Corporate Strategy Assignment- TESCO
Added on 2020-06-06
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CORPORATE STRATEGY
Table of ContentsINTRODUCTION...........................................................................................................................1Background Study.......................................................................................................................1Problem faced by Tesco..............................................................................................................3Activities and timescales.............................................................................................................3Literature Review.............................................................................................................................4Discussion of the secondary and primary research undertaken.......................................................4Primary Data...............................................................................................................................4Secondary Data...........................................................................................................................9Critical review of the results of the research.................................................................................10Recommendation and Action Plan.................................................................................................13Recommendation.......................................................................................................................13Action Plan................................................................................................................................14REFERENCES..............................................................................................................................16
INTRODUCTIONCorporate governance in strategic management refers to the set of internal rules andpolicies that determine how a company is directed (Tricker and Tricker, 2015). In accordancewith this context, this project will cover the aspects of corporate strategies and governance ofTesco. Tesco is Britain multinational grocery and general supermarket and merchandise retailerwith headquarters in Welwyn Garden City, Hertfordshire. With the help of literature review, theproject will critically analyse the aspects of corporate strategies and governance. Further, criticalreview of primary and secondary data collected will be analysed in this research project.Recommendations and suggestions will be provided to the management of Tesco, so that theycan improve their corporate strategies and governance.Background StudyCorporate strategies encompasses a firm's corporate actions with the aim to achievecompany objectives and goals. The strategies are formulated by the top management of theorganisations for the growth and development of business operations. These strategies assist themanagement of the organisations to tackle the future uncertainties and prevent risks (Mathur andet.al., 2013). Further, these strategies are formulated with the aim to increase the market shareand growth. Corporate strategy and governance are the rules and regulations which areformulated by the Board of Directors of companies. These policies, rules and code of conduct areto followed by each and every person employed in the particular organisation. Corporategovernance is the system of rules, practices and processes by which a company is directed andcontrolled. Corporate governance essentially involves balancing the interests of a company's manystakeholders, such as shareholders, management, customers, suppliers, financiers, governmentand the community. Corporate governance and strategies are the framework on the basis ofwhich organisation conduct their business activities effectively and efficiently. Since corporategovernance also provides the framework for attaining a company's objectives, it encompassespractically every sphere of management, from action plans and internal controls to performancemeasurement and corporate disclosure (Filatotchev and Nakajima, 2014). In the era ofglobalisation and competitions, organisations aim to sustain in the competitive world byincreasing their production capacities. Thus, corporates management needs to formulate effectivestrategies and policies so that employees and employers work collectively in order to accomplish1
desired goals and objectives of the organisation. Corporate governance has become a buzz wordin the business management field. Owners of businesses of all sizes are employing the conceptsof corporate governance to develop a strategic plan for operations. This includes systems and procedures designed to structure authority, balanceresponsibility and provide accountability to stakeholders at all levels. In essence, corporategovernance is about balancing profitability with sustainability. Tesco Corporation is aninternational company with a strong reputation for providing quality products and services. Thecode of conduct formulate in the organisation so that positive corporate culture can be made andorganisation can move on the path of success (Armstrong and et.al., 2015). Ethical conduct isreferred as the conduct which is morally correct and honourable. The aim of the organisation isto increase their productivity and profitability by conducting their business activities ethicallyand legally. Further, the board of directors of the organisation aim to create premises a betterplace for both employees and employers. This will aid in eradication of conflicts and disputesand organisation can move on the path of growth and development. The board of directors is theprimary direct stakeholder influencing corporate governance (Adamides, 2015). Directors are elected by shareholders or appointed by other board members, and theyrepresent shareholders of the company. The board is tasked with making important decisions,such as corporate officer appointments, executive compensation and dividend policy. In someinstances, board obligations stretch beyond financial optimization, when shareholder resolutionscall for certain social or environmental concerns to be prioritised (Honoré, Munari and de LaPotterie, 2015). Corporate strategies and corporate governance plays important role in the growthand development of the organisation. In this aspect, it is the responsibility of the top managementand appropriate authority to formulate and implement effective and efficient strategies so that thecorporate culture of the organisation can be improved and company can drive on the path ofsuccess. Research Aim: To analyse the corporate strategy and governance of Tesco.Objectives:To understand the significance of corporate strategy and governance for Tesco.To examine the code of conduct and code of ethics followed in Tesco.To investigate the problems and issues faced by the organisation in terms of corporatestrategy and governance.2
To recommend appropriate solutions to eliminate the problems.Problem faced by TescoTesco is one of the largest grocery and supermarket incorporating its business activitiesacross United Kingdom. The corporate governance and strategies of the organisation areformulated by Board of Directors and chairperson of the company (ArAs, 2016). According tothe analysis of Financial Times Stock Exchange 100 index, Tesco held the last position in termsof its corporate governance policies and strategies. The supermarket chain was brought down bythe lowest scores for accounting and audit practices that were largely a hangover from anaccounting scandal and a series of profit warnings in the past two years. Tesco present system ofcorporate governance is not efficient and faced many criticisms in the market economy of UnitedKingdom. The issues including misleading pricing tactics, not treating and consideringemployees needs and concerns, not following the code of ethics and conducts, etc. Thus, it leadto increase in conflicts and disputes in the organisation. Employees frequently got exasperatedand infuriated with the wrong treatment of their superiors and managers. This impacts on theoverall growth and development of the organisation. In this context, this report will analysed thecorporate governance and strategy of the organisation. The loopholes will be discovered byanalysing and interpreting the reviews of employees. Recommendations and suggestions will beprovided to the management of Tesco, so that the issues in corporate governance can be solvedand organisation can move the path of growth and development. Activities and timescalesIn the following project series of activities will be performed so that the goals andobjectives of the project can be accomplished. The series of activities can be explained with thehelp of Gantt chart. The Gantt chart will help in describing the activities effectively andefficiently and which is provided below:Activity1thWeek2nd Week3rdWeek4thWeek5thWeek6thWeek8thWeek9thWeekResearch AimReviewingLiterarture3
Finish Proposal Design questionand pilot researchCarry out &Record ResearchData Analysis andMaking GraphsLiterature ReviewAccording to Lamberti and Noci (2012), Company needs to follow different types ofcorporate strategies which helps to get higher performance and productivity in the world. To getdesired target in the world the must need to follow approaches of marketing. Corporate strategyhas vital role in the firm. It has positive and negative impact on the firm because sometimes itgives advantages to an entity and sometimes that are not effective to get higher performance in aworld. Technologies are changing every day and the manger if the firm has a responsibility toanalysis the market condition and based on that they should take effective decisions. Corporatestrategy helps to give more profit to the company. Firm should use government policies whichhelps to maintain employee relation and also helps to expand their business in the world. Thereare different types of policies for the employee such as employment laws that helps to giveprotection and security to an employee. Corporate strategy and governance helps to get higherperformance and productivity the world. Government policies are very helpful for an entity itgives more profit to expand their business in a world. However, in contrast to this, as per the views of Tricker and Tricker (2015) There aredifferent types of strategies to increase a firm performance and productivity in the world whenthe company use the corporate approach the can face many problems in a firm such as related tothe employees, related to the policies. To solve the issues they need to follow appropriate plansand stages. Management is responsible to follow appropriate and effective strategies and policesthat helps to give higher profit to a firm in the world. They also need to give effectiveenvironment to the employees so that they can easily communicate with each other for theproblem. Corporate strategy gives more advantages to a company to get higher profit and desired4
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