Developing Corporate Culture

This document discusses the development of corporate culture and its impact on organizational goals. It explores models of organizational culture, the difference between national and organizational culture, and analyzes the corporate culture of Tesco. The document also examines the present climate of the organization.

Developing Corporate
Culture

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
1. Explanation of models of organisational culture which are helpful in achieving strategic
goals and objectives....................................................................................................................3
2. Understanding of national and organisational culture and explanation of difference between
these two......................................................................................................................................5
3. Analysis of corporate culture of Tesco...................................................................................6
4. Discussion of impact of corporate culture in attaining organisational goals of Tesco...........7
5. Examine present climate of an organization...........................................................................7
6. Discuss current organizational values of TESCO and propose a framework to accomplish
particular strategies and operational needs of the firm...............................................................9
7. Identification of internal and external factors of Tesco........................................................10
8. Development of new communication strategies of stakeholders of Tesco...........................12
CONCLUSION..............................................................................................................................14
REFERENCES .............................................................................................................................15

INTRODUCTION
Corporate culture is defined as the behaviour and beliefs by which interaction between
staff members can be measured and business transactions can be managed. There are various
benefits which can be attained such as customer loyalty, employee engagement, financial
growth, hiring and many more. In order to attain high edge in competitive market this is highly
important for the business that corporate culture is developed in continuous manner.
Development in corporate culture is based on actions drawn by the company, personal
association of senior employees, communication and many more (Arrah, Caglar and Bayram,
2018). There are various tangibles and intangible components in the environment in which
conductive environment can be enhanced. This report is based on Tesco which is dealing in
supermarket industry around global periphery. Tesco is a British company which is headquarter
in UK, on the basis of revenue Tesco is the third largest company in the nation. This project is
associated with various organisational models like OCAI model, Hofstede model and many
more. Similarly a study is being enumerated in order to understand national and organisational
culture and their difference from each other.
MAIN BODY
Vision: The vision of Tesco is to enhance value of their business by capturing high customers
and maintaining loyal customers and taking care of interest of their stakeholders as well.
Mission: Tesco is centralised at enhancing their market identity and meeting needs of their
customers and making prominent strategies to achieve success as well.
Aim: The major aim of the company is to provide quality services to their customers and
enhance their online presence so that to attract huge customers at once.
1. Explanation of models of organisational culture which are helpful in achieving strategic goals
and objectives.
OCAI Model: This organisational model was propounded by Cameron. This is known as
one of the major tool for assessment in which values can be measured on global level. With the
help of this model manager of Tesco is taking out prominent move to emphasise on their key
people (Belyaeva and Burmykina, 2017). This model is having four dimensions in which
implications are drawn on corporate culture. Dimensions of this model is elaborated as under:

Clan culture: This is related with shared commonalities with staff of the organisation.
With the help of clan culture commitments can be met by Tesco in prominent manner. Company
is having core value such as Team work, communication and consensus, so clan culture is
helpful for Tesco in order to retain people and enhance level of trust and create a path of goal
attainment. Trustful relationship can be established with customers and other stakeholders in
order to achieve set value and objectives (Charter and Tischner, 2017).
Adhocracy culture: This is associated with creativeness and energy. In this aspect Tesco
manager try to motivate their employees to assess risk and minimise the same by taking help of
various experiments and innovations. By following this culture quality can be achieved in
business which leads to attainment to overall objectives in an easy manner.
Market culture: Market culture is associated with accomplishment of concrete results
and setting a level to compete with dynamic competition. By following of market culture market
share can be maximised and high profit can be earned as well. With the help of market culture
Tesco is understanding needs of market and according to that manner commodities are produced
by them. This is influential for customer to make buying decision in the favour of the company.
Hierarchy culture: This is emphasised on business structure and control as well. In
working culture major focus is enumerated on strict procedure and formal bindings so this leads
the business to face prominent consistency and equity. Managers of Tesco is working in order to
frame appropriate hierarchy so that to enumerate coordinated structure and to enhance their
efficacy and earn immense profits as well.
Hofstede's Dimension model: This model was propounded by Geert Hofstede for the
major purpose of illustrating culture of society and associate the value which are given by the
society. Hofstede's Dimension model is having 6 dimensions which are elaborated as under:
Power Distance index: This is expressed as inequality within staffs. On the other hand
this is associated with maintenance of hierarchy within organisation. In high power distance
culture inequalities are accepted by individual. In the environment of low power distance index
employees are pertained with questioning their employer and boss. In the context of Tesco the
company is having low power index by which equal rights are given to employees.
Individualism vs collectivism: This dimension is defined as incorporation of people into
one group so that they can work in more effective manner (French and Rees, 2016). The major
aspect of individualism is interdependence and distinctiveness by which collaborative work can

be established. In the context of collectivism culture shared objectives are achieved by
individuals. On the other hand in individualism culture no delegation is given by managers. In
Tesco collectivism is opted by the company in order to enhance their group performance and
attain collective goals and objectives.
Uncertainty avoidance: This aspect is associated with level of comfort and discomfort
so that to understand corporate culture. This dimension states regarding existence of uncertainty
within an organisation. High uncertainty relates to existence of avoidance or risk on the other
hand low uncertainty avoidance is associated with acceptance of risk and innovations. In the
context of Tesco the company is possessed with low uncertainty avoidance and for this the
company is opting varied ideas and thoughts (Grennan, 2019).
Indulgence vs. restraint: This is defined as degree of freedom in which human desires
are fulfilled. In culture of indulgence employees are provided with fulfilling overall desires.
Similarly restraint role is defined as controlling fulfilment of needs and desires. In the context of
Tesco indulgence is being followed by the company so as to attain high outputs as well.
2. Understanding of national and organisational culture and explanation of difference between
these two
Organisational culture: This culture is association of underlying broad guidelines, ways
of interaction and other shared assumptions. This is an aspect in which direction is given to the
organisational in order to attain level of satisfaction within expectations. This culture is having
high implications in performance of interaction of customers and other stakeholders.
National culture: This type of culture is associated with beliefs, values, customs,
traditions and habits which are acquired by society members. This is a very complex culture
which are giving implications to organisational culture as well. This culture is having deep value
in which all age group people are inculcated and changes are inherited in prominent manner.
Difference between national and organisational culture
National culture Organisational culture
 This is a broader term in which various
culture are included those are having
high impact on business operations
(Gulev, 2016).
 This is a narrower term which is only
associated only with organisational
culture and typologies.

 This term is focused on values, beliefs,
knowledge, art, morals and habits
which are retained by members.
 This is associated with practices which
are used within a business in order to
maintain organisational culture.
 Change is highly difficult within this
culture to adopt as so many processes
are included in this.
 In this context change can be exhibited
in easy manner as this culture is having
direct relation with organisational
aspect.
 This is very complex in nature so so
many processes are required to be
taken.
 This culture is simple and directly
linked with organisational power.
3. Analysis of corporate culture of Tesco.
In multinational organisation this is required by the management to adopt suitable culture
so as to align their organisational goals along with culture of the business. So in this context
Tesco is following Handy's typologies which is elaborated as under:
Role culture: Every business is having varied employees to play numerous roles which
are assigned to them according to qualification hold by them. In this type of culture challenges
are accepted by employees in order to subsistence their responsibilities in prominent manner
(Halkos and Skouloudis, 2017). In this aspect power is given to the individual in accordance with
roles given to them.
Task culture: This culture is associated with coming together of all the team members to
perform task in appropriate manner. This culture is a task oriented style in which high creativity
is rendered between members in order to attain objectives in clear manner. In the context of
Tesco as this culture is focused on attaining objectives of task so this is clearly defining its
existence in goal attainment.
Power culture: Under this type of culture power is given to few people and all the
decisions are taken by them only. Scope is being taken from rest employees and power to share
opinion is also taken by them. Decision maker are giving instructions to other people and they
are following the same without any doubt. This type of culture in Tesco is creating discipline by
which path of goal attainment can be created.

Person culture: In this type of culture an individual is given authority to act as superior
and this is a complex culture in which high conflicts are created as well. For Tesco by using this
culture people are not managed in easy manner which leads to generation of complexities and
conflicts as well.
4. Discussion of impact of corporate culture in attaining organisational goals of Tesco
Corporate culture is creating huge impact can be drawn on attainment of goals and
objectives in intense competitive marketplace (Kola-Nyström and Koivukoski, 2020). Corporate
culture is helpful in framing prominent strategies through which goals of the business can be
attained on appropriate time frame. Similarly corporate culture is helpful for the business to
receive distinct place within competitive market and creative ideas can be rendered in continuous
manner. Business is having robust corporate culture in which various operations of business are
taking place such as hiring, customer loyalty, employee engagement and many more. These
aspects are helpful for the company to create path in order to attain desired objectives along with
prominent efficacy. Management is making strong relationship with their employees so that to
generate effective results by which immense market share can be received. On the other hand
organisation is making high efforts to deal with market situation so as to enhance productivity
and profitability. In Tesco their culture is up-keeping interest of their employees in effective
manner so that to build effective plan of action in accordance with market situation. On the other
hand Tesco is making effective plans so that to effectively handle their internal complexities in
such a manner that it can be eliminated.
5. Examine present climate of an organization
Value has an important role to make an business run in smooth manner during years.
Organization is that kind of value that is being refereed to as that kind of framework with
convictions over judging an individual that what is right and wrong (Langinier and Froehlicher,
2018). These are considered to be that kind of principals in which convections and beliefs is
adopted as the guidelines as per day to day activity. TESCO has to apply these values at
workplace in order to make growth possible. Certain explanation regarding core values of
TESCO are as follows:
Understand customers: In this cut throat competition TESCO is working day and night
with administrative values top be kept in mind related to need, demand, taste and preference.
They are being provided by top level management. Consumers demand should be examine over

a product and service. This makes loyal customer increase towards the organization. Negligence
of such thing is going to make decrease in market value of organization.
Be the first to accomplish or full-fill their emerging needs: In this competitive market
surviving is very challenging. Design of value in TESCO helps in motivating skilled and
unskilled worker that enhances performance. If needs of customer are avoided that profit rate is
going to decrease with goodwill.
Act responsibly for communities: Customer is the highest person in a market and for
attracting it towards TESCO the organization is required to perform welfare of community. If
violation is done then productivity is going to be impacted to greater extent.
No one tries harder for customers: In today's world profit is the main motive of every
organization. Value that is been designed by TESCO's management has made designing of goods
and services possible. This is helpful in guiding staff members to work hard for to attain benefits
within customers that are not in reach of organization (Nisa and et.al., 2019)
Use firm's scale for good: Values has to be farmed in direct and indirect manner fro
encouraging of team members for using resources in optimum manner possible. TESCO should
value and guide manger with co-workers form using of firm's scale for creating goodwill.
Firm treat people how they want to be treated: Value has been designed by TESCO
management which has been guiding to treat client by way of treating emotional bound with
product and services. Same treatment is to be provided by way of customers that has pull them
towards goods and services that forms customer base. Misguiding decreases market value
gradually.
Every little makes a big difference: This is not important for making attraction ODF
customer to TESCO because of its goods and services. Slight modification is to be created over
having variation in profitability, productivity, customer base and market ratio. TESCO boost for
making slight change chance of improving the number that makes decline of error.
Suggestions for improvements in corporate climate
The recommendation that has been given below is related to collection of primary data.
This is done by analysis of feedback, recommendation and suggestions that has been mentioned
below. TESCO's performance over various values that has been formulated by the top
management. In dynamic environment slight modification is required over values that designed
over years ago. It is helpful for an business administration that makes substantiating posible for

longer time period within 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 has to be focused over more on needs and demand that is being made by the
customers for this criteria of working is required to be changed. Potential skills of
employees turns ratio in tremendous manner possible.
 Small challenges in business is been working over premises that has created difference
which has lead to rise in conflict and makes unproductive to be increased (Ocansey,
2017).
 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 should be focused over society and community which impacts TESCO's
working over huge scale. Employees gets motivated and leads to uplifting of society to be
focused over attaining goal.
 In order to make clients demand to be fulfilled pressure also increases over daily basis ad
makes forming of negative working environment. That is impacting productivity level
over large scale.
 For coping up that risk factor of external environment should be having working style
and changing of value that makes negative image of brand in front of customers.
6. Discuss current organizational values of TESCO and propose a framework to accomplish
particular strategies and operational needs of the firm.
Values of an organization is refereed as those principals that is being followed by the
administration under each and every situation. Effective execution of these values is able to
assists staff members within an organization and make differentiation possible between wrong an
right that is going to impact the organization in drastic way. Designing of core values in TESCO
has helped in marking out that organization is working over right track or not. Under this
guidelines is been given that shows right despite of circumstances prevailing cut throat
competition in the market. Also the values is being executed within an organization that is
having priority for full-filling customers needs and wants by using of scale in effective manner,

over understanding customers taste over preference. Certain steps are there that has been
executing over values that has to be executed in the TESCO's working premises in order to
accomplish goals and objectives. A framework to attain specific strategies and operational needs
of the business enterprise are discussed below:
Strategy of McKinsey's Horizons is majorly focused over growth through innovation.
Framework is required to be distinguished over horizons that is explained as follows:
Horizon 1: Core Business
This includes of activities that is being closely presented over administration. Under this
horizon generation of revenue is immediate and also activities are categorised accordingly.
TESCO being a retailer store for operating globally (Plakhotnik, 2016). TESCO has to adopt
this framework in order to achieve goals. First horizon is related to better process in existence.
Horizon 2: Emerging opportunities
In this case emerging of opportunity is required to be garbed to make success expand to
generate revenue. TESCO has to conduct research over activities globally to capture
opportunities. Horizon 2 involves opportunities emerging within new market. Frame is to make
TESCO achieve its objectives.
Horizon 3: Blue Sky
As per the case particular business administration is required to get new directions. This
part of frame includes things like pilot, programmes, research project and makes significant of
improvement possible. This is helpful in maintaining standards of TESCO.
Mc Kinsey's Strategic horizon is one of the most important thing that makes appropriate
strategy through framework. This helps in assisting of enterprise to be focused over growth,
development and future revenue to be stream. Adopting is being made to turn organization
impulsive over revenue that has been presented in form of margin. The risk to TESCO is lack of
diversity and improves competitive activities.
7. Identification of internal and external factors of Tesco
The internal and external stakeholders of TESCO are explained as follows:
Internal Stakeholders: These are those internal part for the business by which desired
objective can be attained and assistance can be given to compete with intense competitive world.
This aspect includes directors, managers, investors, staff members and these are assisting Tesco
for setting prominent path for goal attainment. Internal stakeholders are providing direct and

indirect benefits to Tesco in attaining growth in marketplace. These stakeholders are providing
financial assistance to the business within each stage.
External Stakeholder: In every business organisation there are some situation which are
uncontrollable. External stakeholders are associated with suppliers, creditors, customers,
government and many more. These stakeholders are helping Tesco for smooth flow of attaining
their objective in clear and smooth manner (Rauter, Jonker and Baumgartner, 2017). These are
the major reason for enhancing productivity and probability as well. For controlling these
stakeholders Tesco is required to frame robust strategies so as to eliminate complexities from the
business.
Stakeholder mapping matrix: This is known as the process by which prominent
changes can be adopted by Tesco in which internal and external stakeholders can be analysed in
effective manner. Information are being collected by the company in respect of varied
stakeholders in order to address various policies. Stakeholder mapping matrix is having
prominent role in motivating stakeholders of the company which are having direct implications
form operations of the business. There are two variables which are existed in a business and
pertained with high implications, and these are power and interest. In order to understand
stakeholders matrix is explained as under:
High power and high interest: In this case, the stakeholders those are having high
power and high interest are investing in the project to maximum manner. Along with this best
results can be attained by the business in order to provide benefits to their stakeholder. This
aspect is covering investors those are having more power and interest within Tesco.
High power with low interest: In Tesco stakeholder of the organisation is keeping high
power and low interest. On the other hand in order to solve minute issues these stakeholders are
having prominent role in providing edge to the company.
Low power with high interest: This type of stakeholders are having low power and high
interest in the organisation by which high impact on the business is created by them. For Tesco
these stakeholders are rendering motivation to whole organisation in order to attain high
performance.
Low power with low interest: Tesco is having various stakeholders those stakeholders
which are having low power and low interest. This includes suppliers and those are affecting
time and project of the business.

8. Development of new communication strategies of stakeholders of Tesco
Tesco is having huge emphasis on face to face communication so for enhancing
communication for their stakeholders managers of the company are adopting various tactics in
order to attain productive results and enhance chances to survive in competitive environment. In
this context employees of Tesco are given freedom to share their ideas and thoughts with upper
level so that to bring innovation in business. This is helping the company in receiving immense
feedbacks by which any change can be adopted in error free manner (Rungruang and Sakolvieng,
2019). This assists them to share any prominent and important information without any
breakage. In order to attain edge over various competitors effective strategies are used by Tesco
and objectives of the company can be attained in effective manner. Tactics which can be used by
Tesco in order to address various issues which are associated with custom, values and many
more aspects are helpful for the company in attaining success. These are the actions which are
providing impact on sustainability and market acceptance so as to cover up cut throat
competition and receive a prominent edge as well. Stakeholders are associated with employees of
the company, their union labours, supplier, partners, consumers, investors, government. Local
community and many more. Communication strategy is a process which is used in order to
achieve various objective by taking communication as base and this is having high implications
on success and development of the company in marketplace. Tesco is having huge set of
stakeholder and they are pertained with different benefits in the company. Stakeholders are
persisted with different attitude and priorities by which they show clear communication and
interest in the company. Effective communication strategies are helping Tesco in making
efficient interaction with their stakeholder so as to make prominent policies which can update
their work process and create path of success as well. On the other hand effective communication
is helpful in making positive image of the company within stakeholder and marketplace. This is a
foremost reason by which positive attitudes can be built within market and leads Tesco to
capture more customer in order to attain distinct market image. Long term objectives can be
emphasised and attained with the help of effective communication as all the plans can be
conveyed to each and every involved party by which this is easy for them to cover up proposed
plan as well. There are some strategies which can be used by Tesco in making effective
communication with their stakeholder and the same are elaborated as under:
Stakeholders Communication Strategy

Employees With the help of personality development and training sessions
skills set and capabilities of employees can be enhanced and by
which positive implications can be drawn of their performance.
On the other hand employees are required to provide work life
balance and ease by which they can share any grievance in early
manner. Effective communication is helpful in team building by
which clarity over goal attainment can be obtained.
Labour unions Effective communication with labour union is helpful in
providing clear instructions by which any ambiguity can be
eliminated. Similarly conflicts can be avoided and this is helpful
in enhancing interest of labour in the organisation. Managers are
requisite to communicate with labour in direct manner so that to
avoid any conflicts and make easy flow of information as well.
Suppliers With the help of mails, telephone and newspapers suppliers can
be communicated. Quotations are required to be up to date
containing all the relevant information so that any purchasing
demand by Tesco can be refilled in easy and convenient manner.
Customers With the help of social media, telemarketing, advertisement
customers can be communicated and awareness can be created
within them as well. Customers are backbone for the company so
for Tesco communication is the key element which is required by
them to uphold so that to maintain relationship with them
(Winkelhake, 2018)
Business Partners By making arrangement of various presentations, meetings and
emails business partners can be communicated by Tesco so that to
make them ware regarding any proposed project and to receive
ample amount of investments.
Investors and shareholders Investors are the party those are investing in the company and
earning profits. In other dimensions these are the party which are
having direct interest in success of the company. Tesco is trying

to communicate with them by using emails and text messages so
that to maintain their trust and held appropriate relationship with
them.
Government authorities and
regulators
Government authorities are the dimension of stakeholders in
which tax liabilities are paid. For Tesco this is very essential that
they communicate with government bodies so that they can enjoy
any rebate which is suitable for them (Yamashita, 2018).
CONCLUSION
From the above discussion this can be concluded that value is an essential aspect which is
having huge role in business development. In order to survive in competitive world this is
imperative that all the dimensions of the business are undertaken in such a way that all of them
can contribute in business sustainability. There are some models which explains corporate
culture of the business such as OCAI model. Hofstede culture model and Handy's typology
model. These are helping an organisation in framing impactful strategies by which organisational
culture can be maintained. On the other hand by bifurcating national and organisational culture
prominent outcomes can be attained by the business and similarly this is obtaining positive
implications in attainment of overall objective of the business in limited time period. On the
contrary this is imperative that value of rival organisation is required to be examined so that
needs of the market customer can be recognised in effective manner. Internal and external
stakeholders are playing significant role in success and sustainability of an organisation by which
operations can be executed in smooth manner.

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