Corporate Governance and Strategy in Tesco

HI you need to do a 6000 words report the company i choose is TESCO The first part which was the proposal i did it let me know if you want to sent the proposal so you don t need to do that Now i will give you the feedback please add some diagrams review the problem faced please explain what was the problem and how they fix it in critical analysis please bring tesco competitors as well and discus the tesco and its competitors weakness and strengths and how tesco will react in future Thank you

Corporate Strategy and
Governance

Table of Contents
Introduction......................................................................................................................................1
Background of the organisation..............................................................................................1
Rationale and justification for current research......................................................................1
Review of Problem faced.......................................................................................................1
Aim and objective...................................................................................................................2
Research questions.................................................................................................................2
Literature Review.............................................................................................................................2
To evaluate about the need and importance of good corporate governance in terms of ethical
compliance..............................................................................................................................3
To determine the impact of strong corporate governance and management in enhancing the
growth and success level of Tesco along with improving its brand reputation......................5
To analyse about the competitors of Tesco in order to suggest effective strategies and ways
for Tesco to react on them in efficient manner for better business success...........................7
Research methodology for secondary and primary research undertaken........................................9
Critical review of results of research.............................................................................................12
Recommendation and action plan..................................................................................................16
REFERENCES..............................................................................................................................19

Introduction
Background of the organisation
Tesco is one of the largest British retailer which is providing a continue supply of groceries
and other general merchandise at a global and multinational level the main headquarter of which
is situated at Welwyn Garden City, England, UK. Tesco is a multinational orgnisation thus,
having many complex business operations and activities thus, strong management becomes more
vital and essential for this organisation (Davies, 2016). Further, Tesco also involves borrowing of
money form investors on a broad investment base from both national and foreign markets thus, a
positive brand reputation and good image has become more vital and essential for this
orgnisation that can be only achieved by a strong management and compliance with ethical laws
and corporate governance policies.
Rationale and justification for current research
Corporate governance has now become a vital part of every orgnisation in terms of
maintaining ethical operations at workplace. Apart from this, lack of effective management is
taken as the biggest issues and challenge for orgnisation who seemed to be in suffer in terms of
corporate governance. Thus, an efficient and strong management is require for overcoming all
the issues related with ethical concerns and values along with complying with ethical laws of
corporate governance. Therefore for conducting current research project is rationale and
justifiable as it facilitates better understanding about the need and importance of good corporate
governance in terms of ethical compliance along with impact of strong corporate governance on
growth and success level. Apart from this, current project is also rational from personal and
academic view point of researcher as it facilitates better understanding and improvement in
skills.
Review of Problem faced
Tesco is facing many problems and issues related with efficient management and
complying with provisions of corporate governance in form of lack of transparency and
accountability in its decision making and strategy formulation. Apart from this, many losses and
legal consequences are faced by Tesco because of misleading statement and accounting scandals
associated with overstating profits and misleading investors (Tesco fined £129m for overstating
profits, 2017). Therefore, to maintain the growth and success level along with having a good
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brand reputation in business environment it has become vital for Tesco to emphasis more on
strong corporate governance and efficient management. Furthermore, to overcome risks in terms
of management an effective strategic control and efficient corporate governance is required.
Thus, to resolve and overcome this issues and challenges faced by Tesco plc current research
project is undertaken the main aim and objective of which are provided as below:
Aim and objective
Aim
The main aim of current investigation is, “ To evaluate about the need and importance of
good corporate governance along with analysing its impact in enhancing the growth and success
level of a company.” A research project on Tesco plc.
Objectives
 To evaluate about the need and importance of good corporate governance especially in
terms of ethical compliance.
 To determine the impact of strong corporate governance and management in enhancing
the growth and success level of Tesco along with improving its brand reputation.
 To analyse about the competitors of Tesco in order to suggest effective strategies and
ways for Tesco to react in efficient manner for better business success.
Research questions
 Why corporate governance is needed and important for an organisation especially in
terms of ethical compliance?
 What possible impact is lead by strong corporate governance and management in
enhancing the growth and success level of Tesco along with improving its brand
reputation?
 What are the main strengths and weakness of competitors of Tesco in order to suggest
effective strategies and ways for Tesco to react in efficient manner for better business
success?
Literature Review
Following literature review comprises of analysis of secondary data which is collected with
the help of online article and journals to facilitate base and framework for current investigation
through leading better understanding on the topic of corporate governance.
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To evaluate about the need and importance of good corporate governance in terms of ethical
compliance
As per the view point of Margaret Rouse. 2020, it has been analysed that the concept of
corporate governance is basically associated and represent the combination and set of rules, laws
and processes according to which the operations and all function of a company are being
operates, regulated and controlled by its top authority and managers. Along with this, corporate
governance also leads out a framework that define the existing relationship of the business with
its shareholders, managerial teams, board of directors, employees, managers and all other key
stakeholders which covers both social and institutional aspects of a business firm. Thus, an
analysis can be made out that a good corporate governance is necessary and important for an
orgnisation to effectively achieve its goals through effective control over risks along with
assuring compliance with all set legal and ethical provisions (Engert and Baumgartner, 2016).
Beside this, with respect to the information provided by Cappa, F., Cetrini, G. and Oriani,
R., 2020, it has been analysed that the concept of good corporate governance is receiving much
more importance in today’s business environment because of many high profile scandals that are
recently seen in the corporate world. These scandals are mainly due abuse of corporate power or
involves some kind of alleged criminal activities and unethical behaviour by the corporate
officers. Therefore, many strict laws and legal regulation are set out an a business firm which
tends to be followed by corporate world in order to address these issues by the way of implying
components and principles of good corporate governance. The core principles of corporate
governance are discussed below that are presenting and reflecting the need and important of
good cooperate governance within a business organisation (Fox and Alldred, 2015).
Accountability- It is one of the core element of good corporate governance which provides
and leads to an enhanced level of accountability of the board directors of the firm to all
shareholders which leads an enhanced level of check and control over decision making. Further,
this principle of accountability is also vital and important in accordance with law that facilitates
and leads out to a effective monitoring and check over the activities of chief executive bodies of
a company to ensures ethical working (The Importance of Corporate Governance, 2020).
Fairness- Another vital principle of good corporate governance comprises of protecting
rights of all stakeholders along with leading a proper balance between interest of company and
all other stakeholders consists of its customers, employees and society at larger. Thus,
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implication of good corporate governance is also vital and important to protect the right of
shareholders and ensuring an equal treatment and value for all along with ensuring equal
opportunity for all to obtain effective redress and solution for violation of their rights which is
vital to comply with legal framework (Gnan, Montemerlo and Huse, 2015).
Transparency- This principle of corporate governance is associated with ensuring timely
and accurate disclosure of all the needed information about the relevant material facts related
with operations and activities of a company. This principle of good corporate governance is also
vital and important for compliance of legal law and ethical consideration as it leads to free access
to relevant information for all stakeholders associated with the financial situation of a firm along
with its true social and environmental indicators, performance, ownership structure and
governance of the Company.
Thus, on the basis of above discussion about the principles of good corporate governance
and analysis can be lead out that the it is vital and important to avid mismanagement of a firm
along with ensuring a more efficient operation and working of firm to improve access to capital
and also mitigate all possible legal and ethical risk. Implication of corporate governance makes
and leads out more accountability and transparency in business for investor in order to minimize
the expropriation and incidence of unfairness for shareholders (Goel, 2015). Thus, good
corporate governance is important to act as a vital system of the principles along with
compliance of legal policies and ethical procedures which clearly defined responsibilities, and
accountabilities of all board of directors and that can be also used by stakeholders in order to
work through and effectively management and set balance inherent conflicts of interest that exist
in the corporate form. Beside this, an implication can also be made that good corporate
governance is also vital and essential to set an appropriate control the interaction between
various participants for shaping a better performance and efficient working direction for a firm in
which it is proceeding. These participants involved and focused in good corporate governance
consist of Shareholder, a Board of Directors, and Company Management. Thus, good corporate
governance is important and necessary to determine the ways to reach the most effective
strategic decisions along with ensuring transparency, to lead a strong and balanced economic
development for the organization and also helps to keep the interest of all shareholders
safeguarded (Grennan, 2019).
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To determine the impact of strong corporate governance and management in enhancing the
growth and success level of Tesco along with improving its brand reputation
With respect to the information provided by the Lakshna Rathod. 2018, it has been find out
that the a positive and most optimistic kind of impact is lead out by strong corporate governance
and management in enhancing the growth and success level of Tesco along with improving its
brand reputation as it leads to a healthy corporate culture by the way of leading better control
over legal risk through straining and consistent procedure based on principle of accountability
and transparency. Further, implication of good corporate governance insecure and leads out to
more efficient processes and operation within a firm lead out by repeatability and leading out of
consistency of tasks. Apart from this, adoption of principles of corporate governance also leads
to more better visibility of errors by the way repeatability and consistency in business operation
which quickly highlight nonconformities and misappropriation in the business processes which
lead a positive impact success of a firm by the way of error detection of error and frauds. Further,
the other positive impact of good corporate governance in performance of a firm consists of the
fact that it leads to reduced costs of operation by the way of repeatability and consistency in
activities along with elimination of waste by the way of effective control from scrap, rework and
other costly inefficiencies (Jacoby, 2018). Beside this, a high level of legal and ethical
compliance is also assured by corporate governance through leading and brining a culture that
supports ethical working with compliance of accountability and transparency along with meeting
the intended specifications and works correctly in accordance with legal framework and ethical
provision.
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Figure 1: Impact of good Corporate Governance, 2020.
Further, as per the view point of Davies, A., 2016, the positive impact of strong corporate
governance and management in enhancing the growth and success level of Tesco along with
improving its brand reputation can also be evaluated and analysed with the help of below
provided points:
Ensure more suitable Board- The main positive aspect of good corporate governance on
the success and performance of Tesco comprises of the fact that it lead to a more competent,
balanced and a diverse boards of director who have better knowledge and understanding about
various crucial aspects thus, leads to enhanced success of a firm. The implication of corporate
governance is directed and aim at having a more qualified directors who thoroughly and
completely understanding all the aspects of business along with offering fresh perspective and
complying with set all legal and ethical framework that ensures its optimistic impact in the
performance and success level of Tesco (Kabir and Thai, 2017).
Regular review of board activities- The success and performance of any orgnisation is
greatly dependent on the performance and understanding level of its board of directors who are
responsible to take all vital decisions and strategy formulation. Thus, implication of corporate
governance leads a positive impact on success and performance level of a firm through regular
review of composition and efficiency level of board which helps in identifying all possible
shortcomings on timely and quickly manner which allows and leads to timely improvement of
operation and activities to keep things in track of success and better performance.
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Financial sustainability- The another positive impact of corporate governance comprises
of the fact that it lead to better check on the misappropriation and error in accounting which
reduces the chances of frauds and scandal within a firm. Thus, implication of good corporate
governance leads to better trust and higher commitment level in stakeholders of the company
comprises of investors, employees and customer that ensures better success and performance
along with improving the reputation of brand in target market (Kamil and et. al., 2016).
Therefore an analysis can be made out that the implication of good governance reduces the
chances of frauds and accounting standard along with reduces the threat of safety, legal,
performance and warranty concerns that can severely impact an organisation and its stakeholders
and/or interested parties. Thus, leads an enhanced commitment and test level in customers,
directors, staff, suppliers, shareholders and even whole communities which ensures better brand
reputation for Tesco to lead a positive impact in its overall success and performance level.
To analyse about the competitors of Tesco in order to suggest effective strategies and ways for
Tesco to react on them in efficient manner for better business success
Tesco is an multinational retailer that has successfully maintain its brand image in the
market. But there are various competitors of Tesco that have an impact on its marketing
strategies such as Sainsbury’s, ASDA, and Morrison’s. Below is the explanation of strength and
weakness of each competitor.
Competitors Strength Weakness
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Sainsbury’s Company is one the most successful
retail brand of UK. Organization is
used various strategies that help the
company to grow in the industry. The
major strength of the company is they
use innovative promotion strategies
that help them to attract more
customers and increase the customer
base. Their offerings is for every type
of customer which is more beneficial
for the brand (King and Mackey,
2016).
Company well established in the
retail industry but there are some
weakness in the market for the
respective brand such as the brand
switching rate of customers could
be high because of the high level
of the competition in the market.
With growing competition the
company also face low rate of
margins that could be affect the
growth if firm.
ADSA Company is offering high rang of
product and services and financial
service in the market. ADSA also has
high level of employee turnover in
their firm there are 150,000 workers
are working in approx 500 stores
which make the strong brand rate for
the company. Organization is also
using online services to connect with
the customers and it is a biggest
strength of the company.
The company is growing
organization in the market but
there are various weakness of the
company which they are facing.
ADSA has less global presence in
the industry in compared to other
competitors. Their ability of
selling prices is restricted in few
countries as they are having fear
for their local vendors (Krall and
Peng, 2015).
Morrison’s Company has an efficient and
effective supply chain distribution
network which helps the company to
grow in the market. Morison’s is one
of the largest super market company
in UK. It has 500 stores and having an
strong employee turnover of over
130,000. Company is also listed in
Morrison’s have limited
geographical reach compared to
the other brands which could be a
weakness for its brand image.
Company was having some issues
with the farmers which could
impact its brand image in the
market.
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London stock exchange (Lone, Ali
and Khan, 2016).
Effective strategies and ways for Tesco to reach on the competitors in efficient manner for
better success of business.
Tesco is well established and wee known of retail business. Company is effectively
competing with their competitors with various strategies and effective management of resources.
Below is the detail explanation of way Tesco is better than their other competitors and how
company is gaining competitive edges in the market.
 Eco friendly strategies: Tesco use various strategies that make their organization better
than other competitors. Company is proving environmental friendly products to their
customers such as low energy light bulbs and many more. Tesco also make littlie plan of
eliminating deforestation products by 2020 and making their packaging fully recyclable
by 2025. These strategies could give though competition to their competitors and attract
more customers in market. Thus, with these strategies Tesco can ganin more competitive
advantages in the market (Lutsenko, 2018).
 Good corporate governance: Tesco is always focused on making more customers base
in their company and give those customers effective satisfaction level from the product
and services of the company. they use various strategies to reach to high level of target
audience and make them aware about the offerings of the company. Thus, with the right
corporate governance strategies company can deal with the competitors in the market.
Research methodology for secondary and primary research undertaken
This section forms a vital part of a project or study which determines and facilitates about
the set of method which are used to perform primary and secondary research consists of
collection and analysis of relevant set of data for meeting set objective and addressing a business
issues. To ensures, selection of most suitable and vital set of research method and approaches for
current investigation use and implication of research onion model is made a description and
analysis of which is provided below:
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Figure 2: Research Onion, 2020.
Research philosophy- Basically there are four man forms of research methodology which
are provided by the research onion model which consists of positivism, realism, pragmatism and
interpretivism which set out principles for leading and conducting an investigation. From the
these four main type of research philosophies use and implication of Interpretivism research
philosophy is most viable and suitable for current investigation on Tesco as it support better own
perception and understanding of reality (McCahery, Sautner and Starks, 2016).
Research approach- It is represented by the secondary layer of research onion that is divide
into two main parts comprises of inductive and deductive form of research approach. Implication
of inductive approach is more viable and suitable for current investigation as it support
interpretivism research philosophy along with leading better scanning of in-depth and theoretical
form of data.
Research strategy- This layer forms out to be a vital part of research methodology section
that provides a complete base and framework for leading out an investigation that comprises of
many data collection tool and forms i.e. action research, interview, survey, observation,
experiments, etc. Out of these forms of research strategy, use of qualitative semi-structured
interview is made as research strategy for current investigation for collection of data as it
facilitates better understanding and implication of theoretical data (Muller, 2017).
Choices of method- There are two main types of research method comprises of quantitative
and qualitative out of which use of qualitative method of research is made as it facilitates
collection of theoretical and in-depth information to have better analyse of human attitude and
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behaviour on selected topic. Thus, use of qualitative nature of research method is more suitable
and justifiable to have better implication and understanding about view point and detailed
perceptive of selected respondents which supports better and more efficient accomplishment of
set objectives.
Data collection- Data would be gathered from both primary as well as secondary form of
data where primary data would be collected with the help of semi-structure interview while
secondary information would be collected from online books, article and journals. Use of
primary data is justifiable as it ensures and provided first hand and most authentic set of
information where as secondary sources of data collection are also vital to provide a better base
and framework for investigation by the way of facilitating information about the past work and
research undertaken (Naciti, 2019).
Sample size- This represents a statistical process which is used for conducting and leading out a
research in more effective and appropriate manner through selecting an adequate number of
observation and units from a larger population (Ocasio and Radoynovska, 2016). With respect to
current investigation, selection of 10 participants would be made from the employees of Tesco
who have vital understanding on the concept of corporate strategy with the help of random
sampling method. Use of following interview question would be made for collection of data
from the selected 10 participants from the employees of Tesco on the topic of corporate
governance.
Questionnaire
(Interview questions)
Q1) What implication do you having about the concept of Corporate governance?
Q2) As per your view point, Why corporate governance is needed and important for an
organisation especially in terms of ethical compliance?
Q3) What could be the main advantages and benefits of adopting and implementing good
corporate governance strategy within the Tesco plc?
Q4) Which could be the main challenges and issues encountered by the Tesco plc in case of lack
of strong corporate governance and management?
Q5) What perceptive you are having regarding the fact that effective corporate governance also
keeps a check on misappropriation of accounting facts and financial statement?
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Q6) What are the main negative consequences which would be faced by Tesco company because
of the ongoing frauds and accounting scandals within the corporate world?
Q7) As per your view point, What possible impact is lead by strong corporate governance and
management in enhancing the growth and success level of Tesco along with improving its brand
reputation?
Q8) What understanding do you having about the main strengths and weakness of competitors of
Tesco for which effective strategies and ways are needed by Tesco to react in efficient manner
for better business success?
Q9) What possible effective recommendation can be made out by you for Tesco company to
cope up with the threat of high competition that prevails in its business environment?
Q10) according to your view point what could be the best steps and strategies adopted by Tesco
plc to effectively deal with the ethical risk in order to cope up with a more strong corporate
governance and management?
Cost, access and ethical consideration
The estimated cost of conducting research work is near around 250 £ which comprises of
all possible expanses made on conducting current investigation which includes transportation
cost, data collection cost, internet cost and other expenses. Beside this, access to collected
research data is provided only to tutor and researcher to maintain the authenticity and integrity of
current report and project. At last, implication of BERA code of ethics and data protection act are
also made to perform current investigation in most ethical form along with taking a prior consent
and approval from all involved participants.
Critical review of results of research
For review and interpretation of collected data with the help of semi-structured interview in
form of qualitative data, use of thematic approach is made a discussion and analysis of which is
provided below:
Theme 1: Concept of Corporate governance
Interpretation
An interpretation is made on the basis of current findings that, a major number of respondent
were having a view point the concept of corporate governance is mainly associated with the
leading and providing a corporate and ethical framework for an organisation which present all set
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rules and policies through which is a company is operated and regulated. Further, some
participants were also having a view point that the concept of corporate governance is mainly
representing the relationship between board of directors and other key stakeholders of a firm
comprise of shareholders, customers, employees, suppliers and community as whole.
Theme 2: Corporate governance is needed and important for an organisation especially in terms
of ethical compliance
Interpretation
It has been analysed in accordance with view point of major portion of participants that
Corporate governance is needed and important for an organisation especially in terms of ethical
compliance as it ensures relevant level of accountability, transparency and fairness in the
operation of a business which is important and vital to have more efficient operations and also
set a compliance with legal provisions. Apart from this, it has been also analysed that because of
ongoing high profile scandals that are recently seen in the corporate world the implication and
adoption of Corporate governance has become much more needed and essential for a company to
meet the set legal and ethical framework for better presentation of accounting facts and financial
statement along with setting sense of equality for all stakeholders.
Theme 3: Main advantages and benefits of adopting and implementing good corporate
governance strategy within the Tesco plc
Interpretation
An analysis about the Main advantages and benefits of adopting and implementing good
corporate governance strategy within the Tesco plc could also be made by findings of current
investigation which comprises of better managerial practises by the way of regular control and
monitoring in operations of board of directors along with meeting the interests of all
shareholders. Apart from this, Providing of systematised framework along with Avoiding legal
complication are also the main advantages and benefits of adopting and implementing good
corporate governance strategy within the Tesco plc.
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Theme 4: Main challenges and issues encountered by the Tesco plc in case of lack of strong
corporate governance and management
Interpretation
An analysis can be made on the basis of collected information from selected 10 participants that
the main challenges and issues which are faced by Tesco plc in case of lack of strong corporate
governance and management comprises of lack of enhanced chances of conflicts of interest
among board of directors along with enhanced chances of accountability issues which are
controlled and monitored by corporate governance strategy. Apart from this, an interpretation is
also made out that lack of transparency in strategy formulation and decision making along with
Violation of ethics and accounting principles are also encountered by the Tesco plc in case of
lack of strong corporate governance and management which might lead to serious frauds and
accounting scandals.
Theme 5: Effective corporate governance also keeps a check on misappropriation of accounting
facts and financial statement
Interpretation
Maximum number of participants seemed to have a view point that Effective corporate
governance also keeps a check on misappropriation of accounting facts and financial statement
as it ensures a more better control and check over the daily accounting records and financial
transaction along with leading a higher level of accountability and transparency at workplace and
in business operations. Thus, use and implication of good corporate governance and strong
management also leads and creates better check and control over misappropriation of accounting
facts and financial statement to facilitates a better and true presentation of financial position of a
company.
Theme 6: Main negative consequences which would be faced by Tesco company because of the
ongoing frauds and accounting scandals within the corporate world
Interpretation
It has been analysed on the basis of current investigation that many negative consequences which
would be faced by Tesco company because of the ongoing frauds and accounting scandals within
the corporate world which consist of issue of lack of trust and commitment level in investors and
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other shareholders. Beside this, many forms of legal action and law suits are also faced by
corporate organisation due to ongoing frauds and accounting scandals within the corporate world
which leads to decline in sales and performance level of a firm associated with and lead out due
to breach of trust and commitment level of investors and customers.
Theme 7: Possible impact lead by strong corporate governance and management in enhancing
the growth and success level of Tesco along with improving its brand reputation
Interpretation
With respect to the collected information an analysis can be made out that a positive impact is
lead by strong corporate governance and management in enhancing the growth and success level
of Tesco along with improving its brand reputation as it leads and ensures to formation of a more
suitable and competent board of directors that support effective success and performance. Apart
from this, an interpretation can also be made out that regular review and control over
performance ad activities of board of directors is also facilitates and ensured by corporate
governance which ensures and leads a positive impact of strong corporate governance and
management in enhancing the growth and success level of Tesco along with improving its brand
reputation by the way of building trust and commitment level of investors and other
stakeholders.
Theme 8: Main strengths and weakness of competitors of Tesco because of which effective
strategies and ways are needed by Tesco to react in efficient manner for better business success
Interpretation
During the course of current investigation it has been analysed that the Sainsbury’s, ADSA and
Morrison’s are the main competitor of Tesco in its business environment which are giving tough
competition to Tesco the main strengths of which comprises of innovative promotion strategies
that help them to attract more customers and increase the customer base along with efficient and
effective supply chain distribution network to have enhanced level of productivity and
performance level. Apart from this, an analysis about the weakness of Sainsbury’s, ADSA And
Morrison’s is also made with current research findings which consists of switching rate of
customers along with fear for their local vendors which also comprise of giving lack importance
and emphasis on eco-friendly and sustainable operation which hampers there performance in
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business environment.
Theme 9: Effective recommendation can be made out by you for Tesco Company to cope up
with the threat of high competition that prevails in its business environment
Interpretation
It has been analysed that a major number of participants were having a view point that mashies
on eco-friendly services along with implication of better digital and online marketing strategies
are effective recommendation that can be made out by you for Tesco Company to cope up with
the threat of high competition that prevails in its business environment. Apart from this,
implication of strong corporate governance along with effective management is also a vital step
that can be adopted by Tesco Company to cope up with the threat of high competition that
prevails in its business environment as it lead and facilitated an enhanced confidence and trust in
investors and customers which ensures better performance and success level for Tesco plc in its
business environment.
Theme 10: The best steps and strategies adopted by Tesco plc to effectively deal with the ethical
risk in order to cope up with a more strong corporate governance and management
Interpretation
An interpretation can be made out with findings of current investigation on the basis of view
point of maximum number of respondents that the best steps and strategies adopted by Tesco plc
to effectively deal with the ethical risk in order to cope up with a more strong corporate
governance and management consists of Formation of independent audit committee as it lead to
more fair and better check on performance and operation of board of director. Apart from this,
some respondents had also favoured Transparency in Decision making along with Complying
with legal norms based on clarity and accountability that can also adopted by Tesco plc to
effectively deal with the ethical risk in order to cope up with a more strong corporate governance
and management along with fulfilment of CSR responsibilities which leads to better trust and
higher commitment level in customers and other stakeholders to have better performance and
success level along with more effective corporate governance and strong management.
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Recommendation and action plan
On the basis of above research work it has been analysed that implication of corporate
governance along with string management has become vital for all orgnisation to overcome all
sort of legal risk along with meeting the best ethical provisions for enhanced success and
performance of a firm. Further, it has been also observed that implication of string corporate
governance is also vital to keep a check on chances of frauds and accounting scandal along with
avoiding any kind of legal consequence and threats thus, a number of legislation and standards
are essentially required to be considering by an organisation. Thus, following recommendations
can be made for Tesco plc to have a strong corporate governance along with effective
management to have improved performance and better brand reputation to overcome the threat
of legal consequences and high level of competition in business environment:
 Tesco must emphasis and focus on improving its audit procedures by the formation of a
more competent and effective external audit committee which ensures and leads to better
check and control over the operations and activities of board of directors. Further,
formulation of independent external audit competitive also meet the legal provisions and
ethical consideration by the way of effective checking on illegal accounting prcatises and
any other kind of fraud or scandal thus, ensures better brand position and reputation for
Tesco to have enhanced success and performance level.
 Further, Tesco also needs to focus on reforming its internal organisational structure on
the basis of legal standards and norms so that it can operate in a more ethical manner.
Further, formation of a more competent board of directors based along with regular
review of there performance is also suggested and recommend for Tesco as it ensures a
more effective decision making and strategy formulation based on equitability and
fairness along with removing threat of all kind of misappropriation or unethical activity
to boost the trust and commitment level of customers and investors which ensures better
performances and success level.
 At last, implication and fulfilment of corporate social responsibility is also recommended
for the Tesco company as it leads to more eco-friendly strategies and policies to have
better brand reputation and recognition in business environment. Thus, suggestion of
adopting CSR polices for Tesco plc is based on the fact that the corporate social
responsibility (CSR) provides a more effective self-regulating business model for Tesco
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that helps a this orgnisation to become more socially accountable towards its
stakeholders, and the overall community and public. Beside this, by practicing corporate
social responsibility that is also called as corporate citizenship Tesco become more
conscious towards its act and lead out to a kind of ethical impact that they are having on
all aspects of society, including economic, social, and environmental which would boost
there company reputation and overall business performance and success.
Action Plan
To overcome the all sort of legal and ethical issues by the way of effective and strong
corporate strategy and management following action plan is prepared by Tesco plc which helps
and support improvement in overall brand reputation and performance of this firm by leading
better trust in investors, customers and other stakeholders.
Step Discussion about taken action
Identification of
issues
The first and foremost step of current action plan comprises of
identification of major issues or risk that is faced by an orgnisation. In
contest of Tesco, the accounting scandals and frauds going on in current
corporate world is the biggest issue that is mainly due to lack of strong
corporate strategy and management. This threat of accounting scalds and
fraud has lead to problem of breach of trust among customers, investors
and other stakeholders that is hampering the success and business
performance.
Formulation of
strategy
The best strategy that is suitable and can be adopted by Tesco company
to overcome the above stated threat of breach of trust and unethical
business activities is based on adopting more strong corporate strategy
and management which needs to be based on ethical considerations.
Implementation of
strategy
For effective implementation of strong corporate strategy and firm
management to reduce the chances of frauds and scandals along with
meeting the legal and ethical provisions, it is vital for Tesco to form an
independent external audit committee which would ensures a better
check and control over the business operations and activities, Further,
formulation of a more competent board of directors which comprises of
skilled and knowledgeable members is also required to have better
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strategy formulation and decision making based on more effective
perceptive and new business ideas. Apart from this, regular review of
performance of board of directors along with all other business activities
and operations are also suggested to keep a balance with legal provisions
and ensuring high level of transparency and accountability in business
organisation. Fulfilment of corporate social reasonability also leads to
fulfilment of social and ethical provisions along with facilitating and
leading improvement in brand reputation.
Expected outcome The expected outcomes of having a more competent and skilled board of
directors comprises of better decision making and strategy formulation
based on legal and ethical provisions. Further, formation of independent
external audit committee leads out a better check and control over
accounting frauds and scandal to build trust in investors which lead to
more financial sustainability for better performance and success. Beside
this, fulfilment of CSR leads to a better accomplishment of social and
ethical consideration which lades and ensures an improved brand
reputation and business position in business environment to have more
competitive strength.
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