Tesco Plc Analysis
1.0 Introduction
In this report I will be providing the UK’s largest supermarket, Tesco with advice on their performance. I have chosen to use two types of analytical models to review the company; I will be looking at the organisational structure of Tesco, as well as analysing their business and competitive strategy.
1.1 Company overview
Tesco is the leading food retailer in Britain, they have also focused on building non-food sales which are available in store and online. Tesco is one of the world’s largest retailers with approximately 4,331 stores in 14 countries which include Asia, Europe and the United States. (Tesco, 2011). See appendix 1 for a map of the countries Tesco operate in.
In the UK alone there are 2,715 stores with just fewer than 300,000 employees. Because Tesco is a global organisation and analysing the company as a whole would be too much information to report, i will focus my analysis on the Tesco stores based in the United Kingdom, looking closely at the company’s business and competitive strategy and also their organisational structure.
2.0 Organisational structure
According to Balogun & Hope Hailey (2004) “Organisations are composed of a number of interconnected and interdependent parts or subsystems, and are most efficient when the major components are in alignment with each other.” (Balogun and Hailey, 2004, p.42)
For an organisation to succeed it should have a structure that is based on different levels of authority and responsibility. It defines a framework of the company and by doing so each member of staff knows their job role within the firm, what is required of them and who to report to. The company’s organisational chart should be accessible to all employees for them to see. By having a good organisational structure, allows the management team to carry out good leadership and effectively communicate with their staff. Management should be committed to motivating and encouraging the staff and especially promote teamwork
In this report I will be providing the UK’s largest supermarket, Tesco with advice on their performance. I have chosen to use two types of analytical models to review the company; I will be looking at the organisational structure of Tesco, as well as analysing their business and competitive strategy.
1.1 Company overview
Tesco is the leading food retailer in Britain, they have also focused on building non-food sales which are available in store and online. Tesco is one of the world’s largest retailers with approximately 4,331 stores in 14 countries which include Asia, Europe and the United States. (Tesco, 2011). See appendix 1 for a map of the countries Tesco operate in.
In the UK alone there are 2,715 stores with just fewer than 300,000 employees. Because Tesco is a global organisation and analysing the company as a whole would be too much information to report, i will focus my analysis on the Tesco stores based in the United Kingdom, looking closely at the company’s business and competitive strategy and also their organisational structure.
2.0 Organisational structure
According to Balogun & Hope Hailey (2004) “Organisations are composed of a number of interconnected and interdependent parts or subsystems, and are most efficient when the major components are in alignment with each other.” (Balogun and Hailey, 2004, p.42)
For an organisation to succeed it should have a structure that is based on different levels of authority and responsibility. It defines a framework of the company and by doing so each member of staff knows their job role within the firm, what is required of them and who to report to. The company’s organisational chart should be accessible to all employees for them to see. By having a good organisational structure, allows the management team to carry out good leadership and effectively communicate with their staff. Management should be committed to motivating and encouraging the staff and especially promote teamwork
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