Values of TESCO

"Our core purpose is to create value for customers to earn their lifetime of loyalty."
Our success hinges on people: the people who shop with us and the people who work with us.
If our customers like what we offer, they are more likely to come back and shop with us again. If the Tesco team finds what we do rewarding, they are more likely to go the extra mile to help the customers.
No-one tries harder for customers: Understand customers. Be the first to meet their needs. Act responsibly for our communities. Treat people the way you want to be treated: Work as a team. Trust and respect each other. Listen, support and show gratitude. Share knowledge and experience
Shopping trip
Customers have told us what they want – clear aisles, good prices, no lengthy queues and professional staff. We call this our Every Little Helps Shopping Trips for customers, and we use it every day to ensure that we are always striving to make Tesco a better place to shop.
A great place to work
Our staff have told us what matters to them – to be treated with respect, to have a manager who helps them, to have an interesting job and to have the opportunity to improve. By helping our staff achieve what is important to them, we are also helping ourselves deliver greater satisfaction to our customers.
The way we work
The way we work is how we deliver Every Little Helps to make Tesco a better place to shop and work in. We use simple processes so that shopping is BETTER for customers, work is SIMPLER for staff and things are CHEAPER in Tesco.
Our community
We have 5 community promises that express how Every Little Helps comes alive in the communities that we are part of. It is important that our staff and customers know that, together we can make a difference, and that through Tesco these differences can really add up. These promises affect our people, our customers, our business partners, the environment and the communities that we work in. At Tesco, we put our Community in the heart of our business.

- Accounting

1.

- The picture above displays the entrance to enter Tesco Hypermarket.

The first limitation of the internal controls in Tesco is that the security guard at the         entrance is not strict enough. As there are many customers go in and out of the hypermarket in a daily basis, the security guard was supposed to lock the bags of customers properly to avoid shop lifting. However, as seen in the first picture above, there is only one security guard on duty at one moment. Due to the large number of customers visiting Tesco, the only one security guard cannot cope with the crowded situation and thus he is unable to perform his duty responsibly. As we can see on the photo above, the security guard only lock one department of my bag.

Besides that, the other limitation of the internal control in Tesco that I notice is that there are certain areas in Tesco Hypermarket where the CCTVs coverage is limited. As we can see in the photo, there is no CCTV found in this stretch. 

This will allow potential shoplifters to steal the goods in this hypermarket. Furthermore, the items found in this area are small in size which can easily be stolen without anyone noticing.

The picture above shows a female consumer who tries to steal the goods of the hypermarket which is caught in the CCTV image. Therefore, Tesco Hypermarket should install more CCTVs throughout the store especially in the corners. As this will deter potential shoplifter to commit crimes and also protect Tesco Hypermarket’s assets at the same time.

Moreover, limited number of security guard in the hypermarket is also one of the internal control’s limitations. As refer to the photo above, there is only one security guard at the exit point right after the counters. As the exit point is the area where all customers exit, one security guard is definitely insufficient to prevent any crimes from happening because a security guard alone cannot keep an eye on every customer in one go. Although the number of CCTVs in this area is huge and its coverage is wide, but as the saying goes, prevention is better than cure. There is nothing much the management can do about it once the crime has happened. Therefore, it is practical and important for the Tesco Hypermarket management team to hire more security guard. This act can eventually ensures customers’ safety and prevent crimes from happening.

The basement parking is commonly known as a crime hotspot in Malaysia. Thus it is also one of the limitations of consumers’ safety. This is because the Tesco management has not put in enough efforts to solve this problem.

As we can see in the photo above, the basement parking is enormous and dim. Furthermore, there is no security guard that can be seen or an emergency HELP button provided on the wall. As a result, this will attract snatch thieves or car thieves to easily act upon their victims here.  Therefore, Tesco Hypermarket management team should install the HELP button and employ security guards to patrol around the basement car park or even escort consumers to their cars to ensure there is no suspicious activities happening in the car park, which will increase the safety of the consumers shopping at Tesco.

- Emergency HELP button found in other shopping complex.

Lastly, setting up a police post is a significant method to avoid the happening of crimes. The presence of policemen will surely scare off thieves or snatchers to commit crime at basement car park because with the presence of policemen, chances of them getting caught will increase greatly. Meanwhile, Tesco Hypermarket had set up one of it at the basement parking. However, it is not been used efficiently. In our two hours of observation, we observe that there is not even a single policeman on duty in the post. When customers need emergency assistance, no one will be there to assist them and thus consumers’ safety is threatened.

2. 

The very first way Tesco Hypermarket can help the community is through actively supporting the local communities. Tesco Hypermarket established Tesco-UMCC Helping Children with Leukaemia Fund. The aim of Tesco-UMMC is to raise money for the low-income patients with the Leukaemia of University of Malaya Medical Centre (UMMC). Tesco Hypermarket had organize different fund raising events making RM1 million as their target in three years’ time. The funds raised from these events are to help and assist the low-income families who cannot afford to pay the treatment cost, special medication and equipment for their beloved ones who undergo the treatment in UMMC.

Besides that, Tesco has implemented ‘Community Champions’ into their Tesco branches. This method creates an opportunity to work with the local people that will produce a positive difference in an area. Members from the Community Champions will support and contribute to events, local charities and councils actively. In future, Tesco Malaysia can help the community by expanding their social works to help more peoples in need.

 Tesco has the attitude of “treat people the way you want to be treated”. They really mean it and did it for their employees. That is something that sets them apart from the other multinational companies. They actually believe that treating each other with respect will really lead to equal opportunities to everyone. They are also continually fixing their problems that are raised out from the employees and staff to make sure that the Tesco area is a friendly conducive environment for their workers to work there. Although their company is quite huge in the field, there is also plenty of intention to be a part that suits you. When you joined the Tesco family, you can really find that there are a lot of opportunities that you can further your career with their company as their company is a large growing business. For example, the turnover rate in Tesco is low as the employees is satisfies with the working environment in Tesco as they are given the chance to excel in the company.

Tesco has the attitude of “treat people the way you want to be treated”. They really mean it and did it for their employees. That is something that sets them apart from the other multinational companies. They actually believe that treating each other with respect will really lead to equal opportunities to everyone. They are also continually fixing their problems that are raised out from the employees and staff to make sure that the Tesco area is a friendly conducive environment for their workers to work there. Although their company is quite huge in the field, there is also plenty of intention to be a part that suits you. When you joined the Tesco family, you can really find that there are a lot of opportunities that you can further your career with their company as their company is a large growing business. For example, the turnover rate in Tesco is low as the employees is satisfies with the working environment in Tesco as they are given the chance to excel in the company.

 They also encourage their customers to participate in green practices and rewarding them Green Clubcard Points.

 Tesco also provides a healthy living to customers. Tesco is the first hypermarket to trigger the practice of nutrition labelling. All of the Tesco products have nutrition labels at the front of the Tesco value and Tesco Choice food products. They also came up with the GDAs (Guidelines Daily Amounts), which are guidelines to the total amount of calories, sugar, fat, saturates and salt every adults should consume in a day. This helps customers to choose the foods according to their needs. This also let enable customers to buy Tesco’s products rest assured.

 Tesco Hypermarket states that their business is promised to be good to the community by contributing to the society. Tesco integrates 5 principle in the business operate system. Their staffs are told to follow the principles when working. These principles are a promise to the community.  

The 5 principles are:

-Actively supports local communities

-Caring for the environment

-Giving customers healthy choices

-Supporting local suppliers

-Creating jobs for locals

3.

There are five accounting concepts that are crucial in the business of Tesco Hypermarket. These accounting concepts ensure the objectivity and consistency of the financial information when it is prepared. These accounting concepts help a lot in the business of Tesco Hypermarket.

1)      Historical Cost Concept- The assets and goods sold of Tesco Hypermarket are shown at the cost price. This concept is used to achieve an agreement of every customer on the same amount of goods sold. This allows every customer to compare the changes of price in the business.

2)      Money Measurement Concept- All values of the goods sold is measured and value by money. With the use of money measurement concept, every goods sold is measurable in monetary units. For example, stonebaked pizza is valued $2.85 and 2 for $6. This will allows the users to accurately compare the performance of the company with other companies. 

               

3)      Time Interval Concept- Tesco Hypermarket has subdivided its entity into arbitrary time periods of equal length. Reports are released monthly/ annually or quarterly. This allows the user of the financial information to determine the performance and the financial position of the business (Tesco).   

4)      Accrual Basis Assumption- All effect of transactions or events are recognized and recorded when the transaction undergoes. This concept will allow more accurate information to be shown to the customers and users of the financial information. For instance, a receipt is always given to the customer when they pay. Other than that, in the financial reports of Tesco Hypermarket, some transactions like withdrawal and returning of goods to creditors are shown to provide more accurate information regarding the statement of comprehensive income and statement of financial position.  

5)      Going Concern Assumption- Every year, Tesco Hypermarket releases its annual report and it is prepared under assumption that the entity will continue to operate in the future. Financial reports are shown annually in the website: http://www.tescoplc.com/index.asp?pageid=540 . This will allow the user of the financial position to have a better understanding of the financial report.

- Economics

Question 1, 

Factors of Demand 
Demand is the desire and ability to consume certain quantities of a good or service at certain prices at a particular point of time. Factors of demand include the price of goods or service, level of income, taste and reference, health awareness and price of other related goods. When the price of good or service increases, the quantity demanded will decrease. When the price of good or service decreases, the quantity demanded will increases with the assumption of ceteris paribus. There is an inverse relationship between price and the quantity demanded as shown in graph A. Price of the goods is the main factor to customers to make choices while the other factors remained unchanged. The supplier will lower the price of goods when the demand decreases to cope with market surplus.

Graph A shows the inverse relationship between price and quantity demanded.



2.)           Level of Income

When the level of income of consumer increases, consumers have a greater ability to buy goods. Consumers will tend to purchase the good more, therefore the quantity demanded rises. On the contrary, when the level of income of consumer decreases, consumers have a smaller ability to buy goods 

3.)           Taste and Preferences

Taste is the desire and preference towards goods or services. When the taste of consumers towards a certain good increases, the quantity demanded of the good increases. If the consumer prefers good A over god B, the demand for good A rises even though prices of both goods remain constant.

4.)           Health Awareness
Consumers tend to consume healthy food like vegetables instead of junk food when they realize their body is not in a favourable condition. Therefore, the quantity demanded of vegetables will increase. On the other hand, quantity demanded of junk food will decreases due to bad health state.

5.)           Price of other related goods

A substitute good is a good can serve as replacements for one another. When the price of one good increases, demand for the substitute goods increases. This will only happen when the both goods are substitutes.

On the other hand, complements are goods that can be used together. A decrease in the price of one results in an increase in demand for the complement. When the price of a complementary goods increases, the demand for another goods will decrease.

The graph shown above is showing demand curve is shifted to the right to show an increase in quantity demanded. This shift will occur when demand is affected by other factors other than the price factor.

Question 2,

Factors of Demand in Sustaining Green Environment

Pollution has been found to be present widely in the environment. Environmental pollution rate is greatly increasing in our country. Pollutions are threatening our nature and mankind daily. We should be responsible for our living environment. So, as a citizen of my country, we should have to protect our green environment for the sake of the younger generations. There are few demand factors which can help in sustaining our green environment.

Customers’ taste and preferences in sustaining green environment. Customers are more concern when it comes to saving and conserving more electric. Customers who are concern about saving electric can purchase a product that can use efficiently and saving more electric at the same time. In Tesco, a huge LED television is displayed to encourage customers to buy a better power saving product. LED televisions are proven to consume less power and produce less heat to surrounding. LED televisions are proven to maximise the colour output and minimise the risk of damaging human’s vision.

Price factor in sustaining green environment. Soon after the government had established “No Plastic Bag Day”, the overall usage of plastic bags had decreased remarkably. Every hypermarket includes Tesco will not supply plastic bags to buyers on Saturday. By doing so, Customers of Tesco are encouraged to bring their own recyclable bag in other words “Green-Bag” to carry their stuffs. Every purchase of plastic bags on Saturday will cost 20cents more. Customers will tend to pay at a cheaper price rather than an expensive price. Therefore, an increase in price of plastic bag will lead to decrease in demand of plastic bag.

Health awareness in sustaining green environment. When customers realise their health is not in a favourable condition, consumers tend to consume healthy organic food like organic vegetables. Organic foods are non-genetically modified food and are safe to be consumed. Thus, water pollution will decreased in a way of washing it.  

QUESTION 3

a.)

The pie chart above is based on our survey on customer in Tesco. The changes that happened to Tesco’s goods price is very elastic. The proportion in blue has shown a majority of 80% customers will not shop in Tesco if there is an increase in price. This shows that changes in price is very elastic. When there is a an increasing in the price, demand will decrease. Customer will shop in hypermarket other than Tesco.

b.)

The changes occurred to the other hypermarket price is considered inelastic as majority of the consumers at Tesco were not affected by the price change shop at other hypermarket. This concludes that a decrease in price does not make a huge difference in Tesco’s demand.

c.)

The graph above shows that majority (70% of the consumers) would buy more items from Tesco if the income of one increases. This is considered elastic as the increase in number of purchase of these products will also cause an increase in demand. As a conclusion, an increase in income for the customers will cause an increase in their demand.