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Literature Review Chapter Writing Help Out

Dissertation project review of literature is the main element of the papers and often considered as the part of the main body. Its location in dissertation project is after introduction chapter and before research methodology. The actual intent if this part is to cover all the precedent information that was presented by preceding novelists and writers. It in reality reveals research capabilities of candidate for the reason that this chapter needs maximum exploration of data. Take into account that this chapter consists of precedent information and there is no requirement to include new data in this chapter.

Pertaining points are that the students should search out the flaws and gap in past explored data and highlight them. What are the faults of precedent author’s research work? Also show that how your data exploration fulfills all the flaws and gaps and how your papers are improved then the earlier ones. For this the students should carry out data exploration intensely and make use of sharp examining skills that are supposed to be applied. So, to find out the flaws and gaps is not a simple duty and then to make the papers free from all the faults of past task is one more concerning spot.

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Cost of Capital: Paper Writing Sample

This research paper discuss the cost of capital and its various components i.e. cots of debt and cost of equity in order to calculate the weighted average cost of capital that is overall required return on the firm financing assets. Moreover, financial mix (debt and equity) is also discussed to know the firm’s financing policies through debt and equity. The rationale of this examine paper is to talk about the cost of capital and its different elements.

The cost of capital is possibly the most essential and extensively used idea in theory of finance. A key imminent from finance hypothesis is that, at all, the utilization of capital inflicts an opportunity cost on shareholders, specifically; finances are abstracted from receiving a return on the subsequent best similar risk speculation. As the investors have admittance to financial marketplace opportunities thus the firm’s utilization of investment should be benchmarked beside these investment market choices. The cost of capital better offers this benchmark. The cost of capital term is used in the area of financial investment to convey to the cost of a firm finances i.e. equity and debt. This method is used to assess the fresh projects of a firm because it is the minimum return that stockholders expect for supplying funds for the firm. The rationale of this examine paper is to talk about the cost of capital and its different elements.

Cost of Capital
The cost of capital finds out that how a firm can raise money i.e. through borrowing, issuing a stock or a mix of these two. Cost of capital is a rate of return that a firm would obtain if it invests its financial resources like money somewhere else with related risk. Cost of capital would comprise cost of debt and cost of equity.

Capital structure of a firm can comprises of preferred stocks, ordinary shares, short term and long term loans, bonds and leases etc. These whole fundamentals of capital formation have their individual price and if we include all the costs of each element after adjusting with weight age of each element, the consequential value is called WACC (weighted average cost of capital). WACC is minimum return that a firm earns on all of its existing components of capital structure to satisfy its owners, creditors or others who provide finance for the firm operations. WACC is an important element firms use if the asset plans accessible to them are valuable to take on or not. To calculate the WACC, first firms needs to calculate the individual costs of each element in capital structure. Let discuss them one by one.

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Marketing Mix

Market direction is the crux of marketing. It explains how to satisfy the needs of the market through an understanding and reaction to local needs, which cover those of final and intermediate customers, competitors and the external environment and results in to superior performance (Narver & Slater, 1990). Because of the retail industry’s close contact with the market and customers, it makes sense to examine market direction as a tool to judge the accomplishment of Tesco.

Market direction is of even greater consequence when entry into emerging industries is carried out by a Western retailing firm, which shows that a familiar understanding and response to customer needs is important.
Tesco’s management puts a focus on customer needs because of the ‘Tesco Values’ attitude, which is stated as two values – “no one tries harder for customers; treat people how we like to be treated.” The values are distributed by an internal marketing plan, which covers dissemination of company newspaper to employees. In spite of this, these values originate from the UK and acknowledgment of a requirement for country-specific ways and local can be less important then corporate unity.

Tesco has a name for creative information solutions, and its ‘Clubcard’ loyalty scheme and web sites are critical to this. Tesco is the UK’s largest retailer and due to this has a noteworthy customer base on which evaluation can be performed. Due to the fact that many of those customers come back at weekly or similar intervals, Clubcard data and ties are both deep and wide. Appropriately, Clubcard has great promise to influence consumer behaviour in the UK. Employees are trained on the value of Clubcard, and the first opening was preceded by enthusiastic internal marketing. Clubcard is not only closely connected with business processes, but supports with the brand and brand strategy as the active manifestation of the brand’s personality and its values (Humby, Hunt, & Phillips, 2004).
There are various proportions of Tesco’s online customer experience, counting convenice of use, rate of site, significance, value, service, and product development. Tesco is consistently creating more online products to satisfy the needs of the customers. For example, Tesco has of late started offering music downloads in addition to a grocery delivery service that covers wine and white goods.

Tesco utilizes this product range to develop a robust customer experience as a customer can do a one stop shop rather than purchasing products from numerous vendors. For the online customer, convenience of operations is a key factor in their purchasing decisions. Hard work has been carried out to reduce the amount of time it requires a customer to carry out their first order. The time has reduced considerably from one hour to 35 minutes. This offers a much more enhanced customer experience.

There are three aspects to Tesco’s utilization of technology in marketing information gathering and planning. The first dimension is data collection, of which the Clubcard that could be examined at the till is a key basis. After this, ‘EPOS’ tills were mounted that could gather information from every transaction. Clubcard connects with a considerable number of corporate partners with respect to the dispersion and delivery of rewards. Tesco permits customers to obtain rewards from transactions as unrelated as travel, dry cleaning, and car maintenance. In addition, several of these activities will be carried out in the locality of the Tesco store that the customer usually uses, and from a customer experience point of view increases their relation with the local retailing community. From a customer data point of view, the chance to earn Clubcard points through partner organisations means that Tesco is able to increase its customer profiles relating to their purchasing activities to realms beyond supermarket shopping. For instance, a customer who gains points though the utilization of Auto centre is offering the data that makes it achievable for Tesco to gather data about the model of car that their customers drive.

The second dimension is customer interactions – customers can accumulate points through the scheme because of activities with different partners, and because of their online purchases. Tesco is responsible for a diversity of relations that the customer has with the name, and attempts to reward every relation. Clubcard creates a strong bond between the ‘click and brick’ (online and in-store) aspects of the business. By gathering data through both media, Tesco can without difficulty see the resemblance and discrepancies between online and offline customers, with respect to what they buy, how they react to the service and how they mix media.

In addition, data gathered through customer interactions with one media, such as in store can provide precious ideas for potential new customers, and methods to make better operations related to the creation of other media or services. Other then the basic direct marketing methods, Tesco also offers special offers to its most loyal customers. These unique offers help to tie the customer to the firm. An extended emphasis has been how to raise the frequency of customer visits. Tesco tackles this problem by sending incentives to all customers deemed dormant. The company also offers more deals to the customer ‘after the first shop after a break’ (Chaffey, Ellis-Chadwick, Johnston, & Mayer, 2008). Tesco has thus used comprehensive customer information to go further than others whose loyalty schemes only present the customer a decrease of the price paid at the checkout.

They have taken pains to ensure an appropriate database

The third dimension is data evaluation. Tesco have paid meticulous heed to the design of data evaluation. They have taken pains to ensure an appropriate database, data currency, data quality and tight control of data evaluation costs. A supplementary refinement was to attempt to comprehend why customers behaved in certain manners. This method began with profiling the characteristics of products, then creating groups on the basis of customer’s product purchase profile and using these product characteristics to profile and segment customers described in terms of the ingredients in the Tesco shopping baskets. Each of these divisions had broad resemblance but with a size that made them worth looking into(Humby, Hunt, & Phillips, 2004).

Evaluation of the UK database has allowed Tesco to take advantage of benefits in creative ways. For example, when evaluation showed that customers were not buying diapers, investigation showed the products were being bought at Boots pharmacies, in spite of a 20% higher price. As a consequence, Tesco made a baby club providing advice on pregnancy and motherhood. In two years the company had gained almost 25 per cent of the mother and baby market (Strategic Direction, 2008).

Tesco’s trading attitude revolves around the ‘Steering Wheel’. This consists of a Customer Plan, Operations Plan, People Plan and Finance Plan. Marketing information systems have an important role in the creation of these plans as they are based on information obtained from customers through the ‘Brand Review’. Information obtained from the Brand Review is offered to the board of each country and the central board. Each country conducts individual Brand Reviews and the results are integrated for the central board. This lead to a Customer Plan looking to serve customer needs related ti price, service and quality. The Operations Plan attempts to reduce costs by gaining better margins from suppliers because of operational efficiencies. Examples of this are the assignments of new ordering or stock replenishment systems.

From 1999 and later, Customer Panels have been working in most countries where Tesco has operations in order to allow intelligence to be told to Head Office. Tesco also evaluates brand share and has a weekly sales report. Image research is conducted over each country and a brand image evaluation is carried out every six months. Questions think about observations of price image, quality image, service, range and promotions. These large-scale surveys are disseminated to catchment regions of their own and competitors’ outlets. Since 2002, methodical investigation has been conducted examining the market’s largest competitors in each country. Local investigation is emphasized on stores in particular areas of each country and looks at differences. Cross-sections of customers meet with store management to explain their experiences at Tesco, with respect to price, quality, products, departments and customer services. Every year for one week each store inquires every tenth customer about their postcode at the checkout. The funds invested and time/date of buying is also evaluated. Cross border investigation in landlocked regions such as Hungary and Slovakia examines how more commerce can be made from over borders. Customer complaints are noted down with the numbers of issues in each area under analysis. Seasonal and pre/post advertisement investigation is usually carried out through qualitative methods to assist the marketing planning process.

Tesco has started on a programme of development pan-regional information systems infrastructures since 1998, informing about operational capabilities for each country. In spite of this, most information in developing markets will still be disseminated through informal networks including face to face meetings and emails. Tesco has a UK-based International Commercial team that liaises with individual country borders and in 2004 the International Support Office Marketing Team was set up. This makes sure that all countries Tesco operates in use the same plans about how marketing research is utilized and managed, expediting comparable results and actionable planning suggestions. The Process team liaises with the Support Offices in each region to create their own talents and solve their own retail problems, giving a localised perspective to the using of marketing information. These offices assist central operations to liaise with stores, and they gather market research information from independent parts of the business.

Tesco keeps an emphasis on innovation in products, placing a focus on added value for the consumer. For example, in 2006 Tesco began to offer a new line of dairy products manufactured with Reducol, a phytosterol-based chemical proved to decrease cholesterol. The product range has since increased, allowing the retailer to become a perceived leader to help elevate its image above those of the competition.


The literature review chapter covers review of data collected from various secondary sources such as books, articles, reports and websites for understanding and analysing the marketing strategy at Tesco its implications on the company itself and other companies in the industry. The different sections of this chapter incorporate previous researches and studies performed in marketing management, marketing strategy and the importance of marketing strategy in an organisation and its impact on other companies in the industry.

The problems that are caused by large retailers such as Tesco
A frequently occurring theme in the literature and from the interviews is the problem of competition from large retailers. A few of the problems that pertain to the competition small retailers are subjected to because of large retailers are summarized below.

Size of large retailers
Large retailers have drastically enhanced their market share over the preceding few years. For example, in food retailing in 1976 large retailers (defined in terms of turnover as those with revenues of over £5 million) consisted of 50 per cent of all retailing revenue. By 1991 the ratio covered by large retailers had increased to about 79 per cent. In addition to this, McGoldrick discovered that among the most important aspects of the retail sector has been the rising market share of the larger retailers at the cost of other types of retailer.
To achieve this one of the small retailer firms articulated its worries about Tesco’s acquisition of Adminstore Limited (Adminstore) in 2004. This acquisition covered 43 small stores (of less than 280 square metres in size) situated mainly in central London. Their worry was that the acquisition would raise Tesco’s market share to a position where it would be out of the question for small food retailers to stay in the industry.

The Office of Fair Trading (OFT) looked into Tesco’s acquisition of Adminstore but did not consign the case to the Competition Commission. The OFT decided that the acquisition by Tesco of Adminstore would not lead to a considerable reduction of competition within the industry, or industries, in the United Kingdom. One of the chief explanations for the OFT’s conclusion is due to the fact that it concluded that the obstacles to establishing small grocery stores are very slight. The line of reasoning is that if Tesco attempted to increase prices in its small outlets then other players could, very easily, establish small grocery outlets in order to compete, which would force Tesco to sustain its price, or more credibly, dissuading Tesco from ever starting the price increase.

Buyer Clout
One impact of the better market share of large retailers is that they have more buyer clout than small retailers and can secure lower prices from its suppliers. As a result large retailers are able to sell their wares at prices that small retailers usually find it hard to contend with. For this reason the prices charged by small retailers seem uncompetitive and they lose business because of it.

The small retailer firms divulged during the interviews that in some situations large retailers are able to purchase wares for such a low price that they are able to sell their wares for a lower price than small retailers who have to purchase them at higher prices from the wholesaler. Without a doubt in its report on improving shopping availability for people residing in deprived regions the Department of Health discovered that in many situations the average person on the street could purchase goods at lower prices from several retailers than small shopkeepers could from wholesalers.

The higher buyer clout of large retailers as opposed to small retailers is a major competitive edge for large retailers such as Tesco. In addition, it is expected to be a competitive edge that adds force to itself. Dobson (2003) introduces the concept of a virtuous circle for the very largest retailers through which size and market share result in bargaining discounts from suppliers. This results in a cost saving for large retailers over small retailers which enables them to spend in either better customer services or decreased prices. This raises the attractiveness of large retailers as opposed to small retailers and as a consequence this results in even greater sales for the large retailers which also highlight their buyer clout and so the cycle continues once more.

In addition, it may be possible that cost decreased obtained through greater buyer clout (as well as other aspects) makes it possible for large retailers to spread out into more areas. That is, by decreasing costs, regions that up to that time were not served may become financially feasible and so would be served by large retailers. This shift of large retailers into formerly underserved regions may make the region more feasible for other retailers because of the effect large retailers have on footfall in the area.

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