Decision-Making Process & Product Development Of TESCO

TESCO PLS Assignment Student Name Course Title Date An effective decision-making process brings together right kind of resources to the right market at the right time. The quality and quantity should go side by side as they help gain an advantage over the competitors. Headquartered in Welwyn Garden City, Hertfordshire, Tesco is a British grocery and merchandise retailer and has its stores in over 11 countries across Europe and Asia. The company was founded in 1919 by Jack Cohen and first emerged as a brand in 1924 after Jack bought a shipment company and expanded its network worldwide. Tesco is not only known for its high-quality books, electronics, and furniture items but also toys, software, clothing, financial services and internet and telecom services (Lal, and Rangan, 2005). Decision-making process and product development of TESCO In February 1993, Tesco announced that it would change its policies to make them user-friendly. First of all, the company implemented new marketing and promotional strategies, and then it introduced new trends in developing products and managing the business. The same year, Tesco introduced different loyalty programs to attract more and more customers. As a major food retailer in the United Kingdom market, Tesco has developed a contemporary vision and introduced lots of top-quality products. At the same time, the company does not compromise on prices and has always sold its items at reasonable costs (Woods, 2011). Today, Tesco Club is considered the most victorious and marvelous loyalty program and a powerful and integrated way to increase its number of customers. With the passage of time, Tesco has developed various products and upgraded the old ones, so that they come up the expectations of the customers. No doubt, it is the best and fastest growing European company and financial service provider. With nearly 80% of Tesco sales going through the loyalty card, it looks like the company would introduce similar programs in future with an aim to engage more customers and ensure their satisfaction regarding quality, reliability, and affordability (Reynolds, Cuthbertson, and Bell, 2004). Tesco’s club card reflects the company commitment and dedication to the business as well as its customer. It has strong team ethics, provides customers with outstanding services, and on top of that Tesco is loyal to everyone and does its best to satisfy both employees and consumers (Weele, 2010). Different stages of the process The strategic decisions of Tesco are based on long-term commitment and can affect the overall performance and entire business of the company. The manager is responsible for taking these decisions; he keeps an eye on the performance of the employees, ensures that production meets demands, and of course, the customers get what they have paid for. Tesco’ tactical decisions will allow it to research more products before starting their production, evaluating the sales and overall performance of the old products, and creating a balance between customer numbers and product development. Operational decisions are related to the day-to-day running of the business. A junior manager or an employee can take these decisions in the absence of the senior manager. This will definitely help Tesco generate more revenues and target potential customers with ease (Weele, 2010). Similarly, the financial accountants of the company can use recorded data to prepare accounting statements on a daily or weekly basis. This will eventually help Tesco evaluate its overall performance and pay more attention to its current policies. The company is preparing annual account reports on the activities and performance of its workers, and the financial accountants can ensure that these accounts are up-to-date, accurate and in accordance with the rules and regulations of Tesco. The company evaluates its internal and external data on a regular basis; plus, the performances of workers is checked and balanced. Those who are new to Tesco are provided with guidance and support, and they are motivated to work hard in collaboration with their seniors. This overall process eventually helps Tesco grow as a brand and allows its customers to get only quality products (Barwise, and Meehan, 2004). Market research methods that could be applied Tesco has applied different market research methods, such as it collects information about the customers, accepts their feedback, and then prepares products according to desires and requirements. As part of its primary research method, the company gathers original information from its customers, such as their email IDs, names, shipment addresses and others. Surveys are conducted in this regard, and this type of market research method gives Tesco full control over the type of confusions its customers have. The secondary method allows Tesco to update its existing information so that it aligns with the current business strategies. Furthermore, the company has opted for different qualitative and quantitative research methods to enhance its overall performance (Solomon, 2018). They use these approaches to identify the size of their markets and how much they might be worth to the company. Tesco also uses this information to find areas for the sales growth. Quantitative research often requires the company to product lots of statistics. These stats are beneficial as an overview of the market, but they have to make sure that the statistics are accurate and reliable. Similarly, the qualitative method will allow Tesco to focus on potential customers, and understand their attitude and feelings towards its services and products. Furthermore, a formal and informal conversation is often held with the customers, and they are asked about the quality of the products. Regular reviews of rivals are also done to understand the nature of their products as well as customer service practices. All these strategies help Tesco improve itself as a brand and provide consumers with what they are actually looking for or expecting. These approaches are used to get a better understanding of the customers’ habits, needs and interests, and to identify the opportunities for growth. Also, these are helpful for improving the overall performance and analyzing different approaches that might give better and more accurate results (Fleck, 2013). Factors that affect consumer buying behavior and decision-making process A large number of factors influence the consumer buying behavior as well as decision-making process of Tesco. For instance, motivation plays a key role in how well its workers perform and how they meet the targets. The company often motivates them by providing bonuses and performance-based rewards. Not only this but also Tesco provides its employees with free medical and transportation facilities. Motives such as hunger, warmth, and shelter are part of physiological behavior, while motive...