Both customer satisfaction and customer loyalty is very subjective approach and differ from person to person. This research project is based on the critical analysis of the relationship between customer satisfaction and customer loyalty at Tesco plc, UK. The primary objective of this research is to explore and analysis the relationship between customer satisfaction and customer loyalty i.
Own Determination from the data given The above diagram shows a graphical presentation of return on equity for Sainsbury and Tesco supermarkets. From the diagram, there is an indication that Tesco has higher returns on equity within the three-year period.
This is owed to its diversified investments in other sectors such as financial sector, real estate investments.
Ultimately, effective investment decisions by Tesco doubled by the huge proceeds from the investments have increased the level of returns within the company.
The net margin Source: Own Determination from the data given From the graph above Tesco still shows great ambience in its performance in terms of its profitability compared to Sainsbury.
Notably this increase in the profit margin is attributed to the efficient management of expenses and good strategies of marketing of its products to maximise on the sales. Sainsbury has been recording low volumes of sales revenue compared to Tesco Dissertation of tesco numerous retail outlets in the United Kingdom to boost the sales revenue.
In addition, Sainsbury low sales revenue can be linked to poor methods of products promotion, which lead to minimal sales revenues. Tesco has effective methods of collective trade receivables, which boosts the collection of debts owed by customers to the company.
Furthermore, it is definite that Tesco has done well in areas of risk management especially with the diversification of its businesses, which improves its ability to invest and expand the market outlets of its products. Apparently, as noted from the introduction, it is also evident that the retail outlets by Tesco exceed by a bigger margin those of Sainsbury.
Liquidity Ratios Liquidity ratios demonstrate the ability of the company to meet its short-term obligations with the available short-term assets.
This is exhibited by two main ratios; the current ration and the quick acid ratio Gibson, The current ratio The current ratio shows the ability of the company to meet its short-term liabilities with the available liquid or current assets. The ratio is found by the formula; current assets divided by the current liabilities.
From the diagram above it is evident that none of the companies was able to achieve a current ratio of 1 for the last three years.
This is a risky observation for the company.
Notably it is recommended that a company should have a current ratio of more than one but not more than two. Even though none of the two companies was able to achieve a current ratio of one in the food retail industry, Tesco showed a greater prowess in its results by having slightly better current ratio compared to Sainsbury.
Eventually the customers might lose trust in the supermarkets if products cannot be supplied in time. There are possible reasons that might have contributed to this observation in the trend of current ratio for the last three years. It is possible that both companies are having excessive orders of inventory, which is held by the company against the diminishing demand for the products.
Besides, it is also possible that the low current ratio is owed to increase in payables for the company which increases the amount of current liabilities to be payable.
Excessive inventory, poor methods of marketing or product promotion, which leads to low movement of goods and services, has a greater impact on the flow of inventory.
Furthermore, Tesco and Sainsbury might be experiencing a slow pace in the collection of accounts receivables, which lead to, held up of funds in the company. Own Determination from the data given Quick Ratio Similar to the Current ratio, the quick ratio, which shows the ability of the firm to meet its short-term debts by use of liquid cash without cash, the results from the calculations, does not show much to be desired from the two large scale supermarkets.
Sainsbury has a declining trend in the quick ratio. This is not a good sign for the company. This is an indication that the liquid cash at the disposal for the company is limited which might be attributed to the low level of collection of receivables.
As a result, the company has much to do in terms of establishing the best ways of collecting its trade receivables such as use of discounts. Tesco on its hand, even though it has a better edge over Sainsbury, it has much to act on in connection to the management of its liquid assets.
Leverage Ratio Interest coverage ratio Interest coverage ratio shows the ability of a business to repay or service its loans with the net income from the operations. The diagram below shows the interest coverage ratio for the two large chain supermarkets.This dissertation explores the Role of Customer Relationship Marketing in Retention and Acquisition of Tesco Customers.
Marketing Dissertation Topics. Leadership and Management Information System Dissertation Topics Leadership drives the organizational agenda and it is regarded as the one of the most influential factor in streamlining the processes of an organizations.
This free Business essay on Essay: Presentation on Tesco is perfect for Business students to use as an example. Essay UK offers professional custom essay writing, dissertation writing and coursework writing service. Our work is high quality, plagiarism-free and delivered on time.
Dissertation and Essay Samples:Action Plan for Tesco The following essay or dissertation on the topic of business strategy has been submitted by a student so that it . Action Plan for Tesco Planning assumptions With respect to Tesco it could be stated that the Tesco has good financial stability and other aspect is that they have their operations in the developed economy.
This is because while undergoing a primary research on this dissertation one will have to conduct a face to face interview with the managers of Tesco.
in order to get in -depth information on the role of CRM and the information system of Tesco.5/5(1).