit. Tesco make ï¿½10 millions in profit through the Internet. The Internet is a good benefit to Tesco and has also contributed a lot of profit to Tesco's bags and bags of profit. They also offer halal meat for vegetarians and Muslims. Many customers buy from Tesco because of their Club card. Tesco get the low prices from the central buying system.
It shows that Tesco have been able to grow sales and expand their services and satisfy the customers. Profits have allowed Tesco to give more money to shareholders. Expand Abroad Tesco also decided to go abroad after they became the leaders in the UK market. This has helped them grow into a bigger multinational organisation. In France Tesco have 109 stores; in Germany, they have 220 stores. Poland has 80 stores. Tesco have a huge investment in different countries around the world. This will ensure shareholders get the largest amount of dividend possible. This is a very good investment for Tesco and you can see this from the amount of stores they have and incredibly high profit they have gained ï¿½425 million and this has helped them to give higher dividend to shareholders.
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Tesco’s Mission Statement. (2018, Apr 23). Retrieved from https://phdessay.com/tescos-mission-statement/
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