Chapter7 Preliminary questions

Q1 Analyse why Tesco has chosen to focus on small, local stores in Japan and the USA rather than on larger stores.

• In Japan, this involved the takeover of an existing chain of japanese stores,Tesco introduced brand-new stores with small-scale. The advantage is this is a way to minimaise its cost, also, the return on capital employed should be high because the high profit but low capital employed, therefore there are less risks. However, it is difficult for small stores to bring a huge sales revenue and it is hard to attract customers.

Q2 Analyse internal factors that might have influenced Tesco's marketing objectives.

• The key internal factor that might have influenced Tesco's marketing objective might be the corporative objective which is sales growth for the company as a whole. The marketing department must ensure that its marketing objectives are consistent with the corporate objective of the business. Also, the popularity of the products is an important factor. To Increase the sales growth, Tesco set objective which is to be strong in non-food as in food.

Q3 Examine factors that might cause Tesco to change its marketing objectives suddenly, such as its decision to enter the US market.

• The key factor that make Tesco to change its marketing objectives suddenly is it haven't a achieve the targets for 2007/2008. In Asia, the number of stores was short of target by 86 and ub Europe, the number of stores was 69 below the target. Therefore, Tesco opened 53 stores suddenly in the US to reduce the shor of the target. Aslo, thouse additional stores will improve the efficiency of its operations. That means bigger sales growth and increase Tesco's popularity as well as goodwill.