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Tesco and Belu Casestudy

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Submitted By shubhamkoradia
Words 803
Pages 4
16. By investing in green technology and practices and becoming a more socially responsible organization Tesco may benefit in a number of ways: • Improved corporate image and possible creation of a USP or competitive advantage as a result. This is important given the criticism of Tesco’s practices by the pressure group described in the case. Tesco can find a unique position of a socially responsible firm who provided good quality/value for money products • Improved image may attract green customers. Revenue can increase as well as profit • A possible increase in the price of its products despite the intense competition • A larger market share that might enhance economies of scale and, therefore, lower average costs of production. Tesco needs to cut costs of production given the significant 60 % rise in energy costs • satisfying the demand of pressure groups. This will alleviate the pressure to change its practices and so less money/resources will be spent on public relations (PR) or on legal costs • Alternatively, PR can be used to enhance corporate image • They may be able to pre-empt government legislation against the company • They may receive financial incentives from local or national governments • Increased employee motivation. A high level of motivation will result in enhanced productivity and quality of services • reduced costs of production – probably in the longer run. The need to reduce costs due to the 60 % rise in the cost of energy is stated in the case • More investment from ethical investors • Any other relevant benefit. However, • Given the fact that many organizations are pursuing the same strategies and practices; a USP may not

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