Business Enterprise Integrated Assignment

Introduction

Name of the Tesco branch: Tesco Puchong

Date visited the site: 8-6-2014, all the members had visited the site together

Arrival time: 12:00pm Departure time: 4.00pm

Duration of the site visit: 4 hours

Part 1: Tee Yee Loong and Nicholas Yap in charge

Part 2: Phang Jia Yee, Lim Yang Kit and Charles in charge

Part 1 - CORPORATE SOCIAL RESPONSIBILITIES (CSR)                      

Tesco Malaysia Goes Dark for Earth Hour

Tesco Malaysia had continuously take part in corporate social responsibility. One of the activities will be Tesco Malaysia Goes Dark for Earth Hour. On 23^rd March 2013, Tesco Malaysia had conducted several energy conservation activities to support corporate social responsibility. All Tesco stores switched off of the sales floor lights, display TV’s, radio, PA system, computers and all non-essential lightings in stores as well as in the back office and Tesco Distribution Centre will be switched off starting at 8.30pm on Earth hour. Furthermore, Tesco Malaysia also conducted few environmental conscious programs. In 2012, Tesco Malaysia embarked on a three year commitment to plant 500,000 trees across the nation. Tesco Malaysia also supports the No Plastic Day activity to protect the environment. Kraft foods cooperate with Tesco Malaysia to launched “We Care”, a corporate social responsibility activity to get funds for pediatric leukemia patients at University Malaya Medical Centre (UMMC). From 29 November- 31 December 2012, 1% of every rm10 purchase of Kraft products at every Tesco hypermarkets will be given for the treatment of leukemia patients at UMMC. The aim of collect these donations are to reduce their treatment costs so more of leukemia patients can be treated. The fund raising program is targeted to get a minimum of Rm20000 and will be presented to the beneficiaries at end of the campaign during a visit to the patients at the hospital. Furthermore, Tesco Malaysia also launched the Helping Children with leukemia program in partnership with UMMC with the aim of raising RM1 million within the next three years to be able to provide treatment for underprivileged leukemia patients across the nation.     

Yayasan Chow Kit gets mobile with Tesco’s contribution

Tesco Malaysia contributed a van to the charity home at Tesco Kepong Village Mall to mark the closure of a two-year fund raising effort by Tesco Malaysia as part of its Charity of the Year (COTY) program on 20 November 2012. This program was started on 15 July 2010 and was aimed to collect funds for Yayasan Chow Kit in providing a healthy and safe environment for the underprivileged and children in the Chow Kit area. The total funds which is around rm300000 inclusive of the van that was handed over. COTY program is one of the CSR initiatives which Tesco conducted in as a responsible corporate citizen. Tesco Malaysia engaged Majlis Kanser Nasional (MAKNA) as the COTY beneficiary contributing over RM446000 to the charity organization.

Tesco pledges to plant 500,000 trees in Malaysia

Tesco Malaysia and the Malaysian Timber Industry Board inked a Memorandum of Understanding (MoU) to mark its partnership for a Greener Earth Tree Planting program. 500,000 trees will be plant throughout the country within three years to complete the country’s target which is 26 million trees. Tesco will used around RM4 million to plant 500,000 ‘vulnerable’ agarwood trees with MTIB’s guidance and expertise in the area. This program is one of a largest Greener Earth initiative by Tesco Malaysia to protect the environment. It is partly funded by the sale of plastic bags sold on No Plastic Bags Day nationwide. Tesco and MTIB planted 160000 trees in 2012 and 170000 in 2013 and 2014 respectively. This program also helps Tesco customers actively involved in protect environment activities which ultimately lead to a better environment. The first activity of the program was held on December 17, 2011 where 450 volunteers were involved from Tesco, MTIB and the public planted over 1000 trees in Taman Wawasan, Putrajaya. Johor, Melaka and Selangor are the places identified as the next locations for the Greener Earth tree planting activities in 2012. 

Kraft Foods and Tesco to Raise Funds for Pediatric Leukemia Patients

Kraft foods cooperate with Tesco Malaysia to launched “We Care”, a corporate social responsibility activity to get funds for pediatric leukemia patients at University Malaya Medical Centre (UMMC). From 29 November- 31 December 2012, 1% of every rm10 purchase of Kraft products at every Tesco hypermarkets will be given for the treatment of leukemia patients at UMMC. The aim of collect these donations are to reduce their treatment costs so more of leukemia patients can be treated. The fund raising program is targeted to get a minimum of Rm20000 and will be presented to the beneficiaries at end of the campaign during a visit to the patients at the hospital. Furthermore, Tesco Malaysia also launched the Helping Children with leukemia program in partnership with UMMC with the aim of raising RM1 million within the next three years to be able to provide treatment for underprivileged leukemia patients across the nation.     

 Part 2 – Business Sustainability

a)      What are the facilities provided by the company to their consumers?

Tesco hypermarket provided a lot of facility to the customers and consumers. The company provide ample space of parking bay. It is spacious and big. But not only that, consumers can park for free and doesn’t have to pay a single cent for the parking space. There is a parking space for OKU which is for the disables. The parking lots are safe because it is secure and guarded by several security guards. Besides that, Tesco Malaysia also provided toilets to the public and consumers. The toilets are clean and well maintain, the toilets are cleaned by the cleaner every day. They also have baby changing room and toilets for the disables just beside the toilets. Moreover, Tesco Malaysia build a few ATM machines just outside the toilets, it is much visible and is not hard to locate it. They provided few banks such as Maybank, HSBC, CIMB and so on. Furthermore , Tesco Malaysia too provide free wifi to the customers. Customers can surf the web freely with their smart phones or laptop inside of Tesco. In addition to that, there is a food court where sells different culture’s of cuisine for the consumers and customers. It has Chinese cuisine, Malay cuisine, Indian cuisine, western cuisine and many more. Besides that, Tesco Malaysia also provides a playland where parents could bring their children to, it is an entertainment session for mostly children. Most parents could leave their children there and go shopping without any signs of worried because the playland is similar to a day care centre. Other than that, the company also has several price scanning machine in every corner of the hypermarket, it is a machine which scans the barcode of the product and it shows you the price of the product. It is very useful for all those consumers because some of the workers might miss out putting the price tag on the products.

Figure 1.1

Figure 1.1 shows Tesco provides shelters for the consumers to wait for bus

Figure 1.2

Figure 1.2 shows Tesco’s parking lots are spacious

Figure 1.3

Figure 1.3 shows outside the toilets has ATM machines

Figure 1.4

Figure 1.4 shows Tesco provides trolleys for the consumers

Figure 1.5

Figure 1.5 shows Tesco also provide water supply to those thirsty customers

Figure 1.6

Figure 1.6 shows Tesco’s information counter where u can get any information from those friendly workers

Figure 1.7

Figure 1.7 shows that you can find money changing stores inside of Tesco

Figure 1.8

Figure 1.8 shows a price checking machine which u scan the bar code of the product to find out the price of the product

Figure 1.10

Figure 1.10 shows Tesco provides food court for the customers

Figure 1.11

Figure 1.11 shows rest area is also provided by Tesco

b)      The types of business(es) that the company is currently involved in

There is a lot of business that this company is involved in. One type of the business that Tesco Malaysia is involved in is electronics. The company sells various brands and products of electronic devices, for example smart phone, television, refrigerator, microwave, washing machine and so on. Electronic device is a very demanding business because every household is compulsory to have all these types of products which are listed on top in this era. Without electronics in this generation is very hard to live a complete life, everything is electronic these days, so Tesco Malaysia thinks that this business might increase their wide choice of buying goods in Tesco. Secondly, Tesco Malaysia is also involved in food industries. Consumers has a lot of choices to choose from and they do not need to go to wet market to buy, reasons are hypermarket like Tesco is much cleaner and hygienic than wet markets. The company sells fish, meats, vegetables, fruits and so on. All of these products are sell fresh and good quality. Thirdly, clothing business is also involved in Tesco Malaysia. The consumers could find many types of clothing line, such as men wear, women wear, undergarment, and many more. Customers who do not seek for branded clothing could find affordable clothing in Tesco Malaysia.

Figure 2.1

Figure 2.1 shows a Technical support centre

Figure 2.2

Figure 2.2 shows the vegetable section

Figure 2.3

Figure 2.3 shows the packeted food are well arranged

Figure 2.4

Figure 2.4 shows the vegetables are well organized

Figure 2.5

Figure 2.5 shows the section that sells electronic products

Figure 2.6 shows Tesco also sells smart phones

Figure 2.7

Figure 2.7 shows Tesco is also involved in car accessories business

Figure 2.8

Figure 2.9

Figure 2.8 and 2.9 shows a section that sells electronic products

Figure 2.10

Figure 2.10 shows a pharmacy corner

c)      Under the PEST analysis, students are to analyse only Social and Technological factors of the company and share your findings. (Refer to lecture slides).

According to the PEST analysis of Tesco Malaysia, there are plenty of social factors that adapts to this business. Among the social abilities are Tesco Malaysia strongly separate the difference between “Halal food” and “non-halal food”. Muslim can only consume” Halal food “which is certified by Jakim Malaysia. Although is “non-halal food”, Tesco is still able to make it to sell in a hypermarket. These “non-halal” products are clearly being separated from the “Halal” products in a different section so that the consumers won’t mix up while buying the products. Other than that, Tesco Malaysia tries to bring more ‘Buatan Malaysia’ product to sell in their hypermarket. The company encourage the consumers to buy the country’s product, this could increase the income of the country. Nevertheless, consumers could rarely find imported products in Tesco Malaysia. Tesco Malaysia uses a lot of ways to advertise the company, the company advertise through newspaper, through online or social network and so on. They even give attractive coupon or voucher to the customers to advertise the company. Tesco Malaysia often give promotions even though there is no big occasion is occur. 

As for the technological factor, one of the things that Tesco Malaysia should worry about is the security. A lot of incidents had happened involve stealing, vandalism and so on. In order to avoid this things from happening, Tesco Malaysia build several security cameras around the hypermarket where is not easily visible by the customers and they do not aware that they are being watched due to the size of the camera. The cameras are connected to a room of monitors watched by the security guards.

Besides that, Tesco Malaysia build several sensors at every exit of the hypermarket, this prevents consumers from stealing the company’s product.

Figure 3.1

Figure 3.1 shows an emergency exit in case of fire occur in the hypermarket

Figure 3.2

Figure 3.2 shows one of Tesco’s security cameras


d)      Recommend one way for the business chosen to achieve sustainability.

As the businesses that are involved in Tesco Malaysia are mostly food business, I suggest Tesco Malaysia can set an aim to be as strong in non-food business as they do in food business. It means to offer the same standard of quality, price, range and service for Tesco Malaysia customers as they offer in food business to be able to increase the sustainability of Tesco Malaysia. I think it is essential not only to be the food market of choice for customers but also the place for the customers to buy non-food products. This helps to enlarge the model of Tesco Malaysia as they open up a new huge market for the customers. Tesco Malaysia will tend to be a bigger market that communities welcome and attracts more shareholders to invest in Tesco Malaysia as they can see there is a huge hidden potential for the profits they will made if Tesco Malaysia focus on improving their non-food business as strong as their food business. The expansion of supermarket into the new area of non-food such as electronics, laundry and with a particularly focus on service like pharmaceuticals, digital entertainment, finance, energy and legal services allow Tesco Malaysia to be sustain in the business world in a long-term view. This is because Tesco’s success has always been based on understand the customers’ desire more than anyone else and innovate to make the customers lives easier. With this attitude, more customers will tend to go to Tesco Malaysia for their needs because Tesco Malaysia is having their trust and loyalty. This will ultimately increase the capital of Tesco Malaysia and decrease the limitation of Tesco Malaysia as they have more capital to work on more strategy to strengthen and improve their business.