A View From Middle England - Conservative with a slight libertarian touch - For Christian charity and traditional belief - Free Enterprise NOT Covert Corporatism

Saturday, January 14, 2012

Every little helps in Tesco share dealings

Tesco share dealing - a case of perception over reality
Tesco is one of Britain's most successful companies. Started by a very enterprising man, Jack Cohen. He might have been a good fit as an early Apprentice boss if the show had been on when he was around. I well remember him discussing, quite openly, his tricks of the trade. " I stack salad cream in the baskets at the end of the rows, then stick some more in the shelves. Both lots, same price. You know, the basket ones go much quicker. People see it as a bargain in a basket, see." I put that down to good marketing. No wonder Tesco did well.

Perception is a much stronger thing that fact. My perception of Jack Cohen was based on those little nuggets. I never met him or knew much about him. But he came across on the television as a canny operator trying to give his customers what they wanted, whilst always growing the business successfully. Today's Tesco bosses are a different breed. Not much is known of them and they appear camera shy. The exact opposite is the case with Justin King at Sainsbury's. He pops up telling all and sundry about his company, in a way that engages the viewer. He's appeared on Question Time and done other TV stuff. He could have a TV career after Sainsbury's, I imagine.

Today we hear that Tesco is defending a sale of shares by its chief operating officer, Bob Robbins. Bob has done nothing wrong, but perception is all that really matters here. Did it not cross his mind to think that by selling shares just before the sales results were announced things would look bad? Even if he had not been privy to "insider" information, surely he must have had an inkling that Christmas was a bit of a turkey as far as sales were concerned? This is where the modern day director lives in a world apart. Perception is what gives the gossips ammunition. Chatting down the pub, in the office, between friends. Bob Robbins can't be a fool or he would not be chief operating officer. Maybe for his own good he needs a quick lesson in perception.


Post a Comment