To double the amount of output they build Essay Sample
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To double the amount of output they build Essay Sample
As a result of these 5 coorprate plans this contributed them to succeed as they had motivation and goals to reach them , being the best quality servicer will atrract many clients to chose this organisation against the others. Through delievering good homes with quality home, they would be able to bring all the homes in Uk under the L&Q association. This is shown as they have improved their resident satisfaction by 1% to 79.4%, which places them among the top social landlords in London.
In addition to this they are succesful because they have been increasing employment and skills among their residents, increasing financial inclusion among their resident and they have strengthened communities through community activity and involvement.
279405080000These are some of their success in the business, which was achieved through many factors as stated above.
From their website it says “594 residents checked how we performed and helped us to raise standards”, this made them succesful as this meant the business had more money to spend which as a result means they can build quality and better homes, which is likely to increase the sales. They have also been successful as the employees have taken the role of creating the confidence and trust with the tenants, to make them feel like they are in a close relationship with L&q, as they will feel engaged and more involved in the business.
However on the other hand L&Q have not always been succesful. The business had issues with not having enough area to use, this was because of the population increasing meaning it was harder to find a place and buy to build a home. As L&Q did not deal with the customer complaints it ended up on social media on a facebook page ‘Mistreated Tenants of L&Q’, by people writing comments this will affect the reputation of the business negatively.
In conclusion, we can L&q have been succesful for a number of things for example their responded to the high demand of creating homes, which made them meet the needs and wants of the tenants. They also ‘increased operating surplus by 14% to £365m (2016: £321m),increased operating margin on social housing lettings by 2% to 51% (2016:49%), completed 2,552 residential units (2016: 2,510) including 1,536 units for sub market rent and shared ownership (2016:1,364) and 1,016 for market tenures (2016: 1,146), increased its investment in new supply to £3.80 for every £1 generated from operations (2016: £1), maintained high levels of customer satisfaction’, this all shows how they have been succesful.
Stakeholders and the communication used to aid the business success
Tesco has stakeholders, that influence the business to succeed. Stakeholders are individuals, groups or organisation that have an interest or concern in an organisation. In this business one of the stakeholder is customers who are external as they are very important for the success. They are individuals who purchase a good or service from a business. They are interested in excellent experience of shopping, good quality products at a good value with enthusiastic staff ready to help them to show loyalty , with their prefered product, which will bring money into the business, which will end as revenue for the business. By doing this they will have strong customer service, which will result in customer loyalty and retentaion. They try to stay connected, with them by using things such as emails, forms and questionairres to get feedback.If there was no customers in their business, they would not have anyone purchasing their products,they would not be able to meet there aims and objectives which would end up in a loss as they would not earn any money to run the business.
Tesco communicates with their customers by advertising on variety of this is a powerful and effective way of getting a message to a wide audience, as a result it will help to keep the brand in the minds of consumers. This has made them succesful for example, they publishised an advert which headline stated ‘Tesco profits drop 12.4% but Everyday Value boost sales’ we can see by advertising they later realeased a financial report which showed the effect of the advert as ‘like-for-like sales growth of 0.3% for the 13 weeks to 28 May, with overall group sales up 0.9%’. This shows a postive effect on the business as by advertising the customers can differentiate the different businesses that are offering them their needs and wants. The right advertising campaign defines a company’s unique brand, this will help customers build emotional relationships with that brand. This increases the likelihood that consumers will buy from that business. The customer service, also aids to the businesses success, as the use of word-of-mouth, is one of the effcetive method of communication, as if the Tesco staff treat their customers right, this will make the tesco customers experienece enjoyabale as a a result they will promote the business by telling friends and family, which will bring more awarness to the business. As a result of this it will incraese the amount of customers, which will maximise the businesses revenue.
Another way Tesco communicate with their customers is with their clubcard. Tesco clubcard is a loyalty card, which can be used in Tesco to collect points, which can later be used to redeem as vouchers, this is a form of scheme. For Tesco to attract everyone they have a number of segments for customers, to provide something for a whole family, they divide their clubacrd into a number of cards for example Tesco Kid club, Tesco club. Tesco communicate with the customers through this , as using the data from Clubcard, Tesco was able to predict consumer trends and react to them, by seeing what the customer prefer they were able to offer discounts in this, by doing this they where able to keep their customers in their business only as they met their needs and wants.This made them succesful as, the clubcards nationwide lanuch in 1995, was the foundation of ‘Tesco’s rise to become the dominant retailer in the UK’. By doing this they also able to build customer loyalty.
Tesco also communicate with their customers through mobile communication. They have an app called ‘Tesco club card app’ , this enables their customers to track their points that they have earned through shopping, and updates them about new offers that are available, in the store. By doing this Tesco is able to aid the business success, as the use of the advanced technology allows Tesco to interact with their customer on a personal level. Tesco communicate through the club card, this is incredible wealth information about customers, as through this they can target market via the data that is provided through the card to monitor their customers’ preferences as they can produce innovative products according to their customers. It has been succesful, as the Tesco Club card provides a source of reward s that keeps their customers coming back; this had made them succesful as it has helped them be competitive advantage over their competitors such as Sainsbury’s.
They also communicate with their customers by ‘introduced seven new, exclusive fresh food brands, investing c.£300m, further removing reasons for customers to shop elsewhere; these brands now feature in 64% of customers’ baskets’, this made them successful as they had something for everyone.
Another way they communicated is by having ‘simpler, clearer and lower prices; multi-buy promotions reduced by a further 24% year-on-year; typical customer basket 6% cheaper than in September 2014’, this attracted more customers as they had promotions which made them improve their profitability which also made them successful.
In addition to this another factor is ‘simpler product range with 24% net range reduction and 4,400 new products over two years’, this also was a tool they used to attract more customers, as through the reduction, the prices where cheaper so the less affordable people were also able to buy products.
This also made them successful as they ‘improvements across all key customer metrics; record sales-based availability of 96%, continue to be rated first by customers for speed of service and score for staff helpfulness up to 80%’, which made them able to fulfil their purpose as by providing a better service they were able to make sure their customers had a better experience.
In addition to this another stakeholder is employees are internal. They are an individuals who are hired by an employer to do a specific job, in Tesco. As a stakeholder they would have an interest on their own needs and expectations as to their work and career. This will include having equality in workforce, having fair terms and conditions applied, so they get paid right amount of money for the role they do, without judging their gender. They would also want to be treated right as a more engaged workforce, would gain a deeper understanding of what is required by them, to reach the overall goal of the business. In an international business like this everyone has to put their involvement in to gain the overall objective of success.
They would also expect their manager to have a positive relationship with them, to make them feel they are welcomed and part of the workforce. They would influence on the success in the business, as by their productivity and efficiency in the job, and tasks they do every day, if they disagree with working conditions, pay or company policies they would not give their full potential to work, therefore the service and products would not meet the expectations of the customers. If they decide not to come in, it will impact their profit, as the customers; have no one to seek for help if needed, which will impact the sales of their goods and services they offer. As a result of this they will lose profit and customers as their customers would start purchasing in their competitors business as their quality would be better.
For the employees, the communication that is used to aid the business success is their weekly five minute face to face communication for all colleagues; this is used to communicate the most important messages relevant to you and your role. This aids, the business success as by doing this the employees are well informed on what they need to do they will complete this, and as a result the business will benefit from this a everyone’s contribution, will result in their aims and objectives succeeding as a business.
In addition to this another communication is the monthly colleague publication for all the people in Stores, Distribution Centres and Offices that is available for to take home, each of these are issued with news, features, fun and competitions. This aids the business success, as this can be a form of motivation for the employees to do their best as they would want to be featured in the document, by them doing the best the employee will result in making high quality products which will result in customers wanting to buy from Tesco for the quality.
Moreover another communication is their noticeboards, which they display up-to-date information about areas such as training, statutory information, health and safety notices, company news, union updates, benefits and club activity that could affect them. This aids the business success as the noticeboard updates the employees with anything new they should know, and also gives them opportunities such as better training which can result in better qualified workers. If the employees are not reading the noticeboards they would not know what’s happening, which can result in Tesco being behind their competitors as the employees did not give the best as they didn’t know what’s happening, so their competitors will be competitive advantage.
Furthermore another communication is the steering wheel. The Steering Wheel is the tool they use to help measure the performance and manage the business in a balanced way. It plays an important role in communicating the strategy and the performance to all of the colleagues. This will aid the business success as this can be a motivation tool for them, as they would want to get the best, as a result they will give their best which also results in Tesco giving good services, providing quality products and many more.
Customer– This relates to how well they are providing the customers with what they need and expect. People– This relates to the colleagues, it measures include how colleagues feel about working for Tesco.
Finance– This relates to management of the costs and delivery of an efficient operation and the stakeholder expectations.
Operations– This relates to productivity and the standards of the working environment.
514858022161500Community– This relates to what they do at a local level as a neighbour and a member of a community and the wider role the business plays in society
From their website we can see Tesco ‘83% of all colleagues recommend us as a ‘great place to work’, up from 81% last year’ this showed they communicated with their employees through face to face communication, or surveys which made them successful. Another reason why they were successful is ‘two-thirds of colleagues believe their job has become simpler year-on-year’ they made sure they built a positive relationship with their employees who made the employees feel like they were a family which, as a result will make the workplace more efficient.
As happy employees would mean they would provide a better service, which would make Tesco successful as they would attract more customers which would mean they would be able to stay competitive advantage.
Another reason why Tesco is successful is because ‘more opportunities, with 4,000 colleague promotions; plan for 2,500 apprenticeships this year’ this made them successful as they made their business as they had more employability, and as a result they had more employees available to help customers at peak times.
Furthermore another stakeholder is shareholders are internal in this business as they are part of the general public who want the business to succeed. Shareholders are individuals, companies or other institution that own at least one share of a company’s stock.They would want the business to carry on successfully, and receive revenue form their current stores. They would want the business to succeed as a result; they will earn an increased stock valuation, which will make profit. If there is no shareholders, there would be no funds, this will result in no owners as a result Tesco would not be able to continue their business. If the organisation does not make revenue, shareholders will sell their shares, and invest in their competitors business as they make profit, this will affect the business, as the business have no money to run.
They communicate with the shareholders by having the Annual General Meeting. ‘This meeting is a mandatory yearly gathering of a company’s interested shareholders. At the AGM, the directors of the company present an annual report, which contains information for shareholders about its performance and strategy. Shareholders with voting rights vote on current issues, such as appointments to the company’s board of directors, executive compensation, dividend payments and selection of auditors.’ This aids the business success as, holding an AGM is the principal right of the company’s shareholders, by doing this they can show interest into Tesco by giving feedback on the annual report, shareholders would be able to give feedback on what they believe is good and what they think needs improvement in.
This can lead to improvements external and internal into the business, which can improve the business overall. They also had ‘intention to resume dividend payments in respect of the 2017/18 financial year; expected to grow progressively, with aim of achieving target cover of around two times EPS over the medium-term’.
In addition to this another way Tesco communicates with their shareholder is the financial statements included within the Tesco PLC Annual Report and Accounts. The annual report is the document that outlines and analyses the activities, especially the financial dealings, of a company or other organisation over the past year.
This aids the businesses success, as by doing financial statements, Tesco can see what they are doing good and what needs improvement in their business for example they can see how much sales they need to do in order to breakeven.
Shareholders aided Tesco’s success as ‘in October 2016, shared ambition to deliver Group operating margin of 3.5-4.0% by 2019/20, underpinned by six strategic drivers including £1.5bn cost savings’ by the shareholders sharing their vision there were able to make Tesco successful as they saved money.
They were also successful as ‘regained full ownership of another 16 UK stores, in line with aim to reduce exposure to fixed-uplift or inflation-linked rental agreements; further seven large stores re-purchased in April 2017’.
The Expert Advisory Panel, are external, they are a key stakeholder in this organisation. An expert advisory panel are experts who the organisation may ask advice for technical guidance and support in a particular subject, through by correspondence or at meetings with the experts. They are a key to success as, they help develop a good environmental strategy, and help the business run successfully by offering advice as appropriate if any issues arise within the business. If they are not part of the business Tesco may run into a loss, as they would not be able to get specialise support, for any problems that many occur.
Managers are key internal stakeholders in their business. They are individuals who are in charge of a group of tasks, or a certain subset of a company, to make sure everything runs smoothly. They are a key to success as; they make the key decisions on a day to day basis for example promotions that Tesco offer, through using strategies that will maximise their revenue. They are expected to hire the best employees, to make sure the business runs smoothly. If there was no manger Tesco would not be able to reach their overall aims and objectives, as managers are individuals who assign roles if they do not assign the role to the individual who suits it the work may be in poor condition or not up to standard, as a result they will lose sales as customers would not buy their products. This will affect the business carrying on later as the business; will be in massive debts, which will result in a loss to Tesco.
Therefore Tesco will try to decrease the price, in order to make revenue by selling their products. The reliability of the supplier can affect Tesco, as if arrived late the customers might go to other business, which will result in a loss. They can also change credit terms which will result in cash flow issues for a company and they have the rights to decide whether or not to allow discounts for bulk orders or loyal customers. They influence the success of the business, as without them there is no goods to sell, therefore there is nothing to make profit out of this will make a massive loss to the business which can result in shutting it down.
Furthermore another key external stakeholder is the government. They are a group of people with the authority to govern a country or state. They would want the business to run good, so they can offer more employment for individuals that need it. They can influence the organisation by introducing new laws, which can result in affecting the operations. For example they can introduce laws such as National Minimum wage, this is in favour for employees but not for the overall business as the business might not have that much money to offer to everyone, they might be in budget. They can also