Corporate Strategy and Governance - Tesco Assignment

CORPORATE STRATEGY
AND GOVERNANCE

Table of Contents
MAIN BODY...................................................................................................................................1
Research Proposal.......................................................................................................................1
Introduction, background and review of the problem.................................................................5
Literature review.........................................................................................................................5
Discussion of primary and secondary research data ..................................................................5
Critically reviewing results of research.......................................................................................5
Recommendation and action plan...............................................................................................5
REFERENCES................................................................................................................................6

MAIN BODY
Research Proposal
Introduction about problem
The major issue or problem faced by Tesco PLC was issue in proper implementation of
CSR in company. The report aims to provide recommendation to firm on how failure can be
overcome and overall operational activities can be enhanced in a better manner. This will help
firm to enhance its operations and seeking recommendations, desired profits would be
accomplished upscaling corporate strategy and governance.
Aim
To determine the significance of corporate strategy and governance for resolving issue in
retail sector- A study on Tesco PLC
Objectives
 To evaluate industry life cycle of Tesco on corporate strategy.
 To understand the corporate governance structure and its effectiveness in Tesco.
 To examine Corporate governance failure and give suggestion which contributes in
eliminating barriers in Tesco.
Research Questions
Q1. What are the factors leading for corporate governance in accomplishing solution to problem
in Tesco PLC?
Q2. Do implementation of corporate governance leads to attainment of solutions to problem
being identified in Tesco PLC?
Q3. Do corporate governance failure leads to affect overall performance of Tesco PLC?
Significance of study
The significance of conducting present research is to effectively identify how corporate
governance can be used for resolving issues being faced by company. It is required that problem
should be reviewed in a better way by the researcher. Principal issue or problem faced by Tesco
PLC is technology as risk is continuously increasing and needs to resolve at the earliest (Tesco
PLC strategic report. 2018). In this report, there was issues in relation to implementation of CSR
in Tesco and it has to be executed to develop IT structures and key IT systems, well-defined
1

corporate strategy needs to be implemented so that efficiency can be met. If failure continue to
exist, inability in meeting financial or regulatory penalties will prevail which will impact overall
reputation of Tesco PLC. Thus, study will be conducted for providing solution to business
Literature Review
Theme 1- Relationship of corporate governance and company's performance in industry life
cycle
As per the views of McCahery, Sautner and Starks (2016), business is to effectively
formulate strategies so that it may be able to attain benefits in the form of increased profits. The
sustainability of long run in the market is achieved by firm when it implements effective
corporate governance in effective manner. The shareholder's value creation is the ultimate aim of
company so that relationship with them can be strengthened leading to have ample of invested
amount for meeting funding requirements. It means that firm will be able to achieve desired
profits as it could invest in things so that adequate returns may be generated in a better way.
These returns are passed on to shareholders as per their respective shares in company and
dividends are paid. This leads to achievement of shareholders' objectives with the help of
corporate governance.
Davies (2016) says that corporate strategy is important for up scaling the business ahead
of its competitors and earn good amount of market share. Corporate governance refers to how
internal management and policies are being regulated by business in accomplishing set targets by
generating desired output. For accomplishing this, internal rules are required to be implemented
which determines how a company is directed to meet its goals. The industry life cycle of retail
sector in UK is at growth stage leading to earn more profits. By strengthening corporate
governance in effective manner, organisation become able to earn more profits. The retail
industry also provides clarity that there is fierce competition in firm which corporate governance
plays crucial role leading to attainment of firm's objectives.
Theme 2- How corporate strategy and governance is helpful in meeting solutions and
overcoming barriers
Rao and Tilt (2016) analysed that corporate strategy and governance are interrelated and
interdependent terms which leads company to be directed in a better way for achieving group
goals. The contribution of corporate governance help business to analyse, interpret problems.
This help to make or formulate well-constructed teams which then wholly analyse issue and
2

recommend solutions in effective way. It provides benefits to firm as strategic management is
strengthened and goals can be attained without any difficulty. Furthermore, root cause of issue is
analysed and proper corporate framework is then implemented for achieving efficiency in
effective manner.
In accordance to ArAs (2016), strategy formulation of company provides way to
company for strengthening organisation internally by implementation of rules, policies and legal
framework. It then serves as the base for company in filing the gap by which desired output
could be achieved. In simple words, organisation gets directed in proper way which helps to
accomplish objectives and rivalries are reduced up to a high extent. Company gets benefit as
issues are handled as per the corporate governance framework for outreaching rivalries. The
barriers of company can be overcome by following and implementing well-mannered rules so
that firm may be able to attain efficiency in meeting CSR and benefit society in effective
manner.
Research Methodology
Research Type-
The research type can be categorised into qualitative and quantitative method (Silverman,
2016). For current research, scholar will implement qualitative method so as to analyse
significance of corporate governance in resolving technological issue being faced by Tesco PLC.
Research Design-
Research design helps to execute research in a proper direction. Exploratory and
descriptive are mainly used techniques for research design. Researcher will use exploratory
research design in order to attain useful insight about corporate governance and strategy in Tesco
PLC and thus, research aim will be met.
Research Approach-
The research approach consists of deductive and inductive. For assessing the importance
of corporate governance, deductive approach will be utilised in order to make proper framework
in effective manner and hypothesis is formulated and then observations are made for accepting or
rejecting the same.
Research Philosophy-
3

There are mainly used two types of research philosophies such as interpretivism and
positivism. For present research, researcher will use interpretivism philosophy for interpreting
topic in hand.
Sampling-
The sampling serves as the basis for getting data (Vaioleti, 2016). Researcher will apply
simple random sampling method for gathering data by issuing online questionnaire to 30
managers of Tesco PLC. The responses will be recorded and results will be attained of research.
Data Collection-
Primary and secondary data will be used by researcher. For achieving primary data,
questionnaire will be offered to 30 managers of Tesco PLC. On the other hand, secondary data
will be gathered from reliable articles, books, journals etc.
Data Analysis-
Data analysis is crucial part in research. For analysing data, thematic analysis will be
implemented by researcher for making themes and results will be interpreted thereof. Thus,
research aim and objectives will be met.
Research Timeline (Gantt chart)
Activities 1 2 3 4 5 6 7 8 9 10 11 12 13
Topic of
Research
proposal
Devising
aim and
objectives
of research
Research
Background
4

Implementin
g
methodologi
es of
research
Gathering
data from
primary and
secondary
sources
Examining
collected
information
Interpreting
data
Conclusion
and
recommend
ations
Submitting
draft
Completing
feedback
Submitting
report
It can be interpreted from above Gantt chart that project will get completed within 13 weeks.
Research Project
5

Introduction
The corporate governance has become the buzz word in management. This will be
inclusive of system and procedures that are designed to structure the authority and to build
strategic planning to develop the working in the enterprise (Mutlu and et.al., 2018.).
Furthermore, the corporate governance is the term that is helpful in order to balancing the
profitability in the enterprise. The recognisance of the external stakeholder is one of the crucial
part of the corporate governance. It provides business enterprise the ability to offer high quality
and fairly priced product and services. The present report is based on resolving the issues on
retail sector so that firm can achieve high term of growth. However, the consumer buying
behaviour is continually evolving as the new technical advancement gain more popularity in the
market. Thus, retailers need to leverage the technologies to better understand and target the
customer in order to maximise the effectiveness in market.
Background of the project
The present report is based on business activities of Tesco Plc, in this the strategic and
impact of corporate governance has to be identified so that all things can be done in better mode.
Thus, by strategically managing the relation with external stakeholder will be crucial in order to
place high value on business ability to offer high quality and fairly price product and services to
the customers. It will be inclusive of the system and procedures that designed to produce and
provide accountability so that profitability and sustainability can be enhanced. Thus, with help of
implementing the corporate social responsibility there will be effective and fastest growth in
corporate governance (Bottenberg, Tuschke and Flickinger, 2017 ). In this, the main object of
CSR is to embrace responsibility and impact of environmental, social and community issues can
be determined in better mode.
Aim
To determine the significance of corporate strategy and governance for resolving issue in
retail sector- A study on Tesco PLC
Objectives
 To evaluate industry life cycle of Tesco on corporate strategy.
 To understand the corporate governance structure and its effectiveness in Tesco.
6

 To examine Corporate governance failure and give suggestion which contributes in
eliminating barriers in Tesco.
Statement of the problem
The retail industry is the driving force in the UK. There are number of the issues as are
lack of worker continuity, employment turnover and the number of the another issues that can
impact the growth of enterprise. In order to resolve the issues, the Tesco is taking initiatives to
implement the concept of strategic plan for conducting better operational functions. Furthermore,
corporate governance is about balancing the profitability and sustainability in the enterprise.
With help of it, there can be possibility to offer high quality and fairly priced product and
services. However, despite the expected growth the enterprise will continue to evolve and there
are number of the retailers that will work as to face the challenges in order to address the highly
competitive marketplace and it also adapts the number of consumer preferences and
expectations.
Literature review
Theme 1: Assess the importance of corporate strategy in Tesco PLC for taking decisions
and industry life cycle of retail industry
According to the view of Ojo, (2017) stated that consumer buying behaviour is one of the
concept in which organisation has to face exciting and dynamic challenges. The corporate
strategy will be inclusive of the commitments, decision and action required for the entity in order
to achieved the strategic competitiveness and it helps to earn the above average returns. In
addition to this, Aguilera, Judge and Terjesen, (2018) stated that lack of worker continuity and
employee turnover are one of major challenges faced by the retail industry. The corporate social
responsibility helps to enhance the brand image of the enterprise so that the firm can able to
achieve its competitive advantage in market. Thus, auditing is another process and it is need to
be conducted on the regular basis. There are number of the retail business and they work as to
engaged in the competitor with one another. As per the view of Aguilera, Judge and Terjesen,
(2018) stated that retail strategy is the part of the strategic marketing plan that will be helpful in
order to attracts and reaches the consumer in the directive manner.
According to the view of Bottenberg, Tuschke and Flickinger (2017), it can be stated that
corporate governance is the technique that aids to works as to directed and managed the all
7

function in better mode. The corporate governance is one of interaction between various
participants so that shaping corporation performance so that all things can be conducted in better
mode. In order bring long term sustainability in the retail sector it is crucial to maintain and
manage the healthy relationship between employees so that all things can be undertaken in better
mode. As per the view of Schmidt and Fahlenbrach, (2017) states that corporate governance is
helpful in terms to determining the ways with help of which there are possibilities to determining
the ways to undertake the effective strategic decision so that all things can be conducted in better
and efficient mode. It is about the enterprise that is taking the responsibility and it aids to
determine the impact of decision and activities in terms to aspects of society. This is helpful
terms in order to build brand recognition in market and effective financial resources can be
gained so that firm can perform its activities in the better manner. It is about taking the
responsibility of the enterprise so that there can be possibilities in terms to enhancement in sales,
customer loyalty and brand awareness. This kind of facilities will help to build customer
awareness in market.
According to the view of Min and Chen, (2017) it can be stated that corporate
governance is the that works as to build the transparency and that helps to maintain the strong
and balanced economic development. Thus, it is term that is inclusive of the both social and
institutional aspects. It is term that works as to encourage trustworthy, moral and ethical
environment. As per the view of Singh and Delios, (2017) it can be stated that it is the
formation and develop of the strategical compliance in systematic mode. Thus, corporate
governance is the term that works as to develop added value to the stakeholders. In addition to
this, stated that The essence of good and better corporation strategy will be helpful to maintain
quality, transparency and dependability of the relation between the management, employees,
shareholder and board of directors.
As per the view of Ojo, (2017) it can be stated that the main elements of corporate
governance are responsibility, accountability, fairness, transparency and to bring effectiveness so
that all things can be done in the expertise mode. In this term, Aguilera, Judge and Terjesen,
(2018) stated that the enterprise need to gain the trust of the employees so that it can be possible
to bring long term advantage in market. The retailers should produce better quality so that it can
attract the customer by the services and firm can able to promote effective and creating the good
environment so that brand strategy can be developed. Thus, strategic governance is the
8

corporation that can work as to develop the process of business function by brining long term
innovation in the market. In the retail sector it is crucial to minimise the wastage, corruption and
to maintain the risk management so that all things can be done in expertise mode. This is one of
the effective that is useful in order to formation and to develop the brand strategy in the expertise
mode. According to the view of Schmidt and Fahlenbrach, (2017) stated that with the help of
better corporate strategy there are possibilities to ensure strong and balanced economic
development. In contrary to stated that climate changes can also impacts the profitability and
productivity to the enterprise.
Thus, internal governance mechanisms will be helpful in order to maximise the
contribution and this kind of the activities will sustain long term growth in the enterprise. In
contrary to Min and Chen, (2017) stated that strategic plan will be helpful in order to make the
better planning of the all business activities. Under this, there is possibility to frame the better
and effective strategical plan so that all things can be conducted in better and efficient mode. The
effective corporate governance plan will be helpful in terms to analyse the factors that can affect
the working of the enterprise from the both internal and external working of the enterprise.
According to the view of Singh and Delios, (2017) stated that the customer service is one of
activity that helps to boosting the working so that they can be feel valued and it must be
appreciated. As per the view of it can be stated that the technology is the advancement will
help to compelling opportunities for the growth of small business. Thus, the main importance of
corporate governance strategy is to bring long term competitive advantage in market. The
industry life cycle of retail sector is changing rapidly which needs to be taken into account by
organisation so that it may respond to market changes. Corporate strategy is required to be
enhanced so that firm may be able to provide better services by establishing corporate
governance strategy quite effectually.
Theme 2: Analyse the factors of corporate strategy and governance in Tesco PLC for
resolving issue and giving suggestion for improvement
The corporate governance framework should protect the shareholders and this is helpful
in terms to facilitate the right in the business enterprise. As per the view of Ojo, (2017)
Aguilera, Judge and Terjesen, (2018) states that the managerial authorities of Tesco should
works as to recognise the legal right of the stakeholder and to facilitate the corporation so that
9

there is possibility to create wealth, employment and sustainable enterprise so that each thing can
be done in better and efficient mode. According to the view of Schmidt and Fahlenbrach, (2017)
stated that purpose and value of the firm will work as to set down its constitutional documents
and reflecting the objectives of the founders so that each things can be done in better and
efficient mode. In contrary to Min and Chen, (2017) states that good and better corporate
governance is critical in terms to helping and to build successful business activities so that all
things can be sustained for longer period of time. As per the view of stated that with help of
substantial enhancement will likely to achieve the significant increase in productivity and also
raise long term motivation within the customers. With the help of maximising the contribution
the all things in the enterprise can be conducted in better mode. According to the view of Singh
and Delios, (2017) stated that good corporate governance is critical to helping out the things in
better mode and this also impacts the working of the enterprise. The Tesco PLC board are taken
at the right level of the business and it also allows to conduct the business activities in the
appropriate mode. With help of it, the decision can be taken by the higher authorities and
strategic direction to enterprise can provide. This kind of the activities will lead to gain the
competitive advantage in market. In addition to this, the governance framework at the Tesco will
provide the clear parameters of delegation and responsibility so that each things can be done in
more proficient mode. In the present scenario, strong corporate governance maintain the fair
return on the investment and this is helpful in terms to build better and effective strategy. The
corporate governance failure can be removed by taking structural approach of continual
efficiency in managing things in a better manner. With proper commitment of enhancing
management activities, barriers can be overcome and strong corporate governance can be
enhanced.
According to the view of Bottenberg, Tuschke and Flickinger, (2017) stated that
corporate governance is the term that will be helpful in order to prove the entities and that can
also works as to be highly valuable and also ultimately leads to have higher valuation of the
enterprise. In contrary to states that corporate governance will be assistive in order to facilitates
effective and better management so that long term success can be achieved. This is the system
with help of which the function of entities can be controlled and directed. In contrary to states
that effective corporate governance strategy has the following pillars as accountability,
transparency, assurance, leadership and stakeholder management. As per the view of Mutlu and
10

et.al., (2018) stated that the successful execution of strategies will help to meet and exceed the
customer satisfaction. In addition to this, the successful function of the entity can be undertaken
by facilitating the better communication between the workers. Furthermore, strategic direction
provides the ways with help of which firm is able to carry out their day to day function in more
better manner. By the use of it, there are possibilities to run better operational activities and it
also leads to gain competitive advantage in market. For having long term sustainability in the
market it is crucial to improve the business process and enhancement in customer services and
speed ion decision making of the buyer and this all led to develop the enterprise strategy in better
manner. In the present scenario, the entities are facing the exciting and dynamic challenge so by
framing the better strategies it will be easy to being the competitive in market. In addition to this,
it can be said that effective corporate governance strategy will be helpful in order to challenging
not only the competitive firm bit it will also be helpful in order to build the better strategies so
that there can be possibilities in order to maintain the customer satisfaction.
Discussion of primary and secondary research data
Primary research technique-
Questionnaire
1. Do you think effective corporate governance strategies helps to have long term
profitability?
 Yes
 No
 May be
2. Is corporate social responsibilities aids to improvise the working of Tesco Plc.
 Yes
 No
 May be
3. Does implementation of corporative strategies help to take right decision.
 Yes
 No
 May be
4. Do you believe that corporate governance ensures success and economic growth to the
entity.
11

 Yes
 No
 May be
5. Does corporate governance aids in brand formation and development.
 Yes
 No
 May be
6. Is execution of corporate governance strategies minimize wastage, curruption and risk
management.
 Yes
 No
 May be
7. Do you think corporate governance lower the capital cost?
 Yes
 No
 May be
8. What are the beneficial aspects of implementing the corporate social responsibility in
Tesco.?
 Better brand recognition
 Enhancement in sales and customer loyalty
 Operational cost saving
 Effective financial performance.
9. Is corporate governance strategy impacts the buying decision of customers.
 Yes
 No
 May be
10. Is CSR implementation attracts the customers.
 Yes
 No
 May be
Do you think that industry life cycle has effect on corporate strategy of Tesco PLC?
12

 Yes
 No
 May be
Do efficiency in management helps to overcome barriers in corporate governance failure?
 Yes
 No
 May be
13

Theme 1: The corporate governance strategies help to earn long term profitability.
Do you think effective
corporate governance strategies
helps to have long term
profitability? Frequency %
Yes 23 76.67%
No 6 20.00%
May be 1 3.33%
Total 30 100.00%
Interpretation- Based on the above graph it can be concluded that corporate governance
strategies help to build and enhance profitability advancement in the enterprise. Thus, there are
total number of responded as 30. In this, 23 said yes, 6 said no and 1 is not sure about it. With the
help of bringing the corporate governance facilities the entity is able to conduct its business
operations in the systematic manner. It is helpful in order to conduct the better and effective
14
Yes No May be
0
5
10
15
20
25 23
6
1
Frequency

strategic decisions. Furthermore, the number of the respondents said that corporate governance
strategies brings long term advantage to the enterprise.
Theme 2: Corporate social responsibility aids to bring improvement in working of Tesco.
Is corporate social
responsibilities aids to
improvise the working of Tesco
Plc. Frequency %
Yes 23 76.67%
No 4 13.33%
May be 3 10.00%
Total 30 100.00%
'
Interpretation- As per the above graph it can be concluded that corporate social responsibility is
helpful in terms to bring improvement in working and it also allows to bring long term success to
the enterprise. In this, there are total 30 respondents. Under this, the 23 said that it is one of the
effective technique that helps to improvise the working of the enterprise, 4 said it is not that must
effective to conduct better operational activities and rest of 3 respondents are not sure about it. In
15
Yes
No
May be
0 5 10 15 20 25
23
4
3
Frequency

this it can be said that effective CSR implementation helps to conduct the better working so that I
can promote long term growth.
Theme 3: The corporate governance helps to frame better strategies.
Does implementation of
corporative strategies help to
take right decision. Frequency %
Yes 25 83.33%
No 3 10.00%
May be 2 6.67%
Total 30 100.00%
Interpretation- Based on the above graph it can be concluded that better and effective
implementation of corporate social responsibilities will work as to take the right decision so that
entity can perform its business activities in the better and efficient mode. Under it, there are total
number of the 30 respondents. Out of it, 25 said yes that better corporate governance facilitates
16
25
3
2
Yes
No
May be

the better strategies so that each thing can be conducted effectively, 3 said no and 2 are not sure
about it. This is helpful in terms to determine the better working in the enterprise.
Theme 4: Corporate governance ensures long term success to economic growth of the
enterprise.
Do you believe that corporate
governance ensures success and
economic growth to the entity? Frequency %
Yes 20 66.67%
No 7 23.33%
May be 3 10.00%
Total 30 100.00%
Interpretation- Based on the above graph it can be concluded that the better corporate
governance plan helps to ensure the long term success and provide economic growth to the
17
Yes No May be
0
5
10
15
20
25
20
7
3
Frequency

enterprise so that the better things can be conducted. In this, there are total number of 30
respondents. Furthermore, 20 respondents said that better and effective corporate governance
strategy will help to ensures the greater success to the enterprise and it can develop better
opportunities and provide effective working. Thus, 7 respondents said no about it and rest of the
3 said that they are not sure about it. This is helpful in order to attract the customers in market.
Theme 5: The corporate governance helps to conduct brand formation and development.
Does corporate governance
aids in brand formation and
development.
Frequency %
Yes 24 80.00%
No 4 13.33%
May be 2 6.67%
Total 30 100.00%
18
Yes No May be
0
5
10
15
20
25
30
24
4
2
Frequency

Interpretation - Based on the above graph it can be concluded that corporate governance is one
of the technique that works as to performed the functions in the directed and controlled manner.
This define the way of conducting the business activities within legal framework. Under it, there
are total number of the 30 respondents. In this, 24 said yes that corporate social responsibility
helps to enhance the brand recognition so that each things can be conducted in better mode, 4
said no that it is not that much effective and this impacts the working of the enterprise in the
greater context. The corporate social responsibility is very helpful in terms to determine the
better strategic direction. This is helpful in terms to conduct the business activities in the better
and efficient mode. This leads to manage the business function so that it can facilitate the
working of the enterprise in the huge context.
Theme 6: The execution of CSR minimises the wastage, risk management and corruption.
Is execution of corporate
governance strategies minimize
wastage, corruption and risk
management. Frequency %
Yes 26 86.67%
No 3 10.00%
May be 1 3.33%
Total 30 100.00%
19

Interpretation: Based on the above graph it can be concluded that performance of corporate
governance strategies minimises wastages, reduce corruption and managing risk in firm. Under
it, there are total numbers of the 30 participants. In this, 26 respondents said that yes strategies of
corporate governance help in reducing wastages, managing risk and corruption. On other side, 3
participants said that no these strategies are not helped in wastage reduction, corruption and risk
management in business. 1 respondent is not sure about the corporate governance strategies.
20
Yes
No
May be
0 5 10 15 20 25 30
27
2
1
Frequency

21

Theme 7: The corporate governance helps to lower capital investment.
Do you think corporate
governance lower the capital
cost. Frequency %
Yes 27 90.00%
No 2 6.67%
May be 1 3.33%
Total 30 100.00%
Interpretation- Based on the above graph it can be concluded that corporate governance helps
in lower capital investment. Under it, there are total numbers of the 30 participants. In this 27
respondents said that yes corporate governance helps in lower capital investment. 2 participants
said that no corporate governance aids in low investment capital. Therefore, corporate
governance is also creating opportunity for investment of company.
22
Yes
No
May be
0 5 10 15 20 25 30
27
2
1
Frequency

Theme 8: Beneficial aspects of implementing CSR in Tesco
What are the beneficial aspects
of implementing the corporate
social responsibility in Tesco. Frequency %
Better brand recognition 12 40.00%
Enhancement in sales and
customer loyalty 7 23.33%
Operational cost saving 6 20.00%
Effective financial performance. 5 16.67%
Total 30 100.00%
Interpretation- Based on the above graph it can be concluded that implementation of CSR is
more beneficial in different aspects. Under it, there are total numbers of the 30 participants. In
this 12 said that CSR help in brand recognition of company.7 respondents said that CSR enhance
23
12
7
6
5
Better brand recognition
Enhancement in sales and
customer loyalty
Operational cost saving
Effective financial
performance.

sales and customer loyalty towards company. in order to that, 6 participants said that CSR
implementation is saving the cost of operation of firm. 5 respondents said that corporate social
responsibility helps in effective financial performance of company. Therefore, it is important that
company has good corporate social responsibility in the business growth and success.
24

Theme 9: Buying decision of customer affected by corporate governance strategy.
9. Is corporate governance
strategy impacts the buying
decision of customers. Frequency %
Yes 25 83.33%
No 4 13.33%
May be 1 3.33%
Total 30 100.00%
Interpretation- Based on the above graph it can be concluded that impacts of corporate strategies
on buying decisions of customers. Under it, there are total numbers of the 30 participants. In this
25 said yes that corporate strategies impacts on customer decisions in terms of increasing brand
awareness and loyalty towards product and services. 4 said no that huge impacts on decision on
buying of customer and 1is not sure for corporate strategies. Therefore, these strategies are
impacted on buying decisions of customers.
25
Yes
No
May be
0 5 10 15 20 25 30
25
4
1
Frequency

Theme 10: Yes, CSR execution attracts customers in the huge context.
10. Is CSR implementation
attracts the customers. Frequency %
Yes 26 86.67%
No 3 10.00%
May be 1 3.33%
Total 30 100.00%
Interpretation - Based on the above graph it can be concluded that implementation of corporate
social responsibility attract more customer for business. Under it, there are total numbers of the
30 participants. In this, 26 said yes that implementing CSR activities attracts more and more
customer for business growth. 10 said no that CSR activities are not attracted consumers in the
26
26
3
1
Yes
No
May be

business. In this context, corporate social responsibility (CSR) that purpose is to raise long term
profits for online and offline firms by allowing them to become more efficient and pull positive
attention for their efforts. So that CSR help in attracting customer towards their product and
services.
Theme 11 - Industry life cycle has effect on corporate strategy of Tesco PLC
Do you think that industry life
cycle has effect on corporate
strategy of Tesco PLC? Frequency %
Yes 20 66.67%
No 6 20.00%
May be 4 13.33%
20
6
4
Yes
No
May be
Interpretation-
27

It can be interpreted that 20 respondents said that industry life cycle has effect on
company up to a high extent. While, 6 said no and remaining 4 said it may affect on corporate
strategy of Tesco PLC.
Theme 12 - Efficiency in management helps to overcome barriers
Do efficiency in management
helps to overcome barriers in
corporate governance failure? Frequency %
Yes 19 63.33%
No 5 16.67%
May be 6 20.00%
19
5
6
Yes
No
May be
Interpretation-
It can be analysed from the chart that corporate governance failure can be overcome by
Tesco by incorporating efficiency in the management as 19 respondents have answered in favour
28

of it. 5 participants said no and remaining said that may be with efficiency in management,
corporate governance failure can be overcome.
Critically reviewing results of research
According to the view of Ojo, ( 2017) corporate strategy is the highest strategic plan of
company that define objective of corporate. It allows clearly outlined long term vision that set
and trying to make corporate value and motivate workforce to apply proper actions to
accomplish customer satisfaction. Corporate strategy is constant procedure that needs invariable
efforts to engage investors in trusting firm with their money. Companies manage to deliver
customer value infallible are those that revisit their corporate strategy to improve fields. The
industry life cycle could be able to achieved in way which is very much good so that company
could be able to incorporate the changes which is occurring in market.
In addition, Aguilera, Judge and Terjesen, (2018) corporate governance is the procedure
and relation are controlled and directed by firms. Governance structure and principles determine
arrangement of rights and duties between various participants such as shareholder, board of
directors the firms. It involves regulation and process of making decisions in corporate affairs.
Board of director is responsible for administration of their firms. Role of shareholder in
governance is to appoint director and auditors. Corporate governance involves procedures by
which objective of firms that are set and chased in context of social, regulative and market
environment.
As per view of Schmidt and Fahlenbrach, (2017) corporate strategy is important in terms
of allocating resources, establish expectation and improve competitive positions, increase
shareholder value. It is utilized as tool of firm. It is the best opportunities of investment
opportunities and assesses execution of every business unit. Organization expresses their
corporate strategy to individual business components to manage performance and establish
expectations of inside and outside stakeholder. The focus of company on key fields like standing
market, productiveness and profits.
In order to that Jacoby, (2018) included corporate governance is important for progress
and successfulness of any company. It is really balanced of power among managers, shareholder
and boards. It ensures that transparency regulations are in line with international needs, equal
treatment of shareholder and independent auditors. With the help of it, improving interaction of
29

shareholder, talented workforce is advised as competitive advantage by company. Corporate
governance also evolves goodwill of firm over time period. Good corporate governance builds
power customer relation that leads to growth of brand loyalty. It is very much essential the
company is analysing their governance structure so that it is effective in way of considering
gaols of company.
As explained by Min and Chen, (2017) corporate social responsibility (CSR) is the major
issue of corporate strategy and governance that effects on business. It is the kind of international
private business self-regulation. It was possible to define CSR as inside policy and ethic strategy
of corporate that also called as corporate sustainability. It has attracted attention from range of
businesses and stakeholders. CSR is the combination of socially beneficial programs and
practices into business model and culture of organization. The purpose of CSR is to raise long
term profits for online and offline firms by allowing them to become more efficient and pull
positive attention for their efforts.
As evaluate by Bottenberg, Tuschke and Flickinger, (2017) corporate social
responsibility is more beneficial for the organization. It is increase loyalty of employees and
maintains positive reputation. CSR prevent financial branch by compliance with spirit and letter
of law. It includes local community projects either through financial donations, participant’s
worker, connecting customers with task leaders and promotion of project. CSR grow value and
profits, create motivation and increase relations with customer.
As critic by Mutlu and et.al., (2018) There are many disadvantages of corporate social
responsibilities on company. CSR create resistance of shareholder and promoting green washing.
Costs of programs of corporate social media can also get pretty significance without much
warning. CSR plans have absolutely done with actually improving and benefiting environment.
A failed CSR plan can ultimately fare worse for company. If the firm choose to conduct their
CSR quietly, that is releasing an annual report to show consumers that they have already
accomplished in the past year. CSR programs to decrease impact of environmental frequently
need expensive modification in instrument or ongoing costs without clear way to recompense
those losses.
According to view of McCahery, Sautner and Starks, (2016) corporate governance
strategies assist to have long term profitability. These corporate strategies play role in the
30

formulation and adoption direction of strategic direction. With effective formulation strategy and
follow proper by company that helps in achieving long term profitability. Effective corporate
strategies help in increasing profits of the organization.
As per view of Aguilera, Judge and Terjesen, (2018) corporate social responsibility aids
to improvise working in organization. If the company has good CSR policy, so that it increases
motivation of employees. They are worked effectively in the organization as well as improve
their image in industry. Good CSR policy is beneficial for increasing productivity of firms. This
also improves performance and reputation of organization.
As explained by Min and Chen, (2017) effective implementation of corporate strategies
assists in take correct decisions. These strategies help take decisions about vision and goals of
business. By corporative strategies, firm easily take appropriate decision for products and
services. With the help of it, company improve performance and productiveness for their
business. Through it, increases competitive positions of firm in industry.
As evaluate by ArAs, (2016) corporate governance ensure that success and economic
growth to firm. Because of, it is specific procedure controlled by organization. This process
helps in pulling talent in workforce and improving communication with shareholder. This also
assists in improving competitive position of company in the industry. Therefore, ultimately
corporate governance increases growth and success of entity.
As critic by Jacoby, (2018) corporate governance aids in brand formation and
development in the organization. Because of, it is the process which is controlled by firm for
taking appropriate decision regarding improvement of brand formation and their awareness
towards the customers. It is process of improving talent of workforce and interaction with
shareholder.
As per view of Schmidt and Fahlenbrach, (2017) the execution of CSR minimise the
wastage, risk management and corruption. Because of, the main purpose of CSR is to reduce
impact on environment and social. If company has adopted good CSR strategy that helps reduced
risk, managing waste and corruption. This aids in improving the performance and productivity
of business.
In addition, Rao and Tilt, (2016) the corporate governance helps to lower capital
investment. It is attracting the investment. Good CG is increasingly essential factor for decisions
31

of investment. Impressive corporate governance is allocated between alternative chances of
investment. So that, CG helps in increasing capital investment.
According to view of Min and Chen, (2017) there are many beneficial aspects of
implementing CSR in Tesco. It includes better brand identification, enhancement in sales and
customer loyalty, saving cost of operational and effective financial performance of business. So
that, it is important to company that they have good corporate social responsibility policy. CSR
grow value and profits, create motivation and increase relations with customer. The main
purpose of corporate social responsibility policy is raising long term profits of business. This
help in improving execution and competitive positions in industry.
In order to that Bottenberg, Tuschke and Flickinger, (2017) corporate governance
strategy affects buying decision of customer. These strategies help in take right decision about
product and services. Good corporate governance builds power customer relation that leads to
growth of brand loyalty. By this, motivate workforce to apply proper actions to accomplish
customer satisfaction.. Corporate governance engages actions by which purpose of firms that are
set and chased in situation of social, regulative and market environment.
As per view of Mutlu and et.al., (2018) CSR execution attracts customers in the huge
context. Because of, good corporate social responsibility policies build relation with customer
and grow sales of business. There are many beneficial aspects of implementing CSR in Tesco. It
includes better brand identification, enhancement in sales and customer loyalty in the huge
context.
According to the view of Ojo, ( 2017) CSR is the combination of socially beneficial
programs and practices into business model and culture of organization. It is boost faithfulness of
employees and preserves positive reputation. CSR grow value and profits, create motivation and
increase relations with customer.. If the company has good CSR policy, so that it increases
motivation of employees. Therefore, they are helped in improving the execution of business. If
the firm choose to conduct their CSR quietly, that is releasing an annual report to show
consumers that they have already accomplished in the past year.
As per view of Schmidt and Fahlenbrach, (2017) corporate strategy is important in terms
of improve competitive positions and increase shareholder value.. It involves regulation and
process of making decisions in corporate affairs. Corporate governance involves procedures by
32

which objective of firms that are set and chased in context of social, regulative and market
environment.
As critic by Jacoby, (2018) corporate governance strategies are important for progress
and successfulness of any corporation. Good corporate governance builds power customer
relation that leads to growth of brand loyalty. Strong corporate governance maintains the fair
return on the investment and this is helpful in terms to build better and effective strategy.
As per view of Schmidt and Fahlenbrach, (2017) strategic direction gives the traditions
with the assistance of which firm is able to carry out their daily function in an effective manner.
Therefore, it is the most necessary part that is implements good corporate strategies and
corporate social responsibility for improving performance and productivity of business. This also
helps in growth and development as well as success of business. So that, it is essential to
company that has effective policy of CSR and corporate governance in business.
According to view of Bottenberg, Tuschke and Flickinger, (2017) it could be evaluated
that life cycle of product is very much important that company is able to implement the corporate
strategy so that they could be achieving goals and objectives. Corporate strategy should be done
in proper manner so that company could be dealing with their failure and top level management
giving out suggestions in way of eliminating barriers within organisation.
Recommendation and action plan
Conclusion- Based on the above report it can be concluded that corporate governance is
effective in terms to perform their business function in order to managed and controlled the
business activities in the effective manner. The present report is based on the business activities
of Tesco Plc, it is global leading brand and conducts its business operation in the systematic
manner. Furthermore, the researcher has used the interpretative technique so that depth
information can be determined so that the detailed description helps to carry out the research in
better manner. Thus, research also has used inductive technique so that proper conclusion can be
drawn. In order to carry out the present research, the researcher ha also used primary techniques
so that better survey can be taken by carrying out the detailed things with the help of first-hand
information. In this, researcher has also used secondary method so that depth information can be
conducted with the help of books, journal and online articles so that things can be conducted in
better mode.
Recommendation
33

Hereby it can be recommended that CSR plays crucial role in the company. It is
recommended to Tesco PLC to effectively make rules and strategies so that it may resolve issues
as it is facing in implementation of CSR in company. Moreover, innovation should be
encouraged in firm so that CSR may be effectively implemented and as a result, efficiency may
be attained in better manner. In relation to this, action plan for the company is prepared below-
Action Plan
Initiative Materiality Target Target Date
Offer superior quality
goods to customers
Maintaining and
improving service and
product quality for
maximising customer's
satisfaction.
Maintain certification
for ISO standard for
product standard.
It will be
accomplished within 2
months.
Strengthening risk
management
Ensuring compliance
with regulations
Identify status of
compliance. Conduct
group-wise surveys for
assessing success.
It will be attained
within 3 months of
time period.
Respecting human
dignity with
employees
Reducing workplace
accidents and
comfortable place for
accomplishing work
Identifying existing
practices and
monitoring if changes
are not implemented if
any.
It will take 2 months.
34

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