Tesco: How One Supermarket Came to Dominate
The size of Tesco is very large as it has 273,028 employees internationally working in 2,106 stores of different kinds in and around Britain. There are also little chains of supermarkets as Tesco Express which is a neighborhood convenience stores averaging 200 square meters (2,200 sq ft), stocking mainly food with an emphasis on higher-margin products such as sweets, crisps, chocolate, biscuits, fizzy drinks and processed food (due to small store size, and the necessity to maximize revenue per square foot) alongside everyday essentials. Its employees would mainly be around 60 and Tesco Extra which is a larger supermarket chain has about 28,000 employees which sell food to technology. Tesco Extra stores are larger, mainly out-of-town hypermarkets that stock nearly all of Tesco’s product ranges, although some are in the heart of town centers and inner-city locations.
The largest store in England by floor space is Tesco Extra in Walden, with 17,230 square meters. The benefits of having a large business in size is that they are usually more established and have greater amounts of funds and resources. Larger companies also have more established customers. Therefore, produces higher sales and profits. Also larger companies would have stronger brand recognition or awareness than smaller one would have. Greater brand recognition results in the percentage of people aware of a company’s brand name and products, which is a successful way to boost its stakeholder (customer). An advantage of having stronger brand recognition is that customers will usually think of Tesco first when making purchase decisions.
Therefore, companies with greater brand awareness generally sell more products in the marketplace. Tesco is an international business. An international is the exchange of goods and services among individuals and businesses in multiple countries. Tesco operates in United Kingdom, United States, China, Japan, South Korea, Thailand, Malaysia, Ireland, Poland, Czech Republic, Slovakia, Hungary and Turkey. There are multiple benefits for owning an international business like Tesco would be that a country is able to earn valuable foreign currency by exporting its goods to other countries. Also International business widens the market for products all over the world. With the increase in the scale of operation, the profit of the business increases.