Developing Corporate Culture : TESCO

Developing
Corporate culture

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................2
1.1) Ways in which organisational culture models are used for achieving organisational
objectives.....................................................................................................................................2
1.2. Difference between organisational and national culture......................................................5
1.3. Corporate cultural profile in an organisation.......................................................................7
1.4) Illustrate the impact of organization's corporate culture in meeting it's set standards.........7
LO 2.................................................................................................................................................7
2.1) Examine present climate of an organization........................................................................7
2.2) Suggestions for improvements in corporate climate............................................................9
2.3) Discuss current organizational values of TESCO and propose a framework to accomplish
particular strategies and operational needs of the firm.............................................................10
3.1) Discover internal and external stakeholders of a company...............................................11
3.2) Examine the effectiveness of an organization's present communication tactics...............13
3.3) Formulate new communication tactics for stakeholders of a firm which address
differences in customs, values etc. ...........................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Corporate culture is defined as behaviours and beliefs which measures how organization's
management and staff members interact and manage external business transactions. There are
numerous benefits of strong corporate culture such as, customers loyalty, workers engagements,
hiring, trust and transparency, financial growth etc. To grow the business in intense competitive
world, it is important to develop corporate culture continuously. Improvements in corporate
culture is based on the actions, personal values of senior leader, communications etc.
Administration's culture is shaped by number of tangible and intangible components which
together frame conducive environment to work good. Project is based on TESCO that is serving
it's grocery items across the globe (Zhang, 2018). This British multinational firm is situated in
Welwyn garden City, United Kingdom. In terms of revenue, it is third largest company. This
project includes organizational models like, OCAI model, Dension Model etc. and how they
assist in meeting organizational set objectives. A deep study will be done on how national and
organizational culture differ from one another. The report includes meaning of corporate culture
in context of TESCO and how they impact in accomplishing goals. Moreover, firm's value is
examined and suggestions will be recommanded for improvements in corporate climate. Internal
and external stakeholders of the firm will be identified and effectiveness of firm's existing
communication strategies will be evaluated. Additionally, new communication strategies for
stakeholders will be farmed that helps in addressing differences in communication needs of
stakeholders.
Organisational overview: Tesco was established in 1919 by Jack Cohen. The
corporation has its headquarters at Shire park, Hertfordshire, England (Analoui, 2018). The
company is retailer of general merchandise together with groceries.
 The vision of Tesco is to become highly valued business by serving customers,
communities, committed colleagues and shareholders.
 Objective of the entity is to retain its loyal people, building values for customers, meeting
expectations of staff members with target audiences, maximising market shares with huge
sales, decreasing prices, introducing healthy commodities, developing Internet websites
for shopping, providing employment and earning lifetime loyalty.
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 Aim of Tesco is to become leading supermarket retailer for providing good quality
products with services at low costs than the competitors (Aims and purpose of Tesco.
2019).
LO1
1.1) Ways in which organisational culture models are used for achieving organisational
objectives
Culture is characterised to set of understandings which are shared by community
members in common. It involves set of perceptions, code of conduct, preferences, values, ideas
addition to concept of morality which distinguishes human groups. In other words, it is a system
of attitudes addition to shared beliefs which are developed within corporates for guiding team
member's behaviour (Watkins. M., 2019). Culture generally includes normal values together with
unwritten conduct rules of business addition to management styles, beliefs and priorities which
prevails personnels behaviour (Langinier and Froehlicher,2018).
Two organisational cultural models that are used by Tesco managers to achieve the
strategic objectives are as follows:
OCAI Model: The organisational model was established by Cameron with Quinn. It is
one of the cultural assessment tool that is used worldwide and is based on competing values
framework (OCAI Cultural Model. 2019). The model offers momentum for changes. Tesco
managers with the model gets quick ways to emphasis towards their key people and the areas
where they agree and disagree. The model has following quadrants:
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Illustration 1: OCAI Cultural Model. 2019
(Source: OCAI Cultural Model. 2019)
Clan culture: It is rooted with collaboration in which commonalities are shared among
members of company. Tesco with clan culture is bounded with traditions as well as
commitments. The core values are generally associated with teamwork, communication together
with consensus. Clan culture helps the company to achieve its objective related to retaining
people by building trustful relationships with suppliers, employees, environment and customers.
Adhocracy culture: It is related to energy as well as creativity. Herein, Tesco managers
encourages staff members to initiate risks through innovations by experimentations, freedom and
focusing on individual ingenuity. By following adhocracy culture, selected entity achieves
objective of introducing quality commodities through initiating innovations (Girvan, 2017).
Market culture: Dynamics of competition as well as achieving concrete results are
reason behind market culture. Organisational managers by following market culture focuses on
maximising market share with more profits. Tesco's managers with this culture properly
understands market situations with needs and produces commodities that can help them to
achieve objective of increasing market shares through providing valuable commodities and
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influencing customer to buy them that will maximise sales and helps in increasing market shares
in competitive world.
Hierarchy culture: It is based on structure and control. Herein, working surroundings
are formal together with strict procedures where more focus is on consistency and uniformity.
Tesco managers have framed proper hierarchy comprising organised coordination as well as
monitoring that helps in attaining more efficiency and profitability.
Denison Model: The model was propounded by Dr. Daniel Denison. The model
highlights key traits which an entity should focus for achieving master towards effectiveness.
The traits are further broken down into specific indices (Denison Cultural Model. 2019).
Effective organisation like Tesco have adaptive culture in which the managers are highly
predictable with consistence that results in fostering higher employee involvement and sharing
vision with them to attain strategic objectives. The essential traits of the model are as follows:
Adaptability: It refers to translating external environment demand into certain actions.
Flexibility with external focus are its main certain orientations which helps organisations
emphasis towards marketplace together with its people. Areas of adaptability are the followings:
Customer focus: In this, the entity serve its key members by looking towards innovative
ways to meet expectations.
Creating change: Herein, the managers of selected enterprise welcomes new ideas, try
new approaches to perform things and creates various changes as part of running successful
business.
Organisational learning: The area helps chosen company to gain knowledge from failures
and success and shares the same with all members as well as thoughtful risk taking.
Involvement: Engaging, aligning and retaining people by creating ownership and sense
of responsibility is known as involvement (Crane, 2017). The trait helps Tesco to value its key
people as well as have pride for provide quality products with fewer defects, high employee
satisfaction, good resource utilization and less rework. Areas of involvement are:
Empowerment: Tesco has various defined areas where decision making is done by
employees which empower them to lead difficult situations. The organisation hire people, define
their roles and responsibilities and empowers them to take effective decisions.
Team orientation: At the company, all employees influences each others to accomplish
goals by encouraging team work.
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Capability development: Through training, mentoring, coaching, trying new
responsibilities with roles, managers of Tesco develops new competencies among key people.
Consistency: Integration of tasks, coordination, setting internal governance system are
part of consistency (Mburu, 2018). It is basically aligned with controlling cultural aspects. Key
interested areas of consistency are:
Core values: Tesco has set clear core values which helps in consistent decision making
addition to behaving in consistent ways.
Agreement: Managers of the entity with various conversations or dialogues gets multiple
perspectives towards reaching final agreement when facing difficult issues.
Integration and coordination: herein, personnels of Tesco understands the impacts of their
workings on others and they works in coordination to serve organisation.
Mission: It entails to define meaningful long term organisational directions. It is
primarily based on external orientation with stability. Dimensions of mission are:
Strategic direction with intent: Herein, Tesco creates strategies by setting priorities to
make its vision come true.
Objectives and goals: In this, the entity creates short term goals, establishes specific
objectives which helps workforce to see the ways their daily operations are connected with
organisational vision and strategies.
Vision: It defines the reason of existence of Tesco along with objectives that firm wants
to achieve (French and Rees, 2016).
Thus, through involvement trait, people feels committed towards organisation and have
sense of autonomy that helps Tesco to achieve its objective of providing employment, retaining
key people and earning loyalty. Other than this, with adaptability, the company links its activities
towards higher productivity, creativity, fast responses addition to service innovations that helps
in achieving objective of meeting needs of employees together with customers. The consistency
trait helps the company to achieve objectives of high investment returns, maximising sales and
building strong business operations (Mose, 2017).
1.2. Difference between organisational and national culture
Culture is said to collective mind programming which distinguishes one group member
with that of another. It categorises people on the basis of attitude, moral goals, society customs
and beliefs. It is further categorised into followings:
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Organisational culture: The culture is composition of underlying broad guidelines,
assumptions, interaction ways and shared assumptions that directs the organisational
expectations by framing appropriate behaviours towards different circumstances (Helmreich and
Merritt, 2017). It affects the manner in which groups or individuals interacts with stakeholders,
clients or others.
National culture: Such type of culture is associated with deeper held values including
good vs evil, rational vs irrational, normal vs abnormal addition to safe vs dangerous. These
cultural values are held deeply, learned early as well as changes with generation courses that are
witnessed in all age group. It comprises customs, behaviours, values and norms that are shared
by members of sovereign nation.
Difference among national and organisational culture as per Hofstede's model dimensions:
Hofstede's Dimension model: The framework was provided by Geert Hofstede in order to
illustrate effects of society's culture towards values of its associates. The dimensions of the
model are the following:
Power Distance index: It expresses power inequality among members. In national
culture of high power distance dimension, formal interaction takes place and people accept
inequalities with hierarchy where respect is provided to superiors but superiors expect obedience.
Where as, considering organisational culture of low power distance dimension, less formal
social interaction takes place and minimum inequalities are accepted between staff members. In
this, superiors and subordinates treats each other equally with equal rights (Howell and Sorour,
2016). At Tesco, organisational culture with low power distance index is followed where
equalities are promoted with equal rights.
Individualism vs collectivism: The dimension defines the extent to which society
members are incorporated into groups. In national culture of individual dimension, people have
goals of oneself, prefers to perform alone, have competition with others and forms relationships
for benefits. Whereas, in organisational culture of collectivism dimension, all staff members
fights towards shared objectives, prefers group performances, establishes deep with stable
connections and have collective goals. In context to Tesco, collectivism dimension is opted
where emphasis is on We and group performances are done for achieving collective goals and
objectives.
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Uncertainty avoidance: It states the extent to which society members feels comfortable
or uncomfortable with ambiguity or uncertainty. National culture having high uncertainty
avoidance have capability to avoid risk taking and have more rules so that employees does not
get deviate from standards acceptance. On other hand, organisational culture possessing low
uncertainty avoidance believes to take more risks with innovations to achieve outcomes. In
relevance to Tesco, low uncertainty avoidance dissension is opted where people accept differing
ideas, views and thoughts.
Indulgence vs. restraint: It defines the freedom degree that is provided to members for
fulfilment of human desires. In organisation culture of indulgence, members are allowed to
freely gratify natural with basic desires associated with enjoying life addition to having fun.
Whereas, national culture of restraint is one that controls fulfilment of all needs or desires and
restrict workings with strict social norms (Plakhotnik, 2016). Managers of Tesco goes with
indulgence dimension so that dreams or needs of employees are fulfilled and they achieve more
outputs.
1.3. Corporate cultural profile in an organisation
Covered in PPT
1.4) Illustrate the impact of organization's corporate culture in meeting it's set standards.
Corporate culture create huge impact on business in meeting it's set goals and objectives
in cut throat competitive world. As it helps business to frame strategies which guide them to
accomplish set objectives in the set time frame. This directly helps the firm to gain competitive
advantages against rivalry as they come up with creative idea on continuous basis. . Business
having strong corporate culture is beneficial in many terms such as, hiring, financial growth,
customers loyalty, workers engagements, trust and transparency etc. all this aspects aid firm to
achieve desire results. Management weak in building strong and effective corporate culture
gradually decreases market value at a tremendous scale. Moreover, company is unable to meet
emerging needs and wants of the customers which reduces productivity and profitability level.
LO 2
2.1) Examine present climate of an organization
Values plays a significant role in running the business smoothly over the years. In an
organization values refers to convictions and framework of philosophy of a person on the basis
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that individual judge what is right and wrong . In other words it can be said that Values are
principles, convictions and beliefs which people adopts as guidelines in their day to day activity.
TESCO implement values in their working premises as they aid the enterprise to grow and
flourish in the cut throat competitive world. Values directly or indirectly motivates staff
members to work effectively and efficiently to meet the set goals and objective. Below are the
expatiation of TESCO's core values in open market place which are discussed as follows:
Understand customers: In neck to neck competitive world TESCO works day and night
according to the values designed by the top level management. Administration's values is to
understand the clients needs, demand, taste, preferences etc. By examining consumers demand
product or services can be formulated respectively. It will help to reduce the switching rate of
loyal and potential customers towards other brands in order to satisfy their needs. This aid to
generate huge revenue from the customers over the years. Negligence of understanding
customers behaviour directly raises clients switching rate which gradually decreases market
value in competitive market place.
Be the first to accomplish or full-fill their emerging needs: In global market it is very
challenging to survive for longer time period without full-filling clients demands. The value
designed by TESCO motivates their skilled and unskilled workers to work effectively and
efficiently to accomplish the merging needs and wants of the customers (Wangcharoendate,
2018). To be the first entity to accomplish customers needs they remain more in touch with them
every now and then. It helps firm to better understand consumers taste, preferences etc. in the
global market. Avoiding customers need and focusing more of profit maximization reduces
market value and goodwill.
Act responsibly for communities: Customers are the king of the market in order to pull
them towards TESCO's product and services firm need to work for the welfare of the
community. Business taking responsibility of the societies education, welfare etc. creates
positive image in the eyes of the customers. Violation of communities welfare affect the
productivity and profitability ratio to a large extent.
No one tries harder for customers: In today's era every small and big organization is
more concentrated to maximize huge profits from public. The values designed by TESCO's top
level management stimulate them to design those goods and services which are beneficial for
customers as well as are providing satisfactory level to them after consuming them (Mutavi,
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2018). The values guide staff members to work hard for the benefits of the customers across the
boundaries.
Use firm's scale for good: Values framed by administration directly or indirectly
encourage the team members of the organization to use their resources wisely at it's optimum
level. TESCO's value guide the manger and other co-workers to use the firm's scale in positive
way to create goodwill in the eyes of the customers for longer time period.
Firm treat people how they want to be treated: The values designed by TESCO's
management guide the co-workers to treat the client they way want to be treated so that they can
be emotionally bind with the business product and services. Providing the same treatment the
way customers wants pull them towards the enterprise goods and services which raises more and
more customer base. As customers are king of the market they can be exploited or can be
misguide it decreases market value gradually.
Every little makes a big difference: It is not important to make a big change in any term
to attract customers towards TESCo's goods and services. A slight modification can create vast
difference in profitability, productivity, customer base, market ratio etc. The value of TESCO
boost them to make slight change so that chances of improvement can be raised and number of
error can be declined gradually (Tedla, 2016).
2.2) Suggestions for improvements in corporate climate.
The recommendations given below are collected from primary data. By analysing all the
feedbacks, recommendations and suggestions some of them are discussed below. TESCO's is
performing several values formulated by top management over the years. In dynamic
environment slight modification is needed in the values designed years ago. This will help the
business administration to sustain for longer time period. Values of TESCO has provided many
advantages due to which company is on the leading position in the global market . While there
are some loop holes which need to improved to remain on the leading position in the coming
years. Some of the suggestions for improvements in corporate environment are explained as
under:
 TESCO is focusing more on customers needs and demand due to which working criteria
changes frequently. This raises potential and skilled employees turn out ratio at a
tremendous scale.
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 Little changes in business working premises creates huge differences due to which chaos
and conflict raises. It indirectly increases unproductive results at a large scale.
 Consumers taste, demands etc. changes frequently and deciding to change the working
environment and values of TESCO respectively brings huge financial expenses. It
indirectly restrict business growth and development in other nation.
 Working more towards society and community is affecting TESCO's working to a large
extent. Employees are motivates to work towards society upliftment which somewhere is
affecting their focus from attaining organizational goal (Xin, 2018).
 In order to meet client's demand and preferences on priority level the level of mental
pressure is raising day by day on the skilled and capable staff members due to which
unhealthy working environment is crated. It directly affect their productivity level at a
large scale. Also, set standards are not achieved in the set time frame.
 In order to cope up with external environment risk factor frequently internal working
style and values changes which is creating negative picture for the brand in customers
eyes. This gradually decreases goodwill in open market place (Ocansey, 2017).
2.3) Discuss current organizational values of TESCO and propose a framework to accomplish
particular strategies and operational needs of the firm.
Organizational values refers to core principles or ethics that administration follow in
every condition no matter what happens. Effectively executing the values assist staff members of
the organization to differentiate between what is wrong and right. The designed core values of
TESCO helps them to figure out weather they are on the right track or not. This provides
guidelines to be on right path irrespective of any circumstances prevailing in cut throat
competitive world. The values which are executed in organization are, on priority level full-fill
customers needs and wants, treat customers the way they want, use firm scale in effective
manner, understand customer taste, preferences etc. There are various steps through which
values can be easily executed in TESCO”s working premises in order to accomplish set goals
and objectives (Shestakov, 2019). A framework to attain specific strategies and operational needs
of the business enterprise are discussed below:
McKinsey's Strategic Horizons mainly focus on growth and innovation. This particular
framework is categorised into three distinguished horizons which are as follows:
Horizon 1: Core Business
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It includes those activities which are closely aligned to present business administration.
In this horizon immediately generating revenue activity is categorised or will sit in this horizon.
Tesco is a leading retail store operating across the globe successfully. Effectively adopting this
framework in the working environment of TESCO, it will directly involve day to day goals
associated with selling of marketing and offering goods and services to customers. The main
goal of core business which is stated in horizon in 1 is to enhance bettering existing processes,
keeping cash coming in and uplifting margin ratio. This directly aid firm to accomplish set goals
and objectives as they are focusing more on immediately generating revenue activity.
Horizon 2: Emerging opportunities
In this case emerging opportunities are garbed and are successfully expanded into new
area of revenue deriving activity. TESCO conduct research activities in the global market in
order to capture opportunities prevailing in the global market. Here, initial cost is associated with
emerging opportunities activities in intense competitive world. Examples of horizon 2 that is
emerging opportunities includes new markets, new and fresh product lines, growing business
into different geographical region etc. This frame is liable to accomplish set objectives of
TESCO as are more centred in capturing new opportunities prevailing in the cut throat
competitive world (Popov and Ersh, 2017).
Horizon 3: Blue Sky
In this particular case business administration is taken to new direction. It is unprofitable
and unproven for significant period of time in intense competitive world. This is a part of
McKinsey's Strategic Horizons which encompass things such as, pilot programmes, research
projects, completely new revenue segments that need significant upfront investments. In TESCO
it can be easily implemented as there is no strict rules which are mandatory to implement. It
helps to attain set standards of TESCO as they are based on modification of risk appetite and
resource availability.
McKinsey's Strategic Horizon is the most appropriate strategy framework because it
assist enterprise to remain focused on constantly growing, developing and creating up-coming
future revenue streams. By adopting this many organization turn into fixated on impulsive their
present revenue margins. The greatest risk to TESCO is of lack of diversity and it is beneficial
for short-term outcomes. It can be improved by change in market, competitive activity and
customer demand.
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3.1) Discover internal and external stakeholders of a company.
The internal and external stakeholders of TESCO are explained as follows:
Internal Stakeholders: They are the internal part of the business and work day and night
to meet the desired objectives in intense competitive world. Board of directors, mangers,
investors, staff members etc. examples of internal stakeholders. Internal stakeholders are directly
or indirectly impacted by TESCO's success and growth ratio. They have financial interest in the
business so support business in each and every stage.
External Stakeholder: In an organization external stakeholder are uncontrollable. Here,
are some of the examples of external stakeholders which are, suppliers, creditors, customers,
government etc. All this stakeholder affect TESCO's smooth functioning at a large scale. They
also, create great impact on business profitability and productivity ratio. In order to cope up with
external stakeholder business associates frame strong strategies to overcome their effect in
business day to day activity (Rahman, 2017).
Stakeholder mapping matrix is defined as procedure of assessing a system and
potential changes to it as is adopted by TESCO in order to analyse internal and external
stakeholders. Information is used to assess how interest of those stakeholders can be addressed in
a policy, project plan, programmes etc. Stakeholders mapping matrix plays a significant role as
they influence each stakeholders working in the premises. There are two variables that affect
project more than any other power and interest. The explanation of this variables are done below:
High power and high interest: In this case stakeholders with high power and high
interest are those who invest more in the project. Along with this they are actively managed so
Athena best results can be achieved in set time frame. This covers investors with more power
and high interest.
High power with low interest: In TESCO stakeholders with high power and low interest
are keep satisfied. Also, they can resolve minor issues easily in intense competitive world. This
covers board of directors.
Low power with high interest: Stakeholders with low power and high interest are kept
informed as they create high influence if in case they are not satisfied with what they want. It
includes employees of TESCO. They are motivated to perform better with the phase of time.
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Low power with low interest: TESCO's stakeholders with low power and less interest
must be monitored timely as they become powerful with the phase of time and affect project in
the up-coming years. It includes suppliers of TESCO.
3.2) Examine the effectiveness of an organization's present communication tactics.
TESCO is adopting face to face personal communication. In their present working
premises. By effectively implementing communication tactics it helps business associates to
come up with productive results in cut throat competitive world. Here, employees are able to
freely share their issues near top level management due to which conflict decreases and
productivity raises at a large scale. To improve the communication tactics they take feedbacks
from the employees and work on them accordingly (Roy, 2018). This aid to easily transfer
important information easily among the team members in TESCO premises. The effectiveness of
firm's existing communication strategies helps to gain competitive advantages against rivalry.
Moreover, easily set goals and objectives are meet in the set time frame.
3.3) Formulate new communication tactics for stakeholders of a firm which address differences
in customs, values etc.
Stakeholders are the people whose attitudes and actions have an impact on the success of
an organisation. The stakeholders include employee of a company, labour unions, suppliers,
customers, business partners, investors and shareholders, local community, government
authorities and regulators. Communication strategy is a plan to achieve communication
objectives. All the stakeholders have different interests, attitudes and priorities related to the
company. Effective communication strategies ensures that the stakeholders can be updated on
the policies of the company so that a positive attitude can be built towards the company. Using
an appropriate communication helps the company in achieving its long-term objectives
effectively. Following are the communication strategies that can be followed in Tesco for
communicating with the stakeholders :
Stakeholders Communication Strategy
Employees By introducing personality development and training programs so
as to enhance the skills of the employees for better performance.
Giving liberty to maintain work-life balance. Team building
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exercises that leads to clarity of goals to be achieved.
Labour unions Effective communication with labour unions is possible through
giving clear instructions to them that do not create any ambiguity
and conflicts in the interest of the labour and Tesco. Mangers
should communicate face-to-face with them and ensure a two-
way communication.
Suppliers Communication with suppliers can be done via mails, telephone
or through newspapers. Clear demands must be mentioned along
with the prices at which Tsco is willing to purchase raw materials
from them.
Customers Communication with customers can be done through social
media, telemarketing, advertisements on various mediums so that
the customers can be made aware of the offerings of the company
along with the prices (Rungruang and Sakolvieng, 2019).
Business Partners Business partners must be communicated by Tesco by arranging
presentations, meetings, e-mails etc. so that all the partners can be
updated on the proceedings of the company to keep them
interested in future investments.
Investors and shareholders The investors must be communicated about the company profits
by the way of e-mails and text messages so that more investors
can be added in the organisation along with benefiting the
existing investors.
Government authorities and
regulators
Communication with government authorities can be done by the
way of submission of formal and official documentation of all the
workings of the company so that tax liabilities can be calculated
in a proper manner and any rebates if applicable can be availed.
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CONCLUSION
From the above discussion it can be summarized that Values plays a significant role in
growth and development of the business in intense competitive world. Business lacking behind
in values does not succeed for longer time duration. It affect their productivity and profitability
ratio to a large extent. Distinguished models are used like, Dension model, OCAI model etc. as
it helps in attaining business strategic goals effectively. The distinguish between national and
organizational culture is highlighted so that tactics can be framed accordingly for better
improvements. It will result in accomplishing best outcomes with the phase of time. Along with
this enterprise's values are examined to gain competitive advantages against rivalry. Moreover,
necessary recommendations are provided to enhance them for productive outcomes. However,
organizational values are measured in order to propose a framework which helped to achieve
operational needs in the set time period. Internal and external stakeholders are discovered as they
helps the firm to run business activities smoothly. A new communication strategy is developed
for stakeholders of TESCO as they address the differences in stakeholders communication
requirements. This helps the company to
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