1 Executive Summary 2

2 Introduction 3

3 Impact on Tesco Extra 3

3.1 Business Environment 3

3.2 Political Effect on Tesco Extra 4

3.3 Economic Effect on Tesco Extra 5

3.4 Social Effect on Tesco Extra 5

3.5 Technological Effect on Tesco Extra 6

3.6 Legal Effect on Tesco Extra 6

3.7 Environmental Effect on Tesco Extra 7

3.8 SWOT analysis 7

4 Preparations Tesco Extra Needs to do for the Olympics 8

4.1 Marketing 8

4.1.1 Product 8

4.1.2 Price 9

4.1.3 Place 9

4.1.4 Promotion 10

4.2 Human Resources management 10

5 Conclusion 11

Reference 12


Executive Summary

London was elected as the host city of 2012 Olympic Games announced on 6 July 2005. By the deadline of bid submission on 15 July 2003, there are 9 cities participated this bid event in order to apply for hosting the 2012 Olympic Games, including Moscow, Paris, Madrid, London, Havana, Leipzig, Rio de Janeiro and Havana. (BBC News, 2003) The International Olympic Committee (IOC) selected five cities on 18 May 2004 to compete the host opportunity which are Madrid, New York, Paris, London and Moscow. On the announcement date, the journalists and the bidding cities candidates were uncertainty about the results. Finally, London won the opportunity to host 2012 Summer Olympic Games from 27 July to 12 August 2012 (, London 2012). Olympic Games will take place in London and across United Kingdom.

Bedford located near the city of London. It only takes 30 minutes to reach the city center of London by train and people can spend 50 minutes to get Olympic village. With the good connections of transportation to the venue, the potential benefits are not only from the Games but also improve the development and accelerate the changes through the whole city and towns. ‘Bedford’ Therefore, there are some impacts that 2012 Olympic Games could bring to the firms in Bedford.

This essay will focus on the impact of 2012 Olympic Games on Bedford organizations in three business management aspects including business environment, marketing and human resources. Tesco Extra will be a typical case to illustrate the influence specifically. In addition, these organizations such as transportation firms, logistic firms, supermarket, tour companies as well as restaurants etc have to do something in order to prepare for the Game. It is necessary for transportation firms to supply a variety of tickets in different promotions, such as it cost 300 pounds to travel 8 cities by plane. In addition, the government intervention to build neighbor cities of London will involve further development opportunities for Bedford.

2 Introduction

The London 2012 Olympic Games has both positive and negative impact on firms operated in Bedford. The essay will focus on Tesco Extra, one of the store formats of Tesco in United Kingdom. Tesco is a general merchandising grocery and a global retailer whose headquarter located in Chesham, United Kingdom (Tesco. com, 2011) It is one of the largest retailer all over the world which has stores in 14 countries throughout Europe, North America, Asia, and the Republic of Ireland. (Tesco plc, 2011) In addition, Tesco is the leading retailing organization in the United Kingdom which has six formats of operations across the country including Tesco Extra, Tesco Superstores, Tesco Metro, Tesco Express, One Stop and Tesco Homeplus. Tesco Extra is a larger hypermarket, mainly out of the town which storage all most all of Tesco’s product ranges.

Under the business management aspect which is a process of planning, coordination and control of business, (Hallebone E & Priest, J., 2008), it contains several areas of business management, including production, marketing, finance, management accounting, human resources, research and development and information systems etc (Hallebone E & Priest, J., 2008). Tesco Extra will be concentrated on the analysis of business environment, marketing and human resources. In addition, there are some preparations Tesco Extra needed to do for the London 2012 Olympic Games which may generate larger benefits.

3 Impact on Tesco Extra

3.1 Business Environment

There will be less than 2 years from now when London will host the 2012 Olympic Games for the first time since 1948. This event will have a profound effect on not only the businesses in London itself, but businesses in the surrounding regions as well as in many parts of United Kingdom. PESTLE is the six elements of the macro-environment which are far and external environment in specific. It is hard for business to control and manage. PESTLE is an anagram for political, Economic, Social, Technological, Legal and Environmental/Ethical. The following words will carry out a PESTLE analysis of Tesco Extra in Bedford to see how it will be affected by the Olympics and what factors can affect its success.


3.2 Political Effect on Tesco Extra

‘Tesco, the country’s biggest supermarket will ensure all its check out staff challenges any person who looks under the age of 25. Those without identification to prove they are over 18 and are legally able to buy alcohol will not be sold any.’ (Harry Wallp, the Telegraph, 2009).  Tesco decides to insist these policies in 2012. Therefore, it may lose a lot of consumers who forget to take the identification but over legal age to buy alcohol. Besides, VAT of United Kingdom has increase to 20% from 17.5% from January 2011 (BBC News, 2011). One of the reasons may be the economic downturn of United Kingdom. However, it may decrease the consumption power of residents as well as tourists. Therefore, if the London 2012 Olympic Games bring a development of economy in the UK, could VAT be down by 2012? Furthermore, the security is another aspect in political area. The government of United Kingdom has to ensure the safe and secure Olympic and Paralympics Games 2012 in London. These safety and security issues not only focus on the Olympic Games but also the safety of tourists and all the members involves in the Olympic Games such as journalists, players and working stuffs etc. Therefore, the terrorism is another threatens for firms and organizations such as Tesco Extra to worry about. Consequently, political factor will be probably having an overall negative effect on Tesco Extra in Bedford.

3.3 Economic Effect on Tesco Extra

The economy is a part of the macro-environment which is in a far or external environment aspect. The London 2012 Olympic Games will attract much more tourists than previous years. A report said that ‘the UK’s tourist industry could be given a 3 billion pounds boost by the London 2012 Olympic Games’ (Sport Business, 2007) These tourists will consume a large amount of products in UK domestic market. As the largest supermarket in the United Kingdom, Tesco has to be stock a large amount of goods for tourists to consume. In addition, there will be more job opportunities for residents because of increasing demand and supply and increasing workload. It may improve the image of Tesco as the rising employment opportunities. Furthermore, ‘UK inflation jumped in December with the Consumer Price Index (CPI) rising to 3.7% in December, up from 3.3% in November’ (BBC News, 2011) Therefore, these factors may have an overall positive effect on Tesco Extra’s success in Bedford.


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原文链接:Business Management