Unit 29 D1

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Contribution to the company’s overall effectiveness (D1) Today's grocery market is dominated by the four big retailers also known as "Big Four". Those companies are; Tesco, Asda, Sainsbury's and Morrisons. In this assignment I will take a closer look at one of them and I will evaluate their effectiveness in use of different distribution methods. The company that I will look at is going to be Tesco. The responsiveness to consumer’s demand Tesco is always aware of what people need, what products they would like to purchase from the stores. For this, Tesco is using primary research methods like surveys, in which people can say what their demands are as well as the secondary research methods like use of gathered data. The use of ICT in the supply chain Tesco is well known for its use of ICT to distribute its products. Their big advantage is that many people are pleased with the company, because they are allowed to shop from wherever they want, as long as they have an access to the internet. Tesco's website allow people to search through the products, that customers can order through the Tesco Direct or go for it to the store. Another of good ICT use by Tesco is that they are one of the companies that have started allowing people to get the membership by getting a Tesco Card, which then allows them to gain points, because of which they will get many discounts on Tesco's products. The different costs incurred Tesco as a big company has to be aware of costs. The most important ones are the taxes and import duties that they have to pay. Other costs might include petrol for the trucks, by which Tesco Direct works and eventually money that they will have to pay back to customers who were not pleased with product, that they have purchased from the store, because of its quality as it might been broken etc. The mix of internationally and domestically
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