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operate. Forexample, in Thailand, we have invested more than 7.5 billion baht inemployee remuneration and training during the expansion of ourworkforce from 5,500 in 1998 to 17,300 today. Because only 16 of theseemployees are international expatriates, we are building skillsprimarily in the local workforce. Our policy of internal promotionswherever possible means that as the network of stores expands, staffalready working with the company are offered first option to return tonew stores in their home communities so they can be close to their families.

Appendix Two

Learning for Life

Tesco's investment in education reflects our top line commitment to bea learning organisation. As an innovative and energetic company in ahighly competitive retail environment, learning and progression within the company is core to our operation.

Last year alone, over 800 people in our stores made the change intomanagement positions. Tesco has an extensive programme of learningopportunities for all our staff, developed and delivered through theTesco Academy. Through the Academy everyone in Tesco will be able toaccess learning tailored to their own personal development needs – frominduction and core skills to operating and leadership skills.

Core Skills:

All staff has access to training on core skills includingproject management, meeting skills, and people management.

Operating Skills:

Learning to support the development of operatingskills will vary according to role. Bronze, Silver and Gold learning programmes are offered in stores and distribution centres. All staffcomplete bronze programmes to cover key operating skills. Silver andGold offer staff the chance to specialise in the many different areasof the Tesco business from bakery, through stock management to customerservice.

Leadership Skills:

A full learning programme is offered to Tescomanagers. Learning opportunities range from classroom based coursessuch as Change Management to coaching and mentoring solutions designedto meet individual needs. Tesco has also invested in creatingstructured Leadership Development programmes for specific groups such as Store Managers and International Managers.

These programmes are complemented by investment to ensure everyone who wants to is able to reach their full potential:

Options: This programme allows staff in stores to put themselvesforward for fast track management, with extra hands on managementshadowing positions, as well as formal learning.

Talent spotting:

This is a programme across the business to ensure thatmanagers spot and then promote the potential of their staff andencourage staff to make the most of development opportunities – be itin management or in a specialism.

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