A CARE essay: Utilization by Tesco of its commercial power

©  Charles Warner   14 Jan 2012 edition

I am an enthusiastic customer of Tesco in Haslemere (Branch 2636). They provide me with good quality food in a very convenient way. Their staff are friendly and reliable. In the field of provision of groceries they are supremely capable. Their profits are enormous.

Tesco in Haslemere comes in for much criticism. In particular the dispensation of cuts of fish from a fresh fish counter has recently been discontinued. How now does an individual pensioner obtain just the one portion of fresh fish? Price wobbles are frequent; the customer is expected to stay alert: let the strong exploit the weaker shoppers. A deluge of special offers and vouchers have to be surveyed. Tesco runs operations in fields like clothing and television - nothing to do with food. Tesco seems to strive to dominate, not only the market for groceries but many other markets as well.

Now suppose Tesco were to address more closely the needs of customers. That would mean selling the customer food at prices fair to all involved in the process. The world of the customer should remain consistent, reliable and trustworthy. There should be no nagging doubts about ethics or about the suppression of other small businesses. Tesco staff need not be concerned solely with marketing. If Tesco were to adopt a more liberal outlook, I think that profits might skyrocket.

What might Tesco do with its very large profits? Pay its staff enormous rewards? These cause resentment and undermine the productivity of ordinary people. What about something cleverer and more satisfying? What about Tesco Enterprise companies? Tesco senior staff, hungry for a sense of mastery of the Universe, might consider possibilities of funding young people to take off with their own business ideas.

"Oh yes, our Global Positioning System geotrackers for vehicles are used all over China now. We've been extremely successful. Tesco Enterprise Geotracking was our original start." "Yes, this is my little corner in Tesco Haslemere. I ship in my fresh fish and Tesco gives me this space to sell it. It's good for me, good for the community and good for Tesco!" Close control of a Tesco Enterprise company would not be pursued; a Tesco Enterprise company would be wholly autonomous. Without any overt acclaim, Tesco senior management would have the supreme satisfaction of knowing that they really had made a difference.

Sadly, a click on the Tesco website shows how far away Tesco is from this particular TOtally Brilliant Ydea (TOBY). Try a younger company. Amplify the essay by quantification of the economics involved, of which the most difficult aspect is the effects on morale and therefore productivity of the population at large.