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An Assignment on






Submitted in partial fulfillment of the requirements for the course of
Computers

To
Mr. Tapan Sarkar
Faculty
Pearl Fashion Institute

By
Tanmoy Chowdhury Antu
FMP-4
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Acknowledgement

This assignment could not have been written without the helping hand of course teacher Mr.
Tapan Sarkar, who encouraged and challenged me through my academic program. He never
accepted less than my best efforts. . My special appreciation and sincere gratitude goes to him
for giving me the permission to work on this topic and the clear course of action given, which
was very help for me to understand and set up the structure of the assignment. Thank you.

What are collected in this assignment are materials that I found in web pages. I make no claim
to be comprehensive. A special thanks to the authors mentioned in the referencing and
bibliography page.

I am felling proud that I am a student of Pearl Fashion Institute.

I would like to acknowledge and extend my heartfelt gratitude to the students of earlier batch
and classmates who shared their personal experience with me.
Most especially to my parents especially my mother words alone cannot express what I owe
them for their encouragement and whose patient love enabled me to complete this
assignment.

And especially to God, who made all things possible.




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Table of content
Serial
No.
Description Page No.
1. Introduction 4
2. Company Profile 5
3. Company History 6-7
4. Tescos Product 8-10
5. Tesco Stores 11-12
6. Tescos Turnover Graphs 13
7. Financial Performance of Tescos Share 14
8. UK Market Share 15
9. Internet Operations 16
10. International Operations 17-21
11. Other Operations 22-25
12. Corporate Social Responsibility 26
13. Conclusion 27
14. References 28-29
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Introduction
Tesco to be most highly valued by the customers we serve, the communities in which we
operate, our loyal and committed staff and our shareholders; to be a growth company; a
modern and innovative company and winning locally, applying our skills globally.
Tesco is committed to creating shareholder value through an innovative customer focused
strategy implemented by our people. This strategy is based on the following principles: Value
for Money: We are committed to giving customers quality products at guaranteed unbeatable
prices; Customer Service: Our focus on customers is unique and we lead the way in delivering
First Class Service; Customer Loyalty: Customers reward us with their loyalty and we thank
them through Clubcard; Products: Working closely with our suppliers, we are determined to
offer products of the highest quality and with the widest possible choice; Stores: By investing in
existing stores and developing flexible new store formats, we are committed to giving
customers the very best shopping experience. [www.referenceforbusiness.com, accessed on:
20
th
June, 2011]
With this vision of thinking globally Tesco becomes the third-largest retailer in the world
measured by revenues (after Wal-Mart and Carrefour) and the second-largest measured by
profits (after Wal-Mart).
Tesco plc is a global grocery and general merchandise retailer headquartered in Cheshunt,
United Kingdom. It has stores in 14 countries across Asia, Europe and North America and is the
grocery market leader in the UK (where it has a market share of around 30%), Malaysia, the
Republic of Ireland and Thailand.
The company was founded by Jack Cohen in 1919 and opened its first store in 1929 in Burnt
Oak, Edgware, Middlesex. The Tesco name first appeared after Cohen purchased a shipment of
tea from T.E. Stockwell and combined those initials with the first two letters of his surname.
Originally a UK-focused grocery retailer, Tesco has diversified both geographically and into
areas such as the retailing of books, clothing, electronics, furniture, petrol and software;
financial services; telecoms and internet services; DVD rental; and music downloads.
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Company Profile
Type : Public Limited company
Traded as : LSE: TESCO
Industry : Retailing
Founded : 1919 (East London)
Founder : Jack Cohen
Headquarters : Cheshunt, Broxbourne, Hertfordshire, UK.
Number of locations : 5,380 stores (As at Feb 2010)
Key People : David Reid (Chairman), Philip Clarke (C.E.O)
Products : Groceries, consumer goods, financial services,

Revenue : 60.93 billion (2010/11)
Operating Income : 3.81 billion (2010/11)
Net Income : 2.67 billion (2010/11)
Employees : 472,000 (2010)
Website : tesco.com

[www.wikipedia.com, accessed on: 20
th
June, 2011]




Telecoms.
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Company History
Tesco started life in 1919 when Jack Cohen started selling surplus groceries from a stall in the
East End of London. Mr. Cohen made a
profit of 1 from sales of 4 on his first
day.
The Tesco brand first appeared five years
later in 1924 when he bought a shipment
of tea from a Mr. T. E Stock well. The
initials and letters were combined to
form Tes-co and in 1929 Mr. Cohen
opened the flagship Tesco store in Burnt
Oak, North London.


The brand continued its rise in the 1930s when Mr. Cohen built a headquarters and warehouse
in North London and in 1932 Tesco became a private limited company. In 1947 Tesco Stores
(Holdings) Ltd floated on the stock exchange with a share price of 25p.
Expand and conquer
Tesco showed its expansionary zeal early on by buying up rival shops. In the 1950s the retailer
bought 70 Williams stores and 200 Harrow stores, followed by 97 Charles Philips stores and the
Victor Value chain in the early 1960s.
During the 60s supermarkets started to expand rapidly by selling more products in ever larger
stores.
In 1961 Tesco Leicester entered the Guinness Book of Records as the largest store in Europe
and in 1968 Tesco opened its first 'superstore' in Crawley, West Sussex.
Supermarkets revolutionized the way people shopped and by the 1970s Tesco was building a
national store network to cover the whole of the UK, which it continues to expand to this day,
while also diversifying into other products.
www.wikipedia.org, accessed on: 20
th
June, 2011
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In 1974 Tesco opened its first petrol stations, and would become the UK's largest independent
petrol retailer. By 1979 total sales topped 1bn, and by 1982 sales had doubled to more than
2bn.
In 1987 Tesco successfully completed a hostile takeover of supermarket rival Hillards for
220m.
The battle for top spot
In the 1990s Tesco continued to tighten its grip on the UK with more store openings and an
aggressive marketing campaign in an attempt to overtake Sainsbury's as the UK's leading
grocer.
In 1992, the company launched is slogan 'every little helps', followed by the Tesco Value range
in 1993. This was followed by the launch of the Tesco Clubcard scheme in 1995, helping Tesco
to overtake rival Sainsbury's as the UK's largest food retailer.
1996 saw the retailer introduce its first 24-hour store while it also expanded overseas opening
shops in Poland, the Czech Republic, and Slovakia. In 1997 Tesco appointed Sir Terry Leahy as
chief executive.
Tesco.com was launched in 2000 and the supermarket continued to expand its range of
products, which now includes clothes, electricals and personal finance products. In 2004 Tesco
entered the broadband market.
Two years ago, in 2006, the retailer announced ambitious plans to open stores in the US under
the name 'Fresh and Easy' and funded by existing resources. Tesco now operates in 13
countries.
Today it reported that group sales were 51.8bn in the year to February 23 2008. Pre-tax profit
rose to 2.8bn.
In 2008 the retail giant took its conquest of the UK one step further by buying up some rival
Somerfield stores on remote islands in Scotland, giving Tesco a presence in every single
postcode area in the country. As it stands there is only one postcode in the UK - in Harrogate in
North Yorkshire - which does not have a Tesco.
[www.telegraph.co.uk, accessed on: 20
th
June, 2011]
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Tescos Product
Tesco has several products which are available in online business as well as Tesco stores. Few of
them are:
Tesco Groceries
Same low prices and regular in-store offers plus recipes, money saving tips and clubcard points
o Groceries
o Recipes
o Real Food
o Grocery apps
Wine by the case
One can choose from a range of 1000 wines & Champagnes that includes internet exclusives, a
new extended range of Fine Wine as well as all your in-store favorites. They offer the
convenience of 2 hour delivery slots or next day delivery which is free on orders over 99.
o Wine by the case
o Fine wines
o Special offers
Tesco Entertainment
1000s of titles to buy rent or download all at great Tesco prices and free delivery
o Entertainment home
o CDs
o DVDs
o Concert tickets
o DVD Rental
o Games
o MP3
o Blu-ray

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Tesco Books
A great range of books at Tesco prices and free delivery on orders over 15
o Books home
o Chart
o Pre-orders
o Children's corner
o Cookery
o Book Club
o eBooks
Tesco Clothing
Fabulous fashion delivered fast and direct to your door - free delivery on orders over 50 and
new free returns to store or by post. Over 2000 clothing styles to choose from, plus online
exclusives
o Women
o Men
o Kids
o Back to School
o Brands
o Sale
Freedom to choose any network
This is one-stop shop for mobile phone handsets, pay monthly contracts, pay as go SIMs, mobile
accessories, telephones and broadband deals.
o Pay monthly
o Pay as you go
o SIMs
o Mobile accessories
o Mobile Broadband
o Broadband & home phone
o Telephones
o International calling card
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o Great deals
o Mobile Recycle
o Tesco Mobile
o Tesco Broadband
Tesco Bank
A wide range of products and covers to suit your lifestyle and as you'd expect from us, they're
great value too.
o Car Insurance
o Home Insurance
o Pet Insurance
o Travel Insurance
o Life Insurance
o Health Insurance
o Dental Insurance
o Credit Cards
o Loans
o Savings
o Car Breakdown
o Travel Money
o Online Servicing
[www.tesco.com, accessed on 23
rd
June, 2011]

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Tesco Stores
Tesco's UK stores are divided into six formats, differentiated by size and the range of products
sold. These are shown below:
Tesco Extra
Tesco Extra stores are larger, mainly out-of-town hypermarkets that stock nearly all of Tesco's
product ranges. The first Extra opened in 1997 in Pitsea. The 100th store opened on 29
November 2004 in Stafford. The number of these is now being increased by about 20 a year,
mainly by conversions from the second category. The
largest store in England by floor space is Tesco Extra in
Pitsea, with 125,000 square feet (11,600 m
2
) of floor
space. In 2011, a Tesco Extra will be constructed in
St.Helens adjacent to the new St.Helens RLFC Stadium.
The largest in Scotland is the Port Glasgow store, which
opened in July 2007 with 110,000 square feet
(10,000 m
2
) of floor space. The largest in Wales is at Parc
Fforestfach, Swansea, which is 112,000 square feet
(10,400 m
2
) constructed in 2003. The 200th Extra store
was opened in October 2010 in Bishop Auckland.
Newer stores are usually on two floors, with the ground floor mainly for food and the first floor
for clothing, electronics and entertainment. Some stores that did not have the second floor
have been converted to this format in recent years. Most Tesco Extra stores have a caf and as
of October 2009, all stores have a Tesco Tech Support Team.
Tesco Superstores
Tesco superstores are standard large supermarkets, stocking groceries and a much smaller
range of non-food goods than Extra stores. The stores have always previously been branded as
simply 'Tesco', but a new store in Liverpool was the first to use the format brand 'Tesco
Superstore' above the door.
Tesco Metro
Tesco Metro stores are sized between Tesco superstores and Tesco Express stores. They are
mainly located in city centers, the inner city and on the high streets of towns. The first Tesco
Metro opened in Neston in 1980. Since then all Tesco branches with a high street format,
including those that opened before the Covent Garden branch, have been rebranded from
Tesco to Tesco Metro. The Tesco store in Devizes was the last store to finish rebranding, in
September 2006. The store had not been renovated for over 20 years.
www.penang-traveltips.com, accessed
on: 24
th
June, 2011
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Tesco Express
Tesco Express stores are neighborhood convenience shops, stocking mainly food with an
emphasis on higher-margin products (due to small store size, and the necessity to maximize
revenue per square foot) alongside everyday essentials. They are found in busy city centre
districts, small shopping precincts in residential areas, small towns and on Esso petrol station
forecourts. The 1000th Tesco Express site opened in July 2009. Tesco have now started building
Tesco Express stores with only 'Assisted-Service' tills, in which the customer scans all their own
shopping and packs it, with the support of supervising staff when required.

One Stop
One Stop, which includes some of the smallest stores, is the only Tesco store format in the UK
that does not include the word Tesco in its name. They were part of the T&S Stores business
but, unlike many that converted to Tesco Express, these kept their old name. Some have Tesco
Personal Finance branded cash machines.
Tesco Homeplus
Tesco Homeplus is not Tesco's first non-food only venture
in the UK. Until the late 1990s/early 2000s there were
several non-food Tesco stores around the country
including Scarborough and Yate. Although not in a
warehouse style format, the stores were located on high
streets and shopping centers, they did stock similar items
to Homeplus stores. In both cases this was because
another part of the shopping centre had a Tesco
Superstore that stocked food items only.
Stores offer all of Tesco's ranges except food in warehouse-style units in retail parks. Tesco is
using this format because only 20% of its customers have access to a Tesco Extra, and the
company is restricted in how many of its superstores it can convert into Extras and how quickly
it can do so. Large units for non-food retailing are much more readily available.
There are currently 12 Homeplus stores nationwide. The newest Homeplus store opened in
Chester in July 2009.
Two more were due to open in the first half of 2009 at sites around the country. All of these
were to feature the Order and Collect desk where customers can purchase and collect most
items straightaway.
www.wiki.galbijim.com, accessed on:
24
th
June, 2011
[www.wikipedia.com, accessed on: 20
th
June, 2011]

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Tesco's Turnover Graphs







www.dailymail.co.uk, accessed on: 21
st
June, 2011
www.bized.co.uk, accessed on: 21
st

June, 2011
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Financial performance of Tesco shares
Tesco is listed on the London Stock Exchange under the symbol TESCO. It also has a secondary
listing on the Irish Stock Exchange with the name TESCO PLC.
52/3 weeks
ended
Turnover
(m)
Profit before tax
(m)
Profit for year
(m)
Basic earnings per
share (p)
26 February
2011
67,573 3,535 2,671 33.10
27 February
2010
62,537 3,176 2,336 31.66
28 February
2009
54,300 3,128 2,166 28.92
23 February
2008
47,298 2,803 2,130 26.95
24 February
2007
46,600 2,653 1,899 22.36
25 February
2006
38,300 2,210 1,576 19.70
26 February
2005
33,974 1,962 1,366 17.44
As of its 2006 year end Tesco was the fourth largest retailer in the world behind Wal-Mart,
Carrefour and Home Depot. Tesco moved ahead of Home Depot during 2007, following the sale
of Home Depot's professional supply division and a decline in the value of the U.S. dollar
against the British Pound. METRO was only just behind and might move ahead again if the euro
strengthens against the pound, but METRO's sales include many billions of wholesale turnover,
and its retail turnover is much less than Tesco's.
At 24 February 2007 Tesco operated 1,988 stores in the UK with 27,700,000 square feet
(2,570,000 m
2
) of floor space and 1,275 outside the UK with 4,040,000 square feet (375,000 m
2
)
of floor space.
Despite being in a recession, Tesco made record profits for a British retailer in the year to
February 2010, during which its underlying pre-tax profits increased by 10.1% to 3.4 billion.
Tesco now plans to create 16,000 new jobs, of which 9,000 will be in the UK.

[www.wikipedia.com, accessed on: 20
th
June, 2011]

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UK market share
Graph Showing UK Market Share of Tesco
According to TNS World panel,
Tesco's share of the UK grocery
market in the 12 weeks to 27
December 2009 was 30.5%, up 0.1%
on 12 weeks to 27 December 2008
largely in line with the increase of
the other four largest supermarkets.
These increases follow a decline in
the market share of discount chains
Lidl, Aldi and Netto in the same
period, collectively of 0.1%.


Supermarket Market Share
December 2009
+/- from
December 2008
Tesco 30.5% 0.1%
Asda 16.9% 0.1%
Sainsbury's 16.3% 0.2%
Morrisons 12.3% 0.5%



www.wikipedia.com, accessed on: 24
th
June, 2011
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Internet operations
Tesco operates a grocery home shopping service, as well as providing consumer goods,
telecommunications and financial services online.
In May 1984, in Gateshead, England, the world's first recorded online home shopper, Mrs Jane
Snowball, purchased groceries from her local Tesco store in the world's first recorded online
shopping transaction from the home.
Tesco has operated on the internet since 1994 and was the first retailer in the world to offer a
robust home shopping service in 1996. Tesco.com was formally launched in 2000. It also has
online operations in the Republic of Ireland and South Korea. Currently it's also considering
entering Polish market. Grocery sales are available within delivery range of selected stores,
goods being hand-picked within each store, in contrast to the warehouse model followed by
Ocado.
In 2003, tesco.com's CEO at the time, John Browett, received the Wharton Infosys Business
Transformation Award for the innovative processes he used to support this online grocery
service.
On 1 October 2006, Tesco announced that it will be selling six own-brand budget software
packages for under 20 each; including office and security suites, in a partnership with software
firm Formjet. As Formjet is exclusive distributor for Panda Software and Ability Plus Software,
packages from these companies are likely to feature.
Tesco offers an internet-based DVD rental service, which is operated by LOVEFiLM and a music
download service.

[www.wikipedia.com, accessed on: 20
th
June, 2011]




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International operations
Tesco's international expansion strategy has responded to the need to be sensitive to local
expectations in other countries by entering into joint ventures with local partners, such as
Samsung Group in South Korea (Samsung-Tesco Home plus), and Charoen Pokphand in Thailand
(Tesco Lotus), appointing a very high proportion of local personnel to management positions. It
also makes small acquisitions as part of its strategy for example, in its 2005/2006 financial year
it made acquisitions in South Korea, one in Poland and one in Japan.
In late 2004 the amount of floor space Tesco operated outside the United Kingdom surpassed
the amount it had in its home market for the first time, although the United Kingdom still
accounted for more than 75% of group revenue due to lower sales per unit area outside the UK.
In September 2005 Tesco announced that it was selling its operations in Taiwan to Carrefour
and purchasing Carrefour's stores in the Czech Republic and Slovakia. Both companies stated
that they were concentrating their efforts in countries where they had strong market positions.
China
Tesco entered Taiwan, in September 2004, by acquiring a 50% stake in the Hymall chain, from
Ting Hsin of Taiwan. In September 2005, Tesco sold its stores in Taiwan to Carrefour. In
December 2006 it raised its stake to 90% in a 180 million deal. Most of Tesco China's stores
are based around Shanghai, but according to Tesco it plans to equip the business to expand
more quickly and in different areas. Tesco has been increasing its own brand products into the
Chinese market as well as introducing the Tesco Express format.
Czech Republic
Tesco opened its first store in the Czech Republic in 1996 and now has over 84 stores, with
further planned. Tesco opened its first stores in the Czech Republic by buying US corporation
Kmart's operations in the country and converting them into Tesco stores. Tesco is also keen to
expand non-food items and has already opened petrol stations and offers personal finance
services in the Czech Republic. There are currently three Tesco Extra stores in the Czech
Republic one in Prague and two in Plze.


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France
Tesco owned a French food retailer called Catteau between 1992 and 1997, which operated a
chain of stores in NE France under the Cedico, Hyper Cedico and Cedimarche banners. Tesco
also operated a "Vin Plus" outlet in Calais, selling wine, beer and spirits, which closed on 30
August 2010.
Hungary
Tesco launched in Hungary in 1995 after purchasing KMart's operations in the area. It also
opened its first hypermarket in Hungary in the same year. Tesco operates through 101 stores in
Hungary with further openings planned. Tesco offers its value, standard, healthy living and
finest range in its stores. Tesco Hungary also offers a clothing line and personal finance services.
In August 2010 opened the first Tesco Extra in Budapest; its name is Tesco Extra Fogarasi and it
is located in Zugl, Budapest.
Republic of Ireland
Tesco operated in the Irish grocery market in the early eighties, however sold its operations
there in March 1986.
Tesco re-entered the Irish market in 1997 after the purchase of Power Supermarkets Ltd.
It now operates from 101 stores across Ireland. Like Tesco stores in the UK, these offer a home
delivery shopping service available to 80% of the Irish population as well as petrol, mobile
telephone, personal finance, flower delivery service and a weight-loss programme. Also
available is Tesco's loyalty programme, the Clubcard.
Tesco is now the grocery market leader in the Republic of Ireland, with a reported November
2005 share of 26.3%. Tesco Ireland also claims to be the largest purchaser of Irish food with an
estimated 1.5 billion annually. Tesco Ireland operates a small number of Tesco Extra
hypermarkets in the Republic of Ireland, with Clarehall Extra on the Malahide Road being the
first to open in 2006. Tesco's largest hypermarket store in Europe, with a floor space of 18,500
m, opened in Naas in Co Kildare in November 2010.


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India
Tesco has had a limited presence in India with a service centre in Bangalore, and outsourcing.
However, in 2008 Tesco announced their intention to invest an initial 60m ($115m) to open a
wholesale cash-and-carry business based in Mumbai with the assistance of the Tata Group.
Isle of Man
Tesco has a large purpose built store and car park in Douglas on the Isle of Man, behind the
harbour in Douglas. There are plans to rebuild the store to almost double the floor space,
including a mezzanine level and to replace the open car parking area with a two storey car park.
Tesco also runs a home delivery service across the island.
Japan
Tesco Japan first began operations in 2003. It was brought about by a buy-out of C Two stores
for 139 million in July 2003 and later Fre'c in April 2004. Tesco has adopted an approach that
focuses on small corner shops that operate similarly to its Express format, rather than opening
hypermarkets. It has also launched its range of software in Japan.
Malaysia
Tesco opened its first store in Malaysia in May 2002 with the opening of its first hypermarket in
Puchong, Selangor. Tesco Malaysia currently operates 39 Tesco and Tesco Extra stores. Total
store by state in Malaysia is Selangor with 11 stores, Perak six stores, Johor five stores, Kuala
Lumpur, Kedah and Penang four stores, Melaka and Negeri Sembilan two stores and Kelantan
one store. Tesco partnered with local conglomerate Sime Darby Berhad, which holds 30% of the
shares. Tesco also acquired the Malaysian operation of the wholesaler Makro, which was
rebranded Tesco Extra and provides products for local retailers. Tesco Malaysia offers a value
range, own branded range, electronic goods, the loyalty clubcard and clothing. Tesco Malaysia's
clubcard introduced Green ClubCard Points in 2007 making Tesco Malaysia to be the first Tesco
international business to introduce the scheme (Green ClubCard Points).
Pakistan
Tesco, along with delegates from other supermarkets and retailers recently held talks with a
Pakistani trade ambassador at an invites only meeting in Manchester. The company announced
plans to open stores in wealthy suburbs of the capital city Islamabad and the second city
Karachi. These new stores will be wholesale cash-and-carry businesses. They will compete with
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Makro and Carrefour who already operate in Pakistan and have done so for many years. Tesco
have not yet ruled out plans to open stores in an Express format, though this format caters
more towards the country's growing middle class.
Poland
Tesco entered the Polish market in 1992. It currently operates from 334 stores. Tesco Poland
offers the value, healthy living and own branded line of products as well as regional produce,
petrol, personal finance services and on-line photo processing.
Slovakia
Tesco Slovakia opened in 1996 as part of Tesco's international expansion aims. It now operates
from 97 stores and 16 service stations. Tesco Slovakia has recently put great emphasis on
organic products. However, Tesco Slovakia caused controversy amongst the Slovak government
when it was found to have come foul of food safety laws in 2006. In April 2010 the first Tesco
Extra in Central Europe opened in Bratislava Petrzalka, Slovakia as part of a pilot project for
Tesco in the region, including the first self-service cash flow in Central Europe. There are
currently four Tesco Extra stores in Slovakia three in Bratislava and one in Zvolen.
South Korea
Tesco launched its South Korean operations in 1999 and partnered with Samsung, currently
Tesco holds 94% of the shares in the venture. It operates hypermarkets and its express format
as well as a home delivery shopping service. It is the second largest retailer in South Korea, just
behind Shinsegae Group.
On 14 May 2008, Tesco agreed to purchase 36 hypermarkets with a combination of food and
non-food products from E-Land for $1.9 billion (976 million) in its biggest single acquisition,
making Tesco the second largest in the country. The majority of the E-Land stores formerly
belonged to French retailer Carrefour before 2006 and most of the stores will be converted to
Tesco Homeplus outlets. Tesco's South Korean discount store chain, Home Plus, currently has
66 outlets.
Taiwan
Tesco entered Taiwan, in September 2004, by acquiring a 50% stake in the Hymall chain, from
Ting Hsin of Taiwan. In September 2005, Tesco sold its stores in Taiwan to Carrefour. In
December 2006 it raised its stake to 90% in a 180 million deal.
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Thailand
Tesco-Lotus superstore in Sakon Nakon, Thailand. Shoppers have to pass through a checkpoint
before entering the premises.
Tesco entered Thailand in 1998 and operates through 380 stores as part of a joint venture with
Charoen Pokphand and named the operation Tesco Lotus. This partnership was dissolved in
2003 when Charoen Pokphand sold its shares to Tesco. Tesco Lotus sells a diverse range of
products from value food products to electronics to personal finance services. The company is
keen to promote its green values and has partnered with the UNEP. Tesco Lotus claims to serve
20 million customers every month and that 97% of its goods are sourced from Thailand.
Turkey
Tesco entered Turkey in 2003 and uses the trading name "Kipa". Tesco remains focused on
building infrastructure in Turkey to complete its expansion plans and has already introduced
the Tesco Express format into Turkey. There are plans to increase the rate of expansion as basic
infrastructure is built. The first Tesco Extra in Turkey opened in Izmir, Turkey, Tesco Kipa Extra
Balova in September 2010.

United States of America
In February 2006, Tesco announced its intention to move into the United States market,
opening a chain of grocery convenience stores on the West Coast (Arizona, California and
Nevada) in 2007 named Fresh & Easy. The company established its U.S. headquarters in El
Segundo, California at 2120 Park Place. The first store opened in November 2007 with 100 more
expected in the first year. They plan to open a new one every two-and-a-half days in the United
States, to mimic the successful expansion of pharmacy chains such as Walgreens in the U.S.
The first Tesco Fresh & Easy Neighborhood Markets opened in Hemet (Riverside County),
Anaheim (Orange County), Arcadia (Los Angeles County), West Covina (Los Angeles County) and
Upland (San Bernardino County), California in 2007.
Fresh & Easy operates more than 163 stores in the United States.
[www.wikipedia.com, accessed on: 20
th
June, 2011]

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Other Operations
Garden Centers
Tesco announced its intention to purchase Dobbies Garden Centers for 155.6 million on 8 June
2007. Dobbies operate 24 garden centers, half in Scotland and half in England. The deal was
confirmed as successful by the board of directors of Tesco on 17 August 2007 when the board
announced that they had received 53.1% of shares (or 5,410,457 shares), which confirmed
conditions set out in the offer made on 20 June 2007. Although the deal had been confirmed by
Tesco the offer remained open to Dobbies shareholders until 20 August 2007. Tesco raised its
holding to 65% in September and on 5 June 2008 Tesco announced that it would be
compulsorily acquiring Dobbies Garden Centers plc. Dobbies continue to trade under its own
brand, from its own head office in Melville, near Edinburgh.
Banking
Tesco has a banking arm called Tesco Bank, formerly a 50:50 joint venture with the Royal Bank
of Scotland. Products on offer include credit cards, loans, mortgages, savings accounts and
several types of insurance, including car, home, life and travel. They are promoted by leaflets in
Tesco's stores and through its website. The business made a profit of 130 million for the 52
weeks to 24 February 2007, of which Tesco's share was 66 million. This move towards the
financial sector diversified the Tesco brand and provides opportunities for growth outside of
the retailing sector.
On 28 July 2008 Tesco announced that they were buying out the Royal Bank of Scotland's 50%
stake in the company for 950 million. In October 2009 the name of Tesco Personal Finance
was changed to Tesco Bank.
Technika
Technika is a brand name for Electronic products sold exclusively through Tesco Stores. The
Technika range currently includes Televisions, MP3 Docking Stations, Computer Peripherals,
DVD and Blu-ray Players, DAB Radios. The range is updated on a regular basis to follow market
trends.
The Technika brand is managed in-house by Tesco alongside its other brands, such as Tesco and
Tesco Value. Customer support is offered through the Tesco Electrical Helpline or in-store
through Tesco Tech Support.
23 | P a g e

Telecoms
Tesco operates mobile phone, home phone and
broadband businesses. These are available to
residential consumers in several countries and are sold
via the Tesco website and through Tesco stores. Tesco
has not purchased or built a telecoms network, but
instead has pursued a strategy of pairing its marketing
strength with the expertise of existing telecoms
operators.
MOBILE: In autumn 2003, Tesco Mobile was launched as a joint venture with O2. In November
2009 Tesco announced over 2 million UK customers are using this service. A similar O2 based
service has since been launched in Ireland and Slovakia.
ISP: In August 2004 Tesco broadband, an ADSL-based service delivered via BT phone lines, was
launched in partnership with NTL. In November 2009 Tesco announced a new partnership with
Cable & Wireless, and a fresh focus on this business area.
VOIP: In January 2006, Tesco Internet Phone, a Voice over Internet Protocol, VoIP, and service
was launched in conjunction with Freshtel of Australia. This service was shut down in 2010.
PHONE SHOPS: In November 2009 Tesco announced it now has 100 Phone Shops embedded
within larger Tesco Extra stores, and stated an intention to open up to 500 such shops across
the UK in the medium term. In April 2010 the first Tesco Phone shop opened in Slovakia.
Fuel
Tesco first started selling petrol in 1974. Tesco sells 95, 97 and 99 RON (a fuel developed by
Greenergy of which Tesco is a shareholder) petrol on a retail basis from forecourts at most
superstore and Express locations. Tesco have recently diversified into biofuels, offering petrol-
bioethanol and diesel-biodiesel blends instead of pure petrol and diesel at their petrol stations,
and now offering Greenergy 100% biodiesel at many stores in the southeast of the United
Kingdom.
On 28 February 2007 motorists in South East England
reported that their cars were breaking down. This was due
to petrol sold by Tesco and others being contaminated with
silicon, Tesco has been criticized with claims that they had
been alerted to the problem as early as 12 February 2007.
On 6 March, Tesco offered to pay for any damage caused by
the faulty petrol, after printing full page apologies in many
national newspapers.
www.geograph.org.uk, accessed
on: 22
nd
June, 2011
www.mobile.co.uk, accessed on: 22
nd

June, 2011
24 | P a g e

Tech Support
Tesco acquired a small I.T. support company called The PC Guys in 2008, and were able to
launch Tesco Tech Support in December of that year. Teams of Advisors were put into all Extra
stores with the sole job role of answering technical
questions on Tesco's range of electrical products.
They also are responsible for advising customers on
extended warranties, electrical returns and a range
of payment plans on all electrical goods over a
certain amount.
Film Making
In 2010 Tesco started funding a small film studio intended to produce Tesco exclusive direct-to-
DVD films. The first film comes out on 6 September and is called Paris Connections. It is based
on a popular novel by Jackie Collins, and is an investigation thriller. Jackie Collins rewrote the
novel to be more appropriate to the medium of film.
Record Label
In 2010, Tesco announced that they will be forming their own record label, with notable
signings since including Mick Hucknall and Nadine Coyle. Tesco records will be exclusive
products to Tesco stores.
Video-on-Demand
On 20 April 2011, Tesco acquired a 80% stake in Blinkbox from Eden Ventures and Nordic
Venture Partners, it intends to use the company to boost its
digital entertainment offering.
Gold Exchange
In 2011, Tesco launched Tesco Gold Exchange, which is a
postal gold service, offering money for gold, as well as offering
clubcard points to customers via their website.
Tesco Tyres
In 2011, Tesco launched tesco-tyres.com in association with Blackcircles.com, offering a choice
of over 1,200 fitting partners across the UK as well as offering clubcard points with purchases.
www.wikipedia.org, accessed on: 22
nd

June, 2011
www.thisismoney.co.uk, accessed on:
22
nd
June, 2011
25 | P a g e

Your Beauty Salon
In February 2011, Tesco launched Your Beauty Salon, in Tesco stores planning to open 70 over
the next year, offering services like haircuts, leg waxing, manicures and eyebrow.
Tesco Clubcard
Customers can collect two Clubcard points for every 1 (or one point for 1 in Ireland and
Slovakia) they spend in a Tesco store, or
Tesco.com, and 1 point per 2 on fuel (not in
Slovakia). Customers can also collect points by
paying with a Tesco Credit Card, or by using
Tesco Mobile, Tesco Homephone, Tesco
Broadband, selected Tesco Personal Finance
products or through Clubcard partners, E.ON and
Avis. Each point equates to 1p in store when
redeemed or up to 3 times their value when
used with clubcard deals (offers for holidays, day
trips, etc.) Clubcard points (UK & IE) can also be
converted to Airmiles.
Holders receive Clubcard statements 6 times a year, which often feature extra point coupons
and money-off coupons. These can be spent in-store, online or on various Clubcard deals.
Tesco was cited in a Wall Street Journal article as using the intelligence from the Clubcard to
thwart Wal-Mart's initiatives in the UK.
www.zath.co.uk, accessed on: 22
nd
June, 2011
26 | P a g e

Corporate Social Responsibility
Tesco have used many Television adverts over the years. In July 2007 a DVD containing adverts
from 19772007 was given to all members of staff. Early advertising stressed cheap prices and
how to keep "The cost of living in check." In 1977 an advert was made where a till showed the
prices to many items such as "baked beans 12
1
/
2
p".
Tesco's most famous advert was "Checkout 82," which was made in 1982. Where a till would
have a receipt coming out of it with the prices on this advert had synth pop music as the
backing and people singing "Check it out, check it out"
Adverts in the late 90s had Prunella Scales as Dotty Turnbull, arguing about Tesco prices. In
2003, adverts showed items and shopping trolleys talking about Tesco. Late 2000s adverts have
included many celebrities and celebrity voice-overs such as The Spice Girls and the voice of
actors James Nesbitt and Jane Horroc.

[www.wikipedia.com, accessed on: 20
th
June, 2011]
27 | P a g e

Conclusion
Efficient and effective training and development of employees is an essential element for
Tesco's continuing growth in an increasingly commercial world. Tesco requires employees who
are committed and flexible in order to aid its expansion of the business. The expansion of Tesco
relies on retaining existing customers and acquiring new ones. All customers need to be
confident and happy in Tesco. This relies on committed and flexible employees delivering the
highest standards of service to meet Tesco's objectives. Tesco's structured approach to training
and developing its existing and new employees provides a strong foundation for its continuing
growth.

[www.thetimes100.co.uk, accessed on: 24
th
June, 2011]



28 | P a g e

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