THICS AND GOVERNANCE

Name

Course

University

Date

Ethics and Governance

Tesco Company was founded by John Edward Cohen in the year 1924 . The company started as small retail shop but was later incorporated in the year 1932 . Mr . John Cohen was the manager of the company and he led to its establishment as a supermarket that is known today . He got the idea of setting up a supermarket from a place he visited known as United States of America where he learnt that super market system offers its customers services at a

fast rate than the retail shops and the cost of maintaining its labor was usually low

In the year 1960 's he asked the parliament of the state to have an act known as Retail Price Maintenance Act abolished so as to allow manufactures and suppliers to set prices of goods that would not be enable the businesses to benefit from large economies of sales . The act was not implemented since parliament of the states passed a Resale Prices Act that curtailed the Retail Price Maintenance Act .Tesco Company used to sell green shield stamps that brought high profits for the company since they sold the products at discounted rates

In 1960 's Tesco Company started its business by buying and selling goods such as grocery stores and small grocery chains around the country . It also introduced home and wears departments in to larger stores so as to obtain higher profit margins .The Company 's management also introduced non-food merchandise that included clothing and house hold items

Mr . John Cohen stated to import goods in bulk from United States of America and sold them at cheap prices but with time the market profit margins started to decline due to the high cost of maintaining of the business and lead to a serious public image damage as the company was not able to supply the customers with enough goods to sustain the business

Mr . Ian Maclaurin took over the company from Mr . John Cohen in the year 1973 under his leadership he started to sell the green shield trading stamps and he later launched the operation check out which was meant to cut prices of the goods and this resulted to price wars with its competitor the Sainsbury Company

Mr . Ian . Maclaurin re organized the Tesco Stores Company so as to cut down the expenses of the company it did this by closing over five hundred stores and it later enlarged and upgraded its other stores The upgraded and enlarged stores were to be developed in to large out of town stores whose parking was convenient . The company opened other businesses such as petrol stations in the year 1974 and by 1991 it become the largest independent petrol retailer it also dealt with its own-label product lines , it computerized and centralized the distribution systems and developed shopping centers outside major cities of the state . In 1983 the Tesco Public Limited Company was renamed as the Tesco Public Limited Company . It later opened...