Business Enterprise



Corporate social responsibility (CSR) programmes that Tesco adopted for the past 3 years.

    On the year 2012, Tesco and Kraft Foods together launched a campaign named “We Care”to raise funds for leukemia patients. From 29 November to 31 December, RM0.10 of every RM10 purchase of participating Kraft products at all Tesco hypermarkets will be donated for the treatment of leukemia patients at UMMC. The donations are aimed to help the patients in reducing their treatment costs.

     On year 2013, a Tesco Malaysia team went to Port Dickson to clean up a beach on the 30th of November. This project was led by Port Dickson Municipal Council president Abdul Khalid Mat and Tesco Malaysia government relations and corporate affairs director Azlam Shah Alias. Quoted from Mr Azlam, he said, “The beach clean-up is one of our CSR projects. In line with meeting our 2020 target to reduce 50% of carbon emissions in our direct operations and in products we sell.” On another hand, Mr Azlam also said Tesco is also working with customers through its “Greener Earth : Plant a Tree” campaign.

    Again on year 2013, Tesco launched a campaign at the University of Malaya Medical Centre named “Walk for Life”. It is yet another event aimed to raise funds for children who has leukemia. Tesco aimed to raise RM1 million for 100 children suffering from leukemia within three years (2012 – 2014).  




1     Based on our observation,
(i)           What are the facilities provided by Tesco to their consumers? (Eg. Free parking space)

Facilities such as trollies and baskets for the consumers to hold the goods they wish to purchase are provided by Tesco. The parking spaces at Tesco are also free of charge to make driving customers save a little bit more on their daily expenses.

Trolleys with baby seats are also provided by Tesco to ensure the toddler of their consumers stay safe and comfortable in that seat of theirs. (Refer to Image 2.1)

Image 2.1


Tesco also has many counters for the customers to pay for their goods. This ensures that there won’t be many long queues, thus reducing the chance of inconveniencing the customers. 

Tesco has also innovated a new way for shoppers to shop : online.  Tesco has an eShop for their customers if they are not available to drive all the way to Tesco just to purchase groceries. (http://eshop.tesco.com.my/) . It works just like any other online shopping website and Tesco will deliver the products you bought right to your doorstep.

Paying at Tesco also enables cardholders of the Bonuslink card to earn points when they shop over there. 



(ii)          Types of businesses that Tesco is currently involved in.

One of the business that Tesco is involved is retailing. Tesco itself has many shops inside of them like “MyNews” inside of them.

Another business that Tesco is involved in is F&B. Tesco itself has shops like “Sushi King” and “Baskin & Robbins” inside of them.

Another business that Tesco is involved in is franchising. According to this link, Tesco has moved onto franchising as one of their businesses world-wide.

And of course, Tesco itself is a supermarket. 



(iii)          Under PEST analysis, analyse social and technological factors of Tesco.

Social – With the baby seats on the trolleys, mothers can come to shop while taking care of the baby. If those seats aren’t provided, it may take both the father and the mother to come to Tesco. (One to push the pram and the other to push the trolley ).With the eShop, the working class who barely have any time during the weekdays may now shop online.  Also, the products that Tesco sells also caters to all the income groups as they have cheaper alternatives for most of their products. For example, referring to image 2.2 and 2.3, we have the original Coca-Cola with the price of RM3.29 per bottle. However, Tesco has their own brand of coke where it is cheaper than Coca-Cola, selling at RM2.30 per bottle. Maybe a person from a not so well off family may have thought that RM3.29 for a bottle of carbonated goodness is considered a luxury to them. After seeing the RM2.30 coke, they may enjoy coke like everyone else. 

Image 2.2
Image 2.3



Technological As mentioned earlier above, Tesco’s eShop has proved to be convenient for shoppers out there. When more people choose to shop online, more parking spaces will be available at the Tesco supermarket itself. To add on, many supermarkets have huge traffic jams in front of them. (Eg. Puchong outlet). At the United Kingdoms, Tesco has installed face-scanning technology at its pertrol stations to target individual customers at the till. Basically, it scans the face of the customer and identify which demographic group that person belongs to judging from their age and gender and then it’ll show advertisments related to that demographic group. (For example, it identifies a man around age of 40. Then, an advertisement featuring shavers will appear.)

    


        (iv)          Recommend one way to achieve sustainability.

Tesco can provide car-pooling services for their employees. This will reduce the parking spaces taken up by the employees, thus allowing more customers to come to Tesco. This will also increase environmental sustainability as less cars driven = less greenhouse gases produced. Business sustainability is obtained by allowing more customers to park. With these being part of worker’s welfare, u can attract and retain workers this way. The company image is also enhanced as an environmentally and worker-friendly company.

If this idea is too far-fetched, Tesco can also encourage ridesharing by sponsoring carpools or vanpools.  Another similar idea would be to partner with local transportation consortiums. (For example, Tesco employees can get discounted rides).